Planning

EM416
May 2016

Prof Dr Ahmad Ibrahim

 Why Planning?

• We live in an uncertain world. As they always say the only

constant in the world is “change”. Population changes.
Technology changes. Consumer preferences change. The
environment changes. People expectations change.
• The only way to cope with a changing world so as to
remain competitive and relevant is through proper
planning.
 What is Planning?

• It is about coping with uncertainty by formulating future

courses of actions to achieve specified results. This
includes setting goals and deciding how to achieve them.
• Planning helps you check progress, coordinate activities,
think ahead and cope with uncertainty.
• Planning is the first of four management functions which
include organizing, leading and controlling
• What are some examples?
 4 Benefits
• Check on progress- like in a golf game scorecard

• Coordinate activities- defines responsibilities and

coordinate to achieve a common goal

• Helps think ahead-

• Cope with uncertainty-

 Topics Under Planning
• Strategic planning
• Formulating strategy
• Management theories
• Changing work environment
• Globalization
• SWOT analysis
 Fundamentals of Planning
• Mission Statement- what is our reason for being
• Vision Statement- what do we want to become?
• Strategic Planning- by top managers, up to 5 years
• Tactical planning- 6 to 24 months
• Operational planning- first line managers, 1 to 52
weeks
 Mission statement
•Essentially the purpose of the organization e.g.
Amazon’s Mission statement “ Use the Internet to
offer products that educate, inform and inspire.
We decided to build an online store that would be
customer friendly and easy to navigate and would
offer the broadest possible selection…we believe
that afunfamental measure of our success will be
the shareholder value we create over the long
term”
 Vision statement
• What do we want to become. A long term goal
describing what an organization wants to become.
It is a clear sense of the future and the actions
needed to get there.

• E.g. Amazon “ Our vision is to be the earth’s most

customer centric company; to build a place where
people can come to find and discover anything they
might want to buy online”
 Three Types of Planning for Three Levels
•Strategic Planning top management

•Tactical planning- Middle managers

•Operational Planning- first line managers

 Goals or Objectives
• A specific commitment to achieve a measurable result within
a period of time

• Strategic goals
• Tactical goals
• Operational goals

• Goals are then followed by action plans needed to achieve the

goals
 Goal Setting- SMART Goals
• Specific- not vague
• Measurable
• Attainable
• Results oriented
• Target dates
 MBO- Management by Objective
• MBO is a four step process in which (i) managers
and employees jointly set objectives for the
employee (ii) managers to develop action plans (iii)
managers and employees periodically review the
employee’s performance and (iv) the manager
makes a performance appraisal and rewards
employee according to results
 Strategy
• Large scale action plan that sets the direction for
an organization
• It is an educated guess of what must be done in the
longer term to ensure the survival of the company
• But strategy is not something static. Because of fast
changing events it needs to be revisited from time
to time and adjusted accordingly