Planning

Management Processes: POSDCRB

Planning &
Strategy
Fundamentals of Management p 88-110
 Planning
Definition of Planning

The process specifying a future

sequence of resources and
actions needed to achieve
organisational goals in an
efficient & effective way

Fundamentals of Management p 89
 Planning
7 Main Types of Plan
Linked in a logical sequence
Mission
1. Mission Statements Statement

2. Vision Statements Vision

Statement

3. Strategy

Consultation/Feedback
Strategy

4. Tactical Plans
Tactical Plan 1 Tactical Plan 2 Tactical Plan 3
5. Operational Plans
6. Action Plans Operational Operational Operational
Plan 1 Plan 2 Plan 3
7. Procedures
Action Plans/ Action Plans/ Action Plans/
& SOPs Procedures/ Procedures/ Procedures/
SOPs SOPs SOPs

Fundamentals of Management p 90
 Planning
Main Topics
1 Types of Plans
▸Visions & Mission Statements
▸Strategic Plans
▸Tactical Plans
▸Operational Plans
2 Planning Timeframes
3 Advantages & Disadvantages of Planning
4 Planning toolkit

Fundamentals of Management p 89-110

Planning

’
Mission Statements

▸ State reason for organisation’s existence

▸ Statement of intent for all stakeholders

Generally brief and contain:

- core values & ethics
- customers, market, corporate relationships
- products & services, regions covered
- expectations for growth & profits

Fundamentals of Management p 90
 Planning
Mission Statements
Also called ‘overarching purpose’ or
‘team charter’

Often megalomanic & grandiose.

Create Pride at very top but derision
lower down…

Fundamentals of Management p 90
 Planning
Vision Statements
▪ chosen way to achieve
mission. Organisations can
Inspirational have identical missions but
picture of different visions
future ▪ longer than missions
organisation ▪ mainly internal but also
relevant for suppliers &
customers
Fundamentals of Management p 92
Planning
Strategy, planning, marketing
– a complicated relationship

Fundamentals of Management p 93

PLANNING
p 88-108

Strategy
P 92-100 Marketing
Strategy
P332-336

Porter
P 502-505

MARKETING
P 323-351
 Planning
Strategic Plans – many fail
Analyse competitive advantages /
core competencies / critical success factors

SWOT - most famous framework

Strengths
Weaknesses
Opportunities
Threats

Fundamentals of Management p 93-100

 Planning
Strategic Plans
Analyse competitive advantages /
core competencies / critical success factors

Or PESTLE

Political
Economic
Socio-cultural
Technological
Legal
Environmental
Fundamentals of Management p 93-100
 Planning
Criticisms: Strategic Plans

▸They consume time and distract from

reality
▸They induce rigidity
▸They are only useful in hindsight
▸ They are figments of top manager’s
Napoleonic egos
 Planning
Tactical Plans

▪ Translate strategic plans into specific goals for

departments

▪ 1-5 years

▪ Middle management

▪ Gantt charts, Action Plans, PERT Charts

Fundamentals of Management p 101-102
 Planning
3. Operational Plans
(Action Plans or Production Plans)

▪ most detailed level

▸very specific
▸Action Plans
▸Gannt Charts
▸rules and SOPs

▸Input from subordinates vital

Fundamentals of Management p 102-105

 Gantt Charts
Period (week)No

1 2 3 4 5 6 7 8 9 10
Month June July August
August

Week wk1 wk wk wk wk wk wk
STAGE wk wk wk
1. NEW BROCHURE
1.1 consultation stage
1.2 design stage
1.3 production stage
2. EXHIBITION STAND

2.1 designing new stand

2.2 produce new stand
2.3 assemble stand in exhibition

3. SALES STAFF TRAINING

3.1 design training conference

3.2 book venue & accommodation
3.3 arrange for speakers
3.4 sales training conference
 Example Action Plan

Stage Completion By
date
1. Review present brochure 7 Jun MA

2. Discuss needs & ideas with sales & 21 Jun MA &

small number of customers
4. Produce specifications for new 7 July MA & MD
brochure & submit to Marketing Director
5. Produce draft brochure 21 July CW

6. Send draft to printers 1 Aug MA

7. Correct proofs 21 Aug MA

MA = marketing assistant; MD = marketing director; CW = copywriter

 PERT Charts
Critical Path Analysis

Working Days
1 2 3 4 5 6 7 8 9 10 11 12 13 14

B F H

A D E I J

C G
 Management by Objectives
Integrating the different types of plan

Different types of plan are Ok but they

should be linked in a logical way.
Otherwise they are limited or, worse,
contradictory.

Management by objectives provides the

link between strategic plans and
operational plans
 MBO cycle
Strategy

Boss goals (key results)

Meeting with subordinate to set contributing goals

Meeting after ‘3 months’ to review

subordinate’s achievement of goals

Evaluation of discrepancies – not necessarily fault

of subordinate. (may be: subordinate incompetence
boss incompetence: poor training: impossible goals:
bad luck)

Remedial action

Fundamentals of Management p 105

 Planning
Management by Objectives
Advantages
▸objectives linked to superior’s & ultimately strategic plan
▸specific goals
▸key results agreed - not imposed
▸performance reviewed regularly

Disadvantages
▸distorts organisation
▸consumes time
▸encourages lower goals
MBO
▸inappropriate to some countries & rapid change
 Planning
Time-frames of Plans
Plans can have different
time- frames

▪ single use
▪ standing
▪ contingency
Fundamentals of Management p 104-1=5
 Plans are generally, but not always,
good

Advantages Disadvantages
▸ Direction and focus ▸ Induce rigidity
▸ Standards of performance ▸ Time consuming
▸ Speedy decisions
▸ Minimise waste
▸ Focus on the future

Fundamentals of Management p 107

 Planning
Planning Toolkit
Ensure plans exist in flexible environment which values
learning & continuous improvement

Goals should be ambitious but reasonable

▸ involve those who implement plan

Realistic timescales - take account of

▸ illnesses, holidays
▸ training
▸ daily & seasonal peaks
▸ staff rotation- versatility - motivation

Planning specialist should be facilitator

Fundamentals of Management p 108
 What is next eh?
Think POSDCRB

End of
Planning