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Planning

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  1. Planning Module 4 LIS 580: Spring, 2006 Instructor- Michael Crandall

  2. Roadmap • Purpose of planning • The planning process • Setting objectives • Building planning premises • Developing plans • Types of plans • Planning pitfalls LIS580- Spring 2006

  3. Purpose of Planning Because of changes in the environment Set the standards to facilitate control Provide direction Managers engage in planning to: Minimize waste and redundancy Reduce the impact of change Prentice Hall, 2002 LIS580- Spring 2006

  4. 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 LIS580- Spring 2006

  5. 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 LIS580- Spring 2006

  6. 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 LIS580- Spring 2006

  7. 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 LIS580- Spring 2006

  8. Hierarchy of Goals FIGURE 4–1 G.Dessler, 2003 LIS580- Spring 2006

  9. 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 LIS580- Spring 2006

  10. Checklist 4.1How to Develop a Plan • Set an objective. • Develop forecasts and planning premises. • Determine your options. • Evaluate alternatives. • Choose your plan, and start to implement it. • Go to Level 2. } The decision- making process G.Dessler, 2003 LIS580- Spring 2006

  11. Setting Objectives G.Dessler, 2003 LIS580- Spring 2006

  12. 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 LIS580- Spring 2006

  13. 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) LIS580- Spring 2006

  14. 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 LIS580- Spring 2006

  15. 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 LIS580- Spring 2006

  16. Acme’s Potential Market Segments FIGURE 4–4 Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003 LIS580- Spring 2006

  17. Product, Pricing, and Sales Forecasts FIGURE 4–5 Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003 LIS580- Spring 2006

  18. Personnel Plan Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. FIGURE 4–6 G.Dessler, 2003 LIS580- Spring 2006

  19. Sales Forecast by Service: Two-Month Sales Plan for Acme Consulting, 2003 FIGURE 4–7 G.Dessler, 2003 LIS580- Spring 2006

  20. Gantt Scheduling Chart for Acme Strategic Report Projects, Jan 1–15, 2003 FIGURE 4–8 G.Dessler, 2003 LIS580- Spring 2006

  21. Acme Consulting Profit and Loss Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. FIGURE 4–9 G.Dessler, 2003 LIS580- Spring 2006

  22. G.Dessler, 2003 LIS580- Spring 2006

  23. G.Dessler, 2003 LIS580- Spring 2006

  24. Types of Plans G Dessler, 2003 LIS580- Spring 2006

  25. 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. FIGURE 4–10 G.Dessler, 2003 LIS580- Spring 2006

  26. 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 LIS580- Spring 2006

  27. 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? LIS580- Spring 2006

  28. 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 LIS580- Spring 2006

  29. Project Success Factors LIS580- Spring 2006

  30. 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? LIS580- Spring 2006