This document contains an outline for a presentation on organizational planning. It lists the group members and course instructor. The presentation outline covers definitions of planning, planning terminology, the history of planning, types of planning, planning skills, features of good planning, SWOT and SMART approaches, barriers and limitations to planning, why planning fails, and sharing practical experiences. The objectives are to provide an overview of organizational planning processes, describe the purpose and future of planning, identify basic planning skills, and barriers and limitations to planning. Real organizational planning practices will also be illustrated.
3. Presentation Out LinePresentation Out Line
Definition of planning
Planning Terminologies
History of planning
Types of planning
Planning Skills
Features of Good planning
SWOT & SMART Approach
Barriers & Limitation of
planning ?
Why planning fails?
Practical Experience
Sharing
4. 4
Presentation Objectives
1. Provide an overview of an organizational planning &
Decision Making activities & process.
2. Describe the purpose & future of planning
3. Identify basic required skills to develop planning
4. Identify common barriers and limitations of planning.
5. To illustrate real organizational planning practice
6. 6
1.1 Definition of planning
‘’If you fail to plan, you are planning to fail”
B.Franklin
“If you don’t know where you are going, you’ll end
up someplace else.” Yogi Berra
“Without the activities determined by planning,
there would be nothing to organize, no one to
activate and no need to control”. George R. Terry
7. 7
1.1 What Is planning ???
Planning is deciding in advance what is to be done in
future, when, where and by whom it is to be done.
A blueprint specifying the resource allocation,
schedules, and other actions necessary for attaining
goals.
Planning is preparation for action & its a means to an end
It is a process of thinking before doing.
8. 1.2 PLANINING TERMINOLOGIES
Mission
Reason of Existence
Vision
A desired future state
Values
A philosophical priorities
Goal
A desired future attempts
to realize
Objectives
The ends toward which
activity is directed
8
Strategies
A program to attain Object.
Policies
A framework for making
decisions
Plan
Specifying & organizing the
resource for meeting goals
Planning:
Determining org.’s goals &
the means for achieving them
9. 9
1.3 PLANING HISTORY
•entered to the public and semi-public sectors
during the mid-1980s
•entered to the public and semi-public sectors
during the mid-1980s
11. 11
1.3 PLANING HISTORY In Ethiopia & History of
Planning Institution CONT…
PESC MBA Program Organizational Planning Assignment By G1 Members
Name of Government Institution Period
Empire Haile Selassie
Regime
Planning Board 1952/53 -1973/74
During Dergue Period Central Planning National
Committee Office
1974/75-1990
During the Transition
Period
Ministry of Planning and
Economic Development
1990/91-1994/1995
After the Transition
(FDRE)
Ministry of Economic
Development and corporation
1995/96-2000/01
Ministry of Finance and
Economic Development
2001/02-2012/13
National Planning Commission 2013/2014
16. 1.4 Types Of Planning Cont.…
16
Levels of Goals/PlansLevels of Goals/Plans Managerial Planning InvolvementManagerial Planning Involvement
17. 1.5 Why We Need Planning ???
17
Merit Demerit
1. Reduces uncertainty
2. Ensures economical
operations
3. Facilitates control
4. Improves motivation
5. Gives competitive edge
6. Avoids duplication of efforts
1. Limitations of forecasts
2. Rigidity in administration
3. Time consuming process
4. Costly affair
5. Influence of external factors
6. Psychological factors
18. 1.5 Why We Need
Planning Cont. …. ???
