Chapter 8 Planning

Planning
Learning goals: How do managers plan? What types of plans do managers use? What are the useful planning tools, techniques and processes?

How and why managers plan

Importance of planning

The role of the planning function

The planning process

A plan is a statement of intended means for accomplishing objectives

There are five sequential action steps in the systematic planning process:

Define your objectives Determine where you stand in relation to objectives Develop premises regarding future conditions Analyse and choose among alternative actions Implement the plan and evaluate the results.

The SMART model

Types of plans used by managers

Types of plans used by managers

Strategic plans
Define long term needs and set action directions for the organisation.

Tactical plans
Developed and used to implement strategic plans. They tend to be intermediate-term plans that specify how the organisations resources can be used to put strategies into action.

Situations may arise that require immediate adjustments to solve problems or exploit opportunities, in order to advance the overall strategy.

Types of plans used by managers

Policies and procedures

Budgets and project schedules

Planning tools, techniques and processes: Forecasting

Forecasting
The process of making assumptions about what will happen in the future. All good plans involve forecasts, either implicit or explicit.

Qualitative forecasting uses expert opinions to predict the future. Quantitative forecasting uses mathematical and statistical analysis of data banks to predict future events.

Planning tools, techniques and processes: Contingency planning

Planning tools, techniques and processes: Scenario planning

Benefits of scenario planning

Scenario planning improves focus and flexibility:
An organisation with focus knows what it does best, knows the needs of its customers and knows how to serve them well. An organisation with flexibility is willing and able to change and adapt to shifting circumstances, and operates with an orientation towards the future rather than the past or present.

Scenario planning improves action orientation.

Benefits of scenario planning

Scenario planning places organisations in a state of readiness, helping them take the initiative by making them more: results-oriented priority-oriented advantage-oriented change-oriented.

Scenario planning improves coordination.

Scenario planning improves control.

Benefits of scenario planning

Benefits of scenario planning

Do say no to requests that divert you from work you should be doing. Dont get bogged down in details. Do use a system for screening calls and email. Dont let visitors use too much of your time. Do prioritise tasks by importance and urgency. Dont become calendar bound by losing control of your schedule. Do work tasks in priority order.

Tips on how to manage your time:

Planning tools, techniques and processes: Benchmarking

Management by objectives
Structured process of communication in which a manager/team leader works with staff to jointly set performance objectives and review results. MBO creates agreement regarding: Performance objectives for a given time period Plans through which they will be accomplished Standards of measurement Procedures for reviewing performance results.

Management by objectives (MBO)

Performance objectives in MBO

Management by objectives
Three types of objectives may be specified in an MBO contract: 1. Improvement objectives document intentions for improving performance in a specific way. 2. Personal development objectives pertain to personal growth activities; often those resulting in expanded job knowledge or skills. 3. Some MBO contracts also include maintenance objectives that formally express intentions to maintain performance at an existing level.

Participation and planning

Participatory planning includes the people who will be affected by plans and/or whose help is needed to implement them. To create and implement the best plans, proper attention must be given to genuinely involving others during all planning steps. Even though this process may mean that planning takes more time, it can improve results by improving implementation.

How participation and involvement help build commitments to plans