Introduction to Planning

Learning Goals 1. I will be able to describe and use the planning process. 2. I will be able to explain the benefits of planning to an organization. 3. I will be able to identify and explain the types of plans that managers can use. 4. I will able to identify and use various planning tools

Terminology What is planning? What are objectives? The process of setting objectives and determining how to best accomplish them If planning is done properly it sets the stage for organizing, leading and controlling What are objectives? They identify the specific results or desired outcomes that one intends to achieve Think of goals

What is a plan? A statement of action steps to be taken in order to accomplish the objectives

Creating good objectives… Good objectives should fit the SMART criteria Specific Measurable Attainable/Achievable (I know the case study said Agree) Relevant/Realistic Timely/Time bound/Time specific http://www.career-intelligence.com/management/SmartGoals.asp http://www.goalsettingstrategies.com/smart_goals.html

Steps in the Planning Process Define your objectives (using the SMART criteria) Determine where you stand today with regards to the objectives What strengths work in your favour? What weaknesses hold you back? Try to anticipate future events Generate alternative “scenarios” for what may happen in the future How will these “scenarios” help or hinder your progress?

Steps in the Planning Process Analyze & choose among action alternatives List & carefully evaluate the possible actions that may be taken Choose the alternative most likely to accomplish your objective 5. Implement the plan & evaluate results

Task: The Toothpaste Case Study You have just been hired as an Assistant Product Manager for a consumer products company. It is your job to plan and implement a marketing plan for the toothpaste product line. The company currently has a very successful toothpaste on the market called “SMILE”. The target market for this product is families. It currently has a market share of 27%. The COO has just announced that the Research and Development Department has just invented a new toothpaste that is designed for use by children. The new product works exceptionally well on growing teeth and decreases cavities by 10%. Using the steps in the planning process, plan out a marketing campaign for this new toothpaste.

Learning Goal Review I will be able to describe and use the planning process. New Learning Goal I will be able to explain the benefits of planning to an organization.

Benefits of Planning (1) Flexibility (2) Coordination A well-designed plan allows for flexibility and enables an organization to adapt to changing circumstances. a business can hopefully avoid or minimize crises. The focus is on the future rather than the past. (2) Coordination A plan will ensure that all individuals in the organization are working toward unified goals or objectives. (3) Time Management Planning allows employees to prioritize their work Plans help people within a business to know which tasks are top priorities and which tasks are low priorities.

Learning Goal Review What are the 3 benefits of planning Next Learning Goals 3. I will be able to identify and explain the types of plans that managers can use. 4. I will able to identify and use various planning tools

What types of plans do managers use? Short-range plans Less than one year Example—hire a new shift Long-range plans Greater than one year Example—launch a new product

What types of plans do managers use? Strategic plans Extensive, long range plans Created by upper management Provides the overall direction of the company Example—launching a product into another country

What types of plans do managers use? Operational plans What needs to be done in specific areas to implement the strategic plan Production plans Financial plans Facilities plans Marketing plans Human resources plans Example—hiring employees in the new country

What types of plans do managers use? Single-Use Plans Used only once Created for unique situations Standing-Use Plans Designed to be used again and again Examples: Policies—broad guidelines to assist in making decisions Rules and Procedures—detailed plans that state actions to be taken in specific situations Budgets—determines how money is to be spent on specific projects

What are the types of plans that managers can use? Give a real world example of the use of each plan. (all 6)

How to make your plan work using PLANNING TOOLS Participative Planning Include all the people impacted by a decision in the planning process Increases understanding, commitment and creativity Benchmarking Using external comparisons to understanding what is occurring in your company Example—if your competitor lost 15% in sales, you gain perspective on your company losing 2% in sales

How to make your plan work Contingency Planning Planning for alternative courses of action should your plan fail or situations change Worst case scenario planning Set Timelines Establish when each phase is to be completed and evaluated Quantitative Forecasting Predicting what future conditions will be like using statistic and mathematical procedures.

Your Turn!!! Back to your Tooth Paste Try and apply each step to your tooth paste plan. Not all will fit but try your best!