18
A. Organization succeed
B. Efficient utilization of resource
C. Cooperative & coordination
effort
D. Direction and sense of purpose
E. Reduce uncertainty
F. Anticipated the future
G. Source of Motivation &
Commitment
20. 1.7 FEATURES OF GOOD PLANNING
It is Based on Clearly
Defined Objectives
It is Simple
It is Flexible
It is Comprehensive
It is Time-Bound
Unity and Continuous
It is Balanced, Practicable
and Suitable According to
the Size and form of the
Business
20
It uses Available Resources to
the Utmost before Creating
New Authorities and New
Resources
Participation by Subordinates
Pervasive as all the levels of
management plan
It Provides for a Proper
Analysis and Classification of
Action
23. 1.8 SKILLS REQUIRED
FOR PLANNING Cont.…
2.2 Steps In Decision Making
1. Ascertain the need for a
decision
2. Establish decision criteria
3. Allocate weights to criteria
4. Develop Alternatives
5. Evaluate Alternatives
6. Select the Best Alternative
7. Putting Decision Into Action
8. Following up Decisions
Decision Making Process
23
26. 26
1.9 DECISION-MAKING
CONDITIONS
PESC MBA Program Organizational Planning Assignment By G1 Members
Plan
Developed
By:
Advantages Disadvantages
Full Board
of Directors
• Ownership by leadership
• Board becomes more
informed about programs and
activities
• Time availability may be
limited and scheduling
difficult
• May not achieve staff
ownership
Staff • Clear understanding of
operation
• Time flexibility
• Limited board involvement
and subsequent ownership
• May detract from other staff
responsibilities
27. 27
1.9 DECISION-MAKING
CONDITIONS Cont.…
PESC MBA Program Organizational Planning Assignment By G1 Members
Plan
Developed
By:
Advantages Disadvantages
Committee • Manageable size
• Can include a variety of
perspectives (such as board,
staff, partners, constituents,
etc.)
• Full board may not feel sense
of ownership of plan details
• Board perspectives may be
excluded
Consultant • Good understanding of
planning process
• Should produce timely and
professional-looking plan
• Limited board and staff
participation may lead to
limited sense of ownership
of plan details
• Limited board leadership
development
28. 28
1.10 SWOT ANALYSIS IN
PLANNING
PESC MBA Program Organizational Planning Assignment By G1 Members
29. 29
1.10 SWOT ANALYSIS IN
PLANNING CONT….
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Basic Parameter
S Strength
It Could be:
a)Adequate Technical expertise
b)Adequate financial resources?
c)Good competitive skills & Cost advantages?
d)Good Will by customers?
e)Product/service innovation abilities?
f)Proven management? & Acknowledged market leader
W WEAKNESS
It is something that a company lacks.
a)Less competent staff & Insufficient funds?
b)Lack of goodwill in the market & Poor profitability?
c)Obsolete plant and machinery & small portfolio ranges
d)No clear strategic direction?
e)Lack of managerial depth or talent?
f)Absence of key skills or competencies?
30. 30
1.10 SWOT ANALYSIS IN
PLANNING CONT….
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Basic Parameter
O OPPORTUNITIES It Could be:
a)To enter in a new product line
b)To expand the company’s existing product lines
c)To enter into the foreign markets
d)To acquire the rival firms
e)To create new alliances to increase competitive strength.
f)To use latest technologies in the business.
T THREATS on any undertaking:
A)New competitors may enter the field
B) Customers purchasing substitute products
C) New technology making products obsolete
D)Slow down in the market leading to slump.
E) Change in government policies
F) Shift in buyers needs and tastes
32. 32
1.11 SMART APPROACH
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Developing SMART Goals
S Specific . A specific goal will usually answer the five "W" questions:
•What: What do I want to accomplish?
•Why: Specific reasons, purpose or benefits of accomplishing
the goal.
•Who: Who is involved?
•Where: Identify a location.
•Which: Identify requirements and constraints.
M Measureable A measurable goal will usually answer questions such as:
• How much?
• How many?
• How will I know when it is accomplished?
33. 33
1.11 SMART APPROACH
CONT…
PESC MBA Program Organizational Planning Assignment By G1 Members
Acronym Description Developing SMART Goals
A Attainable An attainable goal will usually answer the question:
•How: How can the goal be accomplished?
R Relevant A relevant goal will usually answer the question:
•Does this seem worthwhile?
T Time Bound A timely goal will usually answer the question:
•When?
•What can I do 6 months from now?
•What can I do 6 weeks from now?
•What can I do today?
R Reevaluate
Reward
• Reevaluate each goal to make sure they are still relevant
and attainable.
• Once goals have been accomplished, celebrate in their
accomplishment and start developing new SMART goals.
34. 34
1.12 BARRIERS TO EFFECTIVE
STRATEGIC PLANNING Cont.…
S/N Barriers to
Strategy
Formulation
Barriers to Strategy
Implementation
How to Remove
Barriers?
1 Identical procedures Lack of accountability Clear Communications
2 Strict limitations Lack of commitment Manage the Change Process
3 People Inadequate instructions
to employees
Participation of employees
in planning process
4 Emphasized
ceremonial work
Power & Influence: Regular checks
5 Limited discussion Culture Accountability
36. 1.14 WHY PLANNING FAIL ???
