Strategic planning in administration with a systems approach

For many companies there is the challenge of knowing how they are going to face the competition derived from the globalization of the economy, a fundamental technique to be able to successfully answer this question is strategic planning. Strategic planning is inseparably intertwined with the entire management process; therefore, every manager must understand its nature and performance.

Any company that does not have some kind of formality in its strategic planning system is exposed to an inevitable disaster. Some directors have very distorted concepts of it and reject the idea of trying to apply it; Others are so confused about this issue that they consider it to be of no benefit and some are ignorant of the potentialities of the process for both themselves and their companies. There are those who have some knowledge, although not enough to be convinced that they should use it.

This paper aims to provide you with a clear, concrete, pragmatic and complete reasonable understanding of strategic planning itself, how it is done, and how it is implemented.

"Ideas are born twice, when we think about them and when we make them" Stephen Covey

What is strategy?

A strategy is a set of actions that are carried out to achieve a goal.

What is strategy?

The word strategy comes from the Greek and literally means "guide of armies."

ΣΤΡΑΤΗΓΙΚΗΣ: Stratos (army) + Agein (driver, guide)

Here is the response of three renowned authors, specialized in business strategy issues, to the question, what is strategy?

Alfred Chandler. Strategy is the determination of long-term objectives and the choice of actions and the allocation of the necessary resources to achieve them.

Igor Ansoff. Strategy is the dialectic of the company with its environment

Michael Porter. The competitive strategy consists of developing a broad formula of how the company is going to compete, what its objectives should be, and what policies will be necessary to achieve those objectives.

Something more about the concept of strategy

Strategy is the only way in which the organization generates value Less than 10% of strategic plans are successful In 70% of cases the problem is due to poor strategy or poor execution Strategies may vary but not the tools to measure it. It is estimated that the management team spends less than one hour a month on strategy!

Strategic planning

Definition of strategic planning

It is the art and science of formulating, implementing and evaluating cross-functional decisions that allow the organization to carry out its objectives.

Here is a short video lesson, given by Professor Antonio Verdú from the Miguel Hernández University of Elche, to expand the concept of strategic planning:

Background of strategic planning

Greek verb stategos: "Plan the destruction of enemies in an efficient ratio of resources."

Socrates in ancient Greece compared the activities of an entrepreneur with those of a general by pointing out that in every task those who carry it out properly have to make plans and move resources to achieve the objectives.

When Hannibal planned to conquer Rome, he began with the definition of the mission of his kingdom, then he formulated the strategies, analyzed the environmental factors and compared them and combined them with his own resources to determine the tactics, projects and steps to follow. This represents the strategic planning process that is applied today in any company.

(Acle Tomasini, 2001) The strategy is not new in business, it has been applied for several centuries, but it was only until the beginning of the sixties that academics and management scholars considered it important to achieve business success.

In modern times, at the end of the Second World War, companies began to realize some aspects that were not controllable: uncertainty, risk, instability and a changing environment. The need arose, then, to have relative control over rapid changes. In response to such circumstances, managers begin to use strategic planning (planning).

Benefits of strategic planning

Financial benefits

Research indicates that organizations that use strategic planning concepts are more profitable and successful than those that do not. Generally, companies with high returns reflect a more strategic orientation and long-term focus.

Non-Financial Benefits

Greater understanding of external threats, a better understanding of competitors' strategies, increased employee productivity, less resistance to change, and a clearer understanding of the relationship between performance and results.

It increases the ability to prevent problems It allows the identification, prioritization, and exploitation of opportunities It provides an objective vision of management problems It allows to allocate resources more effectively to the identified opportunities. It helps to integrate the behavior of individuals into a common effort. It provides the basis for clarifying individual responsibilities.

Stages of strategic planning

1. Formulation of Strategies

It includes the development of the business mission, the identification of opportunities and threats external to the organization, the determination of internal strengths and weaknesses, the establishment of long-term objectives, the generation of alternative strategies, and the selection of specific strategies. to be carried out.

