The process of Planning
Harold Koontz has determined some steps that must be followed in planning:
a) The detection of an opportunity.
b) The establishment of objectives.
c) The consideration of planning premises.
d) The identification of alternatives.
e) The comparison of alternatives according to objectives and goals.
f) The election of an alternative.
g) The devising of support plans.
h) The devising of a budget.
Among the most relevant advantages of planning we have: it helps to improve coordination between the members of the enterprise; it allows an improvement of the internal and environmental vision of the enterprise; and it helps administration to adapt quickly to the changing surroundings.
Planning can be strategic and operative. We will analyze these concept later.
Strategic Planning.
Strategic planning allows the making of decisions in a long term. Here, we must take into consideration: the changes in the environment, the capability of the enterprise and the organization environment.
They have as a purpose the establishment or updating of the mission and general objectives of the enterprise. It is useful for the development of new abilities and procedures to face the road ahead.
Among the formal stages of strategic planning we can find:
a) The identification of current strategies.
b) The identification of potential strategic goals.
c) The selection of strategic goals.
d) The evaluation and execution of strategies.
Tactical Planning.
It is an annual process that leads toward the achievement of proposed objectives in the programs of the enterprise.
Some differences between strategic and tactical planning are:
1. The term: strategic planning imply a long term while tactical planning are from short to medium terms.
2. The reach: since strategic planning is more general and tactical planning is specific.
3. Independence: because tactical planning tends to reflect goals while strategic planning, the mission of the enterprise.
