The business planning cycle

Strategic Planning Cycle The strategic planning cycle embodied in a set of formal planning procedures, ensures that managers examine major strategic issues, or 'strategic elephants', faced by their organization.

The business planning cycle

The Planning Cycle brings together all aspects of planning into a coherent, unified process. By planning within this structure, you will help to ensure that your plans are fully considered, well focused, resilient, practical and cost-effective. You will also ensure that you learn from any mistakes you make, and feed this back into future planning and Decision Making.

Planning using this cycle will help you to plan and manage ongoing projects up to a certain level of complexity — this will depend on the circumstance. For projects involving many people over a long period of time, more formal methodologies and approaches are necessary see Managing Large Projects and Programs How to Use the Tool It is best to think of planning as a cycle, not a straight-through process.

Once you have devised a plan you should evaluate whether it is likely to succeed.

What Is a Business Planning Cycle? (with pictures)

This evaluation may be cost or number based, or may use other analytical tools. This analysis may show that your plan may cause unwanted consequences, may cost too much, or may simply not work.

In this case you should cycle back to an earlier stage. Alternatively you may have to abandon the plan altogether — the outcome of the planning process may be that it is best to do nothing! Finally, you should feed back what you have learned with one plan into the next.

The Planning Cycle is shown in figure 1: The stages in this planning process are explained below: Analysis of Opportunities The first thing to do is to spot what needs to be done.

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You will crystallize this into a formal aim at the next stage in the process. One approach to this is to examine your current position, and decide how you can improve it. There are a number of techniques that will help you to do this: This is a formal analysis of your strengths and weaknesses, and of the opportunities and threats that you face.

This helps you to spot project risks, weaknesses in your organization or operation, and identify the risks to which you are exposed. From this you can plan to neutralize some risks.

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Understanding pressures for change: Alternatively, other people for example, clients may be pressing you to change the way you do things.

Alternatively your environment may be changing, and you may need to anticipate or respond to this.

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A different approach is to use any of a whole range of creativity tools to work out where you can make improvements. These creativity tools culminate in the powerful Simplex process.Business planning is most effective when it's an ongoing process.

This allows you to act quickly where necessary, rather than simply reacting to events after they've happened. A typical business planning cycle.

the business planning cycle

The Cycle of Annual Business Planning Jacqueline Niderost - May 19, SHARE Request to reuse this Add to my favorites. I had the honor of actually completing the annual planning cycle when this . Oct 25,  · A business planning cycle is a logically sequenced plan of action that is designed to aid in the task of company planning.

The cycle will often focus on the establishment of viable operational plans that ensure a smooth production process, as well as addressing issues such as the ordering and receipt of raw materials, the housing of finished.

Business Plan Blog - Help for anyone starting a business - Having a quarterly business planning cycle helps your vision to keep on track, but what exactly is the process? Read more to find out how we manage it. Explain why the planning cycle is an essential part of running a business.

Organizations have goals they want to achieve, so they must consider the best way of reaching their goals and must decide the specific steps to be taken. A planning cycle is the process of combining different aspects of planning into one synthetic unit.

Any plan should be practical and cost-effective. A planning cycle commences by analysing whether any plan is likely to succeed or not.

Strategic planning cycle