Planning Chapter 6 with Duane Weaver

Outline Purpose of planning Well designed goals Types of plans Criticisms of Formal Planning

Purpose of Planning Reduces uncertainty Reduces overlaps and waste Establishes goals and standards for controlling Planning = Performance: 1.higher profits, 2.quality of plan counts, 3.external environment breeds poor performance, not the plan, and 4.planning timeframe of 4yrs. of consistency to see outcomes.

Well Designed Goals Written in terms of outcomes Measurable and quantifiable Clear time frame Realistic (challenging yet attainable) Written down (recorded) Communicated (to all necessary)

Types of Plans Strategic – overall org goals & position (intent/leverage) Operational – define how overall goals are to be achieved (tactics) Long-Term – more than 3 years Short-Term – 1 year or less Specific – clearly defined rules of engagement, no room for interpreting Directional – flexible with general guidelines Single-use – e.g.: start up, install, introduction Standing – ongoing procedures for repeated activities (e.g.: SOP=standard operating procedure)

Criticisms of Formal Planning May create rigidity Tough to create for dynamic environments Plans cannot replace intuition and creativity Focus mgmt. on today’s competition vs. tomorrow’s survival Reinforces success – restricts willingness to adapt, could lead to failure