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Planning
Module 4
LIS 580: Spring, 2006
Instructor- Michael Crandall
April 6, 2006 LIS580- Spring 2006 2
Roadmap
• Purpose of planning
• The planning process
• Setting objectives
• Building planning premises
• Developing plans
• Types of plans
• Planning pitfalls
April 6, 2006 LIS580- Spring 2006 3
Purpose of Planning
Manager
s engage
in
planning
to:
Set the standards
to facilitate control
Provide
direction
Minimize waste and
redundancy
Reduce the
impact of change
Prentice Hall, 2002
April 6, 2006 LIS580- Spring 2006 4
Elements Of Planning
• Plan
– A method for doing or making something,
consisting of at least one goal and a predefined
course of action for achieving that goal.
• Goal
– A specific result to be achieved; the end result
of a plan.
• Objectives
– Specific results toward which effort is directed.
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 5
Elements Of Planning (cont’d)
• Planning
– The process of setting goals and courses of action,
developing rules and procedures, and forecasting
future outcomes.
• What Planning Entails
– Choosing goals and courses of action and deciding
now what to do in the future to achieve those
goals.
– Assessing today the consequences of various
future courses of action.
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 6
What Planning Accomplishes
• Allows decisions to be made ahead of time.
• Permits anticipation of consequences.
• Provides direction and a sense of purpose.
• Provides a unifying framework; avoiding
piecemeal decision making.
• Helps identify threats and opportunities and
reduces risks.
• Facilitates managerial control through the
setting of standards for monitoring and
measuring performance.
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 7
The Management Planning
Process
• Hierarchy of Plans
– A set of plans that includes the company-wide plan
and the derivative plans of subsidiary units
required to help achieve the enterprise-wide plan.
– Top management approves a long-term plan; and
each department creates its own budgets
• The Planning Hierarchy
– Top management formulates its plans based on
upward feedback from the departments, and the
departments in turn draft plans that make sense in
terms of top management’s plan.
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 8
Hierarchy of Goals
FIGURE 4–1
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 9
Who Does the Planning?
• Small businesses:
– Entrepreneurs do most of the planning.
• Large firms:
– Traditional:
• A central corporate planning group works with
top management and each division to solicit,
challenge, and refine the company’s plan.
– Current:
• Planning is decentralized and includes the firms’
product and divisional managers, aided by small
headquarters advisory groups.
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 10
Checklist 4.1
How to Develop a Plan
 Set an objective.
 Develop forecasts and planning
premises.
 Determine your options.
 Evaluate alternatives.
 Choose your plan, and start to
implement it.
 Go to Level 2.
G.Dessler, 2003
} The decision-
making process
April 6, 2006 LIS580- Spring 2006 11
Setting Objectives
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 12
Checklist 4.2
Principles of Goal-Setting
 Set SMART goals—make them specific,
measurable, attainable, relevant, and
timely. Choose areas (sales revenue, costs,
and so forth) that are relevant and
complete.
 Assign specific goals.
 Assign measurable goals.
 Assign doable but challenging goals.
 Encourage participation.
 Use executive assignment action plans, or
management by objectives.
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 13
Forecasts and Planning Premises
• Forecasting is used to predict future requirements and
opportunities
– Determines the premises on which planning is based
– Can be quantitative (e.g., a time series) or qualitative (e.g.,
jury of executive opinion)
• Marketing research
• Competitive intelligence
– Helps build the picture of what others are doing to inform the
planning process
• Next step is the decision-making process we talked
about yesterday
• Finally, you begin to build your plans (usually more
than one to realize objectives)
April 6, 2006 LIS580- Spring 2006 14
The Business Plan And Its
Components
• Description of the business (including
ownership and products or services)
• Marketing plan
• Financial plan
• Management
and/or personnel plan.
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 15
FIGURE 4–3
Outline of a Marketing Plan
Source:
Adapted from
Philip Kotler and
Gary Armstrong,
Principles of
Marketing (Upper
Saddle River,
NJ: Prentice
Hall, 2001), p.
70. G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 16
FIGURE 4–4
Acme’s Potential Market Segments
Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA.
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 17
FIGURE 4–5
Product, Pricing, and Sales Forecasts
Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 18
FIGURE 4–6
Personnel Plan
Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA.
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 19
FIGURE 4–7
Sales Forecast by Service: Two-Month
Sales Plan for Acme Consulting, 2003
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 20
FIGURE 4–8
Gantt Scheduling Chart for Acme
Strategic Report Projects, Jan 1–15, 2003
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 21
FIGURE 4–9
Acme Consulting Profit and Loss
Source: Business Plan
Pro, Palo Alto Software,
Palo Alto, CA. G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 22
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 23
G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 24
Types of Plans
Type of
Plan
Time
Frame
Specificity
Frequency
of Use
Strategic Long Term Directional Single Use
Tactical Short Term Specific Standing
Operational Ongoing
Very
detailed
Day-to-day
Policies,
procedures,
and rules
Varies Varies Varies
G Dessler, 2003
April 6, 2006 LIS580- Spring 2006 25
FIGURE 4–10
Reporting Improper Behavior
Source:
James Jenks,
The Hiring,
Firing (and
everything in
between)
Personnel
Forms Book
(Ridgefield,
CT: Round
Lake
Publishing,
1996), pp.
224–25. G.Dessler, 2003
April 6, 2006 LIS580- Spring 2006 26
Pitfalls of Planning
• Planning may create rigidity
• Plans cannot be developed for a dynamic
environment
• Formal plans cannot replace intuition and
creativity
• Planning focuses managers’ attention on
today’s competition, not tomorrow’s survival
• Formal planning reinforces success, which
may lead to failure
Prentice Hall, 2002
April 6, 2006 LIS580- Spring 2006 27
Elmer L. Anderson Library
• What did the planners do right in this effort?
• Was the design a result of research or
creativity?
• How was the planning process affected by
stakeholder needs?
• How much of the planning was related to
political activities and how much to actual
construction activity?
• How was success measured for the project?
April 6, 2006 LIS580- Spring 2006 28
Extreme Chaos
• Better project success rates due to
lower costs and smaller projects
• Difficulty of estimating costs and
schedules accurately
– Often tripled up front to avoid failure
– Old metrics not appropriate to modern
methods
– Difficult to establish benchmarks
• Different skills for different roles
April 6, 2006 LIS580- Spring 2006 29
Project Success Factors
April 6, 2006 LIS580- Spring 2006 30
Next Time
• Strategic planning
– Read Chapter 5 and Cleveland Public Library
Strategic Plan
• Discussion questions:
– How has the Gold Coast City Council been able to
use evidence to aid in strategic planning?
– Do you think their choice of benchmarks will
achieve the overall objectives?
– Are there any risks in using these measures in
deciding on long-term changes in structure?
– Do you think the library staff is engaged in this
process? Should they be?

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Gantt chart

  • 1. Planning Module 4 LIS 580: Spring, 2006 Instructor- Michael Crandall
  • 2. April 6, 2006 LIS580- Spring 2006 2 Roadmap • Purpose of planning • The planning process • Setting objectives • Building planning premises • Developing plans • Types of plans • Planning pitfalls
  • 3. April