Plans and Planning Techniques

MODULE 10 PLANS AND PLANNING TECHNIQUES PLANS AND PLANNING TECHNIQUES Planning MODULE GUIDE 10.1 “Goals and objectives get you there faster” z Planning is one of the four functions of management. z Planning sets objectives and identifies how to achieve them. z Planning improves focus and action orientation. z Planning improves coordination and control. z Planning improves time management. • How and why do managers plan? • What types of plans do managers use? • What are some useful planning tools and techniques? 1 PLANS AND PLANNING TECHNIQUES 2 PLANS AND PLANNING TECHNIQUES Planning Planning zObjectives zPlanning zSpecific results that one wishes to achieve. zThe process of setting objectives and determining how to accomplish them. zPlan zA statement of intended means for accomplishing objectives. zStretch Goal zPerformance targets that we have to work extra hard and stretch to reach. 3 4 1 PLANS AND PLANNING TECHNIQUES PLANNING Planning Reasons For Planning z Steps in the Planning Process zGood planning makes us: z Step 1. Define your objectives Know where you want to go; be specific enough to know you have arrived when you get there and how far off you are along the way. z Step 2. Determine current status vis-à-vis objectives Know where you stand in reaching the objectives; identify strengths that work in your favor and weaknesses that can hold you back. z Step 3. Develop premises regarding future conditions and generate alternative scenarios for what may happen; identify for each scenario things that may help or hinder progress toward your objectives. z Step 4. Make a plan Choose the action alternative most likely to accomplish your objectives; describe what must be done to implement this course of action. z Step 5. Implement the plan and evaluate results. Take action; measure progress toward objectives as implementation proceeds; take corrective actions and revise plan as needed. zAction oriented—keeping a results-driven sense of direction zPriority oriented—making sure the most important things get first attention zAdvantage oriented—ensuring that all resources are used to best advantage zChange oriented—anticipating problems and opportunities so they can be best dealt with 5 PLANNING 6 PLANS AND PLANNING TECHNIQUES Reasons For Planning Types Of Plans MODULE GUIDE 10.2 zHierarchy of Objectives zLower-level objectives help to accomplish higherlevel ones. z Contingency planning creates back-up plans for when things go wrong. z Scenario planning crafts plans for alternative future conditions. z Benchmarking identifies best practices used by others. z Staff planners provide special expertise in planning. z Participatory planning improves implementation capacities. 7 8 2 PLANS AND PLANNING TECHNIQUES PLANS AND PLANNING TECHNIQUES Types Of Plans Types Of Plans z Short-range plans zStrategic Plan z usually cover a year or less. zidentifies long-term directions for the organization. z Long-range Plans z Usually cover three years or more zOperational Plan Jaques’s Findings on Long-Term Thinking zidentifies activities to implement strategic plans. •Most people are comfortable with 3-month time spans. zMarketing Plans zFinancial Plans zProduction Plans •Some work well with a 1-year time span. •Only the rare person can handle a 20-year time span. 9 PLANS AND PLANNING TECHNIQUES 10 PLANS AND PLANNING TECHNIQUES Types Of Plans Types Of Plans z Policy zA policy is a standing plan that communicates broad guidelines for decisions and action. zProject plans specify activities, resources, and timetables for completing projects. zA budget is a plan that commits resources to projects or activities. z communicates broad guidelines for making decisions z Procedure z defines specific actions to be taken in specific situations z Project Plans z specify activities, resources, and timetables for completing projects z Budget z plan that commits resources to projects or activities z Zero-based Budget z allocates resources as if each budget was brand new 11 12 3 PLANS AND PLANNING TECHNIQUES PLANS AND PLANNING TECHNIQUES Planning Tools And Techniques Planning Tools And Techniques MODULE GUIDE 10.2 zForecasting zAttempts to predict the future z Forecasting tries to predict the future. z Contingency planning creates back-up plans for when things go wrong. z Scenario planning crafts plans for alternative future conditions. z Benchmarking identifies best practices used by others. z Staff planners provide special expertise in planning. z Participatory planning improves implementation capacities. Twenty Five-Year Forecasts from The Economist Intelligence Unit: • U.S. GDP will grow 2.7% per year; EU15 countries 1.9%; Japan 1%. • Aging populations will be a drag on economies. • Emerging markets will have higher growth; Russia and Brazil 3%, India and China 6%. • In 2030 the United State will be biggest economy in world, China second, Japan third, India fourth. 13 PLANS AND PLANNING TECHNIQUES 14 PLANS AND PLANNING TECHNIQUES Planning Tools And Techniques Planning Tools And Techniques zContingency Planning zParticipatory Planning zcreates back-up plans for when things go wrong zincludes the persons who will be affected by plans and/or who will implement them. zBenchmarking zuses external comparisons to gain insights for planning. zBest Practices zare methods that lead to superior performance. 15 16 4 MANAGEMENT TIPS z Time management tips z Do say “No” to requests that divert you from what you really should be doing. z Don’t get bogged down in details that you can address later or leave for others. z Do have a system for screening telephone calls, e-mails, and requests for meetings. z Don’t let drop-in visitors or instant messages use too much of your time. z Do prioritize what you will work on in terms of importance and urgency. z Don’t become calendar bound by letting others control your schedule. z Do follow priorities; work on the most important and urgent tasks first. Continually work to optimize your time.” 17 5