Levels of planning: Difference between revisions

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There are several '''levels of planning''', including:
* Strategic planning: This involves setting long-term goals and objectives for an organization, and determining the best course of action to achieve them.
* Tactical planning: This involves developing specific plans and actions to implement the strategic goals and objectives.
* Operational planning: This involves the day-to-day management and execution of plans and actions to achieve the tactical goals.
* Contingency planning: This involves developing plans and procedures to respond to unexpected events or emergencies that could disrupt operations.
* Emergency planning: This involves developing plans and procedures to respond to an imminent threat or crisis that could have a significant impact on an organization.


==Levels of planning in relation to organizational structure==
In a corporate structure, the levels of planning can be related to different functional areas and levels of management. These can include:
* Corporate-level planning: This involves setting overall strategic goals and objectives for the entire organization, and determining the best course of action to achieve them.
* Business-unit level planning: This involves developing specific plans and actions for individual business units or divisions within the organization to implement the corporate-level strategic goals.
* Functional-level planning: This involves developing plans and actions for individual functional areas within the organization, such as finance, marketing, or operations, to support the business-unit level goals.
* Operational-level planning: This involves the day-to-day management and execution of plans and actions to achieve the functional and business-unit level goals.
* Contingency and emergency planning: This involves developing plans and procedures to respond to unexpected events or emergencies that could disrupt operations, both at the corporate and functional levels.


==Levels of planning in relation to time horizon==
The levels of planning can also be related to different time horizons, such as:
* Long-term planning: This involves setting goals and objectives for a time horizon of several years or more, and determining the best course of action to achieve them.
* Medium-term planning: This involves developing specific plans and actions for a time horizon of one to three years to implement the long-term goals.
* Short-term planning: This involves developing specific plans and actions for a time horizon of one year or less to implement the medium-term goals.
* Operational planning: This involves the day-to-day management and execution of plans and actions to achieve the short-term goals.
* Contingency and emergency planning: This involves developing plans and procedures to respond to unexpected events or emergencies that could disrupt operations, regardless of the time horizon.


There are several '''levels of [[planning]]''' due to the time horizon:
It's worth noting that different organizations might have different time horizons for their planning, and the specific labels and time frames may vary.
* [[Strategic planning]], otherwise long-term, the development of which is estimated for more than 5 years
* Long-term planning, lasting from 2 to 5 years, are mainly tasks that foster some higher goal
* Medium-term planning, whose duration is usually estimated from several months to a year, is an auxiliary task in obtaining long-term goals
* Short-term planning otherwise operational, duration up to three months, are short, concise tasks that usually do not take much time
* Current planning, there are daily tasks or maximum occupations up to one week, mainly these are various types of meetings and basic tasks to be carried out during the day


We can also distinguish:
==Example structure of plans in a company==
* planning on corporate level (strategic planning)
The structure of plans in a company can vary depending on the organization's size, industry, and specific needs. However, a typical structure of plans in a company might include the following:
* [[departmental planning]] - on particular function or department
* Corporate-level plans: These plans set the overall strategic direction and goals for the entire organization, and may include a corporate mission statement, vision, values, and long-term strategic objectives.
* operational Planning - of basic business processes
* Business-unit level plans: These plans provide specific strategic direction and goals for individual business units or divisions within the organization, such as product lines, customer segments, or geographic regions.
* [[workplace]] planning - of tasks of particular [[employee]]
* Functional-level plans: These plans provide specific direction and goals for individual functional areas within the organization, such as finance, marketing, or operations.
* Operational plans: These plans describe the day-to-day activities and processes that will be used to achieve the strategic, business-unit, and functional-level goals.
* Contingency and emergency plans: These plans provide procedures and protocols for dealing with unexpected events or emergencies that may disrupt the normal operations of the organization.
* Project plans: These plans provide specific steps and actions to achieve specific goals within a specific time frame, usually for a one-time project or a specific initiative.


==Type of planning==
All of these plans should be aligned, and work together to achieve the organization's goals and objectives. The structure of plans can also be supported by policies, procedures, and guidelines that provide specific instructions and guidelines for employees to follow.


