Types of Plans – The Planning Pyramid! 🔺
Imagine: You want to win a war.
- The General (Top) decides: "We will capture the capital city in 3 months." (Big Picture)
- The Colonel (Middle) decides: "My battalion will attack the north bridge." (Specific Battle)
- The Soldier (Bottom) decides: "I will clean my rifle and pack ammo tonight." (Daily Task)
Business is the same! Plans happen at 3 levels.
Let's decode them with Tata Motors! 🚗
1. Strategic Plans (The "Big Picture" 🔭)
Who makes them? Top Management (CEO, Board)
Timeframe: Long-term (3-5+ years)
Focus: WHAT are we doing? Where is the company going?
Tata Motors Example (2018):
- Situation: Making losses, boring cars.
- Strategic Plan: "We will become India's #1 Electric Vehicle (EV) manufacturer by 2025."
- Scope: Entire organization involved.
- Risk: High! (If EVs fail, company sinks!)
Key Features:
- Broad & general
- Defines mission & vision
- High uncertainty
2. Tactical Plans (The "How-To" 🛠️)
Who makes them? Middle Management (Department Heads)
Timeframe: Medium-term (1-2 years)
Focus: HOW do we achieve the strategic plan?
Tata Motors Example:
- Strategic Goal: "Become #1 in EVs."
- R&D Head's Tactical Plan: "Design a battery that lasts 300km per charge."
- Marketing Head's Tactical Plan: "Launch 'Nexon EV' campaign targeting eco-friendly youth."
- Production Head's Tactical Plan: "Convert Pune factory Line 2 for EV assembly."
Key Features:
- Specific to departments
- Action-oriented
- Supports the strategic plan
3. Operational Plans (The "Daily Grind" 📝)
Who makes them? Lower Management (Supervisors, Team Leads)
Timeframe: Short-term (Daily, Weekly, Monthly)
Focus: EXECUTION of daily tasks.
Tata Motors Example:
- Tactical Goal: "Convert Pune factory Line 2."
- Supervisor's Operational Plan:
- "Monday: Clear old machinery."
- "Tuesday: Install new robots."
- "Wednesday: Train 50 workers on safety."
- "Daily Target: Assemble 50 cars."
Key Features:
- Very detailed
- Routine & repetitive
- Low uncertainty
The Hierarchy of Plans (The Pyramid)
If they don't align? DISASTER! 💥
- Imagine Top Management wants EVs, but Lower Management keeps building Diesel engines. Chaos!
Single-Use Plans vs. Standing Plans
Apart from levels, plans are also classified by frequency:
A. Single-Use Plans (One-Time Wonder 🎆)
Used for a specific, non-recurring situation. Once done, the plan is discarded.
- Program: A large set of activities.
- Example: "Launch of Jio 5G". Once launched, the "launch program" is over.
- Budget: Financial plan for a specific period.
- Example: "Marketing Budget for Diwali 2024". After Diwali, this budget is history.
- Project: A specific task within a program.
- Example: "Building the new office campus."
B. Standing Plans (The Rulebook 📖)
Used repeatedly for recurring situations. They stand like a rock!
- Policy: General guide for decision making.
- Example: "No Returns Policy" or "Promotion from within Policy".
- Procedure: Exact steps to do something.
- Example: "Steps to apply for leave" (Login > Select Date > Submit).
- Rule: Strict specific statement (No choice!).
- Example: "No Smoking inside factory." (Break it = Fired!)
- Method: Best way to perform a task.
- Example: "FIFO (First-In-First-Out) method for inventory."
Real Life: The Wedding Planner Analogy 💍
You are organizing your sister's wedding.
- Strategic Plan: "It will be a Grand Royal Wedding in Udaipur in December." (The Vision)
- Tactical Plan: "Book the Oberoi Udaivilas, hire Sabyasachi for outfits." (The Specifics)
- Operational Plan: "Call florist at 10 AM, pick up guests at 2 PM." (The Daily Tasks)
- Single-Use Plan: "Budget for the Sangeet Night." (Used once)
- Standing Plan: "Rule: No alcohol served before 8 PM." (Applies throughout)
Quiz Time! 🎯
Test Your Knowledge
Question 1 of 5
1. Strategic plans are primarily formulated by:
💡 Final Wisdom: "A CEO without an Operational Plan is a dreamer. A Supervisor without a Strategic Plan is a robot. You need the HEAD (Strategy), the BODY (Tactics), and the HANDS (Operations) to make the corporate body move!" 🏃♂️💨
Next up: Advantages & Limitations of Planning - Why even the best plans sometimes fail! (Remember Nokia?) 📉