1. Lack of top management’s
commitment
2. Lack of control Mechanism
3. Entrenched self-interests
4. Corporate culture.
5. Fear
6. Ignorance
7. Failing to periodically alter the
plan
8. Deviation from actual
objectives
9. Lack of confidence about
success
11. Lack of understanding of the role
in the execution process
12. Deviation from planned objective
13. Changes in responsibilities of
employees were not clear
14. People are not fully rewarded for
the execution of plans
15. Inadequate directions given by
departmental mangers
16. Information system used for
implementation is inadequate
17. Overall goals are not understood
by employees
36
37. 1.14 WHY PLANNING FAIL
In Ethiopia???
1. Hiwote Abate Research
Lack of awareness in the
organization vision
Lack participation in formulation of
SP
Don’t carried out effective SWOT
Analysis
Don’t annually reviewed SWOT
Analysis
Don’t considered dynamic business
environment
No KPI for the evaluation of SP
lack of employee’s motivation and
reward systems strategies design
No subsequent evaluation strategies 37
2. Assefa Beyene Research
Minimal and ineffective communication
There was also lack of adequate
monitoring, follow up and feedback
systems.
Decisions were made without aligning
SP document.
Lack of adequately share their
institution’s vision
38. 38
REFERENCE
1. Marx, T. G. (1991). "Removing the obstacles to effective strategic planning." Long
Range Planning24 (4): 21-28.
2. Butler, J. E., B. Brown, et al. (2000). "Guanxi and the dynamics of overseas Chinese
entrepreneurial behavior in Southeast Asia." Management and Organizations in the
Chinese Context, Macmillan, Basingstoke: 245-268.
3. Cascella, V. (2002). "Effective strategic planning." Quality progress35(11): 62-67.
4. Al-Ghamdi, S. M. (1998). "Obstacles to successful implementation of strategic
decisions: the British experience." European Business Review98(6): 322-327.
5. International Institute for Educational Planning. (2010). Strategic planning: Concept
and rationale.
PESC MBA Program Organizational Planning Assignment By G1 Members
39. 39
REFERENCE CONT ….
6. Caillods, F. 1989. ‘The prospects for educational planning’. A workshop organized by
IIEP on the
7. occasion of its 25th anniversary. Paris: IIEP–UNESCO.Kaufman, R.; Herman, J. 1991.
Strategic Planning in Education: Rethinking, restructuring, revitalizing. Lancaster, PA :
Technomic Publishing Company.
8.Williams, J.H.; Cummings, W.K. 2005. Policy-making for Education Reform in
Developing Countries:Contexts and processes, Vol. 1. Lanhan, MD: Rowman and Littlefi eld
Publishing Group.
9. Hiwot Abate(2016), Assessment on formulation and execution of strategic plan: in the
case of moha soft drinks industry s.co. Unpublished master’s thesis, Saint Mary’s University.
10. Team FM (2013. SWOT Analysis Strategy skills: www.free-management e-book.com
40. 40
REFERENCE CONT ….
11. Assefa Beyene Bassa. The Practice of Strategic Planning and Strategy Implementation in
Public Universities of Ethiopia Educational Planning 17 Vol. 22, No. 2
12. Management, Tenth Edition: Richard L. Daft, & Patricia G. Lane , Vanderbilt University
13. This is the book Management Principles (v. 1.0):-nc-sa 3.0 (
http://creativecommons.org/licenses/by-nc-sa/ 3.0/)
14. Shane P. Desselle/David P/2009/Second edition: Pharmacy Management, Esential for all
practice seting
15.The Federal Democratic Republic of Ethiopia, The Second Growth and Transformation
Plan (GTP II), (2015/16-2019/20)(Draft), National Planning Commission, September 2015,
Addis Ababa
16. The Ethiopian New,Institutional, Framework,Habtamu Getachew17-18 Nov
2015,Incheon, South Korea
17. Tesfaye Asfaw,The Ethiopian Economy: Structure, Problems and Policy Issues, AN
OVERVIEW OF ETHIOPIA'S PLANNING EXPERIENCE
41. “If you don’t know where you are going, you’ll end up
someplace else.” Yogi Berra,