The Planning Cycle
Analysis of current SituationWhere are we now? (Base Line Data)
ForecastingWhere is the world moving to?
Develop ObjectivesWhere do we want to be within
a given period of time?
Action Plan (Work Plan)What must I do to get where I want to go?
Implementation of Work Plan
Do it!
Monitor Progress by comparing
current data with Baseline Data
Taking into consideration
policies, strategies and
national development
plans
Start of a new planning cycle
Detect weaknesses, strengths, opportunities and risks
Management Levels
Primary Activities Activity Results Activity Examples Information Requirements
Strategic Management
Long range planning and goal setting
Determine organizational resource requirements and allocations
Goals and strategic objectives
Company policies
Long range plans and other strategic decisions
Policy on industry and product diversification
Social responsibility policy
Major capital expenditure policy
ForecastsSimulations
Inquiries
External ReportsOne-time reports
Condensed internal reports
TacticalManagement
Allocate assigned resources to specific tasks
Make rules
Measure performance
Exert control
Budgets
Procedures
Rules and other tactical decisions
Personnel practices
Capital Budgeting
Marketing Mix
Forecasts and historical data
Regular Internal Reports
Exception reports
Simulations
Inquiries
Operational Management
Direct the utilization of resources and the performance of tasks in conformance with established rules
Directions
Commands
Actions and other operational decisions
Production scheduling
Inventory controlCredit management
Regular internal reportsDetailed transaction reportsProcedures manualsCurrent historical dataProgrammed decisions
The activities and information requirements of the three major levels of management
External institutional analysis examples include:
Perception/image studies of prospective students, parents, counselors, and employers
Price sensitivity studies of prospective students and parents
Competition analyses
Market share and trend analysis of college bound target populations using College Board’s EPS and ACT’s EIS
Demographic projection analyses of high school graduates and other target populations such as adults
Workforce demand projections
Analyses of prospective student, parent, counselor, adult, and employer wants and needs, including academic programs
Internal institutional analysis examples include:
Assessment of the relationship of enrollment and institutional fiscal health
Enrollment and fiscal projection scenarios
Analyses of student flows into academic majors and courses
Academic program capacity and demand analyses
Assessment of student satisfaction, engagement, and what is important
Incoming characteristic profile of students who succeed of those who don’t succeed
Price discount sensitivity studies of admitted students
Graduating student outcome analyses
Data Types and SourcesDifferent Types of Data
Student demographics, mobility, attitudes, behaviorAcademic performanceCurriculum and assessmentClassroom managementSchool management
Different Sources of DataSurveysSchool & district recordsState & local assessmentsLesson plans, student workCurriculum & assessment materialsObservation reportsDocuments e.g. faculty & PTO meeting minutes, school plans, budget
Periodic ScheduledReports
Periodic ScheduledReports
Exception ReportsException Reports
Demand Reportsand Responses
Demand Reportsand Responses
Drill-down ReportsDrill-down Reports
MajorManagementInformation Systems Reports
Sensitivity AnalysisSensitivity Analysis
What-If AnalysisWhat-If Analysis
Goal-Seeking AnalysisGoal-Seeking Analysis
Optimization AnalysisOptimization Analysis
ImportantDecision SupportSystemsAnalytical Models
ImportantDecision SupportSystemsAnalytical Models
Decision Support Framework
Management Information System
• Scheduled reports
• Key-indicator reports
• Exception reports
• Ad hoc (demand) reports
• Drill-down reports
Creates reports managers can use Creates reports managers can use to make routine business decisionsto make routine business decisions
MISMIS
Four basic types of analytical modeling activities with a DSSSensitivity Analysis
the study of the effect that changes in one or more parts of a model have on other parts of the modelExample: Let’s cut advertising by $100 repeatedly so we can see its relationship to sales.
What-if Analysischecks the impact of a change in the assumptions or other input data on the proposed solutionExample: What if we cut advertising by 10%? What would happen to sales?
Goal-seeking Analysisfind the value of the inputs necessary to achieve a desired level of outputExample: Let’s try increases in advertising until sales reach $1 million.
Optimization AnalysisFind the optimum value for one or more target variables, given certain constraints.Example: What’s the best amount of advertising to have, given out budget and choice of media?