2. Implementation of Strategies

It requires the company to establish annual objectives, project policies, motivate employees, and allocate resources so that the strategies formulated can be carried out; It includes the development of a culture that supports strategies, the creation of an effective organizational structure, marketing, budgets, information systems, and motivation for action.

3. Strategy Evaluation

review internal and external factors underlying current strategies, measure performance, and take corrective action. All strategies are subject to change.

Strategic planning model

What is Vision?

It is a set of general and sometimes abstract ideas that define and describe the future situation that the company wants to have, the purpose of the vision is to guide, control and encourage the organization as a whole to reach the desirable state of the organization.

The vision of the company is the answer to the question, What do we want the organization to be in the coming years?

Vision is the first thing you think about and the last thing you get in a strategic plan.

What are the elements that make up a vision?

The vision must have some elements that make it up and give it structure, allowing all members of the business unit to easily identify, understand and put it into practice:

It must be formulated by leaders: since they are trained to understand the philosophy, expectations and needs of the organization. It must be defined in time: in order to commit the members of the company in these times of high competitiveness, the vision must have well defined the term in which it must meet its objectives. It must be inclusive: the vision must allow the idea to be integrated with constant action to achieve its purpose. It must be broad and detailed: in the sense that it must contain enough and necessary words that allow us to see clearly what is intended, but avoiding unnecessary explanations and repetitions. Positive and inspiring: it must be integrated with the positive life norms and be liked in its form and substance in order to involve and engage the interest group. It must be realistic and possible: in order to commit the members of the organization to the vision, the possibility of achieving it in the estimated time must be clearly seen. It must be consistent: the vision must contain and be consistent with the principles of the business unit. It must be disseminated internally and externally: the vision must be known by the members, by the clients, by the competition, the suppliers, in other words, it must reach the entire stake holder (interest group).

Through the following video you can give yourself an additional idea of what it is, how the business vision is composed and formulated (Miguel Hernández de Elche University):

What is the Mission?

The Mission is the great purpose of the organization, it describes the nature and the business and identifies the product, the customers and the market. It is the duty of the organization.

How is the mission formulated?

The mission must be formulated by the managers but to achieve the integration of the team, the participation of all its members must be allowed.

To formulate a mission you should try to answer the following questions:

What business are we in? Why does the company exist? What is it that differentiates it from others? Who are our customers? Who are the suppliers? What are the products? What is the market? How to achieve profitability? How to minimize environmental impact? What are the principles?

What are the elements that make up a mission?

The mission must also have elements that make it up and give it structure, allowing all members of the business unit to easily identify, understand and develop it:

Must ensure consistency and clarity of purpose Must define the central reference point Must achieve commitment from members of the business unit Must engage and achieve loyalty from internal and external related Must help consolidate corporate image Must be Realistic and feasible Must be consistent Must be disseminated internally and externally

More on the characteristics of the business mission in the following clip (Miguel Hernández de Elche University):

Barriers to the execution of strategies

Mathematical School of Administration

The mathematical school is applied to give objectivity to decision-making, since with its techniques hunches or intuition are avoided, reducing uncertainty to a high degree.

The Mathematical school arises during the 2nd. World War, in England, given its precarious situation and lack of resources, which forced the establishment of meetings of scientists from various disciplines, in order to provide solutions to the optimization of resources, that is, to do more with less. Thus, solutions should be given to problems of supply, transportation, location of supplies, etc. In such a way that with scarce resources the results could be optimized.

As a consequence of the good results obtained, the United States takes it up again and includes it in its logistics problems, the investment of new flight models, the planning of mines at sea and the effective use of electronic equipment.

After the war, the United States brings all these techniques into Industrial application.

Operations research

One of the most used quantitative techniques is Operations Research (IO). The name of Operations Research was due to the strategic military operations.

Today IO is included in hospitals, banks, libraries, transportation systems, and even criminology. Below are the most used decision-making methods.

