Steps in Planning
The practical steps listed below, and diagramed in Figure 4-2. are of general application. In practice, however, one must study the feasibility of possible courses of action at each stage.
1. Being ‘Aware of Opportunities
Although it precedes actual planning and is therefore not strictly a part of
the planning process, ‘art awareness of opportunities* in the external environment as well as within the organization is the real starting point for planning. All managers should take a preliminary look at possible future opportunities and see them clearly and completely, know where their company stands in light of its strengths and weaknesses, understand what problems it has to solve and why, and know what it can expect to gain. Setting realistic objectives depends on this awareness. Planning requires a realistic diagnosis of the opportunity situation.
The word problems might be used instead of opportunities. However, a state of disorder or confusion and a steed for a solution to achieve a given goal can more constructively be regarded as an opportunity. In fact, one very successful and astute company president does not permit his colleagues to speak of problems; they must speak only of opportunities.
2. Establishing Objectives
The second step in planning is to establish objectives for the entire enterprise and then for each subordinate work unit. This is to be done for the long term as well as for the short range. Objectives specify the expected results and indicate the end points of what is to be done, where the primary emphasis is to be placed, and what is to be accomplished by the network of strategies, policies, procedures, rules, budgets, and programs
Enterprise objectives give directio ...