Contents of a Planning Cycle
The Planning Cycle should be a work schedule for the board of directors / the management or the department describing tasks and goals. In the Planning Cycle of a board, you will typically find two categories of tasks.
Regular tasks of a board of directors
– Legal tasks such as annual report, general meetings, etc.
– Tasks the board has to perform in consequence of legislation, recommendation, etc.
– Tasks laid down in the procedure of the board
– Current information and control of the running of the company
Typically, it will not be a problem for the board to list the tasks in this category of the Plannnig Cycle, as we are talking about specific tasks being performed and laid down at regular meetings over a number of years.
In the other category, two specific tasks should appear in the Planning Cycle:
Annual development activities handling :
– Tasks in connection with goal settings, development of strategy, etc.
– Other tasks and targets based on the present situation
It is of great importance to work especially this category into the Planning Cycle in order to give a consistent and focused priority of the developments activities as well as the goals of the board of directors. It is often so, that these specific tasks are the ones going to be neglected, if the board does not have an Annual Operating Plan.
Altogether, it is important that the Planning Cycle contains all the tasks of the board of directors in order to give a full and fair as well as a realistic view of the plan.