Bicol University College of Management The Fundamentals of Planning Reporter: Christian E.

Rivero Summer Sy 2012-13

What is planning? There are several definitions as to the term planning, namely: 1. A basic management function involving formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. The planning process (1) identifies the goals or objectives to be achieved, (2) formulates strategies to achieve them, (3) arranges or creates the means required, and (4) implements, directs, and monitors all steps in their proper sequence.1 In short, it means working out where you want to go and developing a possible sequence of events that will get you there. In substance, it means that plans are nothing; while planning is everything. Planning is the pre-requisite to achieve success; after all, it is a complicated world. It determines opportunities, course of action, utilization of resources, proceed in organized manner. As to the nature of planning, it is considered as the most important function of management; it is link with all other functions of management; pervasive in management. As outlined these are the functions of a managers: Planning; Staffing; Organizing; Leading; Controlling. Conversely, what are the benefits of planning? It brings orderliness; Avoids confusion; Results to better management of resources; Cuts waste. There are different types of plans: Short term, medium term, long term; single use; standing plan; non-programmed, programmed, specific plans. What are the cornerstones of planning? These are objectives and goals of the company. Objective is the desired outcome while goal-desired out- come for an individual. Also there are stated objective which are often made in public and real objective which is defined by management or also known as the real objective. Traditional objective is the Top to bottom approach wherein managers lay out the plans of the company to trickle down to the rank and file. What are the components of the plans would depend on the organization. Basis of planning is on sound information based on realistic and knowledgeable estimates of future facts aka FORECAST. One example is the Delphi Technique developed by RAND. This is where poll expert on various questions, no need to meet face to face, simply ask them regarding their respective opinions. Another is Scenario Writing wherein a hypothetical story is conceptualized which is triggered by a specific event. Normally this is done computer Simulation similar to Sim City. It must be noted that there are limitations of forecasting such as equations do not behave as they should. As such, for planners they make allowance to unforeseen events or opportunities ei Texting. Strategic and Operational Planning for Planning
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http://www.businessdictionary.com/definition/planning.html#ixzz2RiPX6BTC

What is a strategic plan? What is an operational plan? Strategic planning is the process through which an organization defines its strategy, direction as well as make decisions to allocate its resources. On the other hand, Operational planning is a subset of strategic work plan. It defines the short term methods of achieving the strategic objectives set while strategic planning is done. Strategic planning spans over a long time periods usually 5 to 10 years or so. On the other hand, operational planning are dependent on the current requirements. It is not etched on the stone type of plan. They are relative short term in nature, usually an annual plan. (source Wikipedia) Why do we put so much effort into Operational planning? First the definition of Operational planning is that translates that strategy into the everyday execution tactics that will ultimately produce the outcomes defined by the strategy. Simply stated, operational planning is the conversion of strategic goals into managed execution. How do we plan strategically? We use the following techniques: A team approach SWOT Client input Real priorities Important objectives Clearly focused strategies Realistic actions Monitoring progress Using indicators The Strategic Planning Framework A step by step Planning Orientation

What is strategic directions? It provides the basis for all other planning. It is intended to convey to stakeholders the thrust and nature of the Company.. Operational Plans should ffocus on strategies, programs, activities or actions that will give effect to the Strategic Directions and the Company wide strategies. In substance, planning is essential to the management of a company. The quality of the direction of the company is dictated by the quality of planning the company undertakes. Without planning, the company is often like a rudderless boat, without any set direction, often at the mercy of the waves. Planning is a skill that has to be developed. Resources of the company have to be poured so that planning is anchored on the reality and prospects.

Nonetheless, after the planning, the other challenge is the implementation; often the quality of planning if not implemented remains just thatmere plans.

Below is an example of an Operational Plan