The relevance of planning grows in the market economy as a result of the search for rational and effective ways of survival for the company in conditions of instability. It is the main element in the activities of the company of any legal form. Planning covers all aspects of the functioning of the company, and therefore there are many of its forms and types.
The essence of concepts
A plan is a document that represents a project of the future that the company wants to see after a certain period of time (as a result), containing effective means for its implementation. The main feature of the plan is its focus, because it is designed in such a way as to ensure the effective implementation of the goal. It should provide for what actions will lead to the intended goal.
The second important feature of the process: it is the basis of all other management functions, because without such a process there is no success in organizing, managing human resources and controlling.
Another important feature of the process is its completeness. This means that the process should be a function of each manager at each level of management, then it becomes a useful tool for achieving goals. Plans created at various levels of decision-making in the organization should be integrated with each other to facilitate the adoption of the right decisions, achievement of goals and monitoring their implementation on an ongoing basis.
The last rule is that plans must be effective in implementation. This happens when, when they are implemented, a goal is achieved with a minimum of undesirable consequences and with results in excess of costs.
The plan should contain a justification on the basis of which management will be able to decide on the allocation of funds for the necessary expenses without the need to study the details. The plan should be as short as possible - no more than 6-8 pages (not including diagrams and other presentations). Too many details hide the main picture.
If, for example, a product plan is to be presented verbally at a meeting or meeting, the product manager should be prepared to answer any questions. There is nothing more disappointing for members of senior management than prolonging or even postponing a meeting due to the manager’s unpreparedness for it.
The written version of the plan should include historical results, information about identified risks and opportunities, sales forecasts, established goals, the impact of sales on the profit and loss account, marketing goals set for the product or its line, as well as accurate strategies to achieve the goals. It should include charts (financial reports) that will allow you to quickly evaluate the program, as well as its impact on the situation in the company.
Thing
The subject of planning are goals (final and intermediate, the desired state of affairs), for which the company has tasks, ways to achieve these goals, the necessary resources (personal, material, financial, information).
In general, the process itself includes forms of forecasting, forms of work planning.
Forecasting is based on a scientific study of future phenomena and processes, because process data is information about the most likely form of the future. The plan as a set of solutions involves the active development of the company.
Programming is a set of measures aimed at establishing a formal description of the goals of the organization and determining the best ways to implement them. Creating a plan also includes designing the future activities of the company. It differs from programming primarily in that it develops several programs (options), but one plan.
This document is mandatory in organizations, while the forecast is postulate.
A plan is a set of decisions made, while a forecast indicates directions and ways to achieve goals.
Classification of species and forms
There are many classifications for different types and forms of planning. The separation of plans according to subjective criteria concerns those options that are prepared by the enterprise itself. Plans are created for the needs of an organizational unit (for example, marketing department, financial department), an enterprise (for example, a branch of a company), or the entire organization (company).
According to the classification criterion, the following forms are distinguished by scale: plans for fragmentation and problems.
The first ones cover a narrow area of problems or one area (for example, a document on the promotion of company services).
Problem plans cover a greater number of questions and take into account all the data that determine the success of the main goal of the company (for example, the forecast of advertising activities taking into account the budget of funds allocated for this purpose, and potential directions for the development of the volume of services provided by the company).
Planning in a company predetermines its set of tools, forms and methods. Among the main methods can be distinguished: balance sheet, experimental-statistical, normative, economic-mathematical. These methods can be applied to various forms of documents.
The main types and forms of planning are: strategic, tactical, operational, marketing, financial, business planning.
Characteristics of financial planning
The main points that determine the value of planning as a process are finances. The basis of this type of documents are the following characteristics:
- company financial resources;
- amounts and types of financial demand;
- investment structure - long-term and short-term;
- the amount of necessary money supply and terms of investment;
- necessary credit guarantees;
- company balance sheet, expected profit and estimated cash flow (including initial costs, operating expenses and profitability);
- loan repayment project;
- income and taxes for the last year (depending on the requirements of the bank);
- perspective financial forecast for the company - from 3 to 5 years;
- company balance sheet, i.e. assets and liabilities.
Characteristics of Marketing Planning
The form of marketing planning and forecasting includes a written document in which goals are set, means are selected to achieve them, an employee’s liability is fixed, a budget and control methods are defined. This is primarily a document that focuses on current and operational issues. However, it should be remembered that it should be associated with a long-term development strategy of the enterprise.
Planning marketing activities allows the company to organize its activities, connect it with goals and measure efficiency and effectiveness. As a rule, such a document is created for one year in connection with the need to calculate the consequences in enterprises.