The field of operations research comes –in certain respects- from scientific management, enhanced by more refined methods (mainly mathematical): computer technology and an orientation directed towards larger problems. The IO adopts the scientific method as a structure for problem solving, emphasizing objective rather than subjective judgment. Most of the authors of the mathematical school come from mathematics, statistics, engineering and economics, so they have a technical-economic and strictly rational and logical orientation.

Definitions of IO vary from specific mathematical techniques to the scientific method itself. Many of them include three aspects common to the IO approach: in administrative decision making:

A systemic view of the problem to be solved A concordance regarding the use of the scientific method in solving problems The use of specific techniques of statistics, probability and mathematical models to help the decision maker to solve the problem.

IoT relates to the analysis of the operations of a system and not simply a particular problem. She uses:

The probability. For decisions under conditions of risk and uncertainty. Statistics. In the systematization and analysis of data in order to obtain meaningful solutions.

The IO uses a model of action developed analytically following a logical methodology and, when it is practicable mathematical. Seeks that the decision-making process in organizations is scientific, rational and more logical.

The method of action of the IO is mentioned below:

Formulate the problem. It is necessary to make an analysis of the systems, the objectives and the alternatives for action. Build a mathematical model to represent the system under study. This model expresses the efficiency of the system under study as a function of a set of variables, of which at least one is subject to control. Deduce a solution from the model. There are two types of procedures for an optimal solution of a model: the analytical process and the numerical process. Test the model and the solution. A model is only the partial representation of reality. The model is good when, despite this deficiency, it is able to accurately predict the effect of changes in the system and the overall efficiency of the system.Establish control over the solution. A calculated solution of a model will only be a solution as long as the uncontrolled variables retain their values and the relationships between the variables in the model remain constant. Put the solution into practice (implementation). The solution under test needs to be transformed into a series of operational processes that can be understood and applied by the personnel who will be responsible for its use.

The IO has the following characteristics:

It cares more about the operations of the entire organization than just about some division or body of it, since it considers the system as a whole. It seeks to improve and streamline operations, in order to provide greater security to the organization, in the short term. and long-term Applies the most recent scientific methods and techniques Seeks to project and apply experimental operations that represent real operations It is based on advanced quantitative analysis techniques It refers not only to machines or men individually, but to operation as a everything. IO is research at the operational level, that is, its interest is execution.

The main fields of application of IoT are:

In relation to people:
- Organization and management Absenteeism and work relations Economics Individual decisions Market research.
In relation to people and machines:
- Efficiency and productivity Organization of factory flows Quality control, inspection and sample methods Accident prevention Organization of technological changes.
In relation to movements:
- Transportation, storage, distribution and handling (logistics) Communications.

Operations Research Techniques

The resolution of an analytical model of IO is supported, almost always, mathematically on one or more of the following techniques:

1. Game theory

Game theory was initially proposed by the Hungarian mathematician Johann von Neunan (1903-1957), becoming widely disseminated from 1947 with his writings. In them he proposed a mathematical formulation for the analysis of conflicts. Here the concept of conflict implies opposition of forces, interests or people, which originates a dramatic action. However, this opposition does not occur immediately and explicitly, but from the formation and development of a situation, until reaching a more or less irreversible point where dramatic action is triggered.

A conflict situation is always one in which one wins and another loses, since the intended objectives are indivisible and incompatible by their very nature. Game theory applies only to some types of conflicts (called games) that involve the dispute of interests between two or more participants, and in which each party, at certain times, can have a diversity of possible actions, however delimited by the rules of the game.

The number of available strategies is finite and therefore innumerable. Each of them describes what will be done in any situation. Knowing the possible strategies of the players, all possible outcomes can be estimated.

2. Queuing theories

Queuing theory refers to how to optimize a distribution under crowded and waiting conditions.

This theory takes care of congestion points and waiting times, that is, of the delays presented at some point of service. The mathematical techniques he uses are very varied. Most of the work on queuing theory generally falls into some of the following categories.

