PLANNINGMAHMOOD QASIM

THE DEFINITION OF PLANNINGA PROCESS THAT INVOLVES DEFINING THE ORGANIZATION’S OBJECTIVES OR GOALS, ESTABLISHING AN OVERALL STRATEGY FOR ACHIEVING THOSE GOALS, AND DEVELOPING A COMPREHENSIVE HIERARCHY OF PLANS TO INTEGRATE AND COORDINATE ACTIVITIES.

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PURPOSES OF PLANNING

1. GIVES DIRECTION2. REDUCES THE IMPACT OF CHANGE3. MINIMIZES WASTE AND REDUNDANCY4. SETS STANDARDS USED IN CONTROLLING

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BENEFITS OF PLANNING1. FORCES MANAGERS TO THINK AHEAD2. LEADS TO DEVELOPMENT OF PERFORMANCE STANDARDS WHICH ENABLE

MORE EFFECTIVE MANAGEMENT CONTROL3. FORCES MANAGEMENT TO ARTICULATE CLEAR OBJECTIVES4. PREPARES ORGANIZATION TO BE BETTER PREPARED FOR SUDDEN

DEVELOPMENTS

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ELEMENTS OF PLANNING

1. OBJECTIVES2. ACTIONS3. RESOURCES4. IMPLEMENTATION

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TYPES OF PLANSBreadth Time

FrameSpecificity Frequency

of UseStrategic Long Term Directional Single Use

Operational

Short Term Specific Standing

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Strategic OperationalExtended period of time – usually three years

Shorter period of time – usually monthly, weekly or day-today

Covers broader view of the organization

Deals with specific areas

Includes the formulation of objectives Defines the ways to attain the objectives

Strategic Versus Operational Plans

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Short-Term Plans Long-Term PlansCovering one year or less Covering time frame beyond three

years

Short-Term versus Long-Term Plans

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Specific Plans Directional PlansHave clearly defined objectives Focused but does not lock managers

into specific line of action

Specific versus Directional Plans

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Single Use Plans Standing PlansDesigned to meet the need of a unique situation

Ongoing plans that provide guidance for activities repeatedly performed in organization

Created in response to nonprogrammed decisions

Created in response to programmed decisions

Single Use Plans Versus Standing Plans

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CONTINGENCY FACTORS

• LEVEL IN THE ORGANIZATION• DEGREE OF ENVIRONMENTAL UNCERTAINTY• LENGTH OF FUTURE COMMITMENT

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PLANNING IN LEVELS OF ORGANIZATIONS

Operational Planning

Strategic Planning Top

Executive

sMiddle-Level

ManagersFirst-Level

Managers

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DEGREE OF ENVIRONMENTAL UNCERTAINTY • THE GREATER THE ENVIRONMENTAL UNCERTAINTY THE MORE

PLANS NEED TO BE DIRECTIONAL AND EMPHASIS PLACED ON THE SHORT TERM• IF RAPID OR IMPORTANT TECHNOLOGICAL, SOCIAL, ECONOMIC

LEGAL, OR OTHER ENVIRONMENTAL CHANGES ARE OCCURRING, WELL-DEFINED AND PRECISELY CHARTERED COURSES OF ACTION ARE MORE LIKELY TO HINDER AN ORGANIZATION’S PERFORMANCE THAN HELP IT.•WHEN ENVIRONMENTAL UNCERTAINTY IS HIGH, SPECIFIC PLANS

HAVE TO BE ALTERED TO ACCOMMODATE THE CHANGES – OFTEN AT HIGH COST AND DECEASED EFFICIENCY.Mahmood Qasim

LENGTH OF FUTURE COMMITMENTSTHE MORE THAT CURRENT PLANS AFFECT FUTURE COMMITMENTS, THE LONGER THE TIME FRAME FOR WHICH MANAGERS SHOULD PLAN.MANAGERS DO NOT PLAN FOR FUTURE DECISIONS, RATHER THEIR PLANS ARE FOR THE FUTURE IMPACT OF THE DECISIONS THEY ARE CURRENTLY MAKING.DECISIONS MADE TODAY BECOME A COMMITMENT TO SOME FUTURE ACTION OR EXPENDITURE.

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CRITICISM OF PLANNING• PLANNING MAY CREATE RIGIDITY• PLANS CAN’T BE DEVELOPED FOR DYNAMIC ENVIRONMENT• FORMAL PLANS CAN’T REPLACE INTUITION AND CREATIVITY• PLANNING FOCUSES MANAGERS’ ATTENTION ON TODAY’S COMPETITION NOT

ON TOMORROW’S SURVIVAL• FORMAL PLANNING REINFORCES SUCCESS, WHICH MAY LEAD TO FAILURE

Mahmood QasimMahmood Qasim

TIPS FOR NEW MANAGERS1. THINK AHEAD BY USING EXERCISES LIKE SCENARIO PLANNING ON A REGULAR BASIS2. SEE PLANS AS A GUIDE TO ACTION. DON’T BECOME STRAITJACKETED BY PLANS THAT

MAY NO LONGER BE APPROPRIATE IN A CHANGING ENVIRONMENT3. MAKE SURE THAT THE PLANS CREATED AT EACH OF THE THREE ORGANIZATIONAL

LEVELS ARE COMPATIBLE WITH ONE ANOTHER AND THAT MANAGERS AT ALL LEVELS RECOGNIZE HOW THEIR ACTIONS FIT INTO THE OVERALL CORPORATE PLAN