Rules for creating a marketing document:
- analysis of the situation;
- statement of goals;
- selection of tools for the implementation of tasks;
- creating a budget;
- determination of the schedule of events and tasks;
- control over the implementation.
Strategic Planning Features
The strategic plan is central among species and forms. It can be defined as a set of decisions regarding the basic, directed goals of the enterprise, resources and methods necessary to achieve them.
Strategic planning deals with decisions that have long-term consequences that are not changeable. As for the subject of the decision, they mainly reflect the areas of activity in which the company wants to work, and the concepts (strategies) of competition in individual areas.
Field of activity means the market and types of products, while the choice of the concept of competition concerns the determination of one's own strategic position or method of obtaining a competitive advantage in specific areas of activity. It is necessary to determine, for example, whether to become a leading supplier of standard products in the market due to the low (competitive) price. This expresses the cost leader strategy. Or you can create your own product, which is distinguished by some special characteristics, what is the differentiation strategy.
Strategic planning is of great importance for the company, as it is the main way to determine the direction, scale and structure of the development of the company. It is implemented mainly by the highest bodies of the company and is carried out with a relatively high frequency.
Tactical Planning Features
A tactical plan among types and forms is a set of decisions that define goals that are indirectly related to the tasks formulated in a strategic document. The plan also includes measures regarding the rules for allocating resources in accordance with current tasks and determining the rules for their effective use in carrying out these tasks.
Features of operational planning
The operational option as a form of planning organization is a set of decisions that determine the specific tasks and actions necessary for their correct implementation in the strictly stipulated time and conditions that must be observed when fulfilling certain goals and measures (technological, economic, organizational), as well as external conditions (e.g. environmental protection).
The subject of operational planning is all decisions that must be made on an ongoing basis in various areas of the company in order to timely and effectively implement the strategy and ensure the survival and development of the company.
Features of business planning
A business forecast is a special form and method of planning the development of a company. A business plan is a forecast document for the realization of a company's interests. It can be classified as follows: external and internal.
An external business plan is used to obtain funds in the implementation of both a strategic forecast (for example, a development document) and an operational document (for example, a compensation plan). It is addressed to various external entities (clients, authorities, public opinion), where it must create the appropriate image of the company and its development prospects.
An internal business plan serves directly to manage or improve management and relates to individual departments, and not to all activities.
A proper business plan should contain the following elements:
- executive resume;
- market analysis and competition;
- Description of the company and its activities;
- proposal format and method of its implementation (description of marketing strategy);
- company profile
- technical profile;
- financial document;
- assumptions and risks, that is, an analysis of the weaknesses of this business (SWOT analysis);
- schedule.
The main forms of planning over time
In connection with the planning horizon, we can distinguish the following types of processes: long-term (prospective), short-term (current) and medium-term (long-term - 2-3-5-year).
Long-term plans relate to development activities, ways of gaining a competitive position by a company, strengthening its position in the market, increasing the value of assets, developing its profile, nature of operations, etc. These plans are being prepared for several or decades to come. Therefore, they should be supplemented by short-term and medium-term plans. Such plans make it easier to take into account the directions of changes in the environment, the company's operational tasks, competitive movements or product market requirements.
Characteristics of other types of planning
In addition to the main forms: tactical, strategic and operational, there is also a development of planning forms in the direction of random (situational) forecasting.
Random plans are usually problematic, the main task of which is to solve a specific problem or situation and improve individual sections of the company.
Periodic planning most often occurs at enterprises that are declining and need to be revitalized (reorganized) or perform more serious tasks of developing forecast forms. Most often they deal with the development of restructuring plans (including corrective ones) and development prospects (including so-called business forecasts).
Restructuring plans are often used at state-owned enterprises that carry out procedural actions as part of the restructuring of companies experiencing financial difficulties, as well as at enterprises entrusted with contract management.
Development plans exist at enterprises applying for a bank loan for investment purposes, and at enterprises carrying out large development projects (investment programs requiring capital raising).
Features in Education
The educational system provides for specific forms of planning according to FSES. Among them are:
- complex thematic, which consists of a set of methods in accordance with the established education program according to the standard;
- prospective - this is a premature determination of the order and sequence of stages of the educational process for the academic year;
- cyclogram - forecast of the organization of educational activity by age groups;
- calendar-thematic - advance determination of the order of educational work with the required methods, dates, standards and means.
Thus, the role of planning in its various forms and types for modern enterprises is great.