Management Planning Process
An effective management planning process includes evaluating long-term corporate objectives. Management planning is the process of assessing an organization’s goals and creating a realistic, detailed plan of action for meeting those goals.
Much like writing a business plan takes into consideration short and long-term corporate strategies. The basic steps in the management planning process involve creating a road map that outlines each task the company must accomplish to meet its overall objectives:
- Establish Goals
- Identify Resources
- Establish Goal-Related Tasks
- Prioritize Goals and Tasks
- Create Assignments and Timelines
- Establish Evaluation Methods
- Identify Alternative Courses of Action
The first step of the management planning process is to identify specific company goals. This portion of the planning process should include a detailed overview of each goal, including the reason for its selection and the anticipated outcomes of goal-related projects.
Where possible, objectives should be described in quantitative or qualitative terms. An example of a goal is to raise profit by 25 percent over a 12-month period.
Each goal should have financial and human resources projections associated with its completion. For example, a management plan may identify how many sales people it will cost to meet the goal of increasing sales by 25 percent.
Establish Goal-Related Tasks
Each goal should have tasks or projects associated with its achievement. For example, if a goal is to raise profits by 25 percent, a manager will need to outline the tasks required to meet that objective. Examples of tasks might include increasing the sales staff or developing advanced sales training techniques.
Prioritize Goals and Tasks
Prioritizing goals and tasks is about ordering objectives in term of their importance. The tasks deemed most important will theoretically be approached and completed first. The prioritizing process may also reflect the steps necessary to complete a task or achieve a goal.
For example, if a goal is to increase sales by 25 percent and an associated task is to increase sales staff, the company will need to complete the steps toward achieving those objectives in chronological order.
Create Assignments and Timelines
As the company prioritizes projects, it must establish timelines for completing associated tasks and assign individuals to complete them. This portion of the management planning process should consider the abilities of staff members and the time necessary to realistically complete assignments.
For example, the sales manager in this scenario may be given monthly earning quotas to stay on track for the goal of increasing sales by 25 percent.
Establish Evaluation Methods
A management planning process should include a strategy for evaluating the progress toward goal completion throughout an established time period. One way to do this is through requesting a monthly progress report from department heads.
Identify Alternative Courses of Action
Even the best-laid plans can sometimes be thrown off track by unanticipated events. A management plan should include a contingency plan for certain aspects of the master plan that prove to be unattainable. Alternative courses of action can be incorporated into each segment of the planning process, or for the plan in it’s entirely.
What is the management planning process?
These are the steps of the management planning process:
1. Establish Goals
2. Identify Resources
3. Establish Goal-Related Tasks
4. Prioritize Goals and Tasks
5. Create Assignments and Timelines
6. Establish Evaluation Methods
7. Identify Alternative Courses of Action.