MBA/MPM/M.Sc.

in
Management Program -
2009
Setting the Future:
MMS 5101 - Management
The Process of Planning
By
Mr. M.V.S.S. Udayanga
Shyaman Udayanga
University of Sri Jayewardenepura
Nugegoda

Planning Activities Involved in Planning

Process of establishing goals

1. Setting the goals & objectives
and 2. Setting Strategies
Strategies

The Process of Planning Formulation of Mission

Social Policy
Responsibilit Establishment of Mission Statement
y Management
Agree/Revise Strategic Objectives
Values
Environmental Analysis
Internal External
Favourable Strengths Opportunities
Unfavourable Weaknesses Threats

Determination Of Corporate Strategies Mission

Agree On Strategic Plan

Issuance of Key Targets to Departments Interests Interests

of owners of the Society
Preparation of Tactical/Operational Plans

Evaluation and Revision as necessary

1

Mission
The fundamental, unique
purpose that sets a
business apart from other
firms of its types
and
identifies the scope of its
operations in product and
market terms.
Core purpose: a company’s reason
for being
• 3M: To solve unsolved problems innovatively
• Cargill: To improve the standard of living
around the world
• Hewlett-Packard: To make technical
contributions for the advancement and welfare of
humanity
• Merk: to preserve and improve human life
• Walt Disney: To make people happy

Core Purpose & Core Values Contents of Mission

Statement
Core Purpose
•To experience the joy of advancing and
applying technology for the benefit of the
• Fundamental Purpose - and
public
• Business Scope
Core Values • Business philosophy

Elevation of the Japanese culture and
national status

Being pioneer – not following others; doing
the impossible

Encouraging individual ability and creativity

MISSION
Mission – Sri Lanka Telecom
"To be the most
To anticipate and fulfill the
innovative, trusted
communications requirements of all sectors
and best process- of the nation, in a service oriented work
quality provider of ethic which will provide total customer
financial services satisfaction through the most modern
in the region." telecommunication facilities.

2
 CEB - Mission
LECO - Mission

To develop and maintain an efficient, coordinated and

economical system of electricity supply to the whole of
Sri Lanka while adhering to our core values:
Quality
Serve the nation
To provide the best energy Efficient and effective
Commitment
solutions to the society through
Safety
continuous innovations Professionalism
Sustainability

Mission Vs Vision
• We will create products that become
• " A Vision Statement is... a lighthouse that gives
direction rather than a destination"
Envisioned Future
Sony –1950s
pervasive around the world…..We will be the
first Japanese company to go in to the US
market and distribute directly….We will
succeed with innovations that US companies
have failed at – such as the transistor radio …..
Fifty years from now, our brand name will be
as well known as any in the world… and will
signify innovation and quality that rival the
most innovative companies anywhere….
“Made in Japan” will mean something fine,
not something shoddy.

Colourful LECO - Vision

dream of the
future of the
business,
deeply
embedded in
the founder’s
mind Enjoy being the light for lives of people
through innovative eco-friendly business

3
 Core values- Merck
CEB - Vision
• Corporate social responsibility
• Unequivocal excellence in all
aspects of the company
• Science-based innovation
Enrich Life through Power • Honesty and integrity
• Profit, but profit from work that
benefits humanity

Corporate Goals
Environmental Analysis
• Market Standing
• Innovation
• Productivity Environment Internal External
Long Term goals
established for the • Resourcing Effect
whole Business
in the • Profitability Favourable
areas such as
• Employee Development Strengths Opportunities
• Employee relations
Unfavourable
• Social Responsibility Weaknesses Threats
• ……..

Strategy Corporate Strategies

• The broad programme for achieving an

organization’s objectives and
implementing its mission. (Stoner &
Freeman)

• A comprehensive plan for

accomplishing an organization’s goals
(Griffin)

4
Tactical Plans Operational Plans
• Normally refers to
Plans that provide the details needed to
– Business Unit Plans
XY Group
incorporate strategy into day to day
of – Functional plans operations. Eg,
Companies Ltd.
• Policies • Rules and regulations
XY XY XY
Electronics Newspapers Foods &
• Procedures • Budgets
Ltd. Ltd. Beverages Ltd.

• Programs
P M F E P D P M F • Projects

Hierarchy of Plans Types of Plans

Corporate Strategic Plan
Corporate plan (At Corporate Level)
Group
SBU Strategic Plans
SBU Plans SBUs (At SBU Level)

SBUs Tactical
Functional Plans Plans

Functional
Operational Plans Divisions Plans
Operational • Single use
Plans • Standing
4

Benefits of Planning
Types of Operational Plans

1. Provide a sense of direction

2. Prerequisite to successful growth
Single-
Single-Use Plans Standing Plans
3. Set up the organizational framework
Single use plan is a Standing plan is an 4. Helps delegation
detailed course of established set of 5. Helps motivate people
action used once or decisions used by 6. Serves as a communication media
only occasionally to managers to deal
7. Lays the basis for control
solve a problem with recurring
8. Provides coordination
that does not occur organizational
repeatedly. activities. 9. Facilitates efficient use of resources.
10. Reduces uncertainty by anticipating
change

5
Effective Plan Implementation Contents of a Good Planning Document
1. Communicate strategies • Organisational Profile
2. Develop and communicate planning • Executive Summary
assumptions etc.
3. Make sure actions plans reflect major objectives • Detailed SWOT Analysis (Highlight distinct Competencies)
and strategies
• Hierarchy of Aims (Vision, Mission, Goals & Objectives)
4. Review strategies regularly
5. Develop contingency plans and programs • Strategies (Corporate, Functional and Operational Level)
6. Ensure that organization’s structure follows • Policies and Ground Rules
planning needs
7. Continue to remember plans implementations • Programmes and Procedures (SOP’s)
8. Create an organization culture which drives for • Work Instructions and Operational Guidelines
planning
• Budgets
9. Establish a supporting organizational leadership
and culture • Monitoring and Review Guidelines

Thank You !