Planning process
The planning process is a set of steps used to identify and implement the best course of action for an organization. It involves analyzing the current situation, setting objectives and strategies, and developing and implementing a plan of action.
Example of Planning process
The planning process for a new product launch is a set of steps used to identify and implement the best course of action for an organization. This process involves analyzing the current situation, setting objectives and strategies, and developing and implementing a plan of action.
- Analyzing the Current Situation: This involves gathering and analyzing data on the organization’s current performance, the external environment, and the potential market for the new product.
- Setting Objectives and Strategies: The objectives should be specific, measurable, attainable, realistic, and time-based. The strategies should include the approaches used to market and distribute the new product.
- Developing and Implementing a Plan of Action: This involves creating a timeline, assigning tasks, and determining resources and budgets. The plan of action should then include tasks such as design, production, and testing.
When to use Planning process
The planning process is most effective when used to identify and create solutions for long-term goals. It is best used to develop strategies and plans for addressing ongoing issues and problems, as well as to create objectives and action plans for the future. The planning process can also be used to set goals and objectives for short-term projects and tasks. Planning is an essential tool for organizations of all sizes to ensure they are taking the best course of action to reach their desired goals.
Types of Planning process
- Strategic Planning: Strategic planning involves setting a long-term direction for the organization. It involves analyzing the external environment and the organization’s internal strengths and weaknesses and setting objectives and strategies.
- Operational Planning: Operational planning involves setting short-term objectives and strategies. It focuses on the day-to-day operations of the organization and involves creating plans and budgets to ensure the organization meets its objectives.
- Tactical Planning: Tactical planning involves developing specific plans and tasks to achieve the organization’s goals. It involves creating detailed plans, assigning tasks, and determining resources and budgets.
In conclusion, there are three types of planning processes: strategic planning, operational planning, and tactical planning. Each of these processes involve different steps and focus on different objectives. Strategic planning involves setting a long-term direction, operational planning involves setting short-term objectives and strategies, and tactical planning involves developing specific plans and tasks.
Steps of Planning process
- Analyzing the Current Situation: The first step in the planning process is to analyze the current situation. This involves gathering and analyzing data on the organization’s current performance and the external environment.
- Setting Objectives and Strategies: The next step is to set objectives and strategies. Objectives should be specific, measurable, attainable, realistic, and time-based. Strategies are the broad approaches used to achieve the objectives.
- Developing and Implementing a Plan of Action: After objectives and strategies have been set, the organization needs to develop a plan of action. This involves creating a timeline, assigning tasks, and determining resources and budgets. The plan of action should then be implemented and monitored to ensure it is effective.
Advantages of Planning process
The planning process can provide several advantages for organizations, including:
- Improved Efficiency: Planning can help organizations identify and implement the most efficient and effective ways to achieve their objectives. This can help them reduce costs and increase profits.
- Better Decision-Making: Planning can also help organizations make better decisions. By analyzing the current situation and setting objectives and strategies, organizations can identify the most effective courses of action.
- Increased Motivation: Planning can also increase employee motivation. By providing employees with clear objectives and strategies, they are better able to understand how their work contributes to the organization’s overall success.
Limitations of Planning process
- Time: The planning process can be time-consuming, especially if done incorrectly. A good plan requires adequate time for research, analysis, and drafting and implementing the plan.
- Lack of Flexibility: Once a plan has been created and implemented, it can be difficult to change. This lack of flexibility can limit the effectiveness of a plan.
- Cost: Depending on the size and scope of the plan, it can be expensive to create and implement a plan.
- SWOT Analysis: SWOT analysis is a tool used to analyze the organization’s strengths, weaknesses, opportunities, and threats. It is used to identify potential risks and opportunities that may be present in the external environment.
- Goal-Setting: Goal-setting involves setting specific, measurable, attainable, realistic, and time-based goals. It is important to set goals that are meaningful and achievable in order to create a successful plan of action.
- Performance Evaluation: Performance evaluation is the process of assessing the progress of the organization towards its goals. It is important to monitor the progress of the plan of action to ensure it is achieving the desired results.
| Planning process — recommended articles |
| Short term planning — Strategic plan — Significance of strategy — Strategy of the organization — Strategic importance — Proactive strategy — Sales planning — Methodology for strategy definition — Strategic decision making |
References
- Dibrell, C., Craig, J. B., & Neubaum, D. O. (2014). Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance. Journal of Business Research, 67(9), 2000-2007.
