The planning task is considered one of the most acute. This process can be divided into the following components: strategic planning, medium-term and short-term (operational) planning. The first type deals with the definition of ambitious goals and objectives that confront the enterprise. Also at this stage, methods are determined to achieve these goals and solve problems. But the medium-term is aimed at planning certain activities to implement the strategy.
What tasks are solved when planning
First of all, a production and financial plan is created. This is the core of the strategic planning process. At this stage, the possibility of implementing planned production indicators on the basis of financial viability is determined. Simply put, first you need to correlate plans with available resources. It is also necessary to rationally evaluate all the possibilities, thanks to which it will be possible to adjust the planned indicators if, for example, the situation in the market changes. The result of all the work done should be a plan for a year or a half, which is accepted for execution and determines the volume of production, sales, settlement conditions, and so on. Without such intermediate work, it is impossible to achieve the ultimate goal, therefore, this type of planning is considered an integral part of the ongoing processes.
Mid-term planning feature
With such planning and basic decisions, there is an urgent need to assess the impact of the developed plan on the effectiveness of the enterprise. To do this, you will have to thoroughly study the entire system of work, from buyers and production to financial resources. The result of the analysis of alternatives is the determination of ways to improve the efficiency of the enterprise.
Tasks that are solved during the medium-term planning always require an integrated approach. It should be noted that an enterprise or organization is considered as an economic unit, nevertheless, a comprehensive approach in any case involves an analysis of not only internal relationships, but also the environment that surrounds the object of study. Only after the description of the financial model can one begin to plan the financial and economic activities of the structure. To do this, you need to take care of the preparation of a profit report, cash flow statement, balance sheet and possible additional forms. As a result, we get the model of the enterprise as an instrument of financial medium-term planning.
How to create an enterprise model
There are actually a lot of ways. The most commonly used options are:
- The first method is a simplified model, the task of which is to analyze the financial plan situationally. The most important advantages of this method are relative ease of implementation, visibility and transparency of the system. Simply put, you can immediately trace all the internal and external relationships. The main drawback is the possible calculation error. Also important is a fairly lengthy procedure for collecting and preparing source data. But despite all the shortcomings, this method is often used by managers just because it is the fastest.
- The second way is a complex model. In this case, we can talk about a system that is based on online submission of source data. It becomes quite obvious that an integrated approach is based on prescribed algorithms for converting primary information. Such a model clearly wins against the background of a simplified approach. Firstly, one can note the quick preparation of the initial data, the automatic monitoring of the fulfillment of the set plan, and the minimization of errors in the calculations. But there were some minuses in the system. First of all, these are significant costs in case analysis. They are expressed in the fact that the models for medium-term financial planning, which are based on integration into the information system, to some extent have a certain degree of freedom, but this freedom is limited. For example, accounting for deferred payments, production failures and the like, that is, all these cases are pre-registered. But what to do with new ideas that, in their implementation, change the organizational structure and already configured business processes? There is only one way out. This is a restructuring of the model. And here enough resources and time are already needed.
The result is as follows: a comprehensive model is an ideal option for creating a production and financial plan, which is the basis for the activities of the enterprise, as well as monitoring the implementation of this plan. But for situational analysis, it is best to use simplified approaches.
Mid-term planning. Key points
First of all, it is worth noting that this type of planning is based on a long-term strategy. The main goal is to achieve the most effective overall balance between load and demand. While the essence of short-term planning is to set goals and objectives that should be completed in the near future.
Where does planning begin?
First of all, we should pay attention to the search for all kinds of competent methods of using production capacities. Moreover, the period of use of resources should be higher than six months. And we must not forget about taking into account possible fluctuations in demand in a changing market. This function is assigned to operational managers. Typically, these are the heads of the central services of the organization, whose activity is to solve tactical problems. Planning is aimed at identifying the priorities for achieving strategic goals. We are talking about specific stages of the implementation of the medium-term strategic planning process. This takes into account the prospects for the development of market conditions, the expected dynamics of consumer demand. An important role is played by the existing potential in the field of resources. Inside the enterprise, medium-term planning is expressed in the form of programs.
Tasks and planning methods
First of all, this is the identification of prerequisites for the implementation of programs that are aimed at the next step - long-term planning. In order to implement the plan, many aspects of planning should be considered: financial, economic, technical and technological. The medium-term planning method takes into account the capabilities of all departments based on their own assessment. That is why we can consider it very reliable. The only drawback is the duplication of the same information, as well as its repetition at the most different levels: territorial, commodity, functional.
What is the outcome?
The main medium-term planning tool is a business plan. The overall goal of this program is to increase capital and increase competitiveness. A business plan is a cross between a long-term strategic planning, a marketing plan, which is usually signed for a year and current planning. The average term of a standard business plan is 5 years. The final goals of the strategy depend on its implementation.