Three Factors That Affect the Planning Process in Business
- The planning process is affected by several factors.Digital Vision./Digital Vision/Getty Images
The three classic factors that affect the planning process in business are inputs, processes and outcomes. Inputs are raw materials, resources, knowledge and anything else brought to the planning process. Processes are what you do to the inputs to create outcomes. Outcomes are partly profits, but also jobs created for employees, and the use and pleasure that consumers receive from finished products or services. - The efficient way to plan and organize a business is to work backwards from the end products. Consider your desired outcomes, and the processes and inputs needed to get there. It's helpful to consider concepts such as mission statement, goals or benefits. How do you want to compensate your employees? How will you implement quality control? How long can you go before you turn a profit? These and other questions help to specify your objectives.
- Processes are the way inputs are processed into outcomes. You should consider affordability, practicality and efficiency. Specific responsibilities are assigned to put processes in motion. Deadlines for specific tasks and larger assignments are put in place and successes, while expected, are rewarded.
- Inputs are the raw materials you bring to the business. This includes not just material resources--which may be nothing--but also knowledge, ideas, and entrepreneurial and employee skill. Financing is always crucial, and your investors may expect you to turn a profit in a few years.
- Once the planning process is worked out, it can be implemented. You should now have a list of your inputs, the specific ways each will be processed, how these processes match up with larger concerns and how they all contribute to the company's mission.
