“
Failing to plan is planning to fail.
~ Author Unknown
What does this quote say about the importance of planning? Is planning really that important? Can planning, or lack of planning, affect the success of an organization? How so?
Planning is another important function of management. All organizations plan. Making sure that planning is completed effectively involves following all the steps in the planning process.
The process of planning effectively involves five steps. They are:
Let’s explore the details of each of the 5 steps in the planning process:
This first step is a critical element of planning. It is about identifying your results or outcomes in clear and logical ways. This is really about identifying where you want to go and what you want to achieve. Your desired objectives should be clearly defined and they need to be quite specific in nature. They also need to be measurable - that is, you need to be able to gauge if you met that desired outcome or not, and how far off the mark you were.
Examine the following table to understand clearly defined and measurable objectives:
Poor Objective It isn’t clearly defined or measurable.
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Better Objective It is somewhat defined, but likely not measurable.
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Best Objective It is clearly defined and easily measurable.
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---|---|---|
We need to do better next year. |
We need to increase sales next year. |
Our goal is to increase sales next year by 35% over last year. |
We need to produce more products. |
We will produce and sell 2 additional products. |
In the next quarter we will be up to 75% production capability for our two new smartphones and will be actively selling to retailers nationally. |
I need to improve my grades. |
I want better final grades in all my courses. |
I want to improve all my final grades in all my courses by 10 percentage points or higher, from my mid term report card grades. |
Our city hopes to improve crime rates. |
Next year, our city’s goal is to reduce crime rates. |
Next year, our city has an ambitious goal to reduce crime rates by 50% over the average crime rate of the last 5 years. |
I would like to do well on my next project. |
My next project will be creative and follow correct formatting. |
I will score a level 4 on the planning part of my next project and clearly demonstrate that I understand and can apply the rules of planning to a given situation. |
I need to start showing up on time. |
I want to ensure I arrive at work for the beginning of my shift. |
I need to utilize my time management skills and ensure that I leave the house with plenty of time to arrive to work 15 minutes before my shift begins. |
This step involves taking a look at and considering your current state in relation to your objectives. You need to know where it is you currently stand in relation to reaching the objectives. This step often also involves identifying the strengths that will help you reach those objectives and possible weaknesses that might hinder them.
What could potentially happen in the future? This third step revolves around potential scenarios in the future and anticipating what might happen. For example, in the city crime rate objective examined earlier, a potential future event might be that the police budget funding is decreasing by 10% in the next year. This could potentially mean fewer police officers on the streets working, and might be a huge factor affecting the desired outcome of reducing crime rates by 50%.
A well-organized plan takes all the alternatives into consideration and weighs the advantages and disadvantages of each accordingly. This step involves selecting the best possible alternative based on the desired objective. The detailed plan is created and it clearly outlines what must be done in order to follow it.
The plan is put into action. Action is taken to measure and check progress along the way. Sometimes minor changes to the plan are made along the way to make sure objectives are being met. A second, and very important part of this last step in the planning process, is evaluating the results. This can only be done effectively if the objectives were clearly defined in measurable terms, as explained in step number one.
There is no arguing that planning can help organizations reach their goals and objectives. Planning also provides other organizational benefits. The most commonly identified benefits that planning provides organizations are:
Proper planning definitely benefits organizations. Poor planning, on the other hand, can negatively affect the success of organizations in many different ways. Read the article, Two Real-Life Examples of Poor Project Planning from Bright Hub:
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Identify two tips for improving plans as described in the reading. For each tip, provide a potential real life business situation when that tip might be very helpful in ensuring that things go according to plan.
Often, identifying your objectives, anticipating future events, thinking about potential alternatives, and implementing a plan of action are not easy and straightforward tasks. Managers and leaders must often think creatively and “outside of the box” in order to make the best possible plans. Sometimes, it might first appear as though an objective is impossible to reach resulting from a lack of resources, funding, expertise, rules and regulations, etc. but with a little creative thinking and brainstorming, it might be possible. Creativity is often an essential part of making and implementing plans.
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Answer the following questions:
In addition to creative thinking, another important consideration in the planning process is problem solving.
Check out this list of other potential problem solving strategies.
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When faced with a problem in the planning process, what can managers and leaders do about it? Consider the list and identify strategies which may or may not help with overcoming planning problems.