Planning (also called foresight) is the process of thinking about and organizing the activities required to achieve a desired goal. It involves the creation and maintenance of a plan, such as emotional aspects that require conceptual skills. There are even a couple of tests to measure someone’s capability of planning well. Planning is a fundamental property of superior intelligent behavior.
Another word I like to use as a definition for the Art of Planning is sagacity. Synonyms for sagacity are ‘wisdom, intelligence, great understating, judgment, insight and perception’ just to name a few.
What is planning and its types?
There are three major types of planning, which include operational, tactical and strategic planning. Achieving organizational goals starts with business owner who create strategic plans that paint a picture of the desired future and long-term goals of the organization, such as increasing productivity or profitability.
The steps in the planning process are:
Just as people feel better when they are sure of what it is they are trying to achieve (clarity of purpose), so people also feel better when they are confident there is a good plan in place. When the art of planning is understanding the process, gaining wisdom from the steps and applying intelligence to secure success in your business venture.
In past chapters we have discussed many of the planning tools needed to be successful. People who have a purpose and a plan, are obviously in a better psychological position than a person without a purpose or a plan.
Just ask yourself the difference: What are the emotional consequences for a person’s peace of mind if they know, deep down, that they don’t have a business goal or plans for the future? We all know that those individuals lack the drive, are not motivated, and do not know what they are looking for in life or in business.
Look in the mirror. That is not you! You are an entrepreneur that is highly motived and lased focused on obtaining your goals. As you continue your voyage and learn the art of planning you will notice changes to your psychological, emotional and behavioral habits.
The changes you are likely to notice are:
If you want to feel better today, then making definite plans for a better future is one of the best things you can do for your business venture.
Now that you understand what the Art of Planning – The True Meaning of Success is—what do we do with it? We work together to put into action. Open your mind and gain the wisdom and take the time to understand what is needed to create a comprehensive plan for success.
The Tax Planning Process includes diagnose or analyzing the situation, prescribe or advise a solution, and create a comprehensive plan of action.
As you navigate the business world you will need to develop a comprehensive plan of action. The next few chapters I will discuss many detail topics that business owners will need to include in their plan. Each topic will be a component within the plan for success.
I will state that many tax industry professionals do not understand the Art of Planning – The True Meaning of Success. They continue to just file a tax return for clients. I take the proactive and holistic approach to educate clients through the journey and implement tax strategies for success. I suggest a working partnership with a long-lasting relationship that will focus on tax strategies to achieve success.
It would be in your best interest to bring in a trusted advisor to help with these strategies.
Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Generally, strategic planning deals cover the whole business rather than just an isolated unit.
Tactical planning is short range planning emphasizing the current operations of various parts of the organization. Short Range is generally defined as a period extending about one year or less in the future. Managers use tactical planning to outline what the various parts of the organization must do for the organization to be successful at some point one year or less into the future. Tactical plans are usually developed in the areas of production, marketing, personnel, and finance and plant facilities.
Because of the time horizon and the nature of the questions dealt, mishaps potentially occurring during the execution of a tactical plan should be covered by moderate uncertainties and may lie closer to the control of management (next year shipping prices, or energy consumption) than strategic ones. These potential consequences are called “tactical risks”.
Operational planning is the process of linking strategic goals and objectives to tactical goals and objectives. It describes milestones, conditions for success, and explains how, or what portion of, a strategic plan will be put into operation during a given operational period.
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