Planning

•Planning is the primary function of management

and occupies the first position in the
management process.
• It is the starting point of the whole
management process as other management
functions are related to planning function.
•Planning, in simple words, means to decide the
objectives clearly and to prepare a plan.
Thereafter to take suitable steps for the
execution of the plan.
•Planning function is performed by managers at
all levels.
• Planning is, now, universally accepted as a
key/passport to success, progress and prosperity in
business as well as in all other aspects of life. 

• In planning, various business problems are studied,

decisions are taken regarding the future course of
action and business activities are adjusted accordingly.
Thus, planning means deciding in advance the
objectives to be achieved and preparing
plans/programmes for achieving them. In other words,
planning is the process of foreseeing desired
objectives - anticipating problems and developing
solutions. It serves as a core of the whole
management process.
 Definitions
• According to Koontz and O'Donnell, "Planning is deciding in advance
what to do, how to do it, when to do it, and who is to do it. Planning
bridges the gap between where we are and where we want to go. It
makes it possible for things to occur which would not otherwise
happen”.
• According to George R Terry, "Planning is the selecting and relating of
facts and the making and using of assumptions regarding the future in
the visualization and formulation of purposed activities believed
necessary to achieve desired results".
• According to Philip Kotler, "Planning is deciding in the present what to
do in the future. It is the process whereby companies reconcile their
resources with their objectives and opportunities"
Need of Planning
• Planning is needed for survival and growth of a business unit
in an orderly manner.
• Planning is needed in order to face new problems/difficulties
developed due to growth of markets, market competition,
changes in consumer expectations and so on.
• Planning is needed in order to face challenges created by
changing environmental factors/forces.
• Planning is needed as it acts as a pre-requisite to good
management. It is needed as it is the core of the whole
management process.
• Planning is needed in order to achieve the objectives
decided by the management. It is also needed as it ensures
accuracy, economy and operational efficiency in busin6s
management.
Objectives of planning
• To set the objectives-Planning start with setting
objectives. objectives are defined in a meaningful
and technical terms so that managerial actions are
possible
• Focus on meaningful activities- chances of
unproductive activities are reduced
• To economize time, effort and resources- keeps the
whole process in order
• To maintain coordination- with help of plans
departments works in harmony
• To reduce risk and uncertainty- there is always
alternatives in good plan
• To ensure proper control- there is scope to
lay down methods of performance evaluation
against laid down standards.
• To achieve organizational effectiveness
• Planning promotes creativity
• To improve efficiency
Advantages of Planning
• Facilitates quick achievement of objectives:
• Brings unity of purpose and direction:
• Ensures full utilization of resources:
• Avoids inconsistency in efforts:
• Raises competitive capacity/strength:
• Promotes managerial efficiency:
• Avoids hasty decisions and actions:
• Ensures effective control on the Organization:
• Acts as insurance against future uncertainties:
• Facilitates other managerial functions:
• Improves motivation:
Limitations of Planning

• Time-consuming and costly:

• Ineffective due to environmental changes:
• Dangers of unreliable data:
• Encroachment on individual freedom and initiative:
• Delays actions
• Unsuitable to small firms:
• Limited practical value:
• Generates frustration:
• Involves huge paper work
• Danger of overdoing:
• No guarantee of expected results:
 Principles of planning

