In all honesty, short-term, medium-term, and long-term planning are all cut from the same cloth. They are used to determine the different lengths of time. Scrutinizing your short-term planning, medium-term planning, or long-term planning objectively and making decisions accordingly is vital to the success of a business.
According to William D King, Short-term planning is strategized to focus on goals for the upcoming three to six months. They are oriented towards scaling up the 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, budget, investments, attention to detail, networking, 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).
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 says William D King.
The aim, purpose, and identity of your entire business lie under the umbrella of 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 of 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.
Difference between Short Term Management and Long Term Management
Short-term plans are associated with the current progress of your company. In accordance to a William D King 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:
- 1. Execution
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.
- 2. Scope
The scope of the short-term plans is modifiable. They can be altered as per the requirements of the present.
The scope of the long-term plans is absolute as it is based on the vision and goals of the company.
Set 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 twice before making any important decision says William D King.