The Planning Process September 26

Elements of Planning Objectives Actions Resource Implementation What needs to be done? Actions Map out activities Resource Allocate appropriate resources Implementation How is the plan going to be carried out?

Benefits of Planning Assessment of external forces Develop a sense of direction and purpose Identifying the factors that affect the organization Encouraging participation Coordination of efforts Establishment of priorities Focusing attention on different time horizons

Benefits of planning (continued) Understanding circumstances contributing to past success or failure Ensuring the availability of adequate resources Establishing performance standards Supporting organizational control systems Developing “what if” scenarios Management development

The Pitfalls of Planning Poor forecasts of future conditions Plans imposed from above Planning as a self-contained activity Extensive bureaucratization Inflexible adherence to objectives and processes

How to plan successfully Decentralizing the planning powers Using both numerical and judgmental methods Viewing planning as continuous and capable of adapting to change Avoiding paralysis of the analysis Concentrating on a manageable set of issues

Good and Bad Planning GOOD BAD Decentralize planning process Use numerical and judgmental methods Assess external forces Develop a sense of direction and purpose Identify factors that affect the organization Encourage participation Coordinate efforts Establish priorities BAD Poor forecast of future conditions Plans imposed from poor forecasts Planning as self-contained activity

Formal Planning and Opportunistic Planning Identify objectives Structure the major tasks of the organization to accomplish them. Opportunistic planning triggered by unforeseen circumstances. can coexist with formal planning and help the formal plan function more smoothly.

The Formal Planning Process Involves Setting objectives Charting a course of action to meet the objectives Implementation

Objectives Specific Measurable Achievable Realistic Timely more general at the top and more specific at the lower level reflect its mission should be prioritized

Charting a Course of Action Strategic Action Plans Proactive, congruent, synergistic Tactical Action Plans Division of labor, budgeting Operational Action Plans Inputprocessoutput cycle

To be effective, a strategic action plan should meet the following criteria:

A Typical Operating System Control Inputs Transformation Outcome Feedback Loop

Implementation Means of implementation: Authority Persuasion Policy Feedback mechanism

A Six-Stage Approach to Facilitate Organizational Problem Solving Identify performance gaps. Identify tasks and work processes. Check for organizational congruence. Align in-congruencies or inconsistencies to effectively implement the plan. Execute the plan. Learn from the consequences.

Mechanisms to Deal with Organizational Change Deal with power and politics Reduce individual anxiety and resistance Maintaining control during the transition period

As a Manager Engaged in Planning You Should: Focus on the Customer Ensure Goal congruity with the organization. Establish an effective goal-driven plan. Planning should not become a straitjacket. Engage others in plan design and implementation.