• 1) The Principle of Passion

• 2) The Principle of Creativity
• 3) The Principle of Influence
• 4) The Principle of Priorities
• 5) The Principle of Flexibility
• 6) The Principle of Timing
• 7) The Principle of Teamwork.
• 8.Planning should be based on clearly defined
objectives
• 9.Must be precise in its scope and nature
• 10.Should be a continuous process
• 11.Must be simple and concise
• 12.Should be balanced
• 13.Provision should be made to use all available
resources
• 14.Must be documented
  Steps in Planning Process
Planning is a lengthy process which moves gradually and step by step
approach is usually adopted.
Classifying the problems:
• The planning process starts with clear understanding and classifying
problems faced by a unit.
• Identification of problems or opportunities by managers justifies the
need for action. It is like the diagnosis of the health problem of a patient
by his doctor.
• Planners have to understand the problems of the Organisation first and,
then, prepare a plan to deal with the problems in the light of the
prevailing business environment.
Determining the objectives:
• In this second stage in the planning process, the planners
decide the overall objectives to be achieved. Planning is always
for achieving certain well defined objectives and naturally
objectives must be spelt out precisely.
• objectives should be practical, acceptable, workable and
achievable
• Objectives may be defined in quantitative or qualitative terms.
• As far as possible, objectives should be stated in quantitative
terms. For example, Number of men working, wages given,
units produced, etc.
• An objectivewhich cannot be stated in quantitative terms like
performance of quality control manager, effectiveness of
personnel manager it should be specified in qualitative
terms.
Collecting complete information and data:
• The planners have to collect information relating to problems facing the
business unit. Such information is necessary and useful for analyzing the
problems in depth and also for accuracy in planning.
• Information can be collected from internal and external sources.
• Reliable, updated and adequate data make planning process result-
oriented.
Analyzing and classifying the information:
• At this stage, the information collected is analyzed and interpreted
systematically for drawing specific conclusions.
• This facilitates purposeful use of information, while preparing alternative
plans.
• Irrelevant information can be discarded through such analysis.
Determining alternative plans:
• Here, the planners prepare and keep ready alternative plans suitable for
use under different situations
• The best among the available alternative plans is used for actual
execution.
• The preparation of alternative plans is essential as one plan is normally
not adequate under all types of situations. It is a type of stand-by
arrangement useful for meeting any emergency situation.
Establishing planning premises:
• Planning premises are the assumptions about the lively shape of
events in future.
• They serve as a basis of planning.
• Establishment of planning premises is concerned with
determining where one tends to deviate from the actual plans
and causes of such deviations.
• It is to find out what obstacles are there in the way of business
during the course of operations.
• Establishment of planning premises is concerned to take such
steps that avoids these obstacles to a great extent.
• Planning premises may be internal or external. Internal includes
capital investment policy, management labour relations,
philosophy of management, etc. Whereas external includes
socio- economic, political and economical changes.
• Internal premises are controllable whereas external are non-
controllable.
• Selecting operating plan and preparing derivative plans: After study of the
business environment and the alternative plans available, the planners
select the best plan for actual execution. This decision is a delicate one and
must be made with proper care. After the selection of operating plan, the
planners have to prepare derivative plans. Such plans are related to
different departments/activities and constitute sub-sections of the
operating plan. The division of overall plan into derivative plans is
necessary for effective execution.
• Arranging timing and sequence of operations: Timing involves fixation of
starting and finishing time for each job or piece of work. Sequence of
operations ensures proper flow of work. This step in planning process is
important as it brings coordination in the activities of different
departments. The timings and sequence of operations must be
communicated to concerned departments, managers and staff for
implementation of the plan.
• Securing participation of employees: Planning needs willing participation
of all employees and departments. For this, information regarding the
operative plan should be given to employees well in advance. Here, the
internal communication system should be used extensively. For such
participation, employees should be associated with the planning
process.
• Follow-up of the proposed plan: The purpose of follow-up is to make
periodical review of the execution process. It is useful for understanding
actual progress and deficiencies in the process of execution of the plan.
This also facilitates adoption of suitable remedial measures as and when
required.
Components of sound organizational
planning
• A written statement of purpose and objectives of nursing service
• A plan of organization/organization chart
• Development of Policies and administrative manuals
• Setting of nursing standards
• Nursing procedure manual
• Nursing service budget
• Master rotation PLAN
• PLANS FOR PERFORMANCE APPRAISAL
• Administrative meetings
• Adequate facilities, supplies and equipments
• Written job descriptions and job specifications
• Personnel records
• Plan for inservice educationinterdisciplinary meetings
 Types of plans and planning.

