Planning

Module 4

LIS 580: Spring, 2006

Instructor- Michael Crandall

April 6, 2006 LIS580- Spring 2006 2

Roadmap

• Purpose of planning

• The planning process

• Setting objectives

• Building planning premises

• Developing plans

• Types of plans

• Planning pitfalls

April 6, 2006 LIS580- Spring 2006 3

Purpose of Planning

Managers engage

in planning

to:

Set the standards to facilitate control

Provide direction

Minimize waste and redundancy

Reduce the impact of change

Prentice Hall, 2002

April 6, 2006 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

April 6, 2006 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

April 6, 2006 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

April 6, 2006 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

April 6, 2006 LIS580- Spring 2006 8

Hierarchy of Goals

FIGURE 4–1G.Dessler, 2003

April 6, 2006 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

April 6, 2006 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.

G.Dessler, 2003

} The decision-making process

April 6, 2006 LIS580- Spring 2006 11

Setting Objectives

G.Dessler, 2003

April 6, 2006 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

April 6, 2006 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)

April 6, 2006 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

April 6, 2006 LIS580- Spring 2006 15

FIGURE 4–3

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. G.Dessler, 2003

April 6, 2006 LIS580- Spring 2006 16

FIGURE 4–4

Acme’s Potential Market Segments

Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA.G.Dessler, 2003

April 6, 2006 LIS580- Spring 2006 17

FIGURE 4–5

Product, Pricing, and Sales Forecasts

Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003

April 6, 2006 LIS580- Spring 2006 18

FIGURE 4–6

Personnel Plan

Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA.G.Dessler, 2003

April 6, 2006 LIS580- Spring 2006 19

FIGURE 4–7

Sales Forecast by Service: Two-Month Sales Plan for Acme Consulting, 2003

G.Dessler, 2003

April 6, 2006 LIS580- Spring 2006 20

FIGURE 4–8

Gantt Scheduling Chart for Acme Strategic Report Projects, Jan 1–15, 2003

G.Dessler, 2003

April 6, 2006 LIS580- Spring 2006 21

FIGURE 4–9

Acme Consulting Profit and Loss

Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003

April 6, 2006 LIS580- Spring 2006 22

G.Dessler, 2003

April 6, 2006 LIS580- Spring 2006 23

G.Dessler, 2003

April 6, 2006 LIS580- Spring 2006 24

Types of PlansType of

PlanTime

FrameSpecificity

Frequency of Use

Strategic Long Term Directional Single Use

Tactical Short Term Specific Standing

Operational OngoingVery

detailedDay-to-day

Policies, procedures,

and rulesVaries Varies Varies

G Dessler, 2003

April 6, 2006 LIS580- Spring 2006 25

FIGURE 4–10

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. G.Dessler, 2003

April 6, 2006 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

April 6, 2006 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?

April 6, 2006 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

April 6, 2006 LIS580- Spring 2006 29

Project Success Factors

April 6, 2006 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?