Planning
Module 4
LIS 580: Spring, 2006
Instructor- Michael Crandall
Roadmap
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Purpose of planning
The planning process
Setting objectives
Building planning premises
Developing plans
Types of plans
Planning pitfalls
April 6, 2006
LIS580- Spring 2006
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Purpose of Planning
Set the standards
to facilitate control
Provide
direction
Manager
s engage
in
planning
to:
Minimize waste and
redundancy
Reduce the
impact of change
Prentice Hall, 2002
April 6, 2006
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Elements Of Planning
• Plan
– A method for doing or making something,
consisting of at least one goal and a predefined
course of action for achieving that goal.
• Goal
– A specific result to be achieved; the end result
of a plan.
• Objectives
– Specific results toward which effort is directed.
G.Dessler, 2003
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Elements Of Planning (cont’d)
• Planning
– The process of setting goals and courses of action,
developing rules and procedures, and forecasting
future outcomes.
• What Planning Entails
– Choosing goals and courses of action and deciding
now what to do in the future to achieve those
goals.
– Assessing today the consequences of various
future courses of action.
G.Dessler, 2003
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What Planning Accomplishes
•
•
•
•
Allows decisions to be made ahead of time.
Permits anticipation of consequences.
Provides direction and a sense of purpose.
Provides a unifying framework; avoiding
piecemeal decision making.
• Helps identify threats and opportunities and
reduces risks.
• Facilitates managerial control through the
setting of standards for monitoring and
measuring performance.
G.Dessler, 2003
April 6, 2006
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The Management Planning
Process
• Hierarchy of Plans
– A set of plans that includes the company-wide plan
and the derivative plans of subsidiary units
required to help achieve the enterprise-wide plan.
– Top management approves a long-term plan; and
each department creates its own budgets
• The Planning Hierarchy
– Top management formulates its plans based on
upward feedback from the departments, and the
departments in turn draft plans that make sense in
terms of top management’s plan.
G.Dessler, 2003
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Hierarchy of Goals
FIGURE 4–1
G.Dessler, 2003
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Who Does the Planning?
• Small businesses:
– Entrepreneurs do most of the planning.
• Large firms:
– Traditional:
• A central corporate planning group works with
top management and each division to solicit,
challenge, and refine the company’s plan.
– Current:
• Planning is decentralized and includes the firms’
product and divisional managers, aided by small
headquarters advisory groups.
G.Dessler, 2003
April 6, 2006
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Checklist 4.1
How to Develop a Plan
 Set an objective.
 Develop forecasts and planning
premises.
 Determine your options. The decisionmaking process
 Evaluate alternatives.
 Choose your plan, and start to
implement it.
 Go to Level 2.
}
G.Dessler, 2003
April 6, 2006
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Setting Objectives
G.Dessler, 2003
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Checklist 4.2
Principles of Goal-Setting






Set SMART goals—make them specific,
measurable, attainable, relevant, and
timely. Choose areas (sales revenue, costs,
and so forth) that are relevant and
complete.
Assign specific goals.
Assign measurable goals.
Assign doable but challenging goals.
Encourage participation.
Use executive assignment action plans, or
management by objectives.
G.Dessler, 2003
April 6, 2006
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Forecasts and Planning Premises
• Forecasting is used to predict future requirements and
opportunities
– Determines the premises on which planning is based
– Can be quantitative (e.g., a time series) or qualitative (e.g.,
jury of executive opinion)
• Marketing research
• Competitive intelligence
– Helps build the picture of what others are doing to inform the
planning process
• Next step is the decision-making process we talked
about yesterday
• Finally, you begin to build your plans (usually more
than one to realize objectives)
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The Business Plan And Its
Components
• Description of the business (including
ownership and products or services)
• Marketing plan
• Financial plan
• Management
and/or personnel plan.
G.Dessler, 2003
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Outline of a Marketing Plan
Source:
Adapted from
Philip Kotler and
Gary Armstrong,
Principles of
Marketing (Upper
Saddle River,
NJ: Prentice Hall,
2001), p. 70.
FIGURE 4–3
G.Dessler, 2003
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Acme’s Potential Market Segments
FIGURE 4–4
Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA.
April 6, 2006
G.Dessler, 2003
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Product, Pricing, and Sales Forecasts
FIGURE 4–5
G.Dessler, 2003
Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA.
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Personnel Plan
Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA.
FIGURE 4–6
G.Dessler, 2003
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Sales Forecast by Service: Two-Month
Sales Plan for Acme Consulting, 2003
FIGURE 4–7
G.Dessler, 2003
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Gantt Scheduling Chart for Acme
Strategic Report Projects, Jan 1–15, 2003
FIGURE 4–8
G.Dessler, 2003
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Acme Consulting Profit and Loss
Source: Business Plan
Pro, Palo Alto Software,
Palo Alto, CA.
April 6, 2006
FIGURE 4–9
G.Dessler, 2003
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G.Dessler, 2003
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G.Dessler, 2003
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Types of Plans
Type of
Plan
Time
Frame
Specificity
Frequency
of Use
Strategic
Long Term
Directional
Single Use
Tactical
Short Term
Specific
Standing
Operational
Ongoing
Very
detailed
Day-to-day
Policies,
procedures,
and rules
Varies
Varies
Varies
G Dessler, 2003
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Reporting Improper Behavior
Source:
James Jenks,
The Hiring,
Firing (and
everything in
between)
Personnel
Forms Book
(Ridgefield,
CT: Round
Lake
Publishing,
1996), pp.
224–25.
April 6, 2006
FIGURE 4–10
G.Dessler, 2003
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Pitfalls of Planning
• Planning may create rigidity
• Plans cannot be developed for a dynamic
environment
• Formal plans cannot replace intuition and
creativity
• Planning focuses managers’ attention on
today’s competition, not tomorrow’s survival
• Formal planning reinforces success, which
may lead to failure
Prentice Hall, 2002
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Elmer L. Anderson Library
• What did the planners do right in this effort?
• Was the design a result of research or
creativity?
• How was the planning process affected by
stakeholder needs?
• How much of the planning was related to
political activities and how much to actual
construction activity?
• How was success measured for the project?
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Extreme Chaos
• Better project success rates due to
lower costs and smaller projects
• Difficulty of estimating costs and
schedules accurately
– Often tripled up front to avoid failure
– Old metrics not appropriate to modern
methods
– Difficult to establish benchmarks
• Different skills for different roles
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Project Success Factors
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Next Time
• Strategic planning
– Read Chapter 5 and Cleveland Public Library
Strategic Plan
• Discussion questions:
– How has the Gold Coast City Council been able to
use evidence to aid in strategic planning?
– Do you think their choice of benchmarks will
achieve the overall objectives?
– Are there any risks in using these measures in
deciding on long-term changes in structure?
– Do you think the library staff is engaged in this
process? Should they be?
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