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PLANNING

BURAK AHN DOUKAN PAMUK

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Planning: is essentially a process

to determine and implement

actions to achieve organizationalobjectives

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Type of Plans

Strategic Plans

Tactical PlansOperational Plans

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Strategic Plans

Plans that focus on the broad future of the

organization and incorporate both external

environmental demands and internal

resources into managers actions Focus on how to achieve goals three to five

years into the future.

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Tactical Plans

Plans that translate strategic plans into

specific goals for specific parts of the

organization shorter time frame and are

narrower in scope.

Instead of focusing on the entire corporation,

tactical plans typically affect a single business

within an organization and its product lines

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Operational Plans

Plans that translate tactical plans into specific

goals and actions for small units of the

organization and focus on the near term

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Key Differences

Interdependence

Impact

Complexity

Scope

Time Horizon 3-5 Years 1-2 Years12 Months -

Less

StrategicPlans

TacticalPlans

OperationalPlans

Entire

Organization

Most Complex

Entire

Organization

High

Specific SBU

Most/More

Specific

SBU

Moderate

Most Narrow

Least Complex

Specific Dep

Low

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Planning Process

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External Enviroment

Forecast:

The most recent exp. PCT levels in Turkey has increased

therefore the car industryis on recession

Contingency Plan: a plan that identifies key factors thatcould affect the desired results and specifies what

actions will be taken if key events change

Benchmarking:

Identifying the best practices by your competitors and

no competitors and the results that they produced

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Internal Resources

Managers would need to askWhat human capital do we have currently?

Can people work on new and additional projects or will

we need new people?

Can we develop or acquire additional human capital if

needed for new projects?

What financial resources do we have available?

Can we obtain additional funding from the debt or

equity markets if needed?Do we have the cutting-edge technology or can we gain

access to it at a cost-effective price?

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Setting Objectives

Priorities and Multiple Objectives

Determine Priorities

All Objectives are not equal some are more,

some are less important

To design and implement specific actions requires

knowing what you expect them to achieve

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Developing action plans

Sequence and Timing

Raw materials, manpower and components must be

brought together in the right amounts and sequences

Accountability

Who is accountable for which actions?

Knowing who is responsible for specific actions

facilitates coordination, especially if multiple people are

involved in the execution of the plan.

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Implementing Plans

Monitoring the implementation

Monitor the progress of the plan and its implementation

Monitor the level of support that the plan receives as it is

being implemented

Monitor the level of resistance

Real-time adjustment

Developing action plans cont.

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Monitoring outcomes

Unanticipated consequences

Negative unanticipated consequences

Positive unanticipated consequences

Feedback loop Apply what has been learned to modify and improve the

planning process

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Planning Tools

Budgeting

Goal Setting

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Budgeting

Incremental Budgeting Approach

Managers use their approved budget from the previous

year in order to determine the budget for the current

year.

Zero-Based Budgeting Approach

Basically states that every year allocations must be

justified from zero.

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Attributes of effective goals

Specific

Measured

Agreed

Realistic

Time bound

Goals Setting

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