What is the Planning Cycle?

Steps of the Planning Cycle

1. Define Objectives

• Determine what needs to be accomplished during the planning period
• Objectives should be specific and measurable (e.g., "increase sales by 15% in Q3," not "increase sales as much as possible")
• Goals must align with the broader vision and mission of the organization

2. Develop Premises (Situational Analysis)

• Assess the current environment - internal strengths/weaknesses and external opportunities/threats
• Forecast future conditions (market trends, resource availability, competition)
• Establish the assumptions on which the plan will be built

3. Evaluate Alternatives

• Identify multiple possible courses of action to reach the objectives
• Weigh the pros and cons of each option
• Consider constraints such as budget, time, and personnel

4. Identify Resources

• Determine what resources (people, money, equipment, time) are needed
• Ensure resources are available and allocate them appropriately
• Gaps between required and available resources must be addressed here

5. Establish Tasks and Implement

• Break down the plan into specific, actionable tasks
• Assign responsibilities to teams or individuals
• Set deadlines and milestones
• Execute the plan

6. Determine Tracking & Evaluation Methods (Monitor & Review)

• Define how progress will be measured
• Monitor performance against objectives
• Identify deviations early so corrections can be made
• Feed findings back into Step 1 to begin the next planning cycle

Visual Summary

Define Objectives
       ↓
Develop Premises (Situational Analysis)
       ↓
Evaluate Alternatives
       ↓
Identify Resources
       ↓
Establish Tasks & Implement
       ↓
Monitor, Evaluate & Review
       ↓
(Back to Define Objectives)

Key Characteristics of the Planning Cycle

Variations by Context

• Business planning cycle - Often framed as: Preparation → Strategy Development → Implementation → Review
• Performance management cycle (U.S. OPM model) - Planning → Monitoring → Developing → Rating → Rewarding
• Simple 3-step model (Montana & Charnov) - Choose a destination → Evaluate alternative routes → Decide the specific course
• Healthcare/nursing - Often uses the PDCA cycle: Plan → Do → Check → Act

Steps of the Planning Cycle

Step 1 - Define Objectives

• Identify what you want to achieve
• Set specific, measurable goals (e.g., "increase revenue by 20% in 6 months")
• Align goals with the organization's vision and mission

Step 2 - Develop Premises (Situational Analysis)

• Analyze the current situation (internal & external environment)
• Use tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
• Establish assumptions and forecasts about future conditions

Step 3 - Evaluate Alternatives

• Identify all possible courses of action
• Compare options based on feasibility, cost, risk, and expected outcome
• Select the best alternative

Step 4 - Identify & Allocate Resources

• Determine what is needed - people, budget, time, equipment
• Allocate resources to specific tasks
• Address any gaps between what is needed and what is available

Step 5 - Establish Tasks & Implement

• Break the plan into specific, actionable tasks
• Assign responsibilities and set deadlines
• Execute the plan

Step 6 - Monitor, Evaluate & Review

• Track progress against the defined objectives
• Measure performance using pre-set metrics
• Identify gaps or deviations and make corrections
• Feed findings back into Step 1 to begin the next cycle

The Cycle at a Glance

  1. Define Objectives
         ↓
  2. Develop Premises
         ↓
  3. Evaluate Alternatives
         ↓
  4. Identify Resources
         ↓
  5. Implement Plan
         ↓
  6. Monitor & Review
         ↓
  (back to Step 1) ↺