1. Introduction to Planning The first of the four functions of management

2. 2 Terminology  What is planning? Process: setting objectives & determining how to best accomplish them Process: setting objectives & determining how to best accomplish them sets the stage for organizing, leading & controlling sets the stage for organizing, leading & controlling

3.  What are objectives? Identify specific results or desired outcomes Identify specific results or desired outcomes

4. 4 Creating good objectives… SMART criteria: SMART criteria: Specific Specific Measurable Measurable Attainable Attainable Realistic Realistic Timely Timely

5. 5 What is a plan? Statement of action steps to be taken in order to accomplish the objectives Statement of action steps to be taken in order to accomplish the objectives

6. 6 Steps in the Planning Process 1. Define objectives (SMART criteria) 2. Determine where you stand today wrt objectives strengths strengths weaknesses weaknesses

7. 3. Anticipate future events Generate alternative “scenarios” Generate alternative “scenarios” How will these “scenarios” help or hinder your progress? How will these “scenarios” help or hinder your progress?

8. 8 Steps in the Planning Process 4. Analyze and choose among action alternatives List & carefully evaluate List & carefully evaluate Choose alternative Choose alternative 5. Implement plan & evaluate results

9. 9 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.

10. 10 Benefits of Planning Focus Focus Ability to adapt Ability to adapt Increased coordination Increased coordination Improved control Improved control Improved time management Improved time management Motivates Staff Motivates Staff

11. Planning Tools & Techniques Forecasting (future) - Qualitative (expert) - Quantitative Contingency planning Scenario planning

12. Benchmarking external comparisons 15% vs. 2% drop in sales Participative planning People impacted Understanding & commitment

13. 13 Strategic plans Strategic plans Extensive, long range plans Extensive, long range plans Upper management Upper management Overall direction Overall direction Ex. launching a product into another country Ex. launching a product into another country

14. 14 Types of plans managers use Short-range plans Short-range plans < one year < one year Ex. hire a new shift Ex. hire a new shift Long-range plans Long-range plans > one year > one year Ex. New product launch Ex. New product launch

15. 15 Operational plans Operational plans specific areas to implement strategic plan specific areas to implement strategic plan Production plans Production plans Financial plans Financial plans Facilities plans Facilities plans Marketing plans Marketing plans Human resources plans Human resources plans Ex. hiring employees in the new country Ex. hiring employees in the new country

16. 16 Single-Use Plans Single-Use Plans Used only once Used only once Created for unique situations Created for unique situations

17. Standing-Use Plans Standing-Use Plans Used again and again Used again and again Examples: Examples: Policies: broad guidelines Policies: broad guidelines Rules and Procedures: actions to be taken in specific situations Rules and Procedures: actions to be taken in specific situations Budgets—determines how money is to be spent on specific projects Budgets—determines how money is to be spent on specific projects