American Institute of Certified Planners (AICP) Practice Exam

Which planning method emphasizes setting objectives and determining how to achieve them?

1. Gantt Chart

2. Strategic Planning

3. CPM

4. PERT

The correct answer is: Strategic Planning

The choice of strategic planning is significant as it represents a systematic process where organizations define their direction and make informed decisions about how to allocate their resources to pursue this direction. Strategic planning involves identifying long-term goals and specific objectives, which are essential for guiding the organization’s efforts toward achieving its mission. This method focuses on understanding both the internal capabilities and the external opportunities or challenges an organization faces, enabling planners to craft effective strategies that align with their goals. Techniques used in strategic planning often include SWOT analysis (assessing strengths, weaknesses, opportunities, and threats) and establishing key performance indicators (KPIs) to measure progress against objectives. While other methods like Gantt charts, CPM (Critical Path Method), and PERT (Program Evaluation and Review Technique) are tools widely used for project management and scheduling, they do not inherently emphasize the broader strategic framework of setting objectives and determining approaches to achieve them. Instead, these methods are more focused on the scheduling and execution of tasks within the context of an already established strategic plan. Thus, strategic planning stands out by highlighting the importance of goal-setting as a foundational element of the planning process.