Planning

 Planning is Process of thinking in advance before doing any thing.Management is all about achieving organisational goals, furtherance of organizational mission.

Goals are what an organisation wants to achieve in a particular time period. Goals are set at each and every level of organization.In every organization, there are three levels of management.

At Top level of management( Board of Directors,Executives, CFOs, CEOs and COOs) strategic goals are set.  At this level, strategic intent directs the formation of strategic goals. In strategic intent, vision, mission, direct the  formation of goals. 

STRATEGIC GOAL AND STRATEGIC PLAN

Strategic goals are concerned with overall profitability, growth, direction of the organization. In spite of being concerned with a particular department, strategic goals are concerned with overall company, corporate.Strategic goals are set for a long time period i.e, for 5-10 years  For example- 

To earn 10% profits annually for next five years.

To reduce costs @ 5% annually for next five years.

To be the no.1 in market in next 5 years.

These goals are not mentioning performance of any departments, rather they are mentioning the direction - to be no. 1 ,and also mentioning the overall profit and cost reductions of the whole company. 

Strategic Planning and strategic plan: - Strategic Plan is outcome of strategic planning process. strategic planning process is as following.

1. Strategic Analysis is carried out.

2.Mission statement is revised or produced.

3.Corporate strategy is developed.

4.Business level is developed.

5.implementation is determined.

6.Strategies and implementation are assessed.

7.Strategic documents are formulated and approved.

Strategic plan consists of following parts:-

1. Mission statement.- Description of product, customer group, technology, and philosophy of an organisation.

2. Corporate strategy- Resource allocation between different businesses, which business to enter and which to exit, how to manage the portfolio of businesses? Corporate strategy is set at corporate level which deals with the organisation as a whole.

3. Business level strategy- Business level strategy is concerned with competition in particular business, industry. Business level strategies deal with how to face the competition?, how to beat the competitors in market. What strategies- cost leadership, differentiation or mix of strategies should be adopted?

4. Program and projects- structures, responsibilities,resources etc.

TACTICAL GOAL AND TACTICAL PLANNING- 

Tactical Goal setting and tactical planning is done at middle level management, by divisional and departmental managers. Tactical goals are formed with the help of strategic goals and strategic plans and are middle range goals covering 3-5 years. 

Tactical goals are set by middle level managers at departmental/divisional levels to support strategic goals, and accomplishment of strategic plans. Every department sets tactical goals for itself ( departmental managers, divisional managers are involved in this exercise.

Tactical goals are what departments wants to achieve in order to accomplish strategic goals and plans. 

For example- A company set a strategic goal  that it has to reduce its cost @ 10% for next five years. now tactical goals are set by different departments describing how much cost reduction is to be done by different departments. like marketing departments sets its cost reduction ratio at 15%,finance sets it @ 5 % , R&D sets it 12% and HR @8%. You can see how these departments set their cost reduction tactical goals so  that strategic goal can be achieved.

Tactical Plan is the plan ( mean and way ) to achieve tactical goal.A plan aimed at achieving tactical goals and developed to implement specific parts of a strategic plan. Tactical goals determine the resource needs and responsibilities at departmental level.

OPERATIONAL GOALS AND OPERATIONAL PLANS:- 

Operational Goals are set at lower level of management, by lower level managers. Operational goals are set for individuals and sub-departments within a department. A supervisor /foreman is a lower level manager who sets operational goals for himself, his team and his subordinates. Operational goals are in form of specific objectives and targets.

Operational plans are detailed description of means and ways to achieve operational goals.