Planning
The process of setting objectives and determining how to accomplish them.
Objectives
Specific results usually expressed in measurable indices that someone wishes to achieve and may relate to the individual, a group or the whole organisation.
Planning
To set the direction:
- decide where you want to go
- decide the best way to go about it
Organising
To create structures
Leading
To inspire effort
Controlling
To ensure results:
- Measure performance
- take corrective action.
A plan
Is a statement of intended means for accomplishing objectives.
5 steps in the planning process
- Define your objectives
- Determine where you stand in relation to objectives
- Develop premises regarding future conditions
- Analyse and chose among alternative actions
- Implement the plan and evaluate the results.
SMART model
Is an approach to determining effective organisational objectives that requires that they be Specific, Measurable, Actionable, Reasonable and Timetabled.
Specific
Objectives need to be clearly defined so that it is easy to understand what us to be achieved and what will be considered successful.
Measurable
The exact measure must be stated and and the objective must be able to be measured through some means
Actionable
An organisation needs to ensure that its business-unit managers have the authority and resources to take the actions necessary to attempt to achieve the objectives that are set.
Reasonable
There is no point setting unrealistic objectives, they are a disincentive.
Timetabled
Objectives should have milestone dates or deadlines at which progress towards achieving them will be measured.
Short-range and long-range plans.
Short-range plans cover 1 year or less, intermediate plans cover 1 to 2 years and long-range plans look 3 or more years into the future.
- Top mgmt. tend to set long-range plans
- Lower mgmt. focus on intermediate and short-range plans.
Strategic plans
Define long term needs and set action directions for the organisation.
Tactical plans
Are developed and used to implement strategic plans.
Operational plans
What needs to be done in the short term to progress strategic objectives.
Typical operational plans in an organisation include:
Production plans Financial plans Facilities plans Marketing plans Human resource plans