PLANNING
Jagdeep Dahiya
Puneet Vyas
Ashish JainSaira Ansari
NMIMS-University MBA-Capital Markets 13-Sep-2007
Defining Planning
The process of setting objectives, or goals, and formulating policies, strategies,
and procedures to meet them.
The process of choosing the who, what, how, when, and where
of goal attainment.
Planning – Where & How
Features of PlanningPlanning is
• Futuristic
• A Mental Exercise
• Pervasive
• Continuous Process
Why To Plan• Better Coordination
• Focus on Forward Thinking
• Participatory Work Environment
• More Effective Control Systems
If You fail to plan, you plan to fail.
Benefits of Planning...
Fool Proof Plan3
5
1
2
4
Costs of Planning
Delay in DecisionMaking
Management Time
Where Should Planning Begin…
TOP-DOWN BOTTOM-UP
Level at which planning is initiated
Top Level Individual closest to product/services/customers
Role of Organizational units
Units act as per the plan Develop their own goals and plans
Specificity of plan Begins Broad, becomes specific as moves down
Begins specific, becomes cohesive as moves up
Advantages Plans driven by top mgmt who are most knowledgeable
People closest to customers provide focused plans
Disadvantages Top-level mgmt is removed from the front line
Lower mgmt may not have a broad understanding
Appropriateness When orgn success depends
on quick response to external pressures and threats
When it depends upon ability to respond quickly to changes in operational system.
Where We Are Now?
Assess PresentCondition
How WillWe Get There?
Strategy/Methods
How To Know WeMade it?MeasuresIndicators
Where We Want to Go?
Vision/Goals
Go There!Actions
Did WeMade It?
Re-Monitoring
Planning Process
Financial Planning Process: An Example
Levels of Planning
Strategic Tactical Operational
DefinitionProcess by which an organization makes decisions and takes
actions to enhance its long term performance
Process of translating broad
strategic goals and plans into specific
goals related a functional areas
Process of determining the day-to-day
activities that are necessary to achieve
the long term goals of the organization
LevelBoard of Directors,
Top Level Executives,
Managers within Business units
Middle Level,
Functional Heads
Middle Level to
Lower Level Managers
Life Long-Term Medium Term Short-Term
Types of Plans
Standing
Individual
Single-Use
PoliciesProcedures
Rules
ProgramsProjectsBudgets
MBO SystemBalanced Scorecard
PoliciesProcedures
Rules
Management By Objectives (MBO)
Organizational Objectives Reviewed
Employee Objectives Set
Performance Evaluated
MBO for the nextOperating Period begins
Progress Monitored
Achievers Rewarded
Strategic Management Process
A process that involve managers from all parts of the Organization in the
formulation and implementation of strategic goals and strategies.
BusinessStrategy
Low CostStrategy
DifferentiationStrategy
FunctionalStrategy
Contingency Planning For Changing Environments
• Y2K
• Terrorist Attacks
• Policy Change
• Market Change
• Attrition
Thank You !!
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