ISs to support decisionsManagement Information Systems
Decision Support Systems
Decision support provided
Provide information about the performance of the organization
Provide information and techniques to analyze specific problems
Information form and frequency
Periodic, exception, demand, and push reports and responses
Interactive inquiries and responses
Information format
Prespecified, fixed format Ad hoc, flexible, and adaptable format
Information processing methodology
Information produced by extraction and manipulation of business data
Information produced by analytical modeling of business data
Executive Support Systems (ESS) in PerspectiveTailored to individual executivesEasy to use- colour and graphicDrill down capabilitiesSupport need for external dataCan help when uncertainty is highFuture-orientedLinked to value-added processes
Exhibit 18.7Exhibit 18.7
Managerial Decisions in the Control Process
Capabilities of an ESSSupport for defining an overall visionSupport for strategic planningSupport for strategic organizing & staffingSupport for strategic controlSupport for crisis management
Key issues to consider in developing the strategic plan:
• Quality– Sample result oriented Goal: “To reduce medication administration errors by 10%”
• Information Technology– Consider implementation of electronic charting/drug administration system
• Staff Levels– Analyze staff to patient ratios– Are nurses overworked?– What is the customer satisfaction level?
• Baylor of Garland case study– Baylor of Garland still uses paper charting -- because of this it is easier for medication errors occur
• Access– Sample result oriented Goal: “Provide care to 15% more patients than we did last
year”• Assess resources available to achieve the objective
– How much additional staff will be needed?– How much additional space will we need?
• Will we need new construction?– New wing or modular building?– How will we pay for the addition – seek funding, charity or debt financing?
• Cost– Sample result oriented Goal: “Increase the accuracy of billing for supplies by 5%”
• Implement incentive-based motivation for staff to decrease wasted supplies– Consider implementing a competition for the least amount of supplies wasted, winner gets first right on
holiday scheduling decisions– Require supply charge to patient– Consider implementing additional policies for supply uses? (Example: Mandatory workshops on
improving sterile technique)
Desired characteristics of Information
•Accurate
•Complete
•Economical
•Flexibility
•Reliable and verifiable
•Relevant
•Simple
•Timely
•Accessible and Secure
Figure 9.3 An example of a mission statement, strategic goals, and tactical objectives for an in-line skate manufacturer
PERT AND CPM
• PERT (Programmed Evaluation and Review Technique and CPM (Critical Path Method) are important network techniques useful in planning are especially useful for planning.
• 1. The project is divided into a number of clearly identifiable activities which are then arranged in al logical sequence.
• 2. A network diagram is prepared to show the sequence of activities, the starting point and the termination of the project.
• 3. Time estimates are prepared for each activity. PERT requires the preparation of three time estimates optimistic.
• 4. The longest path in the network is identified as the critical path. It represents the sequence of those activates which are important for timely completion of the project and where no delays can be allowed without delaying the entire project.
The Nature of Managerial Work
• Controlling– Managers control activities by comparing plans to results.
Table 1.1 A Categorization of Decision Characteristics
Category I Decisions Category II Decisions
Classifications Programmable; routine; Nonprogrammable; unique;generic; computational; judgmental; creative;negotiated; compromise adaptive; innovative; inspirational
Structure Procedural; predictable; Novel, unstructured,certainty regarding consequential, elusive, andcause/effect relationships; complex; uncertain cause/recurring; within existing effect relationships; non-technologies; well-defined recurring; informationinformation channels; channels undefined, incom-definite decision criteria; plete information; decisionoutcome preferences may criteria may be unknown;be certain or uncertain outcome preferences may
be certain or uncertain
Strategy Reliance upon rules and Reliance on judgment,principles; habitual intuition, and creativity;reactions; prefabricated individual processing;response; uniform heuristic problem-solvingprocessing; computational techniques; rules of thumb;techniques; accepted general problem-solvingmethods for handling processes
What is Strategic Planning?
Strategic Planning is a long-term, future-oriented process of assessment, goal-setting, and decision-making that maps an explicit path between the present and a vision of the future. It relies on careful consideration of an organization's capabilities and environment, and leads to priority-based resource allocation and other decisions.
Strategic Planning=
Align organization with
its environmentto promote stability
and survival
Traditional Planning
=Set goals then
develop steps toachieve those goals
Strategic Planning in the Organization
• Strategic planning as a management process includes the following steps:1. Clearly define the purpose of the organization2. Establish realistic goals and objectives consistent with the mission of
the organization3. Identify the organization’s external constituencies or stakeholders, then
determine their assessment of the organization’s purposed and operations
4. Clearly communicate the goals and objectives5. Develop a sense of ownership of the plan6. Develop strategies to achieve the goals7. Ensure the most effective use of resources is made8. Provide a base from which progress can be measured9. Provide a mechanism for informed change as needed10.Build a consensus about where the organization is going