MODULE 10

PLANS 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?
PLANS AND PLANNING TECHNIQUES

Planning
MODULE 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.
PLANS AND PLANNING TECHNIQUES

Planning

 Planning
 The process of setting objectives and
determining how to accomplish them.
PLANS AND PLANNING TECHNIQUES

Planning
 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.
PLANS AND PLANNING TECHNIQUES

Planning

 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.
PLANNING

Reasons 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
PLANNING

Reasons For Planning

 Hierarchy of Objectives
 Lower-level objectives help to accomplish higher-
level ones.
PLANS AND PLANNING TECHNIQUES

Types Of Plans
MODULE 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.
PLANS AND PLANNING TECHNIQUES

Types 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.
PLANS AND PLANNING TECHNIQUES

Types 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
PLANS AND PLANNING TECHNIQUES

Types 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.
PLANS AND PLANNING TECHNIQUES

Types 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
PLANS AND PLANNING TECHNIQUES

Planning Tools And Techniques

MODULE 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.
PLANS AND PLANNING TECHNIQUES

Planning 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.
PLANS AND PLANNING TECHNIQUES

Planning 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.
PLANS AND PLANNING TECHNIQUES

Planning Tools And Techniques

 Participatory Planning
 includes the persons who will be affected by
plans and/or who will implement them.
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.”