According to Deepak Kharbanda, there is not much difference in short-term, Medium-term, and long-term planning. They are apparently used to denote the different duration of time. If you examine wisely then you will come to know the objectives of short-term planning, medium-term planning, or long-term planning. You will also lay stress on making important decisions to achieve success in business.
The primary purpose of short-term planning is to focus on goals for the upcoming three to six months of Deepak Kharbanda. They are leaning towards increasing profits and revenue. They can even be dedicated to a brand new launch of a new product or service.
Short-term planning is usually done to strengthen the finances for long-term goals. This panning helps to add up your revenue and cater to the needs of your long-term plans.
The main factors for opting for short-term plans are cash flow, attention to detail, networking budget, investments, etc.
Medium-term planning is often ignored while strategizing. However, it is an important aspect to consider as it helps to give you a clearer vision (as the short-term plans do) while giving you a thorough and detailed view (as the long-term plans do).
Deepak Kharbanda says Medium-term planning usually spans a period of three years. It helps in generating a healthy balance between the immediate needs of a short-term plan and your immeasurable long-term milestones.
Your business is based on aim, purpose, and identity which comes under long-term planning.
It is based on the large vision that you have based your company upon; for instance, your aim to open 5 new stores in the most elite areas is a part of your long-term plan. The timeline that you have set for this purpose is 10 years.
It is a long-term plan that can be affected by your medium-term plans or the market conditions etc. While you should be working towards your long-term goals, you need to make sure to make amendments as per the requirements described by Deepak Kharbanda.
Difference between Short Term Management and Long Term Management
Short-term plans are associated with the current progress of your company. You can strategize your actions to meet them by working on them daily. Long-term plans are more structured and detailed and require consistent efforts of over four to five years to achieve them.
Two differences between both the plans are:
Short-term plans are executed on a daily basis. They are linked with the present progress that can be efficiently monitored.
Long-term goals need execution over a long period of time. They cannot be monitored effectively.
The scope of the short-term plans is modifiable. They can be altered according to the requirements of the present, says Deepak Kharbanda.
The long-term plans give importance to the visions and aims of the company. The scope of this is ultimate.
Set your eyes on achievable, realistic, and slightly adjustable long-term plans. Learn to base your medium-term and short-term plans in an ideal way, a way that they eventually add to the value of your long-term plans. Act smartly, choose wisely, and think carefully while making important decisions.