1. Planning Module 4 LIS 580: Spring, 2006 Instructor- Michael Crandall

2. April 6, 2006LIS580- Spring 20062 Roadmap Purpose of planning The planning process Setting objectives Building planning premises Developing plans Types of plans Planning pitfalls

3. April 6, 2006LIS580- Spring 20063 Purpose of Planning Manager s engage in planning to: Set the standards to facilitate control Provide direction Minimize waste and redundancy Reduce the impact of change Prentice Hall, 2002

4. April 6, 2006LIS580- Spring 20064 Elements Of Planning Plan –A method for doing or making something, consisting of at least one goal and a predefined course of action for achieving that goal. Goal –A specific result to be achieved; the end result of a plan. Objectives –Specific results toward which effort is directed. G.Dessler, 2003

5. April 6, 2006LIS580- Spring 20065 Elements Of Planning (cont’d) Planning –The process of setting goals and courses of action, developing rules and procedures, and forecasting future outcomes. What Planning Entails –Choosing goals and courses of action and deciding now what to do in the future to achieve those goals. –Assessing today the consequences of various future courses of action. G.Dessler, 2003

6. April 6, 2006LIS580- Spring 20066 What Planning Accomplishes Allows decisions to be made ahead of time. Permits anticipation of consequences. Provides direction and a sense of purpose. Provides a unifying framework; avoiding piecemeal decision making. Helps identify threats and opportunities and reduces risks. Facilitates managerial control through the setting of standards for monitoring and measuring performance. G.Dessler, 2003

7. April 6, 2006LIS580- Spring 20067 The Management Planning Process Hierarchy of Plans –A set of plans that includes the company-wide plan and the derivative plans of subsidiary units required to help achieve the enterprise-wide plan. –Top management approves a long-term plan; and each department creates its own budgets The Planning Hierarchy –Top management formulates its plans based on upward feedback from the departments, and the departments in turn draft plans that make sense in terms of top management’s plan. G.Dessler, 2003

8. April 6, 2006LIS580- Spring 20068 Hierarchy of Goals FIGURE 4–1 G.Dessler, 2003

9. April 6, 2006LIS580- Spring 20069 Who Does the Planning? Small businesses: –Entrepreneurs do most of the planning. Large firms: –Traditional: A central corporate planning group works with top management and each division to solicit, challenge, and refine the company’s plan. –Current: Planning is decentralized and includes the firms’ product and divisional managers, aided by small headquarters advisory groups. G.Dessler, 2003

10. April 6, 2006LIS580- Spring 200610 Checklist 4.1 How to Develop a Plan  Set an objective.  Develop forecasts and planning premises.  Determine your options.  Evaluate alternatives.  Choose your plan, and start to implement it.  Go to Level 2. G.Dessler, 2003 } The decision- making process

11. April 6, 2006LIS580- Spring 200611 Setting Objectives G.Dessler, 2003

12. April 6, 2006LIS580- Spring 200612 Checklist 4.2 Principles of Goal-Setting  Set SMART goals—make them specific, measurable, attainable, relevant, and timely. Choose areas (sales revenue, costs, and so forth) that are relevant and complete.  Assign specific goals.  Assign measurable goals.  Assign doable but challenging goals.  Encourage participation.  Use executive assignment action plans, or management by objectives. G.Dessler, 2003

13. April 6, 2006LIS580- Spring 200613 Forecasts and Planning Premises Forecasting is used to predict future requirements and opportunities –Determines the premises on which planning is based –Can be quantitative (e.g., a time series) or qualitative (e.g., jury of executive opinion) Marketing research Competitive intelligence –Helps build the picture of what others are doing to inform the planning process Next step is the decision-making process we talked about yesterday Finally, you begin to build your plans (usually more than one to realize objectives)

14. April 6, 2006LIS580- Spring 200614 The Business Plan And Its Components Description of the business (including ownership and products or services) Marketing plan Financial plan Management and/or personnel plan. G.Dessler, 2003

15. April 6, 2006LIS580- Spring 200615 FIGURE 4–3 Outline of a Marketing Plan Source: Adapted from Philip Kotler and Gary Armstrong, Principles of Marketing (Upper Saddle River, NJ: Prentice Hall, 2001), p. 70. G.Dessler, 2003

16. April 6, 2006LIS580- Spring 200616 FIGURE 4–4 Acme’s Potential Market Segments Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003

17. April 6, 2006LIS580- Spring 200617 FIGURE 4–5 Product, Pricing, and Sales Forecasts Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003

18. April 6, 2006LIS580- Spring 200618 FIGURE 4–6 Personnel Plan Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003

19. April 6, 2006LIS580- Spring 200619 FIGURE 4–7 Sales Forecast by Service: Two-Month Sales Plan for Acme Consulting, 2003 G.Dessler, 2003

20. April 6, 2006LIS580- Spring 200620 FIGURE 4–8 Gantt Scheduling Chart for Acme Strategic Report Projects, Jan 1–15, 2003 G.Dessler, 2003

21. April 6, 2006LIS580- Spring 200621 FIGURE 4–9 Acme Consulting Profit and Loss Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003

22. April 6, 2006LIS580- Spring 200622 G.Dessler, 2003

23. April 6, 2006LIS580- Spring 200623 G.Dessler, 2003

24. April 6, 2006LIS580- Spring 200624 Types of Plans Type of Plan Time Frame Specificity Frequency of Use StrategicLong TermDirectionalSingle Use TacticalShort TermSpecificStanding OperationalOngoing Very detailed Day-to-day Policies, procedures, and rules Varies G Dessler, 2003

25. April 6, 2006LIS580- Spring 200625 FIGURE 4–10 Reporting Improper Behavior Source: James Jenks, The Hiring, Firing (and everything in between) Personnel Forms Book (Ridgefield, CT: Round Lake Publishing, 1996), pp. 224–25. G.Dessler, 2003

26. April 6, 2006LIS580- Spring 200626 Pitfalls of Planning Planning may create rigidity Plans cannot be developed for a dynamic environment Formal plans cannot replace intuition and creativity Planning focuses managers’ attention on today’s competition, not tomorrow’s survival Formal planning reinforces success, which may lead to failure Prentice Hall, 2002

27. April 6, 2006LIS580- Spring 200627 Elmer L. Anderson Library What did the planners do right in this effort? Was the design a result of research or creativity? How was the planning process affected by stakeholder needs? How much of the planning was related to political activities and how much to actual construction activity? How was success measured for the project?

28. April 6, 2006LIS580- Spring 200628 Extreme Chaos Better project success rates due to lower costs and smaller projects Difficulty of estimating costs and schedules accurately –Often tripled up front to avoid failure –Old metrics not appropriate to modern methods –Difficult to establish benchmarks Different skills for different roles

29. April 6, 2006LIS580- Spring 200629 Project Success Factors

30. April 6, 2006LIS580- Spring 200630 Next Time Strategic planning –Read Chapter 5 and Cleveland Public Library Strategic Plan Discussion questions: –How has the Gold Coast City Council been able to use evidence to aid in strategic planning? –Do you think their choice of benchmarks will achieve the overall objectives? –Are there any risks in using these measures in deciding on long-term changes in structure? –Do you think the library staff is engaged in this process? Should they be?