MTP Planning

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PLANNINGSaira Ansari Jagdeep Dahiya Ashish Jain Puneet Vyas


MBA-Capital Markets


Defining PlanningThe process of setting objectives, or goals, and formulating policies, strategies, and procedures to meet them.

The process of choosing the who, what, how, when, and where of goal attainment.

Planning Where & How

Features of PlanningPlanning is Futuristic A Mental Exercise Pervasive Continuous Process

Why To Plan Better Coordination Focus on Forward Thinking Participatory Work Environment More Effective Control Systems If You fail to plan, you plan to fail.

Benefits of Planning...

Fool Proof Plan1 3


5 4

Costs of PlanningManagement Time

Delay in Decision Making

Where Should Planning BeginTOP-DOWNLevel at which planning is initiated Role of Organizational units Specificity of plan Advantages Disadvantages AppropriatenessTop Level Units act as per the plan Begins Broad, becomes specific as moves down

BOTTOM-UPIndividual closest to product/services/customers Develop their own goals and plans Begins specific, becomes cohesive as moves up

Plans driven by top mgmt who People closest to customers are most knowledgeable provide focused plans Top-level mgmt is removed Lower mgmt may not have a from the front line broad understanding When orgn success depends When it depends upon ability on quick response to external to respond quickly to changes in operational system. pressures and threats

Planning ProcessWhere We Want to Go?Vision/Goals

How To Know We Made it?Measures Indicators

Where We Are Now?Assess Present Condition

How Will We Get There?Strategy/Methods

Did We Made It?Re-Monitoring

Go There!Actions

Financial Planning Process: An Example

Levels of PlanningStrategic Definition Tactical OperationalProcess by which an Process of translating Process of determining organization makes broad strategic goals the day-to-day activities decisions and takes and plans into that are necessary to actions to enhance its long specific goals related achieve the long term term performance a functional areas goals of the organization Board of Directors, Middle Level, Top Level Executives, Functional Heads Managers within Business units Long-Term Medium Term Middle Level to Lower Level Managers




Types of Plans

Standing Individual


Policies Procedures Rules

MBO System Balanced Scorecard

Programs Projects Budgets

Management By Objectives (MBO)Organizational Objectives Reviewed Employee Objectives Set

MBO for the next Operating Period begins

Progress Monitored

Achievers Rewarded

Performance Evaluated

Strategic Management ProcessA process that involve managers from all parts of the Organization in the formulation and implementation of strategic goals and strategies.

Business Strategy

Low Cost Strategy

Differentiation Strategy

Functional Strategy

Contingency PlanningFor Changing Environments Y2K Terrorist Attacks Policy Change Market Change Attrition

Thank You !!