Types of Plans used by Managers

Types of planning Managers need to have different types of planning for different situations. Some companies have very regular activities, others are irregular: Fulford is very regular. Monday through Friday, class , activities till 5 or later. Grocery stores can be a mix of both. Some days are expected to be busier, but you never know. A service company, or a large manufacturer, can get orders at many different times, of different sizes, etc.

Short- and Long-range Plans. Short term – A year or less Intermediate term – one to two years Long term – More than three years into the future. Who do you think makes: -Long range plans? -Short range plans?

Short- and Long-Range Plans Nowadays, “long-range” is becoming shorter and shorter, because of things like the internet and globalization. Nobody can really accurately predict long- term trends anymore.

Strategic and Operational Plans What we just looked at, focused on time. When we think about Strategic and Operational Plans, we are talking about scope. Strategic Plans have very broad, large, long-range goals. They are created by top management, led by the CEO. -Many CEO’s are hired because of their creative strategic visions. “What do we want to be in the future?”

A&W Restaurants

Strategic and Operational Plans Operational Plans lay out what needs to be done to achieve the longer range, strategic plans. It identifies activities that need to happen to make the strategic plan work. Can include: -Production Plans -Financial Plans -Facilities Plans -Marketing Plans -Human Resources Plans

Policies and Procedures Policies: Company plans “that communicates broad guidelines for decisions and action.” Different divisions would have policies of their own. HR policy could cover employee hiring, termination, pay increases, promotions, or discipline. Procedures: Describe precise action to be taken in specific situations. Loblaws City of Ottawa City of Ottawa

Budgets and Projects Any idea what a budget is? Budgets = Costs…how much MONEY you have to complete a job. Fixed budget – Manager given an amount of money for a specific purpose. Flexible budget – Different levels of work can mean more money for the manager.

Budgets and Projects

A lot of the time, budgets roll over. -Unused money is added. Zero-based budgets mean each new period starts fresh. Projects are defined periods of time with a specific goal in mind. Project Management wants to make sure that projects are completed on time, on budget, or any other evaluation criteria.

Planning Tools and Techniques FORECASTING -Guessing what will happen in the future. Qualitative forecasting – Using expert opinion. Quantitative forecasting – Using models. Weather Forecasting

Planning Tools and Techniques CONTINGENCY PLANNING -Identifies courses of action to take when things go wrong. “Worst-Case Scenario.”

Planning Tools and Techniques SCENARIO PLANNING -Similar to contingency planning, it looks at alternative future scenarios and makes plans to deal with each.

Planning Tools and Techniques BENCHMARKING -Using comparisons to other companies or organizations to make your own plans. What are the others doing? Best Practices are things that lead to superior performance.

Planning Tools and Techniques USE OF STAFF PLANNERS -Some companies hire people to work on plans…and that is it. -All they do is develop plans for multiple situations, best-case scenarios, worst-case scenarios, etc. It is important that good communication happens between the planners and line managers.

Planning Tools and Techniques PARTICIPATION AND INVOLVEMENT -Participatory Planning means that anyone who will be affected by your plans are being talked to. -7/11 stores and high-end meals.

Build Commitments to Plans Allow others to participate and be involved at all steps in the planning process Define Planning Objectives Develop premises regarding future conditions Determine where things stand relative to objectives Identify action alternatives and make plans Implement Plans and evaluate results