• Strategic planning 
• Tactical planning is intermediate-range (one to three years) planning
that is designed to develop relatively concrete and specific means to
implement the strategic plan. Middle-level managers often engage in
tactical planning.
• Operational planning generally assumes the existence of organization-
wide or subunit goals and objectives and specifies ways to achieve them.
Operational planning is short-range (less than a year) planning designed
to develop specific action steps supporting strategic and tactical plans.
• Long term and short term plan
• Proactive and reactive planning
• Formal and informal planning
• Management/corporate and functional planning
Strategic plan
 Strategic planning
• Involves analyzing 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 has a long time frame, often three years or more.
• Strategic planning generally includes the entire organization and includes
formulation of objectives.
• Strategic planning is often based on the organization’s mission, which is its
fundamental reason for existence.
• Top-level managers, such as CEOs or presidents, will design and
execute strategic plans.
• Essentially, strategic plans look ahead to where the organization
wants to be in three, five, even ten years.
• Strategic plans, provided by top-level managers, serve as the
framework for lower-level planning.
• Simply put, strategic planning determines where an organization is
going over the next year or more and how it's going to get there.
Typically, the process is organization-wide, or focused on a major
function such as a division, department or other major function.
Strategic planning process
1. Collect information
Where Are You Now?
• In this step we take a look at the two major drivers of strategic planning:
stuff that is happening now or, stuff we think is about to happen to our
business.
• So, in step one we get clear on the problems, challenges and future
dangers facing your business. Then we narrow them down to those that
will create the most impact.
What is the mission
• Define the mission of your organization
• Then you should develop value statements expressing your core beliefs
regarding issues such as patient care, interaction with the community,
and how members of the practice work together.
• In the framework of a traditional strategic plan, the mission statement is
concisely expressed in not more than one or two sentences, with value
statements articulated separately
What’s The Vision / WHERE DO YOU WANT TO GO?

• While problems and challenges drive the need for strategic thinking, it
is vision that drives the rest of the strategy process.
• Nothing happens until you have a vision. The more clear and compelling
your vision, the more powerful and imaginative your strategy will be.
• The vision you craft in this step will act as the “North Star” to the rest of
your strategic planning process.
• Your vision should include tangible targets like revenue goals, market
share goals, etc.; as well as intangibles like values, culture and purpose.
2. Assessing the situation/ SWOT
ANALYSIS
• The SWOT analysis—an assessment of the strengths, weaknesses,
opportunities, and threats of your practice—is a staple of strategic
planning. This analysis uses a mix of quantitative and qualitative
information.
• The process for gathering information and performing a SWOT
analysis varies greatly, and there is no single correct method. The size
of the group, the frequency of strategic planning meetings, and how
fast changes are taking place both nationally and locally are all
significant factors affecting the process.
Internal Assessment: Strengths and Weaknesses
Strengths - Strengths are the qualities that enable us to
accomplish the organization’s mission. These are the basis on
which continued success can be made and continued/sustained.
•Strengths can be either tangible or intangible. These are what you
are well-versed in or what you have expertise in, the traits and
qualities your employees possess (individually and as a team) and
the distinct features that give your organization its consistency.
•Strengths are the beneficial aspects of the organization or the
capabilities of an organization, which includes human
competencies, process capabilities, financial resources, products
and services, customer goodwill and brand loyalty. Examples of
organizational strengths are huge financial resources, broad
product line, no debt, committed employees, etc.
• Weaknesses - Weaknesses are the qualities that prevent
us from accomplishing our mission and achieving our full
potential. These weaknesses deteriorate influences on
the organizational success and growth.
• Weaknesses in an organization may be depreciating
machinery, insufficient research and development
facilities, narrow product range, poor decision-making,
etc.
• Weaknesses are controllable. They must be minimized
and eliminated. For instance - to overcome obsolete
machinery, new machinery can be purchased. Other
examples of organizational weaknesses are huge debts,
high employee turnover, complex decision making
process, narrow product range, large wastage of raw
materials, etc.
External Assessment: Opportunities and Threats
• Data about the marketplace of the practice, such as demographics,
economic trends, referral patterns, and competition, should be analyzed
in light of whether they represent threats or opportunities. In addition
to the local picture, the broader environment, including the regional
health care system and approaching changes in reimbursement and
regulation, should also be assessed.
• Opportunities - Opportunities are presented by the environment within
which our organization operates. These arise when an organization can
take benefit of conditions in its environment to plan and execute
strategies that enable it to become more profitable. Organizations can
gain competitive advantage by making use of opportunities.
• Organization should be careful and recognize the opportunities and
grasp them whenever they arise. Selecting the targets that will best
serve the clients while getting desired results is a difficult task.
Opportunities may arise from market, competition,
industry/government and technology.
• Threats - Threats arise when conditions in external environment
jeopardize the reliability and profitability of the organization’s
business. They compound the vulnerability when they relate to the
weaknesses.
• Threats are uncontrollable. When a threat comes, the stability and
survival can be at stake. Examples of threats are - unrest among
employees; ever changing technology; increasing competition leading
to excess capacity, price wars and reducing industry profits; etc.
3. Development of a SWOT matrix

