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MBA/MPM/M.Sc. inMBA/MPM/M.Sc. inMBA/MPM/M.Sc. inMBA/MPM/M.Sc. in

Management ProgramManagement ProgramManagement ProgramManagement Program ----

2009200920092009

MMS 5101 - ManagementMMS 5101 - Management

By

Mr. M.V.S.S. Udayanga

Shyaman UdayangaUniversity of Sri Jayewardenepura

Nugegoda

Setting the Future:Setting the Future:

The Process of PlanningThe Process of Planning

Planning

Process of establishing goals

and

Strategies

Activities Involved in Planning

1. Setting the goals & objectives

2. Setting Strategies

Issuance of Key Targets to Departments

Preparation of Tactical/Operational Plans

Evaluation and Revision as necessary

Determination Of Corporate Strategies

Agree On Strategic Plan

Agree/Revise Strategic Objectives

Establishment of MissionPolicy

Statement

Social

Responsibilit

y

Environmental Analysis

Internal External

Favourable Strengths Opportunities

Un fa vou ra ble We akn es se s T hrea ts

The Process of Planning Formulation of Mission

Management

Values

Interests

of owners

Interests

of the Society

Mission

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The fundamental, uniquepurpose that sets a

business apart from otherfirms of its types

and

identifies the scope of itsoperations in product and

market terms.

Mission Core purpose: a companys reasonfor being

3M: To solve unsolved problems innovatively

Cargill: To improve the standard of living

around the world

Hewlett-Packard: To make technical

contributions for the advancement and welfare of

humanity

Merk: to preserve and improve human life

Walt Disney: To make people happy

Core Purpose & Core Values

Core Values Elevation of the Japanese culture and

national status

Being pioneer not following others; doingthe impossible

Encouraging individual ability and creativity

Core PurposeTo experience the joy of advancing andapplying technology for the benefit of the

public

Contents of Mission

Statement

Fundamental Purpose - and

Business Scope

Business philosophy

"To be the most

innovative, trusted

and best process-

quality provider of

financial services

in the region."

MISSIONMISSION

To anticipate and fulfill the

communications requirements of all sectors

of the nation, in a service oriented work

ethic which will provide total customer

satisfaction through the most modern

telecommunication facilities.

Mission Sri Lanka Telecom

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LECO - Mission

To provide the best energy

solutions to the society through

continuous innovations

CEB - Mission

To develop and maintain an efficient, coordinated andeconomical system of electricity supply to the whole of

Sri Lanka while adhering to our core values:

Quality

Serve the nation

Efficient and effective

Commitment

Safety

Professionalism

Sustainability

" A Vision Statement is... a lighthouse that gives

direction rather than a destination"

" A Vision Statement is... a lighthouse that gives

direction rather than a destination"

Mission Vs VisionMission Vs VisionEnvisioned Future

Sony 1950s

We will create products that becomepervasive around the world..We will be thefirst Japanese company to go in to the USmarket and distribute directly.We willsucceed with innovations that US companieshave failed at such as the transistor radio ..Fifty years from now, our brand name will be

as well known as any in the world and willsignify innovation and quality that rival themost innovative companies anywhere.Made in Japan will mean something fine,not something shoddy.

Colourful

dream of the

future of the

business,

deeply

embedded in

the founders

mind

LECO - Vision

Enjoy being the light for lives of people

through innovative eco-friendly business

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CEB - Vision

Enrich Life through Power

Core values- Merck

Corporate social responsibility

Unequivocal excellence in allaspects of the company

Science-based innovation

Honesty and integrity

Profit, but profit from work thatbenefits humanity

Corporate Goals

Market Standing

Innovation

Productivity

Resourcing

Profitability

Employee Development Employee relations

Social Responsibility

..

Long Term goals

established for the

whole Business

in the

areas such as

Environmental Analysis

Internal External

Favourable

Strengths

Opportunities

Unfavourable

Weaknesses Threats

Environment

Effect

Strategy The broad programme for achieving an

organizations objectives andimplementing its mission. (Stoner &Freeman)

A comprehensive plan foraccomplishing an organizations goals(Griffin)

Corporate Strategies

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Tactical Plans

Normally refers to

Business Unit Plans

Functional plans

XYElectronics

Ltd.

XYNewspapers

Ltd.

XYFoods &

Beverages Ltd.

P M F E P D M FP

XY Groupof

Companies Ltd.

Operational Plans

Plans that provide the details needed toincorporate strategy into day to day

operations. Eg,

Policies

Procedures

Programs

Projects

Rules and regulations

Budgets

Hierarchy of Plans

Corporate plan

SBU Plans

Functional Plans

Operational Plans

Types of Plans

4

SBUs

SBUs

Divisions

Group

Corporate Strategic Plan(At Corporate Level)

SBU Strategic Plans(At SBU Level)

Tactical

Plans

FunctionalPlans

OperationalPlans

Single use

Standing

Types of Operational Plans

SingleSingleSingleSingle----Use PlansUse PlansUse PlansUse Plans

Single use plan is adetailed course ofaction used once oronly occasionally tosolve a problemthat does not occurrepeatedly.

Standing PlansStanding PlansStanding PlansStanding Plans

Standing plan is anestablished set ofdecisions used bymanagers to dealwith recurringorganizationalactivities.

Benefits of Planning

1. Provide a sense of direction

2. Prerequisite to successful growth

3. Set up the organizational framework

4. Helps delegation

5. Helps motivate people

6. Serves as a communication media

7. Lays the basis for control

8. Provides coordination

9. Facilitates efficient use of resources.

10. Reduces uncertainty by anticipatingchange

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Effective Plan Implementation1. Communicate strategies

2. Develop and communicate planning

assumptions etc.3. Make sure actions plans reflect major objectives

and strategies

4. Review strategies regularly

5. Develop contingency plans and programs

6. Ensure that organizations structure followsplanning needs

7. Continue to remember plans implementations

8. Create an organization culture which drives forplanning

9. Establish a supporting organizational leadershipand culture

Contents of a Good Planning Document

Organisational Profile

Executive Summary Detailed SWOT Analysis (Highlight distinct Competencies)

Hierarchy of Aims (Vision, Mission, Goals & Objectives)

Strategies (Corporate, Functional and Operational Level)

Policies and Ground Rules

Programmes and Procedures (SOPs)

Work Instructions and Operational Guidelines

Budgets

Monitoring and Review Guidelines

Thank You !