“life is what happens when you are making plans” john lennon
TRANSCRIPT
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“Life is what happens when you are making plans”
John Lennon
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Our world is not as predictable as clockwork—What must management do?
• Reality is not fixed: it forever outruns experience– the universe is in a constant state of flux– it is an ever changing world
• Effects of environmental changes are unpredictable (not simple linear cause & effect)
– things happen in related non-linear patterns
• Our world, our reality, is dynamically complex– Consequences of our actions are far reaching
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The Planning Function• What is Planning?
– its not a thing– its not an outcome– it is a process
• It is a process of ___________?– of thinking about the future– of thinking about the future and setting
objectives– of thinking about the future and setting
objectives and determining what should be done to realize what has been conceptualized
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Planning Does Not Ensure Certainty!
• There is a “Probableness” to the Future– it is not real– it is not determined– it is not certain
• So what role does Planning play?– It enables the evaluation of the “Probable
Futures” – It enables identification of the many causative
factors/conditions– It enables preparedness– It enables influence on the future
• Good Planning Evokes Thinking Beyond Experience!
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What is it?
What does it do?
How is it done?
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Describe, and support your description of, how the Planning Function would be
carried out by:
• A Taylorian type manager
• A Behaviorist type manager
• A Deming oriented manager
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Continuum of Approach to Planning
• Plans are Fixed• Planning is
Deterministic• Planning is Highly
Centralized• Planning is a
mechanism of control
• Plans are Flexible• Plans are not
Destiny, they are Guides
• Planning is Multi-Level
• Planning is a mechanism for learning
Mechanistic Organic
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Intel’s Chaos Theory of Planning
“Let Chaos Reign, then Reign in Chaos”
• What do you think of Andy Grove’s philosophy of planning? What’s the good news/bad news about it?
• How does Andy Grove suggest you balance planned action with creative spontaneity?– be flexible– be open– bring order to chaos via planning– recognize that plans are just guides
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Dimensions of Plans
• Horizon– Short– Intermediate– Long
• Breadth (Linkage of Means-Ends)– Strategic– Functional– Operational
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Current State Desired Future
WHAT MUST BE?
What must be changed?
What must be learned?
What must be acquired?
What must be utilized?
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A Planning Process
• Assess the Situation• Establish Mission & Objectives• Analyze the Gap• Generate Alternative Courses of
Action• Choose Among the Alternatives• Implement the Plan• Monitor and Evaluate Progress
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Learn to Plan or
Plan to Learn
PLANDO
STUDYACT
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Objectives link Mission to Activity(tactics)
Mission
Obj 1
Obj 2
Obj 3
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5
Activity 6
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Objectives should be SMARTER• Specific• Measureable• Acceptable• Realistic• Time bound• Extending• Rewarding
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Deborah Hopkins says
• Deborah Hopkins (former CFO of Boeing) says, – If you can measure it, you can improve it
• Do you agree?
• Does this mean that if you can’t measure it, you can’t improve it?
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Common Pitfalls in Planning• Biased Thinking
– seek & use only information that fits your view– ignore information that runs counter to your ideas
• Mis-use of Information– poor sampling, generalize from anecdotal data
• Gloss Over Details/Complexity– reasoning by oversimplification– either/or thinking
• Illusion of Control
• Never Question Underlying Assumptions
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How do you guard against the pitfalls?
• Biased Thinking• Mis-use of Information• Gloss Over Details/Complexity• Illusion of Control• Never Question Underlying
Assumptions
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Foundations of Good Planning
• A Vision • A Mission Supportive of the Vision• Accepting (& even embracing)
Uncertainty• Seeking and Utilizing Multiple
Perspectives• Developing Hierarchy of Objectives
– nesting and interlocking of objectives
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Vision & Mission are differentBoth are needed!
• Vision is not about the future, but the present
• Vision is inextricably linked to Values
• Vision is a product of insight
• Vision addresses the issue of meaning; it is the why of existence
• Vision rarely, if ever, changes
• Mission is about an imagined future
• Mission has to do with competencies & capability
• Mission is a product of foresight
• Mission speaks to what is provided and who is served
• Mission changes as the environment changes
Vision Mission
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Examples where vision and mission are differentiated & integrated
• Synovus Financial
• TDIndustries
• Born
• Applied Materials
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Proper Planning Enables Improved...
