To understand what Perpetual Engineered Planning is, a business planning review is in order. From there, we will examine the similaities between Business Planning and Project Planning. Finally, we will explain what Perpetual Engineered Planning is
The following definition of business planning help put into context a key component of this WEB site:
Planning is the process of developing a realistic expectation of future results(the plan) based on a set of defined assumptions (from research) extrapolated by forecasted events (from research and intuition). A good plan does not guarantee a successful outcome but a lack of planning will almost certainly ensure failure.
Two attitudes to planning need to be held in tension: on the one hand we need to be prepared for what may lie ahead, which may mean contingencies and flexible processes. On the other hand, our future is shaped by consequences of our own planning and actions.
Some of the key aspects of the above definitions are:
The most important statement above is:
In other words:
I think Dwight D. Eisenhower best captured this concept with his quote:
"In preparing for battle I have always found that
plans are useless, but planning is indispensable".
The act of planning, forces the planner to assess the present situation, define what is to be achieved in the future, determine how the current situation will be impacted in the future and develop mitigating strategies to either overcome obstacles and/or use advantages in reaching the future targets.
Or as Winston Churchill said:
"Let our advance worrying become advanced thinking and planning".
Why am I focusing on this?
They do this to create an operating budget and then shelve the plan until the next year's planning cycle.
Now be honest with yourself!
If you are a startup or expanding business, are you reading this just to get the financing you need or, if you are an existing business, are you looking to build a better budget, r are you looking at learning to continuously plan your way to success?
I hope it is both!
Another misconception is that business planning is different from project planning.
But in fact:
When you are planning for projects (Construction, Information Systems, Architectural, etc) the plan is for a fixed end result over a period of time (usually 3 months to 5 years).
Whereas in business planning, the forecast horizon is one to three years or one to five years and the end result is a moving target based on external and internal factors such as market forces or key employee acquistions or departures.
Each year a business planning session is run and the results of the session may adjust the three or five year target. In other words the long term target is constantly floating. Does that mean there is no fixed target?
No!
Each year's target can be regarded as a project plan with that year's goals and objectives considered as a fixed target.
If this concept is accepted then all aspects of business planning can be treated the same as project planning, including using project management tools, such as Microsoft Project 2007
After understanding the importance of the definition of planning, the business planning process should be reviewed.
Order is not pressure which is imposed on society from without,
but an equilibrium which is set up from within.
Jose Ortega y Gasset
Spanish philosopher & politician (1883 - 1955)
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