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					Planning
If you do not know where you are going:
Any path will get you there

Chinese Proverb:
No wind favors a sailor with no destination.

If you do not have time to do it right, when will you have time to do it over? “Life is not lost by dying; life is lost minute by minute, day by dragging day, in all the thousand small uncaring ways.” Stephen Vincent Benet

Planning
Why Not Plan?
Planning requires you to set aside the time to do it You may have to make some decisions without a lot of time to plan

Four benefits of planning
Planning helps you check on your progress Planning helps you coordinate activities Planning helps you think ahead Above all, planning helps you cope with uncertainty

Uncertainty
Three types of uncertainty
State uncertainty: When the environment is considered unpredictable Effect uncertainty: When the effects of environmental changes are unpredictable. Response uncertainty: When the consequences of a decision are uncertain.

Uncertainty
How organizations respond to uncertainty
Defenders: Stick with what they do best, avoid other involvements; are expert at producing and selling narrowly defined products. Prospectors: Focus on developing new products or services and in seeking out new markets, rather than waiting for things to happen. Analyzers: Let other organizations take the risks of product development and marketing and then imitate )or maybe slightly improve on) what seems to work best. Reactors: Make adjustments only when finally forced to be environmental pressures.

MOST…Planning Trickle Down
Mission Objectives Strategies Tactics

Mission and Vision Statements
Mission Statement: Is the organization’s purpose or reason for being. Vision Statement: Is a long-term strategic goal describing “what” an organization wants to become. It is a clear sense of the future and the actions needed to get there.

Three Types of Planning
Strategic planning
Top management; 1-5 years Strategic goals

Tactical planning
Middle management: 6-24 months Tactical goals

Operational planning
First line management: 1-52 weeks Operational goals

Strategic and Tactical/ Operational Plans
Strategic plans are organization wide, examine the external and internal environments and identify the general strategies to be pursued
Levels of strategy
Corporate Strategic Business Unit Functional

Tactical/operational plans make detailed decisions about what is to be done, who is to do it, and how to do it; usually with a time line of up to one year

Major Dimensions of Plans
Scope:
Plan covers small part of the system Plan covers entire system

Level:
Upper-level management Lower level-management

Repetitiveness:
Plan Plan  Time: Plan Plan used only once used many times covers a short period covers a long period

Criteria for a Good Plan
Develop clear, results-oriented objectives in measurable terms Identify the required activities to accomplish the objectives Assign specific responsibility and authority to the appropriate personnel Estimate times to accomplish activities and their sequencing Determine resources required to accomplish activities Communicate and coordinate the above elements and complete the action plan

Characteristics of Effective Goals
Goals should be specific and written Goals should be quantitative not qualitative Goals should be challenging yet achievable Individual goals should be linked to group goals Goals should be arrived at participatively Goals should reflect critical success factors The set of goals should be mutually reinforcing Goals should focus on both ends and means Goals should be prioritized

Goals Should Be SMART
Specific Measurable Attainable: Realistic yet challenging Results oriented Target dates Have a goal. A goal is just a dream with a deadline.
Marjorie Blanchard, Author

Control
The process of taking preventative or corrective actions to ensure that activities are accomplished as planned. The process of measuring actual performance against a standard and taking action to correct deviations or standards The control process
Establishing objectives and standards Measuring actual performance Comparing results with objectives and standards Taking corrective action

Management By Objectives (MBO)
MBO is a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee’s performance, and (4) the manager makes a performance appraisal and rewards the employee according to results. To be successful, (1) the commitment of top management is essential, (2) it must be applied organization wide, and (3) objectives must cascade.

Setting Employee Objectives
Identify the employee’s key job tasks Establish specific and challenging goals for each key task Allow the employee to actively participate Prioritize goals Build in feedback mechanisms to assess goal progress Link rewards to goal attainment

Project Planning
Project planning: The preparation of single-use plans, or projects. The planning is followed by Project management: Achieving a set of goals through planning, scheduling, and maintaining progress of the activities that comprise the project. Project life cycle
Definition Planning Execution Closing

Strategic Management
The process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals.
Provides direction and momentum Encourages new ideas Developing a sustainable competitive advantage

Strategic Management Process
Establish the Mission and Vision Establish the Grand Strategy
Growth Stability Defensive or Retrenchment

Formulate Strategic Plans Carry out the Strategic Plans Maintain Strategic Control: The Feedback Loop

Questions on Strategy
Is the strategy consistent with mission and values? Is the strategy feasible given strengths and weaknesses? Is the strategy responsive to opportunities and threats? Is the strategy sustainable in competitive advantage? Is the risk in the strategy “reasonable”? Is the strategy flexible enough?