• The hospital’s expert panel would complete a separate SWOT matrix

for each alternative. Step 4 involves incorporating the SWOT analysis
into the decision-making process to determine which business
alternative best meets the organization’s overall strategic plan.
Advantages of SWOT Analysis

• SWOT Analysis is instrumental in strategy

formulation and selection. It is a strong tool,
but it involves a great subjective element. It
is best when used as a guide, and not as a
prescription. Successful businesses build on
their strengths, correct their weakness and
protect against internal weaknesses and
external threats. They also keep a watch on
their overall business environment and
recognize and exploit new opportunities
faster than its competitors.
SWOT Analysis helps in strategic planning in following
manner-
• It is a source of information for strategic planning.
• Builds organization’s strengths.
• Reverse its weaknesses.
• Maximize its response to opportunities.
• Overcome organization’s threats.
• It helps in identifying core competencies of the firm.
• It helps in setting of objectives for strategic planning.
• It helps in knowing past, present and future so that by
using past and current data, future plans can be
chalked out.
Limitations of SWOT Analysis

• SWOT Analysis is not free from its limitations. It may cause organizations
to view circumstances as very simple because of which the organizations
might overlook certain key strategic contact which may occur. Moreover,
categorizing aspects as strengths, weaknesses, opportunities and threats
might be very subjective as there is great degree of uncertainty in
market. SWOT Analysis does stress upon the significance of these four
aspects, but it does not tell how an organization can identify these
aspects for itself.
There are certain limitations of SWOT Analysis which are not in control of
management. These include-
• Price increase;
• Inputs/raw materials;
• Government legislation;
• Economic environment;
• Searching a new market for the product which is not having overseas
market due to import restrictions; etc.
• Internal limitations may include-Insufficient research and development
facilities;
• Faulty products due to poor quality control;
• Poor industrial relations;
• Lack of skilled and efficient labour; etc
4.Review our resource?
• Only after you know what the dangers are, what your vision for the
future is, and what’s standing in the way are we ready to look at our
resources.
• We are looking for two major elements: What resources we have to help
us achieve our vision, and what resources we need.
5.What’s our strategy?
• Strategy exists to serve a vision.
• Strategy answers the question, “How do we get there?”
• During this step you’ll take a look at your resources, mix in some
imagination, and create a path around, under, or over your obstacles to
take you to your vision in the fastest way possible.
• Determine objectives
• Decide strategies
• Decide long term and short term plans
• Develop operational plans
• Be alert to the pitfalls of discussing operational issues and trying to
decide on tactics instead of identifying strategies. For example, a
strategic decision may be to go forward with implementing an
electronic medical record system, but the strategic planning meeting
is not the place to discuss available systems, preferred data fields, or
training required. Managing these kinds of details will be the
responsibility of individuals assigned in the action plan
6.Review strategies
Principles of strategic planning

• Successful strategic plan should lead to action

• It should build on a shared vision that is valued vision
• It should be an inclusive, participatory process
• It accepts accountability to society
• It is sw-ensitive to the organizations environment
• It is based on quality data
• It is key part of effective management
Advantages /Benefits of strategic planning

•    Clarity amongst chaos 

•    Operating in vision, not circumstances 
•    Employee motivation and engagement 
•    Transformational leadership and accountability 
•    Organizational collaboration
• Clarity amongst chaos
During periods of dynamic environmental change like we are
experiencing today, it is easy for an organization and its people to
become bewildered and confused.
• Employees, physicians and other stakeholders want to know the
organization has a bright future and what that will look like once the
vision is achieved. In other words, they want to know where the
organization is going and how it will get there. 

