First, we’ll look at steps to making a plan and then we’ll consider a few additional points we need to take into account if we want to make sure the planning is also done effectively.
A step-by-step approach to planning
Step One: Gather information
In this step, you gather as much information about the current situation as possible. For example, you may have been asked to organise your company’s next annual conference. To do this properly, you will need to write a plan. Don’t start the plan until you have gathered information about what happened last year or over the last 5 years. When you feel you know as much as possible, start the next step.
Step Two: Analyse the situation
Do a SWOT analysis if possible. If a SWOT analysis is not appropriate, write a short description that summarises the situation:
What happened?
What is the situation right now?
What needs to happen and why?
What would be the result if no action was taken?
For example, your situation analysis for the annual conference should list the essentials of what needs to happen and why: who is attending, where it will or might be held, what will be its duration, and how much has been budgeted.
Step Three: State the aim
You should now be able to write an aim for what needs to be achieved. The aim should state the outcome that the plan is to achieve. It’s usually best to start with the word ‘To…’. For example, ‘To conduct the annual conference in July.’
Step Four: Identify options
Usually you will need to choose from several options of how to achieve your aim in different ways. You need to write down these options and then decide the most important criteria for making decisions about these options. For example, the conference could be held in Rotorua or Queenstown. Is the location really important or does the budget determine where the conference will be held? Once you have listed the options, choose the one that best meets the criteria.
Step Five: Write plan goals and objectives
For the option that you choose, write goals and objectives that will achieve the aim. For example, select a venue, identify caterers, and organise transport.
Step Six: Write tasks
Once the goals and objectives have been written, decide what tasks — what, who, when and where — need to happen for the goals and objectives to be achieved. For example, tasks to achieve venue selection might include: visit location, identify venue ‘must-haves’, identify possible venues, shortlist, meet venue managers, select venue. Your plan should now be ready to put into effect.
What makes it effective?
Here are some points to consider when you are planning to ensure it’s also effective:
- When you make income plans, you might need to develop forecasts (estimates about how, for example, sales will go over the next few years).
- Say what your assumptions are. For example, are you assuming your business will still be the only one of its kind in your town over the next 2 years? Are you assuming exchange rates will stay the same? Are you assuming interest rates will go up?
- Be flexible. If your assumptions are wrong you must be ready to change the plan (and budget).
- Monitor (watch) progress against the plan. How well are you going? What do you need to change to achieve the vision?
- Plans do not have to be huge. Indeed, big, hard-to-read plans are harder to use than short, easy-to-read ones.
- It is good to have the plans available on the organisation’s computers. It is then easier for all to find and use on a regular basis.
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