PLANNING

Saira
Ansari Ashish Jain

Jagdeep Puneet
Dahiya Vyas

NMIMS-University MBA-Capital Markets 13-Sep-2007

 Defining Planning
The process of setting objectives,
or goals, and formulating policies, strategies,
and procedures to meet them.

The process of choosing the

who, what, how, when, and where
of goal attainment.
Planning – Where & How
 Features of Planning
Planning is

• Futuristic
• A Mental Exercise
• Pervasive
• Continuous Process
 Why To Plan
• Better Coordination
• Focus on Forward Thinking
• Participatory Work Environment
• More Effective Control Systems

If You fail to plan, you plan to fail.

Benefits of Planning...

Fool Proof Plan

1 3

5
4
 Costs of Planning
Management
Time

Delay in Decision
Making
 Where Should Planning Begin…
TOP-DOWN BOTTOM-UP

Level at which Top Level Individual closest to

planning is initiated product/services/customers

Role of Organizational Units act as per the plan Develop their own goals and
units plans

Specificity of plan Begins Broad, becomes Begins specific, becomes

specific as moves down cohesive as moves up
Advantages Plans driven by top mgmt who People closest to customers
are most knowledgeable provide focused plans
Disadvantages Top-level mgmt is removed Lower mgmt may not have a
from the front line broad understanding
Appropriateness When orgn success depends When it depends upon ability
on quick response to external to respond quickly to changes
pressures and threats in operational system.
 Planning Process
How To
Where We Know We
Want to Go? Made it?
Vision/Goals Measures
Indicators

Where How Will

We Are Now? We Get There?
Assess Present Strategy/Methods
Condition

Did We Go There!
Made It? Actions
Re-Monitoring
Financial Planning Process: An Example
 Levels of Planning
Strategic Tactical Operational
Process by which an Process of translating Process of determining
Definition organization makes broad strategic goals the day-to-day activities
decisions and takes and plans into that are necessary to
actions to enhance its long specific goals related achieve the long term
term performance a functional areas goals of the organization

Board of Directors, Middle Level, Middle Level to

Level Top Level Executives, Functional Heads Lower Level Managers
Managers within Business
units

Life Long-Term Medium Term Short-Term

 Types of Plans

Standing Single-Use

Individual
Policies Programs
Procedures MBO System Projects
Rules Balanced Scorecard Budgets
 Management By Objectives
(MBO)
Organizational Employee
Objectives Reviewed Objectives Set

MBO for the next Progress

Operating Period begins Monitored

Achievers Performance
Rewarded Evaluated
Strategic Management Process
A process that involve managers from all
parts of the Organization in the
formulation and implementation of
strategic goals and strategies.

Business Low Cost Differentiation Functional

Strategy Strategy Strategy Strategy
 Contingency Planning
For Changing Environments
• Y2K
• Terrorist Attacks
• Policy Change
• Market Change
• Attrition
Thank You !!