What is the Difference between Planning and Management

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Planning and Managing

Planning and management are two distinct but interconnected processes within the realm of project management and general organizational activities.

Here's the key difference between the two:

Planning:

Definition:

Planning   is a mental activity. Planning is deciding in advance what to do, how to do it, when to do it, and who should do it and how much resources you need,

Planning  focuses on future courses of action. It specifies the objectives to be achieved in the future and selects the best course of action to achieve defined objectives.

If you are interested in learning more about project  planning click  here.

Nature of Planning

It is a forward-looking and proactive  thinking process that  should occur before the actual work begins. Planning is focused on creating a roadmap  for the project or the desired activities.

The planning process aka thinking process can be only improved if it can be maasured. In order to understand the deviations of any plan, to manage complex tasks, the execution of the work itself, it is so important to learn how to make the planning process vizual. 

Key Activities:

During  the planning, tasks include goal setting, defining project scope, identifying resources required, setting timelines, and developing budgets.

Planning  involves many different thinking activities like

  • Analyzing the  situation
  • Goal setting
  • Deciding about technical, personnel, financial, and other elements essential to implement the planned f action.
  • Scheduling
  • Anticipating risks and measures to reduce risks.

Planning involves the process of setting objectives, defining strategies, and establishing the course of action needed to achieve specific goals or outcomes.

Output:

The primary output of the planning process is a well-structured document or set of documents. "The Plan". If you want to learn more about the typical  steps and documents  included  read here: 

Here are some typical plans

  1. strategic plan
  2. financial plan
  3. business plan,
  4. project plan,
  5. sales plan
  6. marketing plan,
  7. leadership development plan
  8. product development plan
  9. communication plan

or any other type of document that serves as a guide for subsequent actions. A task list is just a part of a project plan. 

A project plan is a detailed document that outlines the specific goals, tasks, resources, and timeline needed to successfully complete a project. 

 

Duration

Example

5 year plan

Implementing a long-term business strategy to expand into new markets and increase market share by 20% within the next five years.

3 year plan

Developing and launching a new product line to target a specific customer segment, resulting in a projected revenue growth of 15% over the next three years.

1 year plan

Improving customer satisfaction by implementing a comprehensive customer service training program, aiming to increase customer retention by 10% within the next year.

90 day plan

Streamlining internal processes and optimizing workflow to reduce operational costs by 15% within the next 90 days.

3 EOW plan

Enhancing the company's online presence by implementing a digital marketing strategy, resulting in a 30% increase in website traffic every three weeks.

 

Purpose:

Planning helps to define everything what needs to be done, how it should be done, and what resources are needed to achieve the desired objectives. All types of plans are prepared to achieve the defined objectives.

A project plan serves as

  • a roadmap for project execution, providing a structured approach to achieve the project's objectives.
  • a vision that helps to align stakeholder and team members to align their actions
  • a foundation for financing  the project idea.

 

Example:

Let's use the example of planning and managing a charity fundraising event: In the planning phase, you would outline your goals, objectives, and the purpose of the event. You'd decide on the event's format, date, and location. You'd create a comprehensive plan, breaking down tasks like securing sponsors, choosing entertainment, planning the menu, and creating a marketing strategy. Your plan would outline a timeline, budget, and allocate responsibilities.

Let's say you're organizing a charity gala to raise funds for a local animal shelter. In the planning phase, you'd set objectives (e.g., raising $50,000) and choose a date and venue. You'd plan tasks like reaching out to potential donors, designing invitations, and coordinating with a catering service.

 

Here is a scheme showing  how the planning is part of management tasks.

 

 

Management:

Definition:

Management is mostly a communication process of distributing and collecting information. involving people, coordinating, executing, and overseeing the planned activities to ensure that they are carried out efficiently and effectively. It involves distributing and collecting information. leading people, allocating resources, and monitoring progress. 

Nature:

It is an ongoing and reactive process that takes place during the execution phase.  Management requires lot of communication and includes:

  • Observing ( monitoring)
  • Decision making
  • Communication

Management is about making sure that the planned activities are carried out as intended.

Key Activities:

Management tasks encompass assigning responsibilities, guiding the team, allocating resources, monitoring performance, addressing issues, and ensuring that goals are met,

During the execution management involves a lot of communication like:

  • moderating meetings,
  • giving and receiving feedback, 
  • taking decisions,
  • collecting and sharing information
  • observing and monitoring the work progress 

 

Output:

The main output of management is the successful execution of the planned activities, leading to the achievement of the defined objectives.

Purpose:

Management is all about taking the plan and making it a reality. It involves making real-time decisions, adapting to changing circumstances, and ensuring that the project or operations run smoothly.

Example:

As the event approaches, this phase involves executing the plan. You'd manage the logistics, ensuring the venue is set up correctly, the catering is on time, the entertainment runs smoothly, and the guests are welcomed. During the event, you'd handle any unexpected issues that arise, oversee the volunteers and staff, and ensure everything aligns with the plan.

Typical management activties are:

supervise the progress, coordinate vendors, ensure everyone is on time, track time and expenses. manage deviations and conflicts between people. collect feedback and listen.

In the management phase, you'd be on-site on the day of the event, ensuring the decorations are in place, the auction runs smoothly, and guests have a great experience. You might manage last-minute changes, like accommodating more guests than expected.

