MODULE 10 PLANS AND PLANNING TECHNIQUES

1. MODULE 10PLANS AND PLANNING TECHNIQUES “Goals and objectives get you there faster” • How and why do managers plan? • What types of plans do managers use? • What are some useful planning tools and techniques?

2. PLANS AND PLANNING TECHNIQUESPlanningMODULE GUIDE 10.1 • Planning is one of the four functions of management. • Planning sets objectives and identifies how to achieve them. • Planning improves focus and action orientation. • Planning improves coordination and control. • Planning improves time management.

3. PLANS AND PLANNING TECHNIQUESPlanning • Planning • The process of setting objectives and determining how to accomplish them.

4. PLANS AND PLANNING TECHNIQUESPlanning • Objectives • Specific results that one wishes to achieve. • Plan • A statement of intended means for accomplishing objectives. • Stretch Goal • Performance targets that we have to work extra hard and stretch to reach.

5. PLANS AND PLANNING TECHNIQUESPlanning • Steps in the Planning Process • 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. • 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. • 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. • 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. • 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.

6. PLANNINGReasons For Planning • Good planning makes us: • Action oriented—keeping a results-driven sense of direction • Priority oriented—making sure the most important things get first attention • Advantage oriented—ensuring that all re-sources are used to best advantage • Change oriented—anticipating problems and opportunities so they can be best dealt with

7. PLANNINGReasons For Planning • Hierarchy of Objectives • Lower-level objectives help to accomplish higher-level ones.

8. PLANS AND PLANNING TECHNIQUESTypes Of PlansMODULE GUIDE 10.2 • Contingency planning creates back-up plans for when things go wrong. • Scenario planning crafts plans for alternative future conditions. • Benchmarking identifies best practices used by others. • Staff planners provide special expertise in planning. • Participatory planning improves implementation capacities.

9. PLANS AND PLANNING TECHNIQUESTypes Of Plans • Short-range plans • usually cover a year or less. • Long-range Plans • Usually cover three years or more • Jaques’s Findings on Long-Term Thinking • Most people are comfortable with 3-month • time spans. • Some work well with a 1-year time span. • Only the rare person can handle a 20-year • time span.

10. PLANS AND PLANNING TECHNIQUESTypes Of Plans • Strategic Plan • identifies long-term directions for the organization. • Operational Plan • identifies activities to implement strategic plans. • Marketing Plans • Financial Plans • Production Plans

11. PLANS AND PLANNING TECHNIQUESTypes Of Plans • A policy is a standing plan that communicates broad guidelines for decisions and action. • Project plans specify activities, resources, and timetables for completing projects. • A budget is a plan that commits resources to projects or activities.

12. PLANS AND PLANNING TECHNIQUESTypes Of Plans • Policy • communicates broad guidelines for making decisions • Procedure • defines specific actions to be taken in specific situations • Project Plans • specify activities, resources, and timetables for completing projects • Budget • plan that commits resources to projects or activities • Zero-based Budget • allocates resources as if each budget was brand new

13. PLANS AND PLANNING TECHNIQUESPlanning Tools And TechniquesMODULE GUIDE 10.2 • Forecasting tries to predict the future. • Contingency planning creates back-up plans for when things go wrong. • Scenario planning crafts plans for alternative future conditions. • Benchmarking identifies best practices used by others. • Staff planners provide special expertise in planning. • Participatory planning improves implementation capacities.

14. PLANS AND PLANNING TECHNIQUESPlanning Tools And Techniques • Forecasting • Attempts to predict the future 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.

15. PLANS AND PLANNING TECHNIQUESPlanning Tools And Techniques • Contingency Planning • creates back-up plans for when things go wrong • Benchmarking • uses external comparisons to gain insights for planning. • Best Practices • are methods that lead to superior performance.

16. PLANS AND PLANNING TECHNIQUESPlanning Tools And Techniques • Participatory Planning • includes the persons who will be affected by plans and/or who will implement them.

17. MANAGEMENT TIPS • Time management tips • Do say “No” to requests that divert you from what you really should be doing. • Don’t get bogged down in details that you can address later or leave for others. • Do have a system for screening telephone calls, e-mails, and requests for meetings. • Don’t let drop-in visitors or instant messages use too much of your time. • Do prioritize what you will work on in terms of importance and urgency. • Don’t become calendar bound by letting others control your schedule. • Do follow priorities; work on the most important and urgent tasks first. Continually work to optimize your time.”