An effectively developed and executed strategic plan can provide

needed clarity amongst the chaos. A strategic plan should articulate key
strategic issues, and provide a roadmap to the organization's vision for
the future, as well as a game plan to get there.
• Operating in vision, not circumstances

Just as individuals must confront challenges, every organization must

deal with forces and circumstances of all kinds.
• Consequently, leaders who live in circumstances and not vision will
prevent the organization from believing in an achievable future state or
vision.
• A strategic plan and well-articulated vision that is properly developed,
executed and communicated can elevate an organization above its
circumstances and connect it and its people with a future of possibility
— that is both inspiring and achievable.
• It is only when individuals and organizations live and operate in vision
that they will ultimately realize a better future — one that is much more
compelling and powerful than their current state. 
•
Employee motivation and engagement

Every employee makes a decision as to the amount of discretionary

effort they give at work — every shift. Discretionary effort refers to the
extra effort an employee has to give. Tapping into this employee
discretionary effort inspires them to give over and above the "minimum
acceptable standards" as outlined in a job description or performance
evaluation form. Tapping into employee discretionary effort takes
leadership; however, leadership alone isn't enough. Employees won't be
inclined to give their discretionary effort for an organization that doesn't
have an inspiring vision, or a game plan that is well communicated and
understood as to how the organization will get there. For many
employees it boils down to this thought: Why give extra effort for an
organization going nowhere? This is a matter that moves beyond
transactional leadership into the realm of transformational leadership. 
Standard format for a strategic plan

• Introductions by the president of the board

• Executive summary- in one or two pages. It summarise the strategic
plan
• Mission and vision statements
• Organization profile and history
• Critical issues and strategies
• Management goals and objectives
• appendices
Tactical planning
• Tactics are the substance of strategy. The strategic phase of business
planning has thinkers determining ways to achieve stated goals. Simply
stated, they plan how people need to act in order to attain the
objectives for which the strategy is to be used.
• Tactics, on the other hand, are the very actions that are necessary to
carry out the strategy. Strategies can be a combination of a number of
tactics with the involvement of several different people, all working
toward reaching a common goal.
• Strategic planning involves only the top brass of an enterprise
whereas the tactical planning part envisages the involvement of the
organization as a whole
• Tactical planning is developed by management team who deals with
getting the work done to carry out the strategic plan. They draw up a
tactical plan that will deal with the "how" part of the plan. The main
question for them is: "How can goals be accomplished within the
designated limits of resources and authority?“
• Tactical plans support strategic plans by translating them into specific
plans relevant to a distinct area of the organization.
• Tactical plans are concerned with the responsibility and functionality
of lower-level departments to fulfill their parts of the strategic plan.
• Tactical planning is such an important part of a company's strategic
planning process
• Tactical plans are sometimes called short-term action plans because they
breakdown bigger-picture goals and strategies into narrower, actionable
tasks.
• The key to a well-developed tactical plan is having specifically stated
actions assigned to particular employees with specific deadlines.
• A strategy is a larger, overall plan that can comprise several tactics,
which are smaller, focused
 Difference between strategy & tactics
criteria strategic tactic
Definition Larger, overall plan that can Plans, tasks, or
comprise several tactics procedures that can be
carried out; may be part
of a larger strategy

Perspective Broad, "big picture". Narrow, "close-up“

Time Over time, long periods of Soon or present

time, future-oriented

Example Planning where to send the How soldiers should run

troops to win the war in a zig-zag pattern to
decrease the chance of
being shot.
Operational plans
• The strategic plan is a general guide for the management of the
organisation according to the priorities and goals of stakeholders. The
strategic plan DOES NOT stipulate the day-to-day tasks and activities
involved in running the organisation.
• On the other hand the Operational Plan DOES present highly detailed
information specifically to direct people to perform the day-to-day tasks
required in the running the organisation.
• Organisation management and staff should frequently refer to the
operational plan in carrying out their everyday work. The Operational
Plan provides the what, who, when and how much:
• what - the strategies and tasks that must be undertaken
• who - the persons who have responsibility of each of the
strategies/tasks
• when - the timelines in which strategies/tasks must be completed
• how much - the amount of financial resources provided to complete
each strategy/task
Strategic Plan
Operational Plan

A general guide for the management A specific plan for the use of the
of the organisation organisation's resources in pursuit of
the strategic plan.