SWOT Analysis
External assessment of the environment
Opportunities Threats

Internal assessment of the organization
Strengths Weaknesses

STEPP Analysis
Social Technical Economic Political-legal Physical

STEPP Examples: Social
Changing values Changing gender roles Increasingly democratic organizations Influence of baby boom generation Aging population Immigration Ethical constraints Pluralistic values Ethnicity

STEPP Examples: Technical
Global communications Expanded applications of digital electronics Genetic engineering Increased business applications for the internet Internet convergence of communications and entertainment Unlimited computing power Access to communication

STEPP Examples: Economic
New economic cycles Fluctuating currency values Micro markets and specialization Inflation rate Interest rates Regional trading alliances Global mergers and acquisitions  Volatile global financial markets Market economics Free trade and new trade barriers

STEPP Examples: Political-legal
Increased workplace regulation Expanded environmental regulations] Increased demands for social benefits Increasing government regulation Regional government relationships Regional conflicts Changes in tax rates Changes in estate taxes Emerging market economies

STEPP Examples: Physical
Natural disasters Climate changes Pandemic disease Industrial or nuclear accidents Residual effects of pollution Substitutes for petroleum and chemicals Space technology Ocean mining

Industry and Market Analysis
Threat of new entrants and barriers to entry Threat of substitutes Bargaining power of buyers Bargaining power of suppliers Existing rivalry

Internal Resource Analysis
Financial analysis Human resources assessment Marketing audit Operations analysis Other internal resource analyses (research and development, management information systems, engineering, etc.)

Grand Strategies
Stability Growth Retrenchment Combination

Porter’s Competitive Strategies
Overall cost leadership: To keep the costs, and hence prices, of a product/service below those of competitors and to target a wide market. Differentiation: To offer products/services that are unique and superior value compared to those of competitors but to target wide market. Cost-Focus strategy: Narrow instead of wide market Focused-Differentiation strategy: Narrow instead of wide market Stuck in the middle

BCG Matrix
Market Share and Anticipated Growth Rate Stars Cash Cows Dogs Question Marks

Product Life Cycle
Stage 1: Introduction
 The stage of the cycle in which a new product is introduced into the marketplace.

Stage 2: Growth- demand increases
The most profitable stage when customer demand increases, sales grow, and (later) competitors may enter the market

Stage 3: Maturity- growth slows
Product starts to fall out of favor and sales and profits begin to decline

Stage 4: Decline- withdrawing from the market
Product falls out of favor, and the organization withdraws from the marketplace

Benchmarking Process
1. Define the issue 2. Identify the best performers 3. Collect and analyze data to identify gaps 4. Set improvement goals 5. Develop and implement plans to close the gaps 6. Evaluate results 7. Repeat the evaluations (and process)

Scheduling Tools
Gantt Chart: A planning tool that shows in bar graph form when tasks are supposed to be done and compares that with the actual progress on each. Load Chart: A modified version of the Gantt Chart PERT Network Analysis: A flowchart-like diagram that depicts the sequence of activities needed to complete a project and the time or costs associated with each activity.

The Balanced Scorecard
Financial Perspective: How do we look to shareholders? Innovation and Learning Perspective: Can we continue to improve and create value? Customer Perspective: How do customers see us? Internal Business Perspective: What must we excel at?

Measurement Management
Advantages of using measurement management
Top executives agree on strategy Communication is clear There is better focus and alignment The organizational culture emphasizes teamwork and allows risk taking

Barriers to effective management
Objectives are fuzzy Managers put too much trust in informal feedback systems Employees resist new measurement systems Companies focus too much on measuring activities instead of results

Don’t forget the feedback loop.

Time Management Tips
Set realistic goals Keep lists Organize your physical space When in doubt, throw it out Control your own time Be willing to say NO Make big projects manageable: break them into workable pieces Little things can add up to big things Keep your life balanced

Top Ten Time Wasters
Shifting priorities Telephone interruptions Lack of direction/objectives Attempting to do too much Drop-in visitors Ineffective delegation Cluttered desk/losing things Procrastination/lack of self-discipline Inability to say “no” Meetings


				
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