Introduction to Planning

Chapter 7: “Foundations of Planning”

Introduction to Planning

Planning -- most basic managerial task sets the direction for organizing, leading

& controlling some of the most important (if

infrequent) decisions a manager can make

Introduction to Planning

Learning Objectives: Know what planning is and why

managers plan Distinguish between the different types

of plans Know the steps in a basic planning

process

Planning Definition

Planning is the process of: defining your goals - what do you want to

achieve? establishing a strategy - how are you going

to achieve them? developing a set of plans to carry them out

figuring out the specific tasks that need to be done

allocating the people and money to implement them

Planning Definition

Planning concerns ends

what should be done - goals and objectives

as well as means how it is to be done - strategiesby whom and with what resources -

operational plan

can be informal or formal

Why Plan?

Gives directionReduces negative aspects of changeMinimizes waste and redundancySets standards used in the control

process

Types of Plans

Breadth Timeframe

Strategic Broad Long-range

Operational Specific Short-term

Project Specific Depends on project

Production Specific Depends on productioncycle – usually short term

The 8-Step Planning Process

1.Set DirectionReview (set, clarify) organization’s mission & values

2.Conduct a Situation AnalysisEvaluate the external & internal environment

3.Develop strategies

for sustainable competitive advantage

4.Devise goals to achieve desired results

What will be your measure of success?

The 8-Step Planning Process

5.Develop operational plans

What needs to be done to achieve goals?

6. Allocate resources to accomplish the plansWho’s going to do what and with what money, tools, etc.

7. Document and communicate the information in steps 1-6

8. Review results, adjust, re-plan

Criticisms of Planning

Too rigidNo use in a dynamic environmentPlans can’t replace intuition and

creativity(and may even stifle it)

Focuses on today’s competitive environment vs. tomorrow’s survival

Reinforces past success

Strategic Planning

Strategic planning is the process of: developing the organization’s

vision/mission defining the organizations values and

beliefs choosing strategies for competitive

advantage selecting your goals, or “success

measures”

Steps in the Strategic Planning Process

1.Define the organization’s mission & values

2.Evaluate the external & internal environment

3.Select strategies for competitive advantage

4.Devise goals to achieve desired results

What’s Next

For Friday, January 25 Read Chapter 8, pages 196-201:

Strategic Management Read “Future Pull” article