Suggests strategies to be employed in Details specific activities and events

pursuit of the organisation's goals to be undertaken to implement
strategies

Is a plan for the pursuit of the  Is a plan for the day-to-day

organisation's mission in the longer management of the organisation (one
term (3 - 5 years) year time frame)

A strategic plan enables management An operational plan should not be

to formulate an operational plan. formulated without reference to a
strategic plan
The strategic plan, once Operational plans may
formulated, tends not to differ from year to year
be significantly changed significantly
every year

The development of the The operational plan is

strategic plan is a produced by the chief
responsibility shared and executive and staff of the
involves different organisation.
categories of
stakeholders.
• The purpose of the Operational Plan is to provide organisation personnel
with a clear picture of their tasks and responsibilities in line with the
goals and objectives contained within the Strategic Plan.
• Basically, the Operational Plan is a plan for the implementation of
strategies contained within the Strategic Plan.
• It is a management tool that facilitates the co-ordination of the
organisation's resources (human, financial and physical) so that goals
and objectives in the strategic plan can be achieved
• Operational plans should be prepared by the people who will be
involved in implementation. There is often a need for significant cross-
departmental dialogue as plans created by one part of the organization
inevitably have implications for other parts.
Operational plans should contain:
• clear objectives
• activities to be delivered
• quality standards
• desired outcomes
• staffing and resource requirements
• implementation timetables
• a process for monitoring progress
Purposes of operational plans

• To specify the activities and procedures

• To set timetable for the achievement of objectives
• To allocate the responsibilities to the staff involved in a particular
activity
• To prepare the staff for taking up the responsibility
• To specify the records to be kept and policies needed
• To give freedom to each staff to plan its own goals, objectives in line
with the departmental and institutional goals
Process
1.Allocating Human Resources
• Every strategy must have an "owner" i.e. somebody has to be
responsible for that strategies implementation. If someone is not made
responsible for the strategy, it is highly likely that it will not be
implemented.
• In the operational plan, the person responsible for the strategy is
generally referred to by their JOB ROLE.
• For example:
• Strategy Conduct series of three Clinics for Coaches
• Person Responsible Coaching Director
• The strategy may be allocated to just one person, or to a group of
people e.g. a team of people, a sub-committee or a department.
2. Allocating Financial Resources
• Not every strategy requires money, but most will. If people have to be paid
to do work, then there will be financial resources needed for
remuneration. If volunteers are involved, money may be need to be set
aside for food and/or other perks for them.
• Many strategies will involve administration costs in the form of telephone
calls, printing and photocopying and postage. Some strategies will need
purchases of equipment, or materials, or promotional costs such as
advertising.
• If there is an inadequate allocation of money for the implementation of a
strategy, chances are it will fail.
3. Setting Timelines
• The implementation of any strategy needs a timeline, that is a time period
during which work is performed to achieve the desired outcome. The time
period can be as short as a day, or it can be several months. The time
period could be in the near future, or it might be scheduled for a future
year.
• The purpose of inserting a timeline for each strategy in the Operational
Plan is to give order to the great many tasks that need to be done. There is
always limited resources and therefore, at any given time, decisions need
to be made as to priorities and where work effort should be focused.
• For example:
• Strategy -Submit application for Government funding
• Timelines-Costing completed by 30 March 2013
Submit application by 30 June 2013
4. Set Performance Indicators
• The term 'performance indicator' may be defined as a standard or target
that should be achieved. If the standard is reached or the target is
achieved, then the strategy might be considered as "performed", in
other words a success.
Contents of operational plans

• Clear objectives
• Activities to be delivered
• Quality standards
• D3sired outcomes
• Staffing and resource requirements
• Implementation timetables
• A process for monitoring progress