Markteing Manager Course - Chapter 05
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Chapter
5
Managing the Planning Process
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
After reading this chapter, you should be able to:
To take advantage of the benefits of planning at every
level of the organization
Recognize major planning pitfalls and develop quality
planning programs
Balance formal planning with opportunistic planning
Establish objectives to drive the entire planning process
Prepare action plans at the strategic, tactical, and
operational levels
Learn how to implement plans successfully
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
What is planning?
The management function that:
assesses the management environment to set future
objectives; and
maps out actions necessary to achieve those objectives.
Planned actions require careful resource allocation.
Plans must be accompanied by implementation
guidelines.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Key Elements to a Plan
O bj i
ectves
A ctons
i
R esource
A locaton
l i
I pl ent i
m em aton
G ui i
delnes
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Benefits of Planning
Develop a sense of direction and purpose
Identifying the factors that affect the
organization
Assessment of external forces
Encouraging participation
Coordination of efforts
Establishment of priorities
Focusing attention on different
time horizons
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Benefits of planning (continued)
Understanding circumstances contributing to
past success or failure
Assurance of the availability of adequate
resources
Establishing performance standards
Supporting organizational control systems
Developing “what if” scenarios
Management development
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
The Pitfalls of Planning
Poor forecasts of future
conditions
Plans imposed from above
Planning as a self-contained
activity
Extensive bureaucratization
Inflexible adherence to objectives
and processes
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Keys to Successful Planning
Involving different organizational levels
Using both numerical and judgmental
methods
Viewing planning as continuous and capable
of adapting to change
Avoiding paralysis of the analysis
Concentrating on a manageable set of issues
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Formal Planning and
Opportunistic Planning
Formal planning Opportunistic
systems are designed planning involves:
to: Programmatic actions
triggered by
Deliberately identify unforeseen
objectives; and to circumstances.
Structure the major It can coexist with
tasks of the formal planning and
organization to can help the formal
accomplish them. plan function more
smoothly.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
The Formal Planning
Process Involves
Setting objectives
Charting a course of
action to meet the
objectives
Implementation
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Setting Objectives
Objectives are more general at the top and become
more specific at the lower level
Overall objectives of the organization reflect its
mission
Objectives should be specific and measurable.
Objectives should be challenging and achievable
Objectives should specify a timetable or deadline
for accomplishment.
Objectives should be prioritized.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Key Steps of the MBO Cycle
Insert Figure 5.2 here
Charting a Course of Action
St egi A cton Pl
rat c i ans
TactcalA cton Pl
i i ans
O peratonalA cton Pl
i i ans
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
To be effective, a strategic action plan
should meet the following criteria:
Proactivity – The degree to which the strategic
action plan takes a long-term view of the future.
Congruency – The extent to which the strategic
action plan fits with organizational characteristics
and the external environment.
Synergy – The integration of the efforts of various
organizational subunits to better accomplish
corporate-wide business objectives.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Two important aspects of
tactical action plans:
Division of Labor – The formal assignment of
authority and responsibility to job holders.
Helps ensure that tasks of jobholders are appropriate
for accomplishing the department’s tactical action
plan, which in turn should support the organization’s
strategic action plan.
Budgeting – Controlling and allocating funds.
Variable budgeting
Moving budgeting
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
A Typical Operating System
C ontrol
Inputs Transform aton
i O utcom e
Feedback Loop
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Benefits of Operational Planning
The opportunity to use feedback for continued
incremental learning.
The ability to visualize alternative types of
operations – i.e., alternative ways to use resources
to create the product or service.
The ability to predict the effects of modifications in
operations on the efficiency of operations.
The ability to evaluate the effectiveness of
operations.
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Implementation
Means of implementation:
Authority
Persuasion
Policy
Feedback mechanism
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
A Six-Stage Approach to Facilitate
Organizational Problem Solving
Identify performance gaps.
Identify tasks and work processes necessary for
accomplishing the plan.
Check for organizational congruence.
If any congruencies or inconsistencies are found,
intervene to create alignment in order to
effectively implement the plan.
Execute the plan.
Learn from the consequences.
McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