Telephone communication problems Traffic problems Machine and supply breakdown problems

3. Theories of graphs

From the theory of the graphs, the techniques of planning and programming by networks are derived (CPM, PERT, etc.), which are widely used in activities of civil construction, industrial assembly, mainly. Both the PERT (Program Evaluation Review Technique) and the CPM (Critical Path Method) are arrow diagrams that seek to identify the critical path by establishing a direct relationship between time and cost factors, indicating the so-called “economic optimum” of a project.

Such an "economic optimum" is reached through a certain sequence of operations in the execution of all the operations of a project, allowing the best possible use of available resources through an optimal period. The Neopert is a simplified variant of PERT, making it possible to save time in its elaboration.

The networks or arrow diagrams are widely applicable in projects that cover various operations or stages, different resources, several and different bodies involved, deadlines and minimal costs. All these elements must be articulated, coordinated and synchronized in the best possible way. Conventional schedules and the Gantt chart do not allow the synchronization of all these variables.

The networks or arrow diagrams have clear advantages:

They allow the execution of the project in a shorter time and at a lower cost They show the interaction of the various stages and operations of the project They allow the optimal distribution of available resources and facilitate their redistribution in each case of subsequent modifications They provide various alternatives for the execution of the project facilitating decision-making in this regard; They identify “critical” tasks or operations, that is, those that do not offer time slack for their execution, which directly affect the deadline for the completion of the overall project, demanding that the administration focus its attention on them.

They establish a clear definition of the responsibility of all the bodies or people involved in the projects.

4. Linear programming

Linear programming has the following characteristics:

It is concerned with reaching an optimal position in relation to a certain objective, generally its purpose is to minimize costs and maximize profits, although minimization and maximization can be applied to any pre-set objective:

5. Probability and statistical analysis

The use of statistical methods allows as much information as possible from the available data.

In other words, statistical analysis is the method by which the same information is obtained with a smaller amount of data. It is widely used in those cases where data is difficult to obtain. One of the best known applications of statistical analysis is quality control in production management.

The application of statistics to industrial quality problems began thanks to Walter A. Shewhart, a physicist who worked at AT&T Bell Telephone Laboratories during World War II. Based on his ideas, two gurus were to revolutionize the concept of quality:

W. Edwards Deming, who popularized Statistical Quality Control (SQC), was so influential that since 1951 the Deming Prize for Quality was instituted in Japan in recognition of companies that excel in this regard. countryside. Statistical quality control is based on techniques to accurately determine when tolerable errors in production begin to exceed tolerance limits, at which time corrective action becomes necessary.JM Juran, who extended quality concepts to the entire company with its total quality control (TQC Total Quality Control).

While the SQC only applies to the technical and operational level of production, the TQC extends the quality concepts to the entire company, from the decision level through the managerial level and encompassing all office and factory personnel in full coverage.

Statistical analysis is mainly applied:

In the statistical control of the process. In the statistical control of quality.

Statistical theory provides the means for the selection of samples, the characteristics that they must have in order to be "representative" of the data universe, and what is the risk associated with the decision to accept or reject a lot, based on the information supplied by examination of the sample.

6. Dynamic programming

Dynamic programming is applied to problems that have several interrelated phases, where you must make an appropriate decision for each of these, without losing sight of the ultimate goal. Only when the effect of each decision is determined can the final selection be made.

This technique can be illustrated through a very simplified example of the problem of a driver who wants to go from one point to another and must interrupt his trip for lunch. Usually the driver solves the problem in stages. First you select various places along the route where you can eat your meals. It then determines the optimal path from your starting point to each of those sites, and then to your arrival point. The shortest distance (or the least investment of time, depending on the case) determines the best location. Your first decision is to choose the place where you will have lunch and the second the best route to get there. In both, the final concern of finding the shortest route in the shortest possible time is present.

