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planning planning Presentation Transcript

  • Chapter 4 Planning
  • What Would You Do?
    • In early 2000 Air Canada controlled 90% of the domestic market
    • By early 2001 Air Canada’s share of the market had dropped to 73%
    • WestJet’s share had climbed to 14%
    • WestJet had a significantly lower cost structure than Air Canada
    • What would you do?
  • Learning Objectives: Planning
    • After reading these next two sections, you should be able to:
    • 1. discuss the costs and benefits of planning
    • 2. describe how to make a plan that works
  • Costs and Benefits of Planning
    • Benefits of Planning
    • Planning Pitfalls
  • Benefits of Planning
    • Intensified Effort
    • Persistence
    • Direction
    • Creation of Task Strategies
  • Planning Pitfalls
    • Impede change and slow or prevent adaptation
    • Create a false sense of security
    • Detachment of planners
  • How to Make a Plan That Works Exhibit 4.1
  • Setting Goals
    • S pecific
    • M easurable
    • A ttainable
    • R ealistic
    • T imely
  • Goal Commitment
    • The determination to achieve a goal.
    • Increased by:
      • Setting goals participatively
      • Making goals reasonable
      • Making goals public
      • Obtaining top management support
  • Developing an Effective Action Plan
    • For accomplishing a goal an action plan lists:
      • Specific steps
      • People
      • Resources
      • Time period
  • Tracking Progress
    • First method
      • Set proximal (i.e., short-term) goals
      • Set distal (i.e., long-term or primary) goals
    • Second method
      • Gather and provide feedback
      • Make adjustments in effort, direction, and strategies
  • Maintaining Flexibility
    • Options-based planning
      • keep options open through simultaneous investment
      • invest more in promising options
    • Learning-based planning
      • plans need to be continually tested, changed and improved
      • encourages frequent reassessment and revision of goals
  • Learning Objectives: Kinds of Plans
    • After reading the next two sections, you should be able to:
    • 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 to plan for change, contingencies, and product development
  • Planning From Top to Bottom Exhibit 4.3
  • Planning From Top to Bottom Exhibit 4.3
  • Starting at the Top
    • Vision
      • statement of a company’s purpose
      • brief, inspirational, clear, and consistent with company beliefs and values
    • Mission
      • flows from the vision
      • specific, unifying goal that stretches and challenges the organization and has a timeframe
  • Planning Timeframes Exhibit 4.4
  • Setting Missions
    • Targeting
      • setting a clear, specific target
    • Common-enemy mission
      • vowing to defeat a corporate rival
    • Role-model mission
      • emulating a successful company
    • Internal-transformation mission
      • aiming to achieve dramatic change to remain competitive
  • 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)
    • Based on:
      • goals
      • participation
      • Feedback
    • Companies that use MBO are likely to outproduce companies that do not use it!
  • Finishing at the Bottom
    • Operational plans
      • day-to-day plans
    • Single-use plans
      • deal with unique, one-time-only events
    • Standing plans
      • plans for recurring events
      • three types
        • Policies
        • Procedures
        • Rules and regulations
    • Budgets
  • Special-Purpose Plans
    • Planning for Change
    • Planning for Contingencies
    • Planning for Product Development
  • Planning for Change
    • Stretch goals
      • extremely ambitious goals that you don’t know how to reach
    • Benchmarking
      • identifying outstanding practices, processes, and standards in other companies
      • adapting them to your company
  • Planning for Contingencies: Scenario Planning
    • Define the scope of the scenario
    • Identify the major stakeholders
    • Identify environmental trends
    • Identify key uncertainties and outcomes
    • Using steps 1-4 create initial scenarios
    • Check each scenario for consistency and plausibility of facts
    • Create contingency plans from each scenario
    • Develop measures to indicate when scenario events are occurring
  • Planning for Product Development
    • Aggregate product plans:
    • used to manage and monitor all new products
    • indicate resources being used for each product
    • indicate product’s place in company’s plans
    • help avoid having too many products in development
  • Product-development Process
    • Four factors:
      • cross-functional teams
      • internal and external communication
      • overlapping development phases
      • frequent testing of product prototypes
  • What Really Happened?
    • Air Canada set specific goals
    • Focused on cost structure
    • Launched Tango and Zip
    • Attempted to reduce labour costs
    • Hit hard by SARS, Iraqi conflict and a weakening economy
    • Sought bankruptcy protection in 2003