Management Planning Deck

The Next Level Academy Management Planning Planning For Simbisa

Module Overview • Help you understand the meaning and purpose of planning • Get you to better manage by being able to plan • Make you understand the limitations of not planning This course is designed to :

WIFFM: WHAT’S IN IT FOR ME Objectives At the end of this module you will be able to: • Understand what planning is • Describe the features and importance of planning • Identify the different types of plans • Appreciate the steps in the planning process • Better understanding of the planning process • Grow the business through effective management • Become better at designing your desired future

The Essence Of Planning The government makes five year plans for the country, a small business has it’s own plans, while other companies have big plans, sales plans, production plans. All of them have some plans. All business firms would like to be successful, increase their sales and earn profits. All managers dream of these and strive to achieve their goals. But to turn these dreams into reality managers need to work hard in thinking about the future, in making business predictions and achieving targets. Dreams can be turned into reality only if business managers think in advance on what to do and how to do it.

So What Is Planning... • Planning is deciding in advance what to do and how to do. • It is setting objectives for a given time period, formulating various courses of action to achieve them, and then selecting the best possible alternative from among the various courses of action available.

Planning Planning seeks to bridge the gap between where we are and where we want to go. Planning is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Planning is closely connected with creativity and innovation. But the manager would first have to set objectives, only then will a manager know where he has to go. Objectives provide direction for all managerial decisions and actions. Planning is what managers at all levels do. It requires taking decisions since it involves making a choice from alternative courses of action.

1 Planning provides directions Importance Of Planning. Planning is certainly important as it tells us where to go, it provides direction and reduces the risk of uncertainty by preparing forecasts. The major benefits of planning are; By clearly stating in advance the goals and objectives so that they act as a guide for deciding what action should be taken and in which direction.

2 Planning reduces the risk of uncertainty Importance Of Planning. By enabling a manager to look ahead and anticipate changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events.

3 Planning reduces overlapping and wasteful activities Importance Of Planning. By clearly stating in advance the goals and objectives so that they act as a guide for deciding what action should be taken and in which direction

4 Planning promotes innovative ideas Importance Of Planning. Since planning is the first function of management, new ideas can take the shape of concrete plans. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business.

5 Planning is useful for teamwork Importance Of Planning. By giving a sense of direction and purpose and also a platform for communicating information goals are simplified. It helps by dividing responsibilities and building trust.

6 Planning facilitates decision making Importance Of Planning. Planning helps the manager to look into the future and make a choice from amongst various alternative courses of action. The manager has to evaluate each alternative and select the most viable proposition. Planning involves setting targets and predicting future conditions, thus helping in taking rational decisions.

7 Planning establishes standards for controlling Importance Of Planning. Planning involves setting of goals. The entire managerial process is concerned with accomplishing predetermined goals through planning, organising, staffing, directing and controlling. Planning provides the goals or standards against which actual performance is measured. By comparing actual performance with some standard, managers can know whether they have actually been able to attain the goals. If there is any deviation it can be corrected. Therefore, we can say that planning is a prerequisite for controlling. If there were no goals and standards, then finding deviations which are a part of controlling would not be possible. The nature of corrective action required depends upon the extent of deviations from the standard. Therefore, planning provides the basis of control.

Involves Decision Making Focuses on Achieving Objectives Primary Function of Management Continuous Process Pervasive Futuristic Features Of Planning Features Of Planning

Features Of Planning The planning function of the management has certain special features. These features throw light on its nature and scope. • Planning focuses on achieving objectives (Purposeful, Goal Oriented) • Planning is a primary function of management (Basis for other functions) • Planning is pervasive (Required at all levels) • Planning is continuous (Frame, Implement, Follow with another plan) • Planning is futuristic (Forecast, Anticipate) • Planning involves decision making (Choices, Alternatives) • Planning is a mental exercise (Application of mind, Intelligent Imagination)

Tactical Planning Strategic Planning Operational Planning Contingency Planning 1 2 3 4 Types Of Planning To implement a strategic plan: shoter term and more specific. Long range, broad goals. Creating very specific policies and procedures. Alternative actions for unusual or crisis situations.