Dynamic programming is applicable in case studies of economic alternatives between buying / building / maintaining machines and equipment, or buying / renting real estate or even keeping / demobilizing company assets, for example.

General systems theory

Background

The General Theory of Systems (TGS) arose with the works of the German biologist Ludwig von Bertalanffy, published between 1950 and 1968. The basic assumptions of the general theory of systems are: There is a clear tendency towards the integration of diverse non-social sciences. This integration seems to be oriented towards a systems theory. Said systems theory can be a broader way of studying the non-physical fields of scientific knowledge, especially in the sciences.With this systems theory, by developing unifying principles that vertically sanction the particular universes of the various sciences involved we approach to the goal of unity of science. This can lead to much-needed integration in science education.

General systems theory states that the properties of systems cannot be meaningfully described in terms of their separate elements. Systems understanding only occurs when systems are studied globally, involving all the interdependencies of their subsystems

What is General Systems Theory?

Systems theory (TS) is a specific branch of general systems theory (TGS). The TGS does not seek to solve problems or try practical solutions, but rather to produce theories and conceptual formulations that can create conditions of application in empirical reality. The TGS asserts that the properties of systems cannot be described in terms of their separate elements; their understanding comes when they are studied globally. The interest of the TGS are the characteristics and parameters it establishes for all systems.

School of systems

Several authors coincide in defining a system as a set of parts ordered in such a way that they all contribute to achieving a certain end. The universe is made up of several systems that, in turn, are part of other systems.

A system consists of a series of components among which the following can be highlighted:

The human body, for example, can be conceived as a system, made up of other systems or subsystems such as the circulatory system, the respiratory system, the digestive system, the nervous system, etc.

There are mechanical systems, like a machine; biological systems such as animals or plants; astronomical systems like solar, social systems like a sports club, etc.

Set of constituent elements, that is, parts or organs that play a specific role. If one of the parts is missing, the system cannot work.

An organ or main element that governs or governs the activity of the other constituent parts, for example, the heart in the circulatory system, the engine of a car, the sun in the solar system, the manager in a company.

A network of relationships between the elements that make up the system, formed by the functions that each element performs and which, in turn, are part of the function of the other bodies.

A few purposes that govern the operation of the system and explain its structural and functional characteristics.

Systems classification

Systems are classified from different points of view.

1. Because of its dynamism.

Static: They are those systems that do not react or change with the influence of their environment. For example, a machine. Dynamic: They are those that constantly evolve due to internal and external factors such as: Colombian society, a company, a social club, an animal, a plant. Homeostatics: This name is given to systems that contain within themselves and up to a certain limit a self-regulating capacity, such as a clock that works thanks to a battery.

2. Due to their dependence.

Dependent systems: They are those that function depending on others and do not have the capacity to function by themselves. A car engine, for example, will not work without the electrical system. Independent systems: They are those that have the capacity to regulate themselves and also can be modified because they have freedom to decide, such as man. Interdependent systems: They are systems that depend on each other. Administrative organizations and, in general, social systems are interdependent.

3. Due to their ability to communicate and interact with the outside world.

Open systems: They are those that receive wide and varied information and interact with other systems, for example, social organisms. Closed systems: They are those that have a reduced capacity to receive information and to interact with their environment, for example, a computer.

4. From the conceptual and empirical point of view.

The greatest difficulty in understanding systems theory consists in not distinguishing when a system is talked about from the conceptual point of view and when it is talked about, from the empirical point of view.

To clarify these ideas let us start from the fact that empirical systems are derived from conceptual systems when concepts are converted into practical realities. It is one thing, for example, to have an idea, a concept, about what an organization should be in relation to the distribution of work, the scope of control, the lines of authority, formal and informal relationships, and quite another to speak organization in terms of people, physical spaces, machines and various elements that make it up.

We understand that from the conceptual point of view the systems are elaborated by the human mind with an analytical method, but from the empirical point of view, they are applications that man makes of the theories and concepts to make them functional.

