Introduction
Planning forms an integral part of our everyday operations whether at personal or organizational level. It involves channeling resources such as time, capital, human resource and finances to achieve a given set of predetermined goals. The main reason for planning is to achieve efficiency and attempt to secure effectiveness in operations. Since it is difficult to foresee the future, it is necessary to plan to be secure from the consequences of actions we may take arbitrarily.
Planning process
Planning is essential in the management of our everyday operations. It encompasses almost all aspects of management whether in business or any organizational setup. The most recently used form of planning is strategic planning. This is because traditional budget-based planning or planning based on a pre-focused future does not sufficiently address the challenges of the increasingly dynamic organizational or business environments, Allison and Kaye (2005). The planning process entails a five-fold criterion that ensures that the decision-making process is strategic in resource use and allocation. It aims at improving operational efficiency at minimum cost possible. This is based on the principle of Total Quality Management (TQM) which has been adopted by a large number of organizations in their operations due to its adaptability and ease of implementation, Smith (1993). The effective five-fold planning technique consists of drawing missions and objectives, situational analysis, selection and development of strategies, execution of outlined strategies besides evaluation and control.
Mission and objectives
Mission and objectives describe the purpose of an organization. They outline the core values of the organization. These enduring values and purposes determine the existence of the organizational operations usually outlined in brief statements called mission statements. They outline the future pursuit for the organization through a futuristic perspective. These objectives are drawn in such a way that they must take into consideration the limitations and realities surrounding the organization. They should be realized within a certain time frame; usually between 2-3 years and in some cases up to 20 years, Allison and Kaye (2005). The purpose of designing the mission and vision statements is to provide the organization with a sense of direction. It reminds the stakeholders about the organizational culture thus helping to harmonize all the resources, human or capital to the realization of the set objectives.
Situational analysis
Organizations must study their environments in order to secure their existence. An in-depth analysis of the environment must take into account the strengths, weaknesses, opportunities for growth or underlying challenges (threats) to its operation or existence, Goodstein and Pfeiffer, (1993). Various parameters may be used to take an objective micro or macro-environmental analysis. These include Political, Economic, Social, or Technological (PEST analysis), STEER (Socio-cultural, Economic, Ecological, Economic and Regulatory factors) or EPISTLE (Environmental, Political, Informatics, Social, technological, Economic and Legal) techniques of analysis may be employed, Goodstein and Pfeiffer (1993).
The analysis of organizational environment therefore encompasses three fundamental areas which include internal audit, operational environment and the prevailing macro-environments. Internal scans can reveal areas of weaknesses and strengths while external analysis reveals the opportunities and/ or underlying threats, Smith (1993). Operational analysis may reveal the supplementary and complementary services, barriers, market share or status in the competitive market especially for business organizations.
Formulation of strategies
Based on the prevailing opportunities from the environmental analysis, the organization should strive to match its strengths to the available opportunities already identified. Strategies must be laid down to counter the underlying threats and weaknesses from the external environment. Formulation of effective strategies may lead to superiority in the operational environment or leverage the organization to a competitive edge by increasing efficiency of its operations, Michaels (2008). To ease communication from the top management to the lower cadres, it’s important to formulate strategies that are specific, measurable, achievable, and realistic and timed (SMART). This makes the next stages of execution and execution reviews easier.
Strategy implementation
Execution of laid down strategies is the moment of truth. The selected strategies must be put in place. This stage calls for the harmonization and mobilization of the available human and capital sources by channeling them towards the realization of the set goals and objectives, Bradford and Tarcy (2000). Here, adequate communication must be effectively made to all stakeholders to ensure success in the implementation of the proposed program. Poor communication between the strategy formulation team and the implementation staff may result in the failure or the collapse of the execution process due to misunderstanding or resistance to change. Thus, the approach taken may have a significant impact on the implementation of selected strategies. Since the objectives were defined using SMART approach, it must measure the factors of production in terms of quantifiable attributes, Reddersen (2008).
Evaluation and Control
Once the selected strategies are implemented, the management must, as a rule, make formative assessment of the systems to ensure workability of the new strategies. Formative adjustments can be made to continuously improve the process based on the results of the analysis made. Evaluation and control can be objectively achieved through clear definition of the parameters to be measured, defining the target values for the chosen parameters and the actual measurement process. The results obtained are cross-examined against measurements of pre-defined standards, Michaels (2008). The outcome of the results determines the net worth and effectiveness of the implanted strategies.
Most important planning step
From the above logical step-wise approach to planning; from a personal perspective, the initial stage of drawing the mission statements and objective of the organization is the most fundamental. This is because the planning itself is a formal process of consideration of the organization’s future direction. To do so, three questions are often asked to get the sense of direction. First, what do we accomplish? Secondly, to whom do we accomplish it? Lastly, how do we do it to succeed? Vaghefi and Huellmantel (1999). These questions form the central tenets upon which an organizational management is founded.
The mission and vision together with the objectives set to be attained, form the platform upon which the existence of the organization is defined. It defines the purpose of its existence and gives a focused sense of direction where the organization expects to be within a given specified time, Roney (2004). Upon this sense of direction and objectives, the available resources are harmonized by all stakeholders to ensure their achievement. Also, the harmonization of human resources can only be possible if the stakeholders share common unifying objectives, values, and cultures that are mutually beneficial. Without this anchor of a common mission, the subsequent steps in planning are fruitless since there would be a lack of convergence in what I may call the unity of purpose. The absence of unity of purpose is a recipe for chaos and/or disorganization.
Conclusion
As such planning is important in guiding the daily activities of any organization. It provides the management with a road map in making appropriate decisions and policies that makes their organization competitive, Bradford and Tarcy (2000). Employees on the other hand can work in unison towards achieving the goals of their organization.
Reference List
Allison, Michael and Kaye, Jude. (2005) Strategic planning for nonprofit organizations: a practical guide and workbook. Leicester, John Wiley and Sons.
Bradford, Robert and Tarcy, Brian. (2000) Simplified strategic planning: a no-nonsense guide for busy.
Goodstein, David and Pfeiffer, William (1993) Applied strategic planning: a comprehensive guide. New Jersey, McGraw-Hill Professional.
Michaels, Alan. (2008) Strategic Planning: A practical guide to formulating and Implementing. Melbourne, Wrigals, 10 (1), 13-23.
People who want results fast. Leicester, Chandler House.
Reddersen, Stephen. (2008) Strategy Planning for Emerging Companies: Small Business: Managing a Business. Wall-Street 10, 4-9.
Roney, Curtis. (2004) Strategic Management Methodology: Generally Accepted Principles for Practitioners. Westport, Praeger, Page: iii.
Smith, Shelley. (1993) The citizen’s guide to planning. London, Planners Press.
Vaghefi, Mohammed and Huellmantel, Alan. (1999) Strategic management for the XXIst century. New York, CRC Press.