1. Nature and
Process of
Planning
Rowen Remis R. Iral
2012 November 12
Organizational Management

2. Definition of Plan
 Typicallyany diagram or list of steps with
timing and resources, used to achieve an
objective
 Temporal set of intended actions which
one expects to achieve a goal.

3. Plans
 Structured and formal plans
 Informal or ad-hoc plans

4. Definition of Planning
 Forethought
 Forecasting

5. Steps in Planning Process
 Goal Setting
 Plans are means to achieve ends or
objectives
 Objective – clear, specific and informative
 Tools:
 Mind map
 SMART
 Specific, Measurable, Attainable, Realistic, Time-
bound

6. Steps in Planning Process
 Developing the planning premises
 Assumptions and conditions must be clearly
defined
 Tools:
 Decision Table

7. Steps in Planning Process
 Reviewing Limitations
 Constraints or Limitations
 Finance
 Human Resources
 Materials
 Power
 Machinery
 Tool:
 SWOT Analysis

8. Steps in Planning Process
 Deciding the Planning Period
 Too much planning can also cause delay
and overcautious actions

9. Steps in Planning Process
 Formulation of Policies and Strategies
 Alternative plans
 Controlling activities in the future

10. Steps in Planning Process
 Preparing Operating Plans
 Operations plans / Basic Plan
 Procedures
 Programmers
 Schedules
 Budgets
 Rules

11. Steps in Planning Process
 Integration of Plans
 Different plans must support each other
 Sequence and alternatives
 Reviewing and revising plans
 Communication of plans

12. SWOT Analysis
 The most renowned tool for audit and
analysis of the overall strategic position of
the business and its environment. Its key
purpose is to identify the strategies that
will create a firm specific business model
that will best align an organization’s
resources and capabilities.

13. Internal Analysis
 Strengths
 Qualities that enable to accomplish the
organization’s mission
 Weaknesses
 Qualities that prevents from accomplishing
mission and achieving company’s full
potential

14. External Analysis
 Opportunities
 Competitive advantage
 Threats
 Competition
 Survivality

15. Common Planning
Problems
 Agreement on definitions and
terminology.
 Needs accurate information and correct
assumptions.
 High standards of planning for complex
organization

16. Strategy
 Plan of action designed to achieve a
specific goal.
 Gaining or being prepared to gain a
position of advantage over adversaries or
best exploiting emerging possibilities

17. Strategic Planning Process
 Mission& Objectives
 Environmental Scanning
 Strategy Formulation
 Strategy Implementation
 Evaluation and Control

18. Environmental Scan
 Internal Analysis of the Firm
 Analysis of the firm’s industry (task
environment)
 External Macroenvironment (PEST/STEP)
 Political
 Economic
 Social
 Technological

19. Planning Types
 Strategic Planning
 Business Planning
 Financial Planning

20. Questions?

21. Thank you.
 Rowen Remis R. Iral
 IT Engineer
 Technology, Management, Strategy