1 CE Management and Planning Diane Bishton – K229 Planning & Control Strategies

2 In this lecture We will Review the need for, & purposes of, Planning Introduce a typical Planning Process Consider Basic Planning Principles & take a look at a plan of special relevance to Computing - the Contingency Plan Finish with an overview of the contents of a final Company Plan

3 Introduction In earlier lectures we have seen that : “Business, more than any other occupation, is a continual dealing with the future; it is continual calculation, an instinctive exercise in foresight” Henry R. Luce Quoted in “Strategic Business Forecasting” (Shim J K, 2000) In order to prepare for an uncertain future while striving to achieve a mission & objectives it is appropriate to develop plans

4 Plans - route maps to goals Where we are Where we want to be Plans

5 Precursors to Planning What implications do our decisions have ? How will we know if, when, and to what extent our goals have been achieved ? What business environment factors can affect our plans ? Just what are the goals we want to achieve ? Plan Do Reflect Prepare

6 Like, but on a Personal Level Concrete Experience (something happens) Reflective Observation (you think about it and the consequences the experience has had) Abstract Conceptualisation (you plan what to do next) Active Experimentation (put your plan into action) e.g. BCS (British Computer Society) Continuing Professional Development scheme (based on Kolb’s (1984) theory of Experiential Learning)

7 Purposes of Planning Ensure that changes in the environment don’t destroy the organisation - includes Contingency Planning Co-ordinate complex activities - so that the right- hand has some chance of knowing what the left- hand is doing Utilise the creativity & talent of people in decision- making - an automated Information System can support decision making, but shouldn’t replace it Improve organisation efficiency & enable change

8 Horses for Courses Different kinds of Plan are suited to different purposes: Strategic Plan - how the organisation will achieve its strategic objectives. Includes Divestment (BMW & Rover). They detail how & when activities such as Delayering (Management hierarchy) e.g. Staffs University, will take place Operational (Functional) Plan - shorter timescale. Focus on internal matters such as scheduling in general, production, budgets, recruitment etc.

9 A Planning Process (adapted from Bennett 1999, p 332) Do Situation Analysis - typically SWOT Produce Alternative Courses of Action & their Feasibility Specify Planning Assumptions e.g. trend x will continue Select a Course of Action Implement - Task Allocation Resource Commitment Dealing with Resistance Activity Co-ordination Monitor & Adapt accordingly

10 Basic Planning Principles Base Plan on Facts not Opinions - what is a ‘fact’ ? Include some Flexibility Be as detailed as resources allow Remember, short-term Plans can be more accurate, but Don’t discount alternatives too early Do Impact Analysis Include clear instructions to people & departments Monitor to quickly identify & correct deviances Avoid over- or under-ambition Identify KEY FACTORS crucial to success

11 Contingency Planning To cope with situations such as : ä Computer failure, supplier or customer collapse or closure, strike, loss of production, disclosure of sensitive information etc. ä All Contingency Plans include assessment of the degree of risk associated with a particular ‘failure’, which leads to decisions about whether to accept or transfer the risk (see earlier lecture on ‘Profit Motive & Environmental Issues’) Web sites at and

12 The Final Company Plan (adapted from Bennett 1999, pp ) Introduction including Corporate Plan and Methodology used. Information sources & research approach Assumptions. Management of risk & uncertainty Strategic Plan details Individual Functional Plans including new products, marketing, HR, R & D, Operations, restructuring Contingency Plans Targets, schedules & timescales Resources needed Divisional & Departmental / Section Plans Project plans Budgets

13 Further Reading Bennett chapter 16 onwards Butel Units 8 and 9 Unit 8 a useful revision of strategy Wilsonmar.com All you need to know about planning….. The ACCEL view againThe ACCEL view again.