Planning process
Steps:
- Define your objectives
- Determine where you stand with regard to your objectives
- Determine how your objectives fit within future conditions
- Analyze and choose your methods of acting upon your objectives
- Implement plan and evaluate results
Types of plans
Strategic plans
- Long term - 3+ years
- Top level management
- Organizational perspective
Tactical plans
- Intermediate term - 1 to 2 years
- Middle management
- Departmental perspective
Operational plans
- Short term - less than 1 year
- Low level management
- Individual perspective
Types within this
Single use plans
- Budgets
- Schedules
Standing plans
- Policies
- Rules
- Procedures
Planning tools & techniques
- Forecasting
- Identifying alternative action courses
- Scenario planning
- Benchmarking
- Dedicated planners
- Participation & involvement of involved parties
Pros & cons to planning
Pros
- Improved focus & flexibility
- Increased focus on action
- Increased coordination
- Improved time management
- More control
Cons
- Being out of touch
- Inflexible
- Tunnel vision on objectives
- Potential for dishonesty due to pressure in attaining planned objectives
Controlling
Planning sets the direction, controlling ensures the results.
- Strategic control - Overall mission of the firm
- Tactical control - How departments fit within the mission
- Operation control - Ground level
Methods of controlling
- Compensation & benefits
- Discipline
- Operational control - focus on efficiency
Types of control
- Bureaucratic - Top down hierarchy of authority
- Decentralized - Organic and flat structure of authority
Charachteristics of effective control stytems
- Linked to strategy
- Rational & accurate
- Acceptable
- Flexible
- Add cost-effectiveness
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