• Focus• Flexibility• Performance• Coordination• Regulation of Processes• Purposeful Use of Time• Optimal Resource Utilization
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Organizational Responses to Uncertainty
• Defenders – Keeping their world as is– Narrow focus, risk averse– OK, as long as what they know is relevant
• Reactors– Change only when there is no choice– No foresight– Risk maximizers
• Analyzers– Risk minimizers – Minimize opportunity– Never first in, no guts– Seek to copy, followers
• Prospectors– Seek the next new thing, innovators– Opportunity maximizers
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Given the following ethical ‘hot spots’ what would your plan be for either minimizing or
eliminating the effects of these?PersonalFinancialWorries
BalancingWork & Family
Little or norecognitionof achievement
Poor InternalCommunication
PoorLeadership
Burdened w/work hrs & load
Insuff. Resources
Lack ofMgt Support
Co.Politics
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MBO: Management by Objective• Set Objectives
– Usually,Top-down
– Ideally, Participation & Involvement
• Give & Take Negotiation
• Develop Action Plan
– Establish Appropriate Action
– Manager’s should Ensure Individual Plans Compliment Each Other
• Periodic Review of Progess
– Monitor Results
– Modify Plan/Objectives
– Provide Helpful Feedback & Support
• Performance Appraisal
– Compare Results to Objectives
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Joint Objective Setting
Joint Planning Individual Action Joint Control
•Focuses Effort
•Identifies Needed Resources
•Establishes Criteria of Success
•Encourages Self-ControlHow would it play out under
Theory X vs Theory Y?
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The (+)’s & (-)’s of MBO
• What, When & How are Established
• Objectives are Interconnected
• Results Oriented• Encourages
Accountability• Encourages
Participation
• Can Be Rigid & Bureaucratic
• Can Create Paper Work
• Focuses Only on Measureable Results
• Can be Punitive• Can be Negative
Reinforcement
Pluses Minuses
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Things to Avoid w/ MBO
• Linking MBO to Pay
• Focusing all Attention on Only Quantifiable Objectives
• Excessive Paper Work
• Telling Subordinates Their Objectives
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The Many Demands
Goals/Obj.
Resources
Business Needs
Personnel
Budgets
Quality
Materials
Technology
Customer Expectations
Project Manager
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Basic Functions of Project Management
• Defining
• Planning
• Organizing
• Controlling
• Closing
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Effective Project Management• Team Building
• Leadership/Facilitation
• Conflict Resolution
• Technical Expertise
• Planning
• Organization
• Administration
• Resource Allocation
• Management Support
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Project Life Cycle
Time
Resou
rces
DefinitionalPlanning
Production
Operational
Divestment
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Project Management
Proj.Defintion
Proj.Planning
Proj. Organiz.
Proj. Control
Proj. Closure
Le
ad
ing
th
e P
r oje
ct SOW
WBS Network Schedules & Est.
Projectteam Res. Alloc.
TrackingProb. Res.
Document & Learn
Re-Plan
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Program: New Plant Construction & Start-up
Program (0.0)
Feasibility Study
1.0
Design & Layout
2.0
Installation3.0
ResourceSupport
4.0
--Production(1.1)
--Cost(1.2)
--Flow Req.(2.1)
--Product Req.(2.2)
--Assembly(3.1)
--Set-up(3.2)
--Management(4.1)
--Purchasing(4.2)
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Inventory Mgmt System (0.0)
User Documentation
(1.0)
Software Devel.(2.0)
Training(3.0)
User Manual
(1.1)
UserQuik Ref
(1.2)
Det. Content (1.1.1)
Det. Format (1.1.2)
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Inventory Mgmt System (0.0)
Training(1.0)
Data Processing
(2.0)
Tech Writing
(3.0)
Finance(4.0)
Programming(5.0)