1. CHAPTER 5 ORGANIZATIONAL PLANNING

2. MANAGEMENT IN ACTION: THE PLANNING PROCESS n Organizational Planning n Strategic Planning n Decision-Making

3. PLANNING DEFINED n Systematic and Orderly Process n Which Assesses Future Needs and Priorities of the Organization n Leads to the Development of Organizational Goals n Develops a Blueprint for Overall Organizational Strategies and Activities

4. PLANNING ANSWERS SIX BASIC QUESTIONS n What--objectives are to be accomplished n When--long and short term goals will be achieved n Where--activities pertinent to the goals will take place n Who--will take ownership and nature the plan n How--actions will be taken which support the plan n How Much--money, time, talent, resources will be expended

5. CHARACTERISTICS OF THE PLANNING PROCESS n Specific and Measurable Objectives n Realistic and Challenging Organizational Goals n Focused on Key Results--80/20 Rule n Cover a Specified Time Period n Reward and Recognize Performance and Contributions--Celebrate Success and Failures

6. FORMAL AND INFORMAL GOALS AND OBJECTIVES n Formal Objectives--align with the priorities of the formal hierarchy and structures n Informal Objectives--align with the hidden agendas often prevalent in organizations, massage the political side of the enterprise

7. AREAS WHERE GOALS AND OBJECTIVES ARE NEEDED n Production n Marketing n Finance n Societal n Employee Relations n Everywhere

8. SUCCESSIVE NATURE OF PLANNING n Domino Analogy n Profit and R-O-I Objectives n Market Share\Sales Volume Objectives n Social Responsibility and Managerial Ethics n Cost versus Benefit Analysis n Gap Analysis\Force Field Analysis\SWOT Analysis

9. PUTTING THEORY INTO PRACTICE n Retail Model n Industrial Model

10. THE FRAMEWORK FOR PLANNING n Mission, Vision, and Belief Statements n Goals and Objectives u Strategic-Tactical-Operational-Cost/Benefit- Room For Failure n Planning Levels u Executive-Staff-Line/Operational Level Responsibility

11. THE FRAMEWORK FOR PLANNING n Planning Classifications u Single Purpose/Ad Hoc Plans F Programs-Projects-Budgets u Standing Plans F Rules-Policies-Procedures n Contingency Planning for a Changing Environment u Murphy’s Law--What Can Go Wrong Will So Plan on It

12. THE PLANNING PROCESS MODEL n Step 1: Setting Goals and Objectives n Step 2: Analyzing the Environment n Step 3: Identifying the Alternatives n Step 4: Evaluating the Alternatives n Step 5: Selecting the Best Solution n Step 6: Implementing the Plan n Step 7: Controlling and Evaluating the Plan

13. MAKING PLANNING EFFICIENT AND EFFECTIVE n Barriers to Planning u inability to plan u inadequate planning process u lack of commitment to the planning process u inferior information u lack of focus on the future u overreliance on the planning department u overemphasis on controllable events

14. MAKING PLANNING EFFICIENT AND EFFECTIVE n Aids to Efficient and Effective Planning u effective communication u quality of information u involvement of others n Planning Tools and Techniques u MBO/MBA/MBWA u Forecasting u Linear Programming

15. THE PLANNING PROCESS: ANOTHER PERSPECTIVE n Creating an Organizational Mission, Vision, and Belief Statement n Conducting a SWOT/Gap/Force Field Analysis u Shewhart Continuous Improvement (CI) Model F PLAN Define the SystemDefine the System Assess the Current SituationAssess the Current Situation Analyze Cause and EffectAnalyze Cause and Effect

16. THE PLANNING PROCESS: ANOTHER PERSPECTIVE n Conducting a SWOT/Gap/Force Field Analysis u Shewhart Continuous Improvement (CI) Model F DO Pilot Test Improvement TheoryPilot Test Improvement Theory F STUDY The ResultsThe Results F ACT Standardize the ImprovementsStandardize the Improvements Continue to Improve Using the ProcessContinue to Improve Using the Process

17. THE PLANNING PROCESS: ANOTHER PERSPECTIVE n Establish Organizational Goals and Objectives and Benchmarks n Identify and Evaluate Alternatives Activities to Meet Goals/Objectives and Benchmarks in an Efficient and Effective Manner n Make a Decision n Implement the Plan n Follow-up and Monitor the Results