Agriculture Reference
In-Depth Information
The planning process
Six steps in the planning process provide structure to the process and are designed to provide
management with as much information as is available when developing the strategic or
tactical plan. These six steps follow:
1. Gather facts and information that have a bearing on the situation.
2. Analyze what the situation is and what problems are involved.
3. Forecast future developments.
4. Set performance objectives, the benchmarks for achieving strategic goals.
5. Develop alternative courses of action and select those that are most suitable.
6. Develop a means of evaluating progress, and readjust the plan as the process
unfolds.
Step 1: gather facts
Gathering facts
and information is the fi rst step of the planning process. Although it should
be noted that information gathering is a recurring part of the process. Its place as a fi rst step
is easily justifi ed, since adequate information must be available to formulate or synthesize a
problem or opportunity. Fact gathering is subdivided into two parts: gathering suffi cient
information to identify the need for a plan in the fi rst place and systematic gathering of spe-
cifi c facts needed to make the plan work once it has been developed. Two challenges can
limit fact gathering. First, some managers tend to skip or minimize this step because of
the diffi culty of gathering data. Instead of planning, they resort to a “seat of the pants” or
“gut-feel” philosophy, which reduces the likelihood of success. Second, a manager should
not become so engrossed in fact gathering that inaction results.
Step 2: analyze the facts
The groundwork for developing a sound plan is provided during the process of
analyzing
facts
. This process answers such questions as “Where are we?” and “How did we get here?”
It helps pinpoint existing problems and opportunities, and provides the framework upon
which to base successful decisions. An analysis of facts will prevent mistakes and allow for
the most effi cient use of the organization's resources.
Step 3: forecast change
Forecasting change
is the third key element of good planning. The ability to determine
what the future holds may be the highest form of management skill. As managers ascend the
organizational ladder, the demands on their abilities in this area steadily increase. Forecasting
becomes more diffi cult as the situation becomes broader, more complex, or for a longer time
horizon. Forecasting is interrelated with the other fi ve steps and it is a logical extension of
analysis into a future time setting. Some say, “No one can predict the future in our business.”
While no one can be expected to predict accurately all future developments, this is hardly a
good reason for not attempting to anticipate what the future might entail. Many failures that
occur in forecasting result from sloppy, ambiguous, and generalized thinking. Other failures
arise from a poor job of collecting facts. Forecasting change is not a guessing game; it is part
of a disciplined approach to planning.
