Nature and

Process of

Planning Rowen Remis R. Iral

2012 November 12

Organizational Management

Definition of Plan

Typically any diagram or list of steps with

timing and resources, used to achieve an

objective

Temporal set of intended actions which

one expects to achieve a goal.

Plans

Structured and formal plans

Informal or ad-hoc plans

Definition of Planning

Forethought

Forecasting

Steps in Planning Process

Goal Setting

Plans are means to achieve ends or

objectives

Objective – clear, specific and informative

Tools:

Mind map

SMART

Specific, Measurable, Attainable, Realistic, Time-

bound

Steps in Planning Process

Developing the planning premises

Assumptions and conditions must be clearly

defined

Tools:

Decision Table

Steps in Planning Process

Reviewing Limitations

Constraints or Limitations

Finance

Human Resources

Materials

Power

Machinery

Tool:

SWOT Analysis

Steps in Planning Process

Deciding the Planning Period

Too much planning can also cause delay

and overcautious actions

Steps in Planning Process

Formulation of Policies and Strategies

Alternative plans

Controlling activities in the future

Steps in Planning Process

Preparing Operating Plans

Operations plans / Basic Plan

Procedures

Programmers

Schedules

Budgets

Rules

Steps in Planning Process

Integration of Plans

Different plans must support each other

Sequence and alternatives

Reviewing and revising plans

Communication of plans

SWOT Analysis

The most renowned tool for audit and

analysis of the overall strategic position of

the business and its environment. Its key

purpose is to identify the strategies that

will create a firm specific business model

that will best align an organization’s

resources and capabilities.

Internal Analysis

Strengths

Qualities that enable to accomplish the

organization’s mission

Weaknesses

Qualities that prevents from accomplishing

mission and achieving company’s full

potential

External Analysis

Opportunities

Competitive advantage

Threats

Competition

Survivality

Common Planning

Problems

Agreement on definitions and

terminology.

Needs accurate information and correct

assumptions.

High standards of planning for complex

organization

Strategy

Plan of action designed to achieve a

specific goal.

Gaining or being prepared to gain a

position of advantage over adversaries or

best exploiting emerging possibilities

Strategic Planning Process

Mission & Objectives

Environmental Scanning

Strategy Formulation

Strategy Implementation

Evaluation and Control

Environmental Scan

Internal Analysis of the Firm

Analysis of the firm’s industry (task

environment)

External Macroenvironment (PEST/STEP)

Political

Economic

Social

Technological

Planning Types

Strategic Planning

Business Planning

Financial Planning

Questions?

Thank you.

Rowen Remis R. Iral

IT Engineer

Technology, Management, Strategy

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