Dynamic voltage drop, unlike the static voltage drop depends on the switching activity of the design, and hence it is vector dependent. We highlight the pitfalls in the common design closure methodology that addresses static IR drop well, but often fails to bound the impact of dynamic voltage drops robustly. Factors that can affect the accuracy of dynamic IR analysis and the related metrics for design closure are discussed. A structured approach to planning the power distribution and grid for power managed designs is then presented, with an emphasis to cover realistic application scenarios, and how it can be done early in the design cycle. Care-abouts and solutions to avoid and fix the Dynamic voltage drop issues are also presented.