5.

MANAGING THE PLANNING PROCESS

Barriers to Effective Planning

Dynamic and Complex Environments Reluctance to Establish Goals Resistance to Change Constraints Time and Expense

Barriers to Effective Planning Dynamic and Complex Environments

The nature of an organization's environment is often a major barrier to effective planning. Rapid change, technological innovation, intense competition, and similar factors can each make it difficult for an organization to accurately assess future opportunities and threats.

Barriers to Effective Planning Reluctance to Establish Goals

Another barrier to effective planning is the reluctance of some managers to establish goals for themselves and their units of responsibility. The reason for this reluctance may be lack of confidence or fear of failure. If a manager sets a goal that is specific, concise, and time related, then whether he or she attains it is obvious. Managers who consciously or unconsciously try to avoid this degree of accountability are likely to hinder the organization's planning efforts.

Barriers to Effective Planning Resistance to Change

Almost by definition, planning involves changing one or more aspects of the organization's current situation. Managers resist change for any number of reasons, including fear of the unknown, a preference for familiar goals and plans, and economic insecurity.

Barriers to Effective Planning Constraints

Common constraints include a lack of human resources, a lack of financial resources, a lack of physical resources, government restrictions, strong competition, and a lack of information.

Barriers to Effective Planning Time and Expense

Some managers also fail to plan effectively because good planning is both time consuming and expensive. It's easy to say, "I'm too busy to plan today; I'll do it tomorrow," or to put off good planning for lack of funds. Effective planning takes hours and hours of time, enormous energy, and an unwavering belief in its importance. And planning may involve substantial financial outlays.

Overcoming the Barriers

Start at the Top Recognize the Limits to Planning Communication Participation Revision and Updating Contingency Planning

Overcoming the Barriers Start at the Top

Perhaps the most critical factor in overcoming barriers to planning is starting at the top. Top management must take the lead in establishing the importance of planning in determining the mission and strategy that the organization is to follow. Such action sets the stage for subsequent planning at lower levels and also reinforces the importance of planning to everyone in the organization.

Overcoming the Barriers Recognize the Limits to Planning

Planning is not a panacea that will solve all of an organization's problems, nor is it an iron-clad set of procedures to be followed at any cost. Managers should recognize that good planning does not necessarily ensure success and that adjustments and exceptions are to be expected as the plan unfolds.

Overcoming the Barriers Communication

Not only must planning be initiated at the top, but it must also be communicated to others in the organization. Everyone involved in the planning process should know what the overriding organizational strategy is, what the various functional strategies are, and how they are all to be integrated and coordinated.

Overcoming the Barriers Participation

It is important that people responsible for implementing plans have a voice in developing them from the outset. These individuals almost always have valuable information to contribute, and because they will be implementing the plans, their involvement is critical: People are usually more committed to plans that they have helped to shape. Even when an organization is somewhat centralized or uses a planning staff, managers from a variety of levels in the organization should be involved in the planning process.

Overcoming the Barriers Revision and Updating

The manager should recognize that planning is a dynamic process in which long-range and intermediate plans are frequently revised and updated in response to new information and the completion of short-range plans.

Overcoming the Barriers Contingency Planning

Contingency planning is especially useful when environmental turbulence is likely. Proper contingency planning enables the organization to avoid crisis management. When a contingency event occurs, the prepared organization is able to make a smooth transition to the appropriate contingency plan rather than having to react hastily by throwing a new plan together on short notice.