This is the process of understanding the organization's current state, capabilities, and changes necessary for improvement. To adequately begin formulating the mess, great effort must be taken to understand and learn about the current state of an organization and its environment. This can be called the "state of the organization or situational analysis." Formulating the mess by understanding the state of the organization and by creating a reference projection will enable the organization to "control or influence" its future. This essentially[6] involves appreciating the situation in-depth. This phase is about comprehensively understanding the organization from possible factors that effect its functioning, impinge upon its effectiveness and efficiency, and influences its future direction.[7] According to Ackoff, in the past, situation analysis consisted of identifying the individual problems confronting an organization and classifying these problems as threats and opportunities, prioritizing them, and then focusing the planning in a way that reflected the priorities set on these elements. By the 1970s, planners began to realize that reality does not consist of sets of independent problems, but a system of interacting problems. Therefore, by dealing with any one problem separately, we ignore the fact that the solution to that problem will interact with other problems. So it became necessary to find a way of formulating reality as a system rather than as a set of independent problems. We call such a system a "mess." One of the characteristics of interactive planning is a methodology for formulating messes and treating them through design.

There are four elements in formulating the "mess" during the Interactive Planning process:

1. Systems Analysis,
2. Obstruction Analysis,
3. Reference Projection, and
4. Reference Scenario.

The State of the Organization (i.e. Systems Analysis) provides a detailed description of what the organization currently does.[2] It can be illustrated by flow charts; identification of rules and customs practiced by the organization; disclosure of internal and external conflicts which affect organization performance; and identifying trends that could affect organization performance if it continued on the same behavioral pattern by failing to adapt to the constant changes in the environment.

The progress of an organization may be hindered or disrupted by discrepancies, as well as conflicts present which is the theme of obstruction analysis.[8] This may be conflicts between individual members within the organization, availability of resources, or other existing conflicts.

By beginning to analyze the current operation of the system (State of the Organization), elements that obstruct progress become evidently visible in creating a reference projection.[8]

A reference projection is a projection of the future of the organization based on two false assumptions:

1. There will be no change in the organization's behavior.
2. The relevant future predicted by the organization is complete and correct.

The reference projection should be formed based on the critical success factors of the organization that will lead to its destruction in its projected future. This method of analysis (a reference projection) will produce "how and why the organization will destroy itself." Critical success factors could include an organization's expenses, revenues, return on investments, and safety records. In all instances, the reference projection should sufficiently illustrate the future of the organization if it did not change its behavior. In this sense the reference projection provides a means to identify potential limiting business strategies and suggest ways to avoid serious future failures.

The implications rooting from systems analysis, obstruction analysis, and reference projection combined are concluded in reference scenario; for organizational members to comprehend the ramifications projected in the organization and collaborate on building the necessary changes.[8]

This is the process of defining what the organization desires to be at the present state, and identifying gaps between the desired present and the current reference projections of the organization. This process is achieved by making explicit exactly what is wanted by an organization. In an organization three specific types of ends are ideals, objectives, and goals. This seeks to work towards identifying the end state that needs to be pursued.[6]

1. Ideals like certain limits in mathematical formulas can be approached endlessly but can never be reached. Therefore, the gaps between the current state of the organization and an ideal can be reached.
2. Objectives are a type of ends that can only be attainable in the long run.
3. Goals are a type of ends that can only be attainable in the short run.

There are three components to achieve Ends Planning:[8]

1. Idealized design: an ideal design by organizational designers which is viable, feasible, malleable, adaptable, controllable and accessible for improvement
2. Design of Management Systems
3. Organizational Design

The identification of participants in Ends Planning necessitates that it is composed of individuals who are immersed in the project/program, "diverse in thought and in gender", "capable of thinking outside the box" and appreciative of the role of research and development (R&D) in organizational development.[3]

This is the process of determining what needs to be done to close the gaps between the desired present and the current reference projections of the organization. The main objective of means planning is to determine how the gaps are to be closed or reduced, which will provide the instructions needed to close or reduce those gaps. Means come in different forms, depending on the complexity of the gaps. Types of means include: acts, courses of action or procedures, practices, processes, projects, programs, and policies.If end planning is about the ‘‘what’’, means planning is about the ‘‘how’’. This phase seeks to open a deliberation on the enablers that are required in order to realize the objectives and on the approach that needs to be adopted in order to successfully deliver on the program.[6]

The reference scenario is correlated with the idealized design in order to establish the process in filling the gaps (by resolving, solving or absolving).[8] Predicaments are always in existence and providing a control mechanism as well as a monitoring system can support the process. Establishing a diverse way of addressing the gaps presented by the reference scenario and the idealized design, will entail looking at the way obstruction variables interact and the outcomes produced.

This is the process of identifying what resources are needed, when they will be needed, and what to do in case of shortages/excesses. Resource planning relies heavily on means planning because it provides the backbone from how much resources are inevitably needed. Typically in the resource planning stage of interactive planning five types of resources are focused on: money, capital goods, people, consumables, and data. For each resource type, questions to be addressed are:

• How much will be required, where, and when?
• How much will be available at the required time and place?
• How should each shortage or excess be treated?

This phase is regarding anticipating and forecasting on resources—including approaches, tools, information and knowledge—that enable implementation of plans on the ground.[6] A subsequent process that follows Means Planning is the consequences on the resources (inputs, finances, facilities, staff, services, equipment etc).[8]

This is the process of determining "who, what, when, where and how" the plan will be put into action. Implementation is achieved by creating specific instructions based on the means (selected during the means planning process of interactive planning). It consists of implementation decisions and expectations, which should always be monitored and controlled. In addition, the individuals who make the decisions should be available to those responsible for carrying out the decision.