5. By reason of its nature.

Natural systems: They are those that exist without human intervention to form them. Each living organism, for example, is a unique natural system in itself; the solar system is also a natural system. Social systems: This name is given to those systems formed with the intervention of man. Companies, public institutions, political parties, unions, and unions are man-made systems.

Systems development levels

The writer Kenneth Boulding in the work The General Theory of Systems and the Scientific Structure exposed his thought on the levels of development in the systems. This classification is practical for analysis purposes as long as its different characteristics can be known:

The first level refers to the structure of the systems, that is, to their constituent elements organized in a certain way. The second level, to their dynamics, that is, to the way the system works. The third level, to the mechanisms. of self-control, that is, to the way in which some systems self-regulate by "themselves." The fourth level refers to the autonomy of their functioning since some systems do not depend on others. The fifth level, to genetic characteristics of biological systems. The sixth level, to systems that have the capacity of movement by themselves, as observed, for example, in living beings. The seventh level refers to the capacity of a system to know itself. This occurs in humans. These systems can develop a language or means of communication. The eighth level,to social systems, as in the case of organizations. The ninth level is that of transcendental systems. Philosophical systems are included in this category.

Systems theory and administration

The writers of the School of Systems point out that administration can be considered as a system from the point of view of theory and practice.

According to the theoretical point of view, administrative concepts and models can be developed. The Theory of Scientific Administration, whose main representative was Taylor, is governed by postulates, principles and techniques and configures a rationalized system of thought. The same happens in the case of Fayol with its model of business functions and its principles of administration.

The systematologists also point out that any entity, for example a tribe, a social club, a company or an educational establishment configure systems because they can be identified as constitutive elements:

A set of organized parts A governing body or center Some functions that each part fulfills in an interrelated way Some own purposes

We have said that a system is integrated, at the same time by several subsystems.

Colombian society, for example, can be considered as a great system composed of several subsystems according to the way in which the population is grouped for certain purposes.From the territorial and political point of view we have the national, departmental and municipal systems. From the social point of view, the family system, the political party system, the religious one, the association systems, the unions, etc. From the economic point of view, the commercial and business systems. From the educational point of view, basic education systems, university system, etc. Now, if we isolate each system and carry out the same analysis, we will see that each one of them is integrated, in turn, by other systems.

Systems theory applications to administration.

1. Systems analysis

The application of systems theory to Administration can focus both on the development of administrative science and on its practice. In the first case, one starts from the analysis of known systems of thought either to obtain conclusions about their validity, to expand them or to establish new principles and theoretical postulates, in relation to what administration is, and what it should be.

In the second case, existing techniques and methods in administrative practice are analyzed in order to reach conclusions related to their validity or the need to modify them or introduce new ones.

Models: To analyze a thing, it is necessary to observe it carefully. The systems of the human body (circulatory, respiratory, digestive) can be observed because they exist in a sensitive way, that is, they can be known through the senses. In contrast, neither philosophical nor organizational systems can be known through the senses. In order to analyze them, it is necessary to represent them in some way. This representation is called a model.

All systems, real or imaginary, are capable of being represented. A machine can be represented in several ways: by a photograph, by a scale drawing, by a graph, by a symbol, etc. These representative shapes are modeled after the machine. When an architect designs a building, he makes a "model" of what he imagines the building he is going to build will be.

Scale models: They are simulations of real objects in a lower or higher proportion. Example: the plans of a house, the model of a building, the drawing of a cell, etc. Analog models: These are representations with which the structure and operation of the represented object is simulated, for example, when in a laboratory, it is made run colored water through a glass pipe to simulate the circulatory system. Mathematical models: They are those that represent functions and equations that must be performed to solve a problem. Physical models: They are used to represent geometric functions.

In the acting world, models are used in multiple activities, especially for training and teaching: simulated cars to teach driving; simulated aircraft for pilot training, etc.

In administration the models represent organizational structures and operating systems. Systems theory uses models as methods for the analysis of organizations.

