Five Musts of Formal Planning

Cover Five Musts of Formal Planning
Five Musts of Formal Planning
Xavier F Gilbert
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The result was to completely detract the formal planning process from its real long-term decision orientation purpose. In addi- tion, this was confusing to the operating units, which came to believe that their planning task was primarily about forecasting. As a conse- quence, further efforts to improve managers' comprehension of the sys- tem were jeopardized from the beginning. Another indication about the apparent confusion about the deci- sion-making purpose of long-range planning seems also ...to be frequently reflected by the interpretation of the term "long-range" or "long-term" -7- planning to mean, say, a five-year planning horizon. Since the ma- jor purpose of formal planning is to support strategic decision-mak- ing for the future, each such decision calls for the consideration of the appropriate time horizon. The time horizon is consequently a func- tion of the type of decision to be made, not of the decimal system as would be suggested by the fact that a five-year planning horizon seems to be the most readily acceptable among planners.

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