The Planning Process

There is nothing mysterious about the planning process, since planning is something we all do everyday, often without even knowing it. The planning process parallels the decision-making process; this makes sense, since developing plans involves deciding today what you’ll do tomorrow. Both involve establishing objectives on criteria, developing and analyzing alternatives based on information you obtain, evaluating the alternatives, and then making a choice.

The planning process is basically the same when managers plan for their companies, but there are two added complications. First, there’s usually a hierarchical aspect to management planning. Top manager approves a long-term plan first; then each department creates its own budgets and other plans to show how it will contribute to the company’s long-term plan.

Second—and especially in big companies—the planning process may be quite formal and involve much interaction and give-and-take between departments and a group we might call “corporate central.” In other words, in many firms plans are bounced back and forth between the departments and a centralized planning staff, whose main purpose is to review and help define the plans of each department.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit, Line of Sight

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