This document discusses corporate planning. It begins with an introduction that defines corporate planning as a process used by businesses to map out actions to increase profits and revenue growth. It then outlines the objectives of the chapter, which include explaining corporate planning, its advantages, key questions, and how it differs from business planning. The process of corporate planning is also detailed, such as setting priorities, key performance indicators, department plans, and allocating resources. The overall advantages of corporate planning are that it provides direction, coordination, motivation, efficiency, and accountability for an organization.

1. CORPORATE PLANNING
Lecturer: Daud Dahir
Daud.d.hassan@gmail.com
12/15/2014 Dud Dahir 1

2. Objectives of this chapter
1. Introduction of corporate planning
2. advantages of corporate planning
3. Key corporate planning questions
4. Difference b/w corporate planning and business plan
 Corporate planning definition
 Business planning definition
 Interdependence
 Effects
 Considerations
5. Corporate planning process
12/15/2014 Proff Daud Dahir 2

3. Introduction of corporate planning
Corporate planning is a process used by businesses to map out a
course of action that will result in revenue growth and increased
profits.
Although large corporations may have staff members-or entire
departments-committed to performing the planning function,
small business owners can become proficient through learning
basic concepts and putting forth the effort necessary to create a
comprehensive plan.
12/15/2014 Proff Daud Dahir 3

4. Continuous…………………………
Corporate planning strategies provide business owners with specific
guidelines or rules for improving business operations and advancing the
company’s mission.
Corporate planning strategies provide these guidelines as they relate to the
entire company. These strategies provide managers and employees with
a targeted direction for the company.
Business owners can also use strategies as a reference to ensure certain
business opportunities that will over extend the company mission and
resources are avoided.
12/15/2014 Proff Daud Dahir 4

5. Difference B/W corporate planning and business planning
Business planning definition the strategies the
business will use to meet its goals and missions.
Business planning provides details on the business’
operations, products and services, and marketing
strategies as it relates to the inclusive industry.
This process expounds the operation strategies from
short- and long-term views while focusing on the
overall activity of the company.
The business plan does not identify specific employee
strategies but rather provides industry strategies.
12/15/2014 Proff Daud Dahir 5

6. Continuous………………………….
Corporate planning definition the strategies that the
employees will take to meet the business’ goals and
missions.This type of planning, also known as strategic
planning, focuses on staff responsibilities and
procedures.
As with business planning, strategic planning requires a
close look at the company’s missions, strengths and
weaknesses.
However, corporate planning identifies the step-by-step
process of the business, such as the actual steps the
staff will take to counteract challenges, train employees
and achieve accomplishments. Corporate planning also
provides specific, measurable goals with realistic time
lines.12/15/2014 Proff Daud Dahir 6

7. Interdependency b/w the PB and CP
Business planning and corporate planning are
interdependent.
Although business planning can exist without
corporate planning, the goals of the business plan
are much more attainable with corporate planning.
As with business planning, the corporate plan can
exist without a business plan. However, without
business planning, the overall goals and missions of
the business are not clear.
Therefore, the corporate planning becomes
incomplete.
12/15/2014 Proff Daud Dahir 7

8. Effects of Corporate Planning on Business Planning
There are many effects of business and corporate
planning. Not only does the planning process help
businesses to succeed, it helps businesses to determine
when new directions and changes are needed.
A close analysis can result in early recognition of
potential issues and dangers, as well as help the
company to quickly adapt to customer demand and
needs
12/15/2014 Proff Daud Dahir 8

9. Considerations
Business and corporate plans should be reviewed periodically.
The plans should be reviewed to compare the business’
current standpoints against those that were outlined in the
plans. Adjustments should be made, if necessary, to align the
business’ actual activities to the defined plans.
When analyzing needed changes, consideration should be
given to the industry’s environment and trends, as well as the
economy’s stability, customer demand and business needs.
The balancing of the business and corporate plans should
outline the moves or changes that the business will strive to
implement and framework the strategies that the employees
will use to meet the business’ missions and goals.
12/15/2014 Proff Daud Dahir 9

10. The Advantages of Corporate Planning
The success of a firm or an organization is typically
attributed to effective corporate planning.
Successful corporate planning details the scope of the
business, defines organization goals, establishes roles
and job responsibilities, draws up detailed plans to
achieve those goals, allocates resources and oversees
operations.
It is a structured approach aimed at ensuring that an
organization meets its objectives.
12/15/2014 Proff Daud Dahir 10

11. continuous
 Corporate planning Reduces Uncertainty
 Corporate planning Allocates Resources
 Corporate planning Reduces Ambiguity
 Corporate planning Helps in Measuring Success
 give your company direction to grow.
 Co-ordinates activity
 Motivates and guides people
 Support efficiency decision making
 Allocates responsibilities
12/15/2014 Proff Daud Dahir 11

12. Key corporate planning questions
This question will help managers to
determine current position, future
desired position and thee best way we
can achieve there if it possible
• where are we now
• How did we get here
• Where will we like to be
• How do we get there
• Are we on course to achieve our target
12/15/2014 Proff Daud Dahir 12

13. Corporate planning process
 Reporting on performance
The Corporate Performance Report is provided
to Council, and presents an annual assessment
of our performance for the previous calendar
year against the Corporate Plan.
The report is developed by set leaders and the
Executive Committee and presents an in-depth
analysis of our performance outcomes against
our KPIs.
12/15/2014 Proff Daud Dahir 13

14. Continuous the process……..
 Selecting priorities for the year ahead
Based on the performance assessment of the
year previous, the corporate planning process
moves ahead with the selection of strategic
priorities (from the strategic plan) to be the key
focus for the year.
These strategic priorities create the framework
for all department, division and unit.
12/15/2014 Proff Daud Dahir 14

15. Continuous……….
Setting Key performance indicators and
targets
Once the strategic priorities are identified,
Key Performance Indicators (KPIs) and
targets are set to guide our achievements in
these areas.
KPIs and targets are measurable and
achievable milestones that support the
delivery of our strategic priorities.
12/15/2014 Proff Daud Dahir 15

16. Continuous
Department and Division Corporate Plans
Each department and division has its own corporate
plan that outlines key actions to address the
organization's strategic priorities.
These plans outline:
•specific timeframes for actions to be achieved
•who will be involved and responsible for delivering on
these actions
•available resource and budget provisions
•reporting lines for monitoring progress.
12/15/2014 Proff Daud Dahir 16

17. continuous…………….
Resource allocation
Resources are allocated during the annual
budget process under the auspices of the
Budget Planning Committee.
Funds for strategic initiatives come from a
variety of sources, which may include:
• re-prioritization of activities within
organization and units
• targeted institution-wide investments in
production, sales and marketing.
12/15/2014 Proff Daud Dahir 17

18. The End of the Chapter
See the Next Chapter
Visit the web page:
Dauddahir.wordpress.com
http://www.slideshare.net/ilkowayne
Follow me on Twitter: https://twitter.com/dauddhassan
Like My Facebook Page: Haji Yare Ilkawayne
12/15/2014 Proff Daud Dahir 18