==Strategic, tactical, operational planning in detail==
Strategic, tactical, and operational planning are three different levels of planning that organizations use to achieve their goals and objectives.
* Strategic planning: Strategic planning is the process of setting long-term goals and objectives for an organization, and determining the best course of action to achieve them. This level of planning typically involves high-level decision-making and is focused on the overall direction and vision of the organization. It is often done by top management and stakeholders, and it can take into account both internal and external factors that may impact the organization's success.
* Tactical planning: Tactical planning is the process of developing specific plans and actions to implement the strategic goals and objectives. This level of planning is typically focused on a time horizon of one to three years and involves a more detailed analysis of the resources and capabilities needed to achieve the strategic goals. It is often done by middle management and is focused on the specific steps and actions that need to be taken to achieve the strategic goals.
* Operational planning: Operational planning is the process of the day-to-day management and execution of plans and actions to achieve the tactical goals. This level of planning is focused on the short-term and is often done by front-line managers and employees. It involves the management of resources, such as people, equipment, and materials, and the coordination of activities to achieve the tactical goals. This level of planning is often called "business as usual" and is focused on the day-to-day operations of the organization.


* '''operative''' - is the basic element of [[work]] [[organization]]. This type of planning includes a short term (for example month) and directly sets tasks for contractors of various level. There must be a strong relationship between operational planning and the current organization of the implementation of economic tasks.  Operational planning is often called current or executive planning.
{| class="wikitable"
* '''Strategic planning''' includes problems that require a longer period of resolution (for example a several years).The effects of actions in the strategic planning [[process]] are permament and difficult to reverse. Affects changes in the size of the business and structure. Strategic planning serves to achieve long-term goals.
|-
* '''[[Tactical planning]]''' - covers a wide range of activities of an economic. This planning applies to a period longer than operative [[planning]] (for example one year). Tactical [[plan]] is divided into:  a technical part (defining the cash outlays and the financial result of the activity),the financial part  (the postulated costs of obtaining income from business activity)<ref>A.A. Dzurik, D.A. Theriaque, (2003)</ref>.
! Level of Planning
! Time Horizon
! Focus
! Decision Makers
|-
| Strategic Planning
| Long-term (3+ years)
| Overall direction and vision of the organization
| Top management and stakeholders
|-
| Tactical Planning
| Medium-term (1-3 years)
| Specific steps and actions to achieve strategic goals
| Middle management
|-
| Operational Planning
| Short-term (Less than a year)
| Day-to-day operations and management of resources
| Front-line managers and employees
|}


It's worth noting that the levels of planning are not always distinct and separate, and there's often overlap and interaction between them. The main goal is to have a clear and aligned set of plans and actions that will help the organization achieve its goals and objectives.


==Methods  of planning==
==Contingency and emergency planning in detail==
 
Contingency and emergency planning are related but distinct types of planning that organizations use to prepare for and respond to unexpected events or emergencies.
'''Methods  of planning''' -  depending on the type of plan, the issues covered by the plan and the [[industry]] and the size of the business entity preparing the plan apply a variety of planning methods<ref>A.A. Dzurik, D.A. Theriaque, (2003)</ref>:
* Contingency planning: Contingency planning is the process of developing plans and procedures to respond to unexpected events or disruptions that could impact the normal operations of an organization. This type of planning is focused on identifying potential risks and vulnerabilities, and developing plans to mitigate or manage them. The goal of contingency planning is to minimize the impact of an unexpected event on the organization and its stakeholders, and to ensure a quick and efficient recovery.
* '''Bilans [[method]]''' -  it consists in compiling, in the form of a balance sheet, future [[needs]] for economic goods or services. The balance sheet method can determine the [[demand]] and sources of its coverage with respect to labor resources, materials and raw materials capacity.
* Emergency planning: Emergency planning is the process of developing plans and procedures to respond to an imminent threat or crisis that could have a significant impact on an organization. Emergency planning is focused on ensuring the safety and well-being of employees, customers, and other stakeholders, and on minimizing damage to the organization's assets and reputation. The goal of emergency planning is to minimize the impact of an emergency on the organization and its stakeholders, and to ensure a quick and efficient recovery.
* '''Proportion method''' includes two varieties:the extrapolation [[method]]  consists in adopting the current trends in the development, the constant proportion method is based on the assumption that the current relationship between two planning polygons does not change
* '''Simplex method''' - is used to find for an optimal solution for specific planned quantities (for example: [[production]] that gives the highest [[profit]] or the lowest consumption of production factors)
This method is often useful in planning single projects (production of new products, investment programming, planning renovaions)
 
 
==Local level planning==
 
During establishing a plan for a larger organization, it is important to separate plan and responsibility into smaller local units.
 
