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Fundamentals of Planning

•Planning A process of setting “objectives” and

deciding how to accomplish them.

•ObjectivesSpecific results one wishes to achieve.

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Fundamentals of Planning

•The PlanA statement of what needs to be done to accomplish one’s objectives.

It should answer the questions “what” “who” “when” “where” and “how”.

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Planning

• Initiates the management process.

• Identifies important objectives.

• Indicates what needs to be done to achieve objectives.

• Sets the stage for:

Organizing - Leading - Controlling

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The Planning Process

• Define your objective.

• Determine where you are vis-a-vis objectives.

• Develop your premises regarding future conditions.

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The Planning Process

• Identify and choose among premises' to create plans for accomplishing

objectives.

• Implement the action plan and evaluate results

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Benefits of Planning

•Focus and FlexibilityAn organization with FOCUS knows what it does best.....what its customers want.....and how to serve them. (Stability)

An organization with FLEXIBILITY is ready and able to change in response to, or anticipation of , emerging problems and opportunities. (Adaptability)

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Benefits of Planning

•Action Orientation It keeps the future visible as a performance

target and reminds us that the best decisions are often made before events force them upon us.

It emphasizes direction, establishes priorities, allocates resources more efficiently, and anticipates change.

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Benefits of Planning

• Improved CoordinationThere are many different subsystems and groups in organizations, each pursuing a variety of objectives at any given point in time.

Hierarchy of Objectives / Means-End ChainA series of objectives linked together such that each higher-level objective is supported by one or more lower-level ones.

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Benefits of Planning

•Better ControlWithout planning, Control lacks a framework for determining how well things are going and what might be done to make them go better.

and

Without control, Planning lacks the follow through needed to ensure that things workout as intended.

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Benefits of Planning

•Better Time ManagementEach day, managers are bombarded by a multitude of tasks and demands in a setting of frequent interruptions, crises, and unexpected events; it can be easy to lose track of objectives and fall prey to what consultants identify as "time wasters."

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Tips on Time Management

• Say no to requests that will divert you from work that you should be doing.

• Don't get bogged down in details and routines that should be left to others.

• Establish a system for screening your telephone calls.

• Don't let "drop-in" or unannounced visitors use too much of your time.

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Tips on Time Management

• Prioritize work tasks in order of importance and urgency.

• Don"t become "calendar bound" by losing control of your schedule.

• Work tasks in priority order.

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Types of Plans in Organizations

•Short-Range and Long-Range PlansShort-Range: One year or less.Intermediate-Range: One to two years.Long-Range: Two to five years.

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Types of Plans in Organizations

•Strategic and Operational PlansPlans differ not only in time horizons but also in scope. Strategic plans address long-term needs and set comprehensive action directions.

Operational plans (Tactical Plans) define what needs to be done to implement the strategic plan.

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Typical Operational Plans

Production

Financial

Facilities

Marketing

Human Resource

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Types of Plans in Organizations

•Policies and Procedures “standing-use-plans”

Policies: Communicates broad guidelines for making decisions and taking action.

Procedures and Rules: SOP’s used to describe what precise actions are to be taken in specific situations.

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Types of Plans in Organizations

•Budgets and Project Schedules“single-use-plans”

Budgets: a plan that commits resources to projects or activities……fixed, flexible, zero-based

Project Schedules: identify a set of activities required to accomplish a specific task objective.

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Types of Plans in Organizations

•Business PlanDescribes the direction for a new business

and the financing needed to operate it.

Generally required by those being asked to invest capital and/or allocate scarce resources new ventures.

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Different Approaches To Planning

•Inside-OutInvolves focusing on what you are already doing but trying to do it better. Focuses on strength.

•Outside-inAnalyzes the external environment and makes the internal adjustments necessary to exploit the opportunities and minimize the problems it offers. Focuses on Opportunities.

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Different Approaches To Planning

•Top-DownTop management sets the broad objectives and

then allows lower management levels to make plans within these constraints.

•Bottom-UpBegins with plans that are developed at lower levels without top management constraints.

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Different Approaches To Planning

•ContingencyInvolves the identification of alternative courses of action that can be used to modify an original plan if and when circumstances change.

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Foundations of Good Planning

•ForecastingA vision of the future. It is the process of making assumptions about what will happen in the future.

Forecasting is not Planning....Planning involves deciding what to do in response to the Forecast.

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Foundations of Good Planning

• Use Of ScenariosA long-term version of contingency planning which involves identifying several alternative future "scenarios" or states of affairs, and then making plans to deal with each should they occur.

•BenchmarkingRefers to the use of external comparisons to gain an added perspective on current performance and help initiate the planning process.

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Foundations of Good Planning

•Participation and InvolvementActively includes in the planning process as many people as possible who will be affected by the resulting plans and/or will be asked to implement them.

•Use Of Staff PlannersPersons who take responsibility for leading and coordinating the planning function for the total organization or one of its major components.

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Management By Objectives

• A process of joint objective setting between a supervisor and subordinate.

• It involves a formal agreement between a supervisor and subordinate concerning:

Key performance objectivesSpecific plans Standards for measuring resultsProcedures or reviewing results

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Management By Objectives

• Types Of Performance ObjectivesImprovement Personal DevelopmentMaintenance

• Criteria of a Good Performance Objective Targets key results. Sets dates. Is realistic and attainable. It is measurable.