Download - Planning 15.11
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PLANNING
BURAK AHN DOUKAN PAMUK
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Planning: is essentially a process
to determine and implement
actions to achieve organizationalobjectives
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Type of Plans
Strategic Plans
Tactical PlansOperational Plans
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Strategic Plans
Plans that focus on the broad future of the
organization and incorporate both external
environmental demands and internal
resources into managers actions Focus on how to achieve goals three to five
years into the future.
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Tactical Plans
Plans that translate strategic plans into
specific goals for specific parts of the
organization shorter time frame and are
narrower in scope.
Instead of focusing on the entire corporation,
tactical plans typically affect a single business
within an organization and its product lines
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Operational Plans
Plans that translate tactical plans into specific
goals and actions for small units of the
organization and focus on the near term
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Key Differences
Interdependence
Impact
Complexity
Scope
Time Horizon 3-5 Years 1-2 Years12 Months -
Less
StrategicPlans
TacticalPlans
OperationalPlans
Entire
Organization
Most Complex
Entire
Organization
High
Specific SBU
Most/More
Specific
SBU
Moderate
Most Narrow
Least Complex
Specific Dep
Low
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Planning Process
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External Enviroment
Forecast:
The most recent exp. PCT levels in Turkey has increased
therefore the car industryis on recession
Contingency Plan: a plan that identifies key factors thatcould affect the desired results and specifies what
actions will be taken if key events change
Benchmarking:
Identifying the best practices by your competitors and
no competitors and the results that they produced
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Internal Resources
Managers would need to askWhat human capital do we have currently?
Can people work on new and additional projects or will
we need new people?
Can we develop or acquire additional human capital if
needed for new projects?
What financial resources do we have available?
Can we obtain additional funding from the debt or
equity markets if needed?Do we have the cutting-edge technology or can we gain
access to it at a cost-effective price?
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Setting Objectives
Priorities and Multiple Objectives
Determine Priorities
All Objectives are not equal some are more,
some are less important
To design and implement specific actions requires
knowing what you expect them to achieve
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Developing action plans
Sequence and Timing
Raw materials, manpower and components must be
brought together in the right amounts and sequences
Accountability
Who is accountable for which actions?
Knowing who is responsible for specific actions
facilitates coordination, especially if multiple people are
involved in the execution of the plan.
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Implementing Plans
Monitoring the implementation
Monitor the progress of the plan and its implementation
Monitor the level of support that the plan receives as it is
being implemented
Monitor the level of resistance
Real-time adjustment
Developing action plans cont.
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Monitoring outcomes
Unanticipated consequences
Negative unanticipated consequences
Positive unanticipated consequences
Feedback loop Apply what has been learned to modify and improve the
planning process
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Planning Tools
Budgeting
Goal Setting
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Budgeting
Incremental Budgeting Approach
Managers use their approved budget from the previous
year in order to determine the budget for the current
year.
Zero-Based Budgeting Approach
Basically states that every year allocations must be
justified from zero.
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Attributes of effective goals
Specific
Measured
Agreed
Realistic
Time bound
Goals Setting
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