Planning is an important management function. Without planning, business owners or managers are not likely to reach their objectives. The Planning Path model represents the six parts of any plan.

The Six-Part Plan
A plan can be defined as a program for getting from where you are to where you want to go. These are: present position, objectives, action program, timetable, obstacles, and alternative objectives.

Present Position. The left circle represents your present position--where you are now. To determine the difference between where you are today and where you want to go, you must state the present position in the same terms as the objective. For example, if the organization's objective is to increase sales by 10%, the present position should be stated in terms of current sales.

Objectives. The right solid circle represents your objective--where you want to go. Objectives should be clearly defined so that an effective plan to achieve them can be developed. Objectives are frequently defined as the results to be achieved, in a certain time, and for a given cost. For example, in order to increase sales by 10%--the company objective--the marketing division might establish an objective of increasing newspaper advertising over the next six months at a cost not to exceed $15,000. Organization objectives are generally stated in terms of profitability, efficiency, growth, and survival. Departmental objectives are usually in terms of quantity, quality, cost, and time.

Action Program. The line connecting the two circles is the action program--the specific actions necessary to get from your present position to your objective. The action program identifies the specific actions necessary to reach the objective. A complete action program should answer five questions: what to do, when to do it, where to do it, how to do it, and who is to do it.

Timetable. The distance between the present position and objective circles represents the timetable for completing your plan. The timetable should specify completion dates for reaching the objective. This includes the overall completion date and milestone dates for completion of major sub-parts of the action program.

Obstacles. The three rectangles in the diagram represent obstacles that must be overcome to reach your objective. Every path has its puddles. A plan isn't complete without considering the obstacles that might impact your ability to reach the objective. However, not all obstacles can be anticipated, so the action program should be flexible enough to handle these situations.

Alternative Objectives. The broken circles on the right are alternative objectives--where you want to go if you can't reach your original objective. Some alternative objectives are identified through contingency planning. For example, the original objective of increasing advertising at a cost of $15,000 may be changed if there are a lot more sales than anticipated. Being able to respond to changing conditions is another illustration of the need for flexible planning.

Illustration
Let's use a basic flight plan to illustrate the Planning Path. The pilot's present position is the current location. The objective is the desired destination. The action program for how to get there includes selecting an aircraft, route, speed, altitude, and crew. These decisions are influenced by the timetable and the obstacles that may be encountered, such as mountains, storms, and winds. Finally, alternative objectives, or destinations, are identified in the form of alternative airports and emergency airfields.

A Planning Tool
The Planning Path is a tool that can be used by all members of an organization. It provides a checklist of the key elements that should be included in any comprehensive plan. For managers and business owners, this tool is especially useful in developing and reviewing plans, as well as in teaching others how to plan effectively.

This is a general description of the concepts represented by the Planning Path model. In Model-Netics training, these ideas are expanded upon and specific applications to the organizations are introduced and explored.

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