PLANNING

PLANNING is the process of setting objectives and determining how to accomplish them.

Planing creates a solid platform for other management functions

Planning sets the stage for the others by providing sense of direction

Importance of PlanningImportance of Planning

Controlling –To ensure results

•Measure performance•Take corrective action

Organising – to create structures

Leading– to inspire effort

Planning to set direction

•Decide where you wantto go ?

•Decide how to best go about it?

Purposes of planning

1) Planning provides direction

2) Planning reduces uncertainty

3) Planning minimises waste and redundancy

4) Planning establishes goals or standards that are used for controlling.

Goals and Plans

• Goals

Desired outcomes for individuals, groups, or entire organisations

• Plans

Plans are documents that outline how goals are going to be met including resource allocations, schedules and other necessary actions to accomplish that goals

Planning Process

• Perception of opportunities

• Define your Objectives

• Develop premises regarding future conditions

• Identification of alternatives

• Evaluation and choose amoung alternatives

• Formulation of supporting plan

• Implement the plan and evaluate the results

Benefits of PlanningBenefits of Planning

• Planning improves Focus and flexibility

• Planning improves action orientation

• Planning improves coordination

• Planning improves time management

• Planning improves Control

Types of Plans1) By their Breadth

Strategies and Operational Plans (Tactical Plans)

2) Time frame

Short term and Long term plans

Types of Plans3) Specificity

Directional and specific plans

4) Frequency of use

Single use and Standing

Plans

• Strategic Plans

Plans that apply to the entire organisation, establish the organisation’s overall goals, and seek to position the organisation in terms of its environment.

• Operational Plans

Plans that specify the details of how the overall goals are to be achieved

Plans

• Long term PlanLong term Plan

Plans with a time frame beyond three years• Short Term PlansShort Term Plans

Plans covering one year or less• Specific plansSpecific plans

Plans that are clearly defined and that leave no room for interpretation

(Specific procedures,Schedules of activities)• Directional PlansDirectional Plans

Plans that are flexible and that set out general guidelines

( Used When uncertainity is high)

Plans

• Single Use plansSingle Use plans

A one time plan specifically designed to meet the needs of a unique situation.

• Standing PlansStanding Plans

Ongoing plans that provide guidance for activities performed repeatedly

Eg : Policies, Rules and procedures.

Hierarchy of plans

Purpose

orMission

Objectives

Strategies

Policies

Rules and Procedures

Programmes or projects

Budgets

Planning Tools and Techniques

• Environmental Scanning

• Forecasting

• Benchmarking

Environmental Scanning

The screening of large amounts of information to anticipate and interpret changes in the environment

Competitor Intelligence Environmental scanning activity that

seeks to identify who competitors are, what they are doing, and how their actions will affect the organisation

Forecasting Prediction of outcomes

• Quantitative forecasting • Qualitative forecasting• CPFR ( Collaborative Planning,

forecasting, and replenishment)

Benchmarking

The search for best practices amoung competitors or non competitors that lead to their superior performance

Form a benchmarking planning team

Gather internal and external data

Analyse data to identifyPerformance gaps

Prepare and implement action plan