Module 2 Planning

1
Module 2 Planning

• Understand planning and different types of
  planning
• Understand benefits and drawbacks of planning
• Differentiate different strategy types
• Understand SWOT, BCG, and Ports Five Forces
  Model
• Understand what is meant by Management by
  Objectives and Six Sigma

2
What is planning?

• Define Organizational objectives or goals
• Establish an overall strategy for achieving
  these goals
• Develop a hierarchy of plans to integrate and
  coordinate activities

3
Why do we need planning

• Provide direction
• Reduce uncertainty
• Coordinate activities
• Reduce wastes and redundancy
• Reduce the impact of change
• Set the standards to facilitate control

4
Drawbacks of planning

• May create rigidity
• May reduce flexibility
• Cant replace intuition and creativity
• Managers may focus on todays competition rather
  than tomorrows survival
• Focusing solely on todays success may lead to
  tomorrows failure

5
Do we need planning?

• Focus on the quality of planning
• Seek opportunities
• Look for weakness
• Focus on customers
• Allow flexibility
• Encourage creativity
• Implement planning

6
Categories of planning

• Breath Time Frame Specificity Frequency
  of Use
• strategic Long-term Directional Single
• Tactical Short-term Specific Standing

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Types of plans

• Mission or purpose basic function or task
• For example, mission of Markham Stouffville
  Hospital (MSH)
• To achieve excellence in the provision of health
  care
• that is compassionate, patient and
  family-centred, and
• consistent with the needs of Markham, Stouffville
  and
• neighboring communities. 
• Fundamental to our mission is a commitment that
  each
• visit to Markham Stouffville Hospital will be a
  great
• experience.

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Types of plans (Contd.)

• Objectives or goals ends toward which activity
  is aim (i.e., results to be achieved)
• MSH example
• It is our goal that the Hospital will continue
• to operate below our Expected Cost per
• Weighted Case while providing high quality care
• to our community.

9
Types of plans (Contd.)

• Strategies outline general action and
  deployment of resources to attain objectives
• MSH example
• Strategy priorities
• Great care and customer service
• Great place to work
• Great partner

10
Types of plans (Contd.)

• Policies general statements or understandings
  which are officially agreed on by authority and
  which is used as a basis for making decisions
• For example, privacy policy, vacation policy

11
Types of plans (Contd.)

• Procedures establish a required method of
  handling future activities

12
Types of plans (Contd.)

• Rules spell out specific required actions or
  nonactions, allowing no discretion

13
Types of plans (Contd.)

• Programs a complex of goals, policies,
  procedures, rules, task assignments to be taken,
  resources to be employed, and other elements
  necessary to carry out a given course of action

14
Types of plans (Contd.)

• Budget a statement of expected results
  expressed in numerical terms

15
Purpose
Objectives
Strategies
Policies
Procedures
Rules
Programs
budgets
16
Management by Objectives (MBO)

• MBO a system in which specific performance
  objectives are jointly determined by subordinates
  and their superiors
• Four key elements goal specificity,
  participative decision making, an explicit time
  period, and performance feedback

17
Benefits of MBO

• Align organizational goals with individual goals
• Make employees feel achievement
• Make realistic goals
• Help identify problems and opportunities
• Push forward

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Criticism about MBO

• Focus on short-term goals rather than long-term
  goals
• Lack of team spirit
• Danger of inflexibility
• Fear of punishment
• Overuse quantitative goals

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How to overcome drawbacks

• Set up multiple goals
• Reward for setting difficult goals
• Prioritize goals
• Continuous monitoring
• Fast feedback

20
The Strategic Management Process
Set Mission, Objectives, and Strategies
Analyze the Environment
Identify Opportunities and Threats
Analyze Resources
Identify Strengths and Weaknesses
Reassess Mission and Objectives
Formulate Strategies
Implement Strategies
Evaluate Results
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Strengths
Weaknesses
Threats
SWOT Analysis
Opportunities
22
Porters five forces model
New Entrants
Competitive Battleground
Suppliers
Buyers
Substitute products or services
23
Boston Consulting Group (BCG) analysis
High
Wild cat
Star
Market Growth
Dog
Case cow
High
Low
Low
Market Share
24
Stability
Growth
The Grand Strategies
Retrenchment
Combination
25
Implementation
Evaluation
26
Benchmarking
Quality As A Strategic Weapon
ISO 9000
Six Sigma (6?)
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Six Sigma - The Breakthrough Strategy is the
most important initiative GE has ever takenit is
part of the genetic code of our future
leadership. Jack Welch, CEO, GE