Planning is an essential part of fulfilling both personal and professional goals. We can define planning as the process of setting concrete, achievable goals and then developing and carrying out a plan of action for reaching them.
Planning can refer to a single task, such as grocery shopping, or a much larger undertaking, such as developing and launching a new product. In this article, we’ll explore the idea of the four basic types of planning that are commonly used to save time and effort when tackling goals of any size.
1. Strategic Planning
Strategic planning is the process of outlining long-term goals and mapping out an actionable plan for achieving them. It is a tactic used by organizations, governments, and businesses alike.
The goal of strategic planning is to create a plan that outlines how an organization should develop in the short, medium, and long-term. For example, a business might identify five-year goals such as the number of branches they want to open, or they they want to obtain a certain percentage of the market share. The key to successful strategic planning is to ensure that the business clearly articulates the reasons why their particular goals will benefit them.
Having a well thought-out plan also helps ensure that resources are used efficiently.
2. Tactical Planning
Tactical planning is the process of taking a step back from overall objectives, focusing instead on the tactics required to reach them. Tactical planning is often more granular than strategic planning, and it’s the process of breaking down longer-term goals into measurable, achievable steps.
For example, a business might create a five-year strategic plan, which is then broken down into annual tactical plans, which are in turn broken down into quarterly or monthly tactical plans. Tactical planning enables organizations to create details plans to take on specific tasks and helps identify what resources are needed to execute the plan, effectively leveraging limited resources.
3. Operational Planning
Operational planning is the process of planning out the day-to-day operations of a business or organization. This type of planning is focused on what needs to be done on a regular basis in order to ensure that the everyday operations run smoothly. For example, a business might create an operational plan for opening and closing its doors each day, as well as a plan for dealing with customer orders and closing sales.
The goal of operational planning is to ensure that the tasks required to keep the company running on a day-to-day basis are carried out in an efficient and cost-effective manner. This type of planning helps businesses to anticipate problems before they arise and creates a seamless chain of operations.
4. Contingency Planning
Contingency planning is the process of preparing for unexpected events that may disrupt operations. It is a type of proactive risk management, and it helps to ensure that a business is prepared in the face of unexpected changes.
For example, a business might create a contingency plan for a natural disaster or for an unexpected shift in the market. Contingency plans are important for any business, as unforeseen changes can have a significant negative impact on operations and profits. These plans help to ensure that a business can react quickly and efficiently to any changes, and thus minimize the disruption to their operations.
Conclusion
In summary, there are four basic types of planning: strategic, tactical, operational, and contingency. Each of these is important for businesses and organizations, as each helps to establish clear goals and create a plan of action for achieving them. Strategic planning helps to define the long-term objectives of a business, while tactical and operational planning focus on the smaller, day-to-day tasks required to achieve them.
Finally, contingency planning is a form of proactive risk management that helps businesses to be prepared in the face of an unexpected change in operations. By having a well-thought-out plan in place, businesses can reduce the amount of time and resources needed to reach their goals.