What is planning?
Planning is deciding in advance what is to be done. It involves the selection of objectives, policies and
programs from among alternatives.
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.
Preparations of a comprehensive plan will not guarantee success, but lack of a sound plan will almost
certainly ensure failure.
Purpose of 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 businesses 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.
Importance of the Planning Process
A plain 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 process enables management to
understand more clearly what they want to achieve, and how and when they can do it.
A well-prepared business plan demonstrates that the managers 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.
Planning basics
Essentials of planning are not donning off hand. It is prepared after careful and extensive research. For a
comprehensive business plan, management has to
1. Clearly define the target/goal in writing.
i. It should be set by a person having authority.
ii. The goal should be realistic. iii. It should be specific. iv. Acceptable v. Easily measurable
