Management Planning

( Strategic and Business plan)

 ILOS
1. Provide an overview of planning activities conducted by pharmacy and health
care organizations.
2. Describe the general process common to all types of planning.
3. Describe the purpose of strategic planning, and illustrate the specific steps to
develop a strategic plan.
4. Differentiate a vision statement from a mission statement.
5. Describe the purpose of business plan planning.
6. Discuss the important components of a business plan.
7. Review important aspects of communicating and implementing a business plan.
 References
(1) Chisholm-Burns, M. A., Vaillancourt, A. M., & Shepherd, M. (Eds.). (2014). Pharmacy
management, leadership, marketing, and finance. Jones & Bartlett Publishers.
(2) Desselle, S. P., Zgarrick, D. P., & Alston, G. L. (2005). Pharmacy Management: Essentials
for all practice settings. (No Title).
 What is Planning?
Planning represents the purposeful efforts taken by an
organization to maximize its future success. Planning, is sometimes
called management planning because it is typically part of the
duties of managers. In fact, of the four functions, planning is
crucial because it supports the other three.
Planning is the Primary function of management that involves
setting objectives and determining a best course of action for
achieving those objectives.
 Importance of planning
1. Provide direction to the future, Help to achieve the organizational
goals.
2. Helps people in concentrating their efforts on the most important
jobs rather than wasting time on the lesser important work.
3. Minimize the cost of performance and eliminate unproductive
efforts.
4. Help the management in adopting and adjusting according to the
changes that take place in the environment.
 Importance of planning
5. Provides a basis for teamwork as when the goals are properly
defined assignments can be fixed and all the members can start
contributing in the achievement of these objectives.
6. Facilitate control because without planning there will be nothing to
control.
 CLASSIFICATION OF PLANNING
I. On the basis of content, Plans can be classified as:
(Strategic planning, tactical planning and operational planning)
II. On the basis of time period:
(Long term, midterm, short term).
III. On the basis of function :
(Business planning, financial planning, product planning, resource planning,
organizational and marketing planning)
 CLASSIFICATION OF PLANNING
A. Strategic Planning:
It is the process of deciding on Long-term objectives of the organization.
It encompasses all the functional areas of business
It decides major goals and policies of allocation of resources to achieve
these goals.
Done at higher levels of management
Less detailed because it is not involved with the day to day operations of
the organization
 The process of Strategic Planning
The process of strategic planning does not vary significantly from the
process used in other types of planning. This process highlights only the
aspects of the steps are distinctive to strategic planning compared with
other types of planning efforts.
This process include three phases:
Preplanning
Planning
Post planning
 Phases of Strategic Planning
Preplanning can be defined as the steps necessary to organize the strategic planning effort
or “planning for the planning.
In the planning phase of strategic planning, ideas are actively generated for the pharmacy
organization. This may be referred to as strategizing.
This phase include:
• Starting point (identify the destination which is the vision of the organization in the future and
analyzing the situation)
• Identify the goals for the organization consistent with the vision.
• Intermediate point : determine objectives that will help to reach the goals.
 Phases of Strategic Planning

Post planning phase includes three vitally important steps:

 Communicating the plan (documenting and writing it )

 Implementing the plan (Action plan)

 Monitoring progress (KPIS)

 CLASSIFICATION OF PLANNING
B. Tactical planning:
 Translates strategic plans into specific goals and plans that are most
relevant to a particular organizational unit.
It is the blue print for current action and it supports the strategic plans.
It is Mid-term ( from 1-5 years)
It is done at middle level of management
 CLASSIFICATION OF PLANNING
C. Operational planning
Identifies the specific procedures and actions required at lower levels in the
organization.
It is short term.
It is more detailed because it is involves with day to day operations of the
organization.
 Done at lower level of management
Define what needs to be done in specific areas to implement strategic plans.
(marketing plan, production plan, business and financial plan)
 CLASSIFICATION OF PLANNING
• Time frame beyond five years. Long term Plans: >5yrs
Long term • It specifies what the organization wants to become in
long run.

• Medium Term Plans: >1 yr but <5yrs

Midterm • It is designed to implement long term plans

• Short term Plans: Upto one year

Short term • It provide basis for day to day operation
 The Steps in the Planning Process

1. Define or orient the planning process to a singular purpose or a desired result (vision/
mission).
2. Assess the current situation.
3. Establish goals.
4. Identify strategies to reach those goals.
5. Establish objectives that support progress toward those goals.
6. Define responsibilities and timelines for each objective.
7. Write and communicate the plan.
8. Monitor progress toward meeting goals and objectives by key performance indicators.
(KPIS)
 Vision and Mission
The vision : is what the pharmacy organization wants to be at some
future time point. The vision may be complex and multidimensional.
The vision statement should make people think and should motivate
people to strive for something greater.
A company vision statement should inspire employees to create a
different future for the organization. The vision of the organization is
used in the strategic planning process as both the beginning point and
the end point.
 Vision and Mission
The mission : is the purpose of the organization . The mission
statement defines what the organization does and how it does it. It is a
statement of the present going ahead into the near future. It is a
document written to create a sense of purpose for customers and
employees.
 Vision and Mission
The following elements have been suggested in developing a
mission statement for a community pharmacy:
The intended (or target) customers.
The core values of the pharmacy (such as compassion, respect, and
confidentiality).
The key services and products provided by the pharmacy.
The benefits incurred by customers (such as improved health and
improved safety), and the desired public image.
 The situation analysis (SWOT Analysis)
The situation analysis also should define the present. A common
method for conducting the situation analysis is to evaluate the internal
strengths and weakness and the external opportunities and threats to
the organization.
By comparing the results of the situation analysis with the desired
future state (vision), the extent and nature of the gap between the two
begins to become clear. The next steps in the planning phase attempt
to bridge that gap.
 SWOT Analysis
Internal strengths and weaknesses to consider may include
profitability, quality of pharmacy service, customer service,
competence and ability of pharmacy staff, and the efficiency of the
pharmacy operations.
External opportunities and threats to consider may include
the extent of competition from other pharmacy organizations, the
availability of technology, regulations that may help or hinder the
business, availability of reimbursement for services provided, costs
incurred by the pharmacy organization
Use Smart Goals
 What is Business Plan?
A business plan is a document designed to provide sufficient
information a bout a new or existing business to convince finantial
backers to invest in the business.
The purpose of business planning : is to determine the feasibility of
a specific business or program. Business planning is used to make a
decision about investing in and moving forward with a program.
 What are the steps?
(1) Define the Business or Program
(2)Conduct Market Research and Analysis
(3) Conduct Competitor Analysis
(4) Assess Clinical and Quality Requirements
(5) Define Processes and Operations
(6) Develop Financial Projections
 What are the steps?
(7) Develop a Marketing Strategy
(8) Assess Critical Risks and Opportunities
(9) Identify an Action Plan
(10) Establish an Exit Plan