The main functions of level [[planning]]<ref>A.K. Pandey, (1990)</ref>:
 
* The overall [[plan]] should be adapted so that it can easily be divided into smaller area plans
* Plans at the lower levels should be arranged in such a way that after submission they are one
* To integrate and co-ordinate the multitude of lower level proposals into one conssistent local-level plan that is meeting the goals, objectives and targets from higher as well as lower levels, that can be implemented location of the development activities (horizontal linking)
* Planning at the local level is basically based on the premise that a local level plan would reflect as much will and community wisdom as possible, and people know better that "strangers" are their problems and how best to solve these problems using local resources.
 


Both contingency and emergency planning involve identifying potential risks and hazards, developing plans and procedures to respond to them, and conducting training and exercises to test and improve the plans. It also involves involving the right stakeholders, such as employees, customers, and other key partners, in the planning process.


==References==
==References==
Line 64: Line 92:
* Grenning, J. (2002). [http://www.renaissancesoftware.net/files/articles/PlanningPoker-v1.1.pdf Planning poker or how to avoid analysis paralysis while release planning]. Hawthorn Woods: Renaissance Software [[Consulting]], 3, 22-23.
* Grenning, J. (2002). [http://www.renaissancesoftware.net/files/articles/PlanningPoker-v1.1.pdf Planning poker or how to avoid analysis paralysis while release planning]. Hawthorn Woods: Renaissance Software [[Consulting]], 3, 22-23.
* Pandey, A.K., (1990). ''[https://books.google.pl/books?id=O6ysjs2IeeoC&printsec=frontcover&hl=pl&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false Local Level Planning and Rural Development]'', Mittal Publications.
* Pandey, A.K., (1990). ''[https://books.google.pl/books?id=O6ysjs2IeeoC&printsec=frontcover&hl=pl&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false Local Level Planning and Rural Development]'', Mittal Publications.
==Footnotes==
<references/>
{{a|Patrycja Garbacik}}


[[Category:Strategic management]]
[[Category:Strategic management]]

Revision as of 18:27, 24 January 2023

Levels of planning
See also

There are several levels of planning, including:

  • Strategic planning: This involves setting long-term goals and objectives for an organization, and determining the best course of action to achieve them.
  • Tactical planning: This involves developing specific plans and actions to implement the strategic goals and objectives.
  • Operational planning: This involves the day-to-day management and execution of plans and actions to achieve the tactical goals.
  • Contingency planning: This involves developing plans and procedures to respond to unexpected events or emergencies that could disrupt operations.
  • Emergency planning: This involves developing plans and procedures to respond to an imminent threat or crisis that could have a significant impact on an organization.

Levels of planning in relation to organizational structure

In a corporate structure, the levels of planning can be related to different functional areas and levels of management. These can include:

  • Corporate-level planning: This involves setting overall strategic goals and objectives for the entire organization, and determining the best course of action to achieve them.
  • Business-unit level planning: This involves developing specific plans and actions for individual business units or divisions within the organization to implement the corporate-level strategic goals.
  • Functional-level planning: This involves developing plans and actions for individual functional areas within the organization, such as finance, marketing, or operations, to support the business-unit level goals.
  • Operational-level planning: This involves the day-to-day management and execution of plans and actions to achieve the functional and business-unit level goals.
  • Contingency and emergency planning: This involves developing plans and procedures to respond to unexpected events or emergencies that could disrupt operations, both at the corporate and functional levels.

Levels of planning in relation to time horizon

The levels of planning can also be related to different time horizons, such as:

  • Long-term planning: This involves setting goals and objectives for a time horizon of several years or more, and determining the best course of action to achieve them.
  • Medium-term planning: This involves developing specific plans and actions for a time horizon of one to three years to implement the long-term goals.
  • Short-term planning: This involves developing specific plans and actions for a time horizon of one year or less to implement the medium-term goals.
  • Operational planning: This involves the day-to-day management and execution of plans and actions to achieve the short-term goals.
  • Contingency and emergency planning: This involves developing plans and procedures to respond to unexpected events or emergencies that could disrupt operations, regardless of the time horizon.