Operational Planning • Operational plans are the plans which are formulated by the lower level management for short term periods of up to one year. They are concerned with the day to day operations of the organization. • It is detailed and specific and is usually based on past experiences. Operational plans are about how things need to happen. They are guidelines of how to accomplish the mission. • It is the day-to-day running of the company. Operational plans are often described as single use plans or ongoing plans. • Single use plans are created for events and activities with a single occurrence (such as a single marketing campaign). • Ongoing plans include policies for approaching problems, rules for specific regulations and procedures for a step-by-step process for accomplishing particular objectives.

Strategic Planning • Strategic plans are all about why things need to happen. It’s big picture, long-term thinking. It starts at the highest level with defining a mission and casting a vision. • It involves analysing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment • Strategic planning includes a high-level overview of the entire business. It’s the foundational basis of the organization and will dictate long-term decisions. • The scope of strategic planning can be anywhere from the next two years to the next 10 years. • Important components of a strategic plan are vision, mission and values.

Tactical Planning • Tactical plans are about what is going to happen. Focus is on the integration of various organizational units and ensuring implementation of strategic plans on day to day basis. • Basically at the tactical level, there are many focused, specific, and short-term plans, where the actual work is being done, that support the high-level strategic plans. • Tactical planning supports strategic planning. It includes tactics that the organization plans to use to achieve what’s outlined in the strategic plan. Often, the scope is less than one year and breaks down the strategic plan into actionable chunks. • Tactical planning is different from operational planning in that tactical plans ask specific questions about what needs to happen to accomplish a strategic goal; operational plans ask how the organization will generally do something to accomplish the company’s mission.

Contingency Planning • Contingency plans are made when something unexpected happens or when something needs to be changed. Business experts sometimes refer to these plans as a special type of planning. • Contingency planning can be helpful in circumstances that call for a change. Although managers should anticipate changes when engaged in any of the primary types of planning, contingency planning is essential in moments when changes can’t be foreseen. As the business world becomes more complicated, contingency planning becomes more important to engage in and understand.

Planning Process Idea Analyze Forecast Develop Implement Evaluate

Planning Process Planning is a complex process which requires high level of studies and analysis. To create a plan there must be determination of objectives and outlining of the course of action to achieve the goals. There is no set formula for planning. A planning process which is suitable for one kind of organization may not be suitable for another type of organization. However, we can take the following steps as the guideline to draw a plan:

Analysis of the environment: Setting the objectives: Planning Process Planning begins with the awareness of the opportunities in the external environment and within the organization. For this SWOT analysis is most suitable. Strength and weaknesses are the internal factors whereas opportunities and threats are the environmental factors which are to be analysed. The second step of planning is to set objectives and goals for the organization as a whole and for each department. Long term, as well as short-term plans, are to be created. Objectives are specified to each and every manager and department head. Objectives give direction to the major plans. So managers should have an opportunity to contribute their ideas for setting their own objectives and of the organization. 01 02

Develop premises: Determine and evaluate alternatives: Planning Process Planning premises are the assumptions about the future on the basis of which the plans will be ultimately formulated. Planning premises are the key to the success of planning as they supply pertinent facts and information regarding the future such as general economic conditions, production cost, and prices, probable competitive behaviour,governmental control etc. Forecasting is an essential part of premises The fourth step is to search and identify the alternative course of action. It suggests that a particular objective can be achieved through numerous ways. But the most relevant alternatives must be listed down so that selection is made easier. Once various alternatives are identified, they must be well analysed with their strong and weak points. 03 04

Planning Process • Selection of Best Alternative: This is the point where the certain plan is adopted. When the alternatives are determined most suitable alternative must be chosen out from the list which can give maximum output with minimum risk. • Formulation of a derivative plan: Derivative plans are the backing plans which are very essential. Once the basic plan has been formulated, it must be translated into day to day operation of the organization. Middle and low-level managers must draw up the appropriate plans, programs and budget for their sub-units.

Planning Process • Budget formulation: After decisions are made and plans are set the next step is giving them sufficient funds to carry them out. Optimum budgeting must be done for every course of action. • Implementation of a plan: Once the plans are set up, now the plans must be well informed and shared with the employees and managers expecting full commitment and trust. Finally, the plans must be carried out. • Follow up action: Obviously once a plan is carried out it generates certain output. The progress must be well monitored and managers need to check the progress of their plans so they can take necessary steps to improve the plans if needed.

Specific and simple Logical Complete and integrated Feasible Flexible A Good Plan Must Be:

Thank You!

Management Planning Deck