Importance of Planning Monitoring and Evaluation 1

IMPORTANCE OF PLANNING,
MONITORING, EVALUATION AND

FOLLOW UP
Entrepreneurship Development and Industrial

Consultancy (DBM-421)
A K JHA
Introduction
Planning, monitoring and evaluation (PME), and
follow up are the key managerial functions.
Once the plan is prepared and implemented, its
monitoring and evaluation are essential to see
whether the plan is proceeding as per the original
plan or there is any deviation. If deviations are
found mid-course correction measures are
essential to get the desired impact.
In case of enterprise, planning is related to
business plan activities.
Business Plan
A business plan acts as a guide for entrepreneurs. It
serves the following main functions:
 It provides logical and structural overview of the enterprise
highlighting the key activities to be carried out in different
phases.
 It provides guidelines to compare ongoing progress.
 It identifies the key resources (man power, machines, time
etc.) required at different stages of growth of enterprise.
 It helps in participative management as all the employees are
aware about future activities.
 It provides an authentic document for communicating
aspects of enterprise with financers, government and other
stakeholders.
Steps in Business Planning Process
1. Idea generation: This is the first preliminary stage of business
planning process.
2. Assessing the environment: It is necessary to analyze both macro
(external) and micro (internal) environments to know strength,
weakness, opportunities and threats faced by the
organization/entrepreneur.
3. Feasibility analysis: On finding the environment suitable for the
enterprise, detailed feasibility study is to be carried out viz., market
feasibility, technical/ operational feasibility and financial feasibility.
4. Project report preparation: Using the information so far collected,
a project report/ business plan is prepared. A business plan is a
written document describing step by step strategies to establish and
operate an enterprise.
5. Evaluation, control & review: In order to retain leading position
in today’s competitive business world, it is necessary for an
enterprise to continuously evaluate the functioning and do
necessary revisions in the light of changed circumstances.
Developing a Business Plan
A business plan is an important step in establishing any new enterprise. It
acts as a roadmap to guide the future of the enterprise and provide direction
for expansion, diversification and evaluation of the enterprise.
Format of Business Plan

The business plan should be professional so that enterprise is portrayed in a
positive manner. Financial assistance is obtained based upon business plan.
A business plan should include executive summary, mission statement,
goods and objectives, back ground information, organizational matters,
marketing plan and financial plan.
Executive Summary
It describes the business or proposed changes to the existing business and
category of industry to which the business / enterprise belongs. It outlines
the direction and future plans or goods of the company, the methods to be
employed to achieve the goals. It also describes challenges that will be
faced by the enterprise / business.
Mission, goals and objectives
 The mission statement should be short
 should give the key idea or reasons for existence of
enterprise.
 Goals and objective should show
◦ what the business wishes to accomplish and the steps needed to
obtain the desired results.
◦ Goals and objectives should be specific, measurable, attainable,
reasonable and time bound.
Background information
This covers information about history of the enterprise, the
current state of industry in which enterprise fall and
information from the reputed sources about future of industry
in which enterprise falls
Organizational structure
This includes description about organizational structure,
management team, risk management etc. There are different forms of
organization structures. The structure selected should be appropriate
to the management skills and style of the owners.
Marketing plan
It covers aspects like characteristics and advantages of product of the
enterprise, sales location, promotion, advertising, pricing and the
associated costs of all market related activities.
Financial plan
This covers aspects of types of records to be maintained, signing
authority for banking transactions, financial assumption etc.
Financial projection for at least five years should be indicated.

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IMPORTANCE OF PLANNING,

MONITORING, EVALUATION AND

Entrepreneurship Development and Industrial

Format of Business Plan

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