It's worth noting that different organizations might have different time horizons for their planning, and the specific labels and time frames may vary.

Example structure of plans in a company

The structure of plans in a company can vary depending on the organization's size, industry, and specific needs. However, a typical structure of plans in a company might include the following:

  • Corporate-level plans: These plans set the overall strategic direction and goals for the entire organization, and may include a corporate mission statement, vision, values, and long-term strategic objectives.
  • Business-unit level plans: These plans provide specific strategic direction and goals for individual business units or divisions within the organization, such as product lines, customer segments, or geographic regions.
  • Functional-level plans: These plans provide specific direction and goals for individual functional areas within the organization, such as finance, marketing, or operations.
  • Operational plans: These plans describe the day-to-day activities and processes that will be used to achieve the strategic, business-unit, and functional-level goals.
  • Contingency and emergency plans: These plans provide procedures and protocols for dealing with unexpected events or emergencies that may disrupt the normal operations of the organization.
  • Project plans: These plans provide specific steps and actions to achieve specific goals within a specific time frame, usually for a one-time project or a specific initiative.

All of these plans should be aligned, and work together to achieve the organization's goals and objectives. The structure of plans can also be supported by policies, procedures, and guidelines that provide specific instructions and guidelines for employees to follow.

Strategic, tactical, operational planning in detail

Strategic, tactical, and operational planning are three different levels of planning that organizations use to achieve their goals and objectives.

  • Strategic planning: Strategic planning is the process of setting long-term goals and objectives for an organization, and determining the best course of action to achieve them. This level of planning typically involves high-level decision-making and is focused on the overall direction and vision of the organization. It is often done by top management and stakeholders, and it can take into account both internal and external factors that may impact the organization's success.
  • Tactical planning: Tactical planning is the process of developing specific plans and actions to implement the strategic goals and objectives. This level of planning is typically focused on a time horizon of one to three years and involves a more detailed analysis of the resources and capabilities needed to achieve the strategic goals. It is often done by middle management and is focused on the specific steps and actions that need to be taken to achieve the strategic goals.
  • Operational planning: Operational planning is the process of the day-to-day management and execution of plans and actions to achieve the tactical goals. This level of planning is focused on the short-term and is often done by front-line managers and employees. It involves the management of resources, such as people, equipment, and materials, and the coordination of activities to achieve the tactical goals. This level of planning is often called "business as usual" and is focused on the day-to-day operations of the organization.
Level of Planning Time Horizon Focus Decision Makers
Strategic Planning Long-term (3+ years) Overall direction and vision of the organization Top management and stakeholders
Tactical Planning Medium-term (1-3 years) Specific steps and actions to achieve strategic goals Middle management
Operational Planning Short-term (Less than a year) Day-to-day operations and management of resources Front-line managers and employees

It's worth noting that the levels of planning are not always distinct and separate, and there's often overlap and interaction between them. The main goal is to have a clear and aligned set of plans and actions that will help the organization achieve its goals and objectives.

Contingency and emergency planning in detail

Contingency and emergency planning are related but distinct types of planning that organizations use to prepare for and respond to unexpected events or emergencies.

  • Contingency planning: Contingency planning is the process of developing plans and procedures to respond to unexpected events or disruptions that could impact the normal operations of an organization. This type of planning is focused on identifying potential risks and vulnerabilities, and developing plans to mitigate or manage them. The goal of contingency planning is to minimize the impact of an unexpected event on the organization and its stakeholders, and to ensure a quick and efficient recovery.
  • Emergency planning: Emergency planning is the process of developing plans and procedures to respond to an imminent threat or crisis that could have a significant impact on an organization. Emergency planning is focused on ensuring the safety and well-being of employees, customers, and other stakeholders, and on minimizing damage to the organization's assets and reputation. The goal of emergency planning is to minimize the impact of an emergency on the organization and its stakeholders, and to ensure a quick and efficient recovery.

Both contingency and emergency planning involve identifying potential risks and hazards, developing plans and procedures to respond to them, and conducting training and exercises to test and improve the plans. It also involves involving the right stakeholders, such as employees, customers, and other key partners, in the planning process.

References

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