“life is what happens when you are making plans” john lennon

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“Life is what happens when you are making plans” John Lennon

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Page 1: “Life is what happens when you are making plans” John Lennon

“Life is what happens when you are making plans”

John Lennon

Page 2: “Life is what happens when you are making plans” John Lennon

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

Page 3: “Life is what happens when you are making plans” John Lennon

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

Page 4: “Life is what happens when you are making plans” John Lennon

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!

Page 5: “Life is what happens when you are making plans” John Lennon

What is it?

What does it do?

How is it done?

Page 6: “Life is what happens when you are making plans” John Lennon

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

Page 7: “Life is what happens when you are making plans” John Lennon

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

Page 8: “Life is what happens when you are making plans” John Lennon

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

Page 9: “Life is what happens when you are making plans” John Lennon

Dimensions of Plans

• Horizon– Short– Intermediate– Long

• Breadth (Linkage of Means-Ends)– Strategic– Functional– Operational

Page 10: “Life is what happens when you are making plans” John Lennon

Current State Desired Future

WHAT MUST BE?

What must be changed?

What must be learned?

What must be acquired?

What must be utilized?

Page 11: “Life is what happens when you are making plans” John Lennon

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

Page 12: “Life is what happens when you are making plans” John Lennon

Learn to Plan or

Plan to Learn

PLANDO

STUDYACT

Page 13: “Life is what happens when you are making plans” John Lennon

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

Page 14: “Life is what happens when you are making plans” John Lennon

Objectives should be SMARTER• Specific• Measureable• Acceptable• Realistic• Time bound• Extending• Rewarding

Page 15: “Life is what happens when you are making plans” John Lennon

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?

Page 16: “Life is what happens when you are making plans” John Lennon

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

Page 17: “Life is what happens when you are making plans” John Lennon

How do you guard against the pitfalls?

• Biased Thinking• Mis-use of Information• Gloss Over Details/Complexity• Illusion of Control• Never Question Underlying

Assumptions

Page 18: “Life is what happens when you are making plans” John Lennon

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

Page 19: “Life is what happens when you are making plans” John Lennon

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

Page 20: “Life is what happens when you are making plans” John Lennon

Examples where vision and mission are differentiated & integrated

• Synovus Financial

• TDIndustries

• Born

• Applied Materials

Page 21: “Life is what happens when you are making plans” John Lennon

Proper Planning Enables Improved...

• Focus• Flexibility• Performance• Coordination• Regulation of Processes• Purposeful Use of Time• Optimal Resource Utilization

Page 22: “Life is what happens when you are making plans” John Lennon

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

Page 23: “Life is what happens when you are making plans” John Lennon

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

Page 24: “Life is what happens when you are making plans” John Lennon

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

Page 25: “Life is what happens when you are making plans” John Lennon

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?

Page 26: “Life is what happens when you are making plans” John Lennon

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

Page 27: “Life is what happens when you are making plans” John Lennon

Things to Avoid w/ MBO

• Linking MBO to Pay

• Focusing all Attention on Only Quantifiable Objectives

• Excessive Paper Work

• Telling Subordinates Their Objectives

Page 28: “Life is what happens when you are making plans” John Lennon

The Many Demands

Goals/Obj.

Resources

Business Needs

Personnel

Budgets

Quality

Materials

Technology

Customer Expectations

Project Manager

Page 29: “Life is what happens when you are making plans” John Lennon

Basic Functions of Project Management

• Defining

• Planning

• Organizing

• Controlling

• Closing

Page 30: “Life is what happens when you are making plans” John Lennon

Effective Project Management• Team Building

• Leadership/Facilitation

• Conflict Resolution

• Technical Expertise

• Planning

• Organization

• Administration

• Resource Allocation

• Management Support

Page 31: “Life is what happens when you are making plans” John Lennon

Project Life Cycle

Time

Resou

rces

DefinitionalPlanning

Production

Operational

Divestment

Page 32: “Life is what happens when you are making plans” John Lennon

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

Page 33: “Life is what happens when you are making plans” John Lennon

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)

Page 34: “Life is what happens when you are making plans” John Lennon

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)

Page 35: “Life is what happens when you are making plans” John Lennon

Inventory Mgmt System (0.0)

Training(1.0)

Data Processing

(2.0)

Tech Writing

(3.0)

Finance(4.0)

Programming(5.0)