Planning

Planning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. As such, it is a fundamental property of intelligent behavior. This thought process is essential to the creation and refinement of a plan, or integration of it with other plans, that is, it combines forecasting of developments with the preparation of scenarios of how to react to them. An important, albeit often ignored aspect of planning, is the relationship it holds with forecasting. Forecasting can be described as predicting what the future will look like, whereas planning predicts what the future should look like.[1] The term is also used for describing the formal procedures used in such an endeavor, such as the creation of documents, diagrams, or meetings to discuss the important issues to be addressed, the objectives to be met, and the strategy to be followed. Beyond this, planning has a different meaning depending on the political or economic context in which it is used. Two attitudes to planning need to be held in tension: on the one hand we need to be prepared for what may lie ahead, which may mean contingencies and flexible processes. On the other hand, our future is shaped by consequences of our own planning and actions.

Overview
Planning is a process for accomplishing purposes. It is a blue print of business growth and a road map of development. It helps in deciding objectives both in quantitative and qualitative terms. It is setting of goals on the basis of objectives and keeping in the resources. [edit]What

should a plan be?

A plan should be a realistic view of the expectations. Depending upon the activities, a plan can be long range, intermediate range or short range. It is the framework within which it must operate. For management seeking external support, the plan is the most important document and key to growth. Preparation of a comprehensive plan will not guarantee success, but lack of a sound plan will almost certainly ensure failure. Planning - a result-oriented process - can be summarized in 3 easy steps: 1. choosing a destination, 2. evaluating alternative routes, and 3. deciding the specific course of your plan.[2] [edit]Purpose

of a plan

Just as no two organizations are alike, so also their plans. It is therefore important to prepare a plan keeping in view the necessities of the enterprise. A plan is an important aspect of business. It serves the following three critical functions:    Helps management to clarify, focus, and research their business's or project's development and prospects. Provides a considered and logical framework within which a business can develop and pursue business strategies over the next three to five years. Offers a benchmark against which actual performance can be measured and reviewed.

[edit]Importance

of the planning process

A plan can play a vital role in helping to avoid mistakes or recognize hidden opportunities. Preparing a satisfactory plan of the organization is essential. The planning know the business and that they have thought through its development in terms of products, management, finances, and most importantly, markets and competition. Planning helps in forecasting the future, makes the future visible to some extent. It bridges between where we are and where we want to go. Planning is looking ahead.

Objectives and policies

[edit]The

objectives

The objectives are general parts of the planning process. They are the end-results towards which all business activities are directed. They are needed in every aspect where performance and result directly and vitally affect the survival and success of the firm. In other words, the objective of the firm justifies its existence. Newman and Summer stated that "For managerial purposes, it is useful to think of objectives as the results we want to achieve. Objective covers firm's long-range plans specific departmental goals and short-term individual assignment also". [edit]The

policies

Policies are specific guidelines and constraints for managerial thinking on decision-making and action. Policies provide the framework within which decision-makers are expected to operate while making organizational decisions. They are the basic guides to be consistent in decision-making. [edit]Planning

basics
of planning

[edit]Essentials

Planning is not done off hand. It is prepared after careful and extensive research. For a comprehensive business plan, management has to: Clearly define the target/goal in writing. It should be set by a person having authority. The goal should be realistic, specific, acceptable to the organization, and easily measurable. Identify all the main issues which need to be addressed. Review past performance. Decide budgetary requirement. Focus on matters of strategic importance. What are requirements and how will they be met? What will be the likely length of the plan and its structure? Identify shortcomings in the concept and gaps. Strategies for implementation. Review periodically. Define strategies and activities.