Short term planning
| Short term planning |
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Short term planning is the process of developing a plan of action with a defined timeline of less than one year. It involves analyzing the present situation, setting goals and objectives, and creating a strategy to achieve those goals. It is important to have a short-term plan in place in order to stay focused, motivated and on track to achieving your long-term goals.
The steps involved in short-term planning include:
- Analyzing the present situation: This involves understanding the current position of the organization and analyzing the current resources, capabilities, and limitations.
- Setting goals and objectives: This involves determining what needs to be achieved in the short-term and defining the desired outcome.
- Creating a strategy: This involves developing a plan of action and outlining the steps needed to achieve the set goals and objectives.
- Implementing the plan: This involves executing the plan and monitoring progress to ensure that the desired outcome is achieved.
Example of Short term planning
A good example of short-term planning is when a company sets a goal of increasing profits by 10% in the next six months. The steps involved in this process would include analyzing the current market situation, setting a goal of increasing profits by 10% over the next six months, creating a strategy to achieve this goal such as introducing new products and services, increasing marketing efforts, and reducing costs, and then implementing the plan by carrying out the necessary steps. Finally, the company would monitor the progress and make any necessary adjustments to ensure that the goal is achieved.
When to use Short term planning
Short-term planning is best used for goals that can be achieved in a short period of time (less than one year). Examples of such goals can include:
- Increasing sales by a certain percentage
- Introducing a new product line
- Achieving a certain level of customer satisfaction
- Reducing costs by a certain percentage
Types of Short term planning
- Financial Planning: This involves budgeting, forecasting, and cost control. It is important to ensure that financial resources are used effectively in order to achieve the set goals and objectives.
- Marketing Planning: This involves the development of marketing strategies and plans that are designed to generate revenue or increase brand awareness.
- Operational Planning: This involves developing plans and strategies to ensure that operations run smoothly and efficiently. It includes developing procedures, workflows, and policies.
Steps of Short term planning
involve analyzing the present situation, setting goals and objectives, and creating a strategy to achieve those goals. This process helps to ensure that resources are used efficiently and that goals are achieved in the most effective and timely manner. Analyzing the present situation involves understanding the current position of the organization and analyzing the current resources, capabilities, and limitations. Setting goals and objectives involves determining what needs to be achieved in the short-term and defining the desired outcome. Creating a strategy involves developing a plan of action and outlining the steps needed to achieve the set goals and objectives. Implementing the plan involves executing the plan and monitoring progress to ensure that the desired outcome is achieved. Short-term planning is essential for achieving long-term goals and is an important part of any successful business plan.
Advantages of Short term planning
- Improved efficiency: Short-term planning helps to ensure that resources are used effectively and efficiently, thus improving the overall efficiency of the organization.
- Increased motivation: Short-term planning helps to keep employees focused and motivated, thus increasing the chances of them achieving their goals.
- Improved performance: Short-term planning helps to ensure that goals are achieved in the most effective and timely manner, thus improving the overall performance of the organization.
Limitations of Short term planning
- Time constraints: Short-term planning can be limited by the amount of time available. When time is limited, personnel may not have enough time to fully consider all aspects of the plan, which can lead to inadequate or incomplete plans.
- Lack of resources: Short-term planning may also be limited by the amount of resources available. If resources are limited, personnel may not have the necessary tools and equipment needed to implement the plan.
- Uncertainty: Short-term planning can also be limited by uncertainty. There may be unexpected events or changes in the environment that can affect the implementation of the plan, resulting in a lack of control over the outcome.
- Brainstorming: This is a creative approach to problem-solving and involves generating ideas and solutions through a group discussion.
- SWOT Analysis: This is a technique used to identify and analyze the strengths, weaknesses, opportunities and threats of an organization.
- Risk Management: This is the process of identifying, assessing and mitigating risks which may arise during the course of a project.
Suggested literature
- Blom, M., Pearce, A. R., & Stuckey, P. J. (2019). Short-term planning for open pit mines: a review. International Journal of Mining, Reclamation and Environment, 33(5), 318-339.
- Gelareh, S., & Meng, Q. (2010). A novel modeling approach for the fleet deployment problem within a short-term planning horizon. Transportation Research Part E: Logistics and Transportation Review, 46(1), 76-89.