Project managers require a set of management skills that are essential for success in projects of all sizes, whether they are small, mid-sized, or large. However, the degree to which these skills are applied and the complexity of their application may vary depending on the project's size. Here are key management skills that project managers need for each category of projects:

For Small Projects:

  1. Time Management: Efficiently manage limited project timelines and resources to achieve project goals within a short period.
  2. Scope Control: Clearly define project scope and ensure that it remains focused to prevent scope creep.
  3. Communication: Maintain clear and concise communication with a small team of stakeholders, often with informal methods.
  4. Task Delegation: Assign tasks to team members and ensure that everyone knows their responsibilities in a small team.
  5. Risk Identification: Identify potential risks that could impact the project's success and take preventive measures promptly.

For Mid-Sized Projects:

  1. Team Leadership: Lead a larger project team, motivate team members, and foster collaboration.
  2. Resource Management: Efficiently allocate and manage project resources, including personnel, budget, and materials.
  3. Stakeholder Engagement: Engage with a broader range of stakeholders and manage their expectations effectively.
  4. Project Planning: Develop a comprehensive project plan with detailed schedules, budgets, and deliverables.
  5. Quality Assurance: Implement quality control processes to ensure project deliverables meet established standards.

For Large Projects:

  1. Strategic Thinking: Align the project with the organization's strategic goals and vision.
  2. Complex Risk Management: Identify, assess, and manage complex risks that may arise in large, multifaceted projects.
  3. Change Management: Implement change management strategies to address the impact of the project on the organization and its culture.
  4. Procurement Management: Manage complex procurement processes, including vendor selection, contracts, and supplier relationships.
  5. Governance and Compliance: Ensure that the project adheres to regulatory requirements and industry standards.

Common Management Skills Across All Project Sizes:

  1. Leadership: Inspire and guide teams toward project success.
  2. Problem-Solving: Quickly identify and address project issues and obstacles.
  3. Communication: Clearly convey project goals, updates, and expectations to stakeholders.
  4. Negotiation: Resolve conflicts and negotiate with team members, stakeholders, and suppliers.
  5. Organizational Skills: Keep project documentation and processes well-organized.
  6. Adaptability: Be flexible and able to adapt to changing project requirements or circumstances.
  7. Budget Management: Effectively manage project budgets, regardless of size.
  8. Conflict Resolution: Resolve conflicts and disputes that may arise during the project.

While the core management skills remain consistent, project managers must tailor their approach and the depth of application based on the size and complexity of the project they are managing. Larger projects typically require a more extensive and strategic application of these skills, whereas smaller projects may focus on essential tasks and communication within a smaller team.

 
 

These examples will highlight how each phase requires distinct skills and approaches:

  1. Construction of a New Office Building (Real Estate Development)

    • Planning: Before the construction begins, planners decide on the building's design, size, budget, and timeline. They conduct feasibility studies, secure permits, and finalize architectural plans.
    • Management: Once construction starts, the project manager oversees daily operations, coordinates with contractors, addresses unforeseen issues like weather delays or supply shortages, and ensures the project stays on budget and schedule.
  2. Launch of a New Software Product (Tech Industry)

    • Planning: In the planning phase, the team defines the software's features, target market, development timeline, and marketing strategy. They conduct market research to understand customer needs and set clear objectives for the product.
    • Management: During the management phase, the project manager coordinates with developers, tracks progress, adjusts plans based on testing feedback, manages the marketing launch, and ensures the product meets quality standards and deadlines.
  3. Organizing a Large International Conference (Event Management)

    • Planning: Planning involves selecting a theme, determining the location and date, estimating attendance, arranging speakers, and planning the logistics. Budgeting and sponsorship acquisition are also key planning tasks.
    • Management: When managing the event, the project manager handles vendor contracts, coordinates with the venue, solves last-minute issues, ensures the event runs smoothly, and manages the team and resources on the day of the event.
  4. Expansion of a Retail Chain (Retail Industry)

    • Planning: This includes market analysis to choose new locations, budgeting for expansion costs, designing store layouts, and planning inventory and staffing needs.
    • Management: During execution, the project manager oversees the construction or leasing of new stores, hires and trains staff, coordinates the supply chain for inventory, and manages the actual opening of the stores.
  5. Development of a New Pharmaceutical Drug (Pharmaceutical Industry)

    • Planning: Involves extensive research to identify potential drug compounds, planning clinical trials, obtaining regulatory approvals, and setting long-term goals for drug development.
    • Management: Management includes overseeing clinical trials, ensuring compliance with regulatory standards, addressing any scientific or ethical issues that arise, and preparing for product launch if trials are successful.

These examples show how planning is more about setting the framework, objectives, and resources for a project, while management is about executing the plan, dealing with real-time challenges, and ensuring the project's objectives are met.

In essence, planning is the strategic phase where you decide what needs to be done, and management is the tactical phase where you ensure it gets done effectively.

In summary, planning lays the groundwork for what needs to be done and how, while management involves the actual implementation, coordination, and control of the activities specified in the plan. These processes are iterative, meaning that as management proceeds, new information and feedback can influence the planning process, leading to adjustments and refinements in the plan. The dynamic interplay between planning and management is essential for the success of projects and organizations.

How do we support our clients:

For more than 20 years we delivered public and inhouse training in form of  a 3-4 day project  consulting bootcamp on how to plan complex projects..  Learn more here.

If this is something you are interested in our streamlined thinking process  please check out our online program here: The Project Plan Academy 

If you are more interested in leadership communication you may consider our program The confident project leader.

For individual leadership coaching please apply below

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