2. Functioning of administrative systems

Dynamic systems and, by analogy, social systems have the common characteristic that their operation is governed by forces that set all their parts in motion. For example, in a bread-making system it is clearly seen that the factory is organized to satisfy a customer need; the force that makes the system move is customer demand; This demand enters the factory and there the information received is processed through decisions and actions related to aspects such as: What do customers ask for? How much? By when? What product should be manufactured? With what type of raw material? With what methods?

After analyzing all the information and making the decisions to satisfy the demand, the bread is made to put it on sale. Once the demand is satisfied, another demand originates again and the cycle repeats itself over and over again.

3. The administrative organization seen as a set of systems

Management theorists like Mc Gregor define the organization as a system made up of a set of subsystems.

What are the subsystems that constitute an integral part of a larger system such as the organization? These parts are:

The individual: It is the main element of an organization. It constitutes in itself a complex system that is manifested by its personality; their attitudes, their motivations. The individual not only contributes to the functioning of the organization, but he himself hopes to achieve his own purposes within it. The formal organization: It is composed of the structure of the tasks assigned to each individual. These tasks form a network of occupational interrelationships that each person develops.The informal organization: It is made up of the relationships that individuals establish spontaneously and freely, congruent or inconsistent with the formal tasks assigned to each of them.The type of management: In this case, it is synonymous with direction.It is exercised by a person or a group of people who are also assigned tasks of the government of the organization.The plant and the physical environment: They constitute a very important part of the organization and is made up of both the facilities and the material environment that surrounds them. Note that these elements influence the functioning of the organizational system.

4. Cybernetics and systems

As the study of systems evolved, a new science known as Cybernetics emerged. This word comes from the Greek kybernytikis, which means to rule. Cybernetics is said to be the science of automatic control and government.

In management, the word Cybernetics means science that studies systems. Cybernetics studies the ways in which the most evolved systems govern and control themselves. In man, for example, there are author regulatory systems. If you carelessly approach a flame, the hand feels heat. Information about heat relays the order to withdraw to the hand. This simple example is explanatory of a system that governs and controls itself.

Cybernetics is the science that has contributed the most to the development of electronic systems and especially to the development of computers. The evolved systems that are grouped in the 4th level such as the biological ones (cells) and those that man has invented, like the regulatory authoring machines (computers, robots, satellites), are based on cybernetic science.

Applying the science of cybernetics to administrative organizations, it can be concluded that they have the possibility of subsistence when the structure and operation of their system and the subsystems that comprise them have a greater degree of self-government and self-control, processes that require mechanisms of feedback.

Feedback is defined as a mechanism by virtue of which, the energy that comes out of a device to fulfill a function, is not wasted but returns to feedback the device where it originated, with which output and input circuits are generated that they keep the system running. This cybernetic conception can be seen analogously in the bread making system that was presented earlier, where customer demands drive bread making processes. Once the bread is consumed, the clients demand it again and thus, the system is maintained indefinitely.

conclusion

How important is planning? Whenever planning is used to redefine and improve the way you run your business (company or business), planning is just as important as taking everyday actions.

Planning significantly increases the possibility that a large part of the activities and resources of the organization will be transformed into profits for the business, also reducing the level of vulnerability.

Lack of planning leads to disorder and organizational waste.

The conclusion that has been reached is that the understanding of the systems only appears when it is studied, and the effectiveness of a strategic plan lies in the real degree of understanding, that by developing a strategic plan it is possible to anticipate and set objectives.

The importance of following the steps for good planning helps in identifying future opportunities and threats.

Bibliography

Joaquín Valencia Rodríguez, Fourth edition, 2003, Introduction to Administration with a Systems approach, Thomson México Sánchez Blanco C, Editorial Universitas 2011, Strategic Planning, Madrid.Planeación-Estratégica.blogspot.mxKdussanplaneación.blogspot.mxAdmonjess.blogspot.mxDatateca. unad.edu.comwww.slideshare.net