chapter 4 planning. what would you do? consortium created to compete with boeing slow progress, with...
TRANSCRIPT
Chapter 4
Planning
What Would You Do?
Consortium created to compete with Boeing
Slow progress, with potential How do you take more business away from
Boeing What is your plan?
After discussing this section you should be able to:
Learning ObjectivesPlanning
1. discuss the costs and benefits of planning.2. describe how to make a plan that works.
Costs and Benefits of Planning The Benefits The Pitfalls of Planning
The Benefits
Intensified Effort
Persistence
Direction
Creation of Task
Strategies
It Works!
Planning Pitfalls
Impede Change & Prevent
Adaptation
Create a False
Sense of Certainty
Detachment of
Planners
Blast From The PastPericles and Planning Leaders must have a vision Planners must be close to events Plans must be flexible
How to Make a Plan That Works
Set Goals
DevelopCommitment
to Goals
DevelopEffective Action
Plans
Track ProgressToward GoalAchievement
MaintainFlexibility in
Planning
Adapted from Exhibit 4.1
Setting Goals
Specific
Measurable
Attainable
Realistic
Timely
Goal Commitment
The determination to achieve a goal Increased by:
Setting goals through participation Making goals reasonable Making goals public Obtaining top management support
Developing Effective Action Plans For accomplishing a goal, these list the:
specific steps people resources time period
Tracking Progress
One method, setting: proximal goals - short-term distal goals - long-term
Second method: gather and provide performance feedback make adjustments in:
effort direction strategies
Maintaining Flexibility
Option-based planning keep options open through simultaneous
investment invest more in promising options
Learning-based planning plans need to be continuously adjusted encourages frequent reassessment and revision
of goals
After discussing this section you should be able to:
Learning ObjectivesKinds of Plans
3. discuss how companies can use plans at all management levels, from top to bottom,
4. describe the different kinds of special-purpose plans that companies use for change, contingencies, and product development.
Planning from Top to Bottom
Vision
Adapted from Exhibit 4.3
Planning from Top to Bottom (cont’d)
Vision
Mission
TacticalPlans
Managementby
Objectives
OperationalPlans
StandingPlans
Single-UsePlans
Adapted from Exhibit 4.4
TopManagers
MiddleManagers
First-LevelManagers
Starting at the Top
Vision statement of purpose enduring, inspirational, clear, and consistent with
company beliefs and values Mission
flows from vision more specific goal statements
Setting Missions
Targeting set a clear, specific target
Common-Enemy vow to defeat a rival
Role-Model emulate a successful company
Internal-Transformation strive to dramatically change the company
Bending in the Middle Tactical Plans
specify how a company will use resources, budgets, and people to accomplish goals
Management by Objectives develop and carry out tactical plans four steps
discuss goals participatively select goals jointly develop tactical plans meet to review performance
What Really Works?
Management by Objectives (MBO)
MBO & Production
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Probability of success 97%
68%
MBO is based on goals, participation and feedback. Companies that use
MBO are 97% more likely to outproduce companies that don’t!
Finishing at the Bottom Operational plans
day-to-day plans Single-use plans
cover one-time-only events Standing plans
plans for recurring events three kinds
policies procedures rules & regulations
Budgeting
Special-Purpose Plans
Planningfor
Change
Planningfor
Contingencies
Planningfor
ProductDevelopment
Planning for Change
Stretch goals extremely ambitious goals initially employees don’t know how to accomplish
Benchmarking identify outstanding practices in other companies adapt them to your company
Been There, Done That
Stretch goals are more than just demanding more from employees
Give employees the tools to succeed Don’t punish failure
Steve Kerr on Stretch Goals at GE
Planning for ContingenciesScenario Planning Define the scope of the
scenario Identify the major
stakeholders Identify environmental
trends Identify key
uncertainties and outcomes of these trends
Using steps 1-4, create initial scenarios
Check each scenario for consistency and plausibility of facts
Create contingency plans from each scenario
Planning for Product Development Aggregate product plans Four keys to faster product development
cross-functional teams internal and external communication overlapping development phases frequent testing of product prototypes
Overlapping Product-Development Phases for a New “Supercomputer Server
January July January July JulyJanuary
Block Diagram
Evolution of System Specification
Simulation
ASIC and Board Design
Hardware Mock-ups & Models
“Bring-up”
FullSystem
Prototype
ShipDate
Conceptualization Simulation ImplementationAdapted from Figure 4.7
What Really Happened?
Airbus set specific goals Built planes that were easier and cheaper to
maintain, used the same cockpit, and were comfortable for passengers
Used options-based planning Positioned itself through innovative new
features, functionality, and lower costs.