This is the process of deciding how to monitor the implementation of planned decisions and how to evaluate the plan (whether they are effective or not) once implemented. In the control process procedures are created to: identify expectations, monitor decisions, diagnose problems, prescribe corrective action, and providing feedback to facilitate organizational learning and adaptation.

Interactive planning can be used to design and implement many different areas in management systems. For example, interactive planning can be used in assessing whether or not the organization's occupational safety and health goals meet their present and future needs and are seen as a vital part of a corporation’s on-going success.

In addition, interactive planning establishes a model for evaluating, comprehending, and initiating change management within a corporation's safety and health program. This model enables Environmental Health and Safety professionals to create a process safety management framework to perform a gap analysis of current work practices compared with current company means to re-direct resources. There are circumstances that corporate safety management need to re-align the prism to provide clear, concise direction to employees and/or responsible senior executives.

Interactive planning is similar to the value-stream mapping (VSM) process in the sense that they both map out the current state and lay out the path towards a future or an ideal state. However, the two are different in the sense that VSM focuses more on the material and information flows in a value stream or supply chain, while interactive planning focuses more on organizational dynamics. Moreover, VSM's primary intent is to expose losses and wastes, and although it also involves basic action-planning, it does not include a deliberate design of controls as in interactive planning.

Interactive planning is also similar to organization performance model (OPM)[11] in the sense that both are concerned with organizational design, and that both involve an assessment phase and a redesign phase (termed as the idealization and the realization parts in the case of interactive planning). However, OPM focuses more on the assessment and redesign of the cultural elements of an organization, while interactive planning covers the broader organizational system.

The available technology and knowledge during the time of the design are the only practical means for the design of a system to be considered. Any imaginative techniques, like mental telepathy or concepts which appear to be “science fiction” at the time of the design, should not be included in the planning activity.

The immediate environment of the design process should adhere during the planning activity. The present includes current laws, regulations, and approval standards, where appropriate because the new design intends to be operationally viable in the existing application and use of an organization.

An organization is a learning organization that is capable of adapting to internal and external changes. It has the capability of redesigning itself, allowing its internal and external stakeholders to enhance its performance and proactively anticipate change.[2]

As in any concept, Interactive Planning also has its share of criticisms and most notably from the Marxist-oriented sociological point of view. According to Jackson (2000) as cited in Haftor (2011), there are two key issues raised against IP: (1), it does not challenge power structures present in a managerial structure and (2) in the execution of the IP-process, not all stakeholders have a voice.

In defense of IP, Ackoff: (1) shared his experience wherein he has yet to encounter a situation where power-conflicts could not be addressed; and (2) while he recognized that not all stakeholders are actively involved in the process, he proposed those who do not have full participation may "initially be affiliated to the projects as consultants, and thereafter, as work progresses, be recognized as full members of the project and its decision-making."[14][1]

Planning is the integral process and sub-processes of time and space that deals with preparation, formulation and fruition of decisions about the future[15].  On the other hand, Dror [16] defined planning as a process, whether in formal and legal matters, wherein decisions will have to be approved and implemented by some other body, or a decision maker.  It is a set of plan and consequences that needs to be laid down for a decision maker to make an appropriate and reasonable selection. Milovanovic [17] believed that there is an entire chain of a defined process of decision making, and in interactive planning, there are various participants with various intent of actions.  Laurini[18] suggested that there are three essential links between the participants in interactive planning: politicians, planners and citizens. Healey [19] delineated the participant groups who are significant in the conversation about the problems in community: technical experts, media, neighbours, activists, interested citizens, business and industrial team, selected officials, administration of local, regional and national level. However, interested parties are not always participant parties.  According to Healey [19], participants can be divided in to three main clusters: income-based sector, administration and non-government organizations as a form of organized citizens.  For them the classifications of the participants are anchored on their roles in decision-making.  These are the: proposers, decision makers and the public as the third and last interested party.

Milovanovic[17] stressed that in interactive planning, awareness is the paramount motive for an indepth participation from the different groups.  The quality of plan is highly dependent on the quality of life and the quality of space attached to the plan.  Citizens as participants of the plan are strongly concern only of those outcome that will affect them personally[20].  The differences in capabilities, resources, and qualifications also influence the quality of the decisions.  Because of these differences, Millovanovic[17] suggested to create a division of the participants to warrant the participation of the public and other interest groups.

Diversity refers to the traits and characteristics that make people unique while inclusion refers to the behaviors and social norms that ensure people feel welcome[21]. Diversity can range from differences in races, ethnicities, genders, ages, religions, disabilities, and sexual orientations. It also encompasses differences in education, personalities, skill sets, experiences, and knowledge bases[22].

The word interactive from a people perspective is defined as two people influencing each other[23]. In planning, interaction would be more fruitious if different perspectives were brought into the table. Varying perspectives would arise from individual personalities with unique life experiences [24]. Diversity is expressed in welcoming participants of different walks of life. Inclusion is realized and fulfilled when the perspectives opined by the participants are taken into consideration.

Although there is beauty in uniformity, there is more in diversity, more so in inclusion.

• Ackoff, Russell L. (1999). Re-creating the corporation: A design of organization for the 21st century. New York: Oxford University Press. pp. 63–80.