4. GIVE MANAGERS AT ALL LEVELS THE OPPORTUNITY TO PARTICIPATE IN THE PLANNING PROCESS TO BEST ANALYZE AN ORGANIZATION'S PRESENT SITUATION AND FUTURE SCENARIOS THAT MAY AFFECT IT

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DEFINING THE BUSINESSTO DETERMINE AN ORGANIZATION’S MISSION, MANAGERS MUST FIRST DEFINE ITS NOSINESS SO THAT THEY CAN IDENTIFY WHAT KIND OF VALUE THEY WILL PROVIDE TO CUSTOMERS. TO DEFOME THE BUSINESS, MANAGERS MUST ASK THREE QUESTIONS:

1. WHO ARE OUR CUSTOMERS?2. WHAT CUSTOMER NEEDS ARE BEING SATISFIED?3. HOW ARE WE SATISFYING CUSTOMER NEEDS?

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ESTABLISHING MAJOR GOALSAFTER DEFINING THE BUSINESS, MANAGERS MUST ESTABLISH A SET OF PRIMARY GOALS T WHICH THE ORGANIZATION IS COMMITTED. DEVELOPING THESE GOALS GIVES THE ORGANIZATION SENSE OF DIRECTION OR PURPOSE. TIME PERIOD IN WHICH A GOAL IS EXPECTED TO BE ACHIEVED SHOULD BE STATED, IT GIVES A SENSE OF URGENCY INTO GOAL ATTAINMENT AND ACT AS A MOTIVATOR.

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FORMULATING STRATEGY

STRATEGY FORMULATION ANALYSIS OF AN ORGANIZATION’S CURRENT SITUATION FOLLOWED BY THE DEVELOPMENT OF STRATEGIES TO ACCOMPLISH ITS MISSION AND ACHIEVE ITS GOALS

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PLANNING AND STRATEGY FORMULATIONSWOT Analysis

A planning exercise to identify strengths

and weaknesses inside an

organization and opportunities and

threats in the environment

Corporate-Level StrategyA plan of action to manage the growth and

development of an organization so as to maximize its long-run ability to create

valueBusiness-Level StrategyA plan of action to take advantage of

favorable opportunities and find ways to counter threats so as to compete

effectively in an industryFunctional-Level Strategy

A plan of action to improve the ability of an organization’s department to create value

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FORMULATING CORPORATE-LEVEL STRATEGIES• CONCENTRATION ON A SINGLE BUSINESS• DIVERSIFICATION• RELATED DIVERSIFICATION• UNRELATED DIVERSIFICATION

• INTERNATIONAL EXPANSION• VERTICAL INTEGRATION• BACKWARD• FORWARD

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FORMULATING BUSINESS-LEVEL STRATEGIES

• LOW-COST STRATEGY• FOCUSED LOW-COST

•DIFFERENTIATION STRATEGY• FOCUSED DIFFERENTIATION

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FORMULATING FUNCTIONAL-LEVEL STRATEGIES

• DEPARTMENTAL MANAGERS CAN LOWER THE COSTS OF CREATING VALUE SO THAT AN ORGANIZATION CAN ATTRACT CUSTOMERS BY KEEPING ITS PRICES LOWER THAN ITS COMPETITORS’ PRICES• DEPARTMENTAL MANAGERS CAN ADD VALUE TO A PRODUCT BY FINDING

WAYS TO DIFFERENTIATE IT FROM THE PRODUCT OF OTHER COMPANIES

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PLANNING AND IMPLEMENTING STRATEGIES1. ALLOCATING RESPONSIBILITY FOR IMPLEMENTATION TO THE APPROPRIATE

INDIVIDUALS OR GROUPS2. DRAFTING DETAILED ACTION PLANS THAT SPECIFY HOW A STRATEGY IS TO

BE IMPLEMENTED3. ESTABLISHING A TIMETABLE FOR IMPLEMENTATION THAT INCLUDES

PRECISE, MEASURABLE GOAL LINKED TO THE ATTAINMENT OF THE ACTION PLAN

4. ALLOCATING APPROPRIATE RESOURCES TO THE RESPONSIBLE INDIVIDUALS OR GROUPS

5. HOLDING SPECIFIC INDIVIDUALS OR GROUPS RESPONSIBLE FOR THE ATTAINMENT OF CORPORATE, DIVISIONAL, AND FUNCTIONAL GOALSMahmood Qasim

TIPS FOR NEW MANAGERS1. PERIODICALLY DEFINE AN ORGANIZATION’S BUSINESS TO DETERMINE HOW WELL IT IS ACHIEVING ITS

MISSION. USE THIS PLANNING EXERCISE TO DETERMINE ITS FUTURE GOALS2. MAKE SWOT ANALYSIS AN INTEGRAL PART OF THE PLANNING PROCESS3. ALWAYS BE ALERT FOR OPPORTUNITIES TO INCREASE THE VALUE OF AN ORGANIZATION’S GOODS AND

SERVICES SO IT CAN BETTER SERVE ITS CUSTOMERS’ NEEDS4. ENSURE THAT FUNCTIONAL MANAGERS FOCUS ON FINDING NEW WAYS IN WHICH TO LOWER THE COSTS OF

VALUE TO PRODUCTS SO THAT AN ORGANIZATION CAN PURSUE BOTH A LOW-COST STRATEGY AND A DIFFERENTIATION STRATEGY

5. CAREFULLY ASSESS THE COSTS AND BENEFITS ASSOCIATED WITH USING A CORPORATE-LEVEL STRATEGY AND ONLY ENTER A NEW BUSINESS WHEN IT CAN CLEARLY DEMONSTRATE THAT IT WILL INCREASE THE VALUE OF YOUR PRODUCTS

THANK YOUMahmood Qasim