Example of Long Term Planning vs. Example of Short Term Planning

Attribute	Example of Long Term Planning	Example of Short Term Planning
Time Frame	5-year strategic plan	Weekly to-do list
Scope	Company expansion into new markets	Completing a project by end of the month
Resources	Allocating budget for research and development	Assigning tasks to team members
Flexibility	Adjusting strategies based on market trends	Revising daily schedule based on priorities

Definition

Long term planning involves setting goals and creating a roadmap to achieve those goals over an extended period of time, typically spanning several years. This type of planning requires a strategic approach and a focus on the bigger picture. Short term planning, on the other hand, involves setting goals and creating a plan to achieve those goals in the near future, typically within a few months to a year. Short term planning is more tactical in nature and focuses on immediate actions and outcomes.

Time Horizon

One of the key differences between long term planning and short term planning is the time horizon. Long term planning looks at the bigger picture and considers the organization's goals and objectives over a longer period of time. This allows for a more strategic approach to decision-making and resource allocation. Short term planning, on the other hand, focuses on immediate goals and objectives that need to be achieved in the near future. This type of planning is more reactive and responsive to changes in the external environment.

Flexibility

Long term planning tends to be more rigid and less flexible compared to short term planning. This is because long term plans are based on assumptions and projections that may not always hold true over time. As a result, long term plans may need to be adjusted or revised as circumstances change. Short term planning, on the other hand, is more flexible and adaptable to changes in the external environment. This allows organizations to respond quickly to new opportunities or threats.

Focus

Long term planning typically focuses on the overall direction and strategy of the organization. It involves setting long term goals and objectives that guide decision-making and resource allocation. Short term planning, on the other hand, focuses on the day-to-day operations and activities of the organization. It involves setting short term goals and objectives that need to be achieved in the immediate future. Short term planning is more concerned with the execution of tasks and projects.

Risk Management

Long term planning involves a greater degree of risk management compared to short term planning. This is because long term plans are based on assumptions and projections that may not always hold true over time. As a result, organizations need to consider a wider range of potential risks and uncertainties when developing long term plans. Short term planning, on the other hand, involves a more immediate focus on managing risks and uncertainties that may impact the achievement of short term goals and objectives.

Resource Allocation

Long term planning requires a more strategic approach to resource allocation compared to short term planning. This is because long term plans involve setting long term goals and objectives that require significant resources to achieve. As a result, organizations need to carefully allocate resources over the long term to ensure that they are able to achieve their long term goals. Short term planning, on the other hand, involves more immediate resource allocation decisions that focus on achieving short term goals and objectives in the near future.

Conclusion

In conclusion, long term planning and short term planning each have their own unique attributes and benefits. Long term planning allows organizations to set strategic goals and objectives over an extended period of time, while short term planning focuses on achieving immediate goals and objectives in the near future. Both types of planning are essential for the success of an organization, as they provide a roadmap for decision-making and resource allocation. By understanding the differences between long term planning and short term planning, organizations can develop a balanced approach to planning that takes into account both the big picture and the immediate needs of the organization.