The principles of planning include contribution to objectives, primacy of planning, pervasiveness and efficiency (purpose); planning premises, alternatives, limiting factor, timing and commitment (making the plan); and flexibility, navigational change, participation, simplicity and feedback (keeping the plan useful).
Good plans tend to follow the same rules, whether the plan is a startup’s first-year budget or a government’s infrastructure programme. Harold Koontz and Cyril O’Donnell set out many of these as the principles of planning, and they still explain why some plans guide action while others sit in a drawer.
Here are 14 principles grouped by purpose. For the building blocks of a plan, see the components of planning; for what can go wrong, see the limitations of planning.
Principles About Purpose
1. Contribution to Objectives
Every plan should help achieve the organisation’s goals. If it does not, it should not exist.
2. Primacy of Planning
Planning comes before organising, staffing, directing and controlling, because those functions depend on knowing what you are trying to do.
3. Pervasiveness
Planning happens at every level, from the board’s five-year strategy to a supervisor’s weekly roster.
4. Efficiency
A plan should achieve its goals at a reasonable cost in money, time and effort.
Principles About Making the Plan
5. Planning Premises
Plans rest on assumptions about demand, costs, prices and the economy. State them clearly so everyone works from the same picture.
6. Alternatives
Consider several ways to reach the goal before choosing one.
7. Limiting Factor
Identify the constraint that most restricts success, such as cash, capacity or skilled staff, and plan around it.
8. Timing
Plans must be ready when decisions are needed, and actions must be scheduled in the right order.
9. Commitment
Plan far enough ahead to cover the commitments a decision creates. A five-year loan needs at least a five-year cash plan.
Principles About Keeping the Plan Useful
10. Flexibility
Build in room to adjust, such as reserves, options and contingency plans, because the future rarely matches the forecast.
11. Navigational Change
Review progress regularly and change course when needed, like a ship’s navigator correcting for wind.
12. Participation
People who help make a plan are more committed to carrying it out.
13. Simplicity and Clarity
A plan people cannot understand will not be followed.
14. Feedback and Control
Link plans to standards and reviews so deviations are spotted early.
Summary
| Group | Principles |
|---|---|
| Purpose | Contribution to objectives, primacy, pervasiveness, efficiency |
| Making the plan | Premises, alternatives, limiting factor, timing, commitment |
| Keeping it useful | Flexibility, navigational change, participation, simplicity, feedback |
Related: importance of planning and steps in the planning process.
