What’s Long Range Planning?

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Long-range planning involves looking beyond the immediate future to understand market and other conditions that may exist down the road. It includes identifying areas for expansion, anticipating competition, and developing capital improvement plans for infrastructure. For businesses, anything outside of a normal operating budget could be considered a long-term plan, while for governments, it could include transportation planning, building and recreational facility renovation, and zoning considerations. Long-range planning helps entities prepare for change and is usually fluid enough to allow for quick changes.

Long-range planning looks beyond the immediate future to understand what market and other conditions may exist down the road. This plan includes more than just a statement of goals. For businesses, it can include identifying areas for expansion, new locations, and anticipating what the competition may do over an extended period of time. For governments, long-range planning often includes the development of a capital improvement plan for buildings and infrastructure, as well as zoning considerations. There is no set time frame to define the difference between a long-term plan and a short-term plan, but long-term planning typically takes place over more than 12 months.

In general, for most businesses, anything outside of a normal operating budget could be considered a long-term plan. For example, while chain stores and restaurants may set aside money for new locations, this is considered long-range planning because there is no specific project in mind, or funding for a specific project may be set aside for a number of years. . An operating budget usually spans a fiscal year and includes things like payroll, utilities, insurance, and other expenses. Some companies may even break down plans into short-, medium-, and long-range goals.

For governments, a long-term plan could include a number of different factors intended to move the community forward. One of the most concentrated areas for long-range planning is in transportation and will include planning for roads, municipal transit systems, and perhaps airport and seaport improvements. Replacing or renovating government buildings and recreational facilities is also part of a long-term plan. The budget for these projects can be over a period of many years.

Zoning is another common area where governments plan for the long term. Local governments, such as cities and counties, are usually responsible for zoning. In many cases, zoned areas may be designated for a particular purpose even though no development or limited development has occurred in a given area. Such development may not take place for many years, but it represents a strategic plan for a local government to improve the quality of life of its residents or to accommodate an expanding population.

Long-range planning helps define where a business or government wants to go and helps those entities prepare for change. It is common for long-range plans to change several times before being implemented. These plans are usually fluid enough to allow for those changes quickly and without too much ill effect. At the start of a project or when funding for its completion is nearing, the concept moves from a long-range plan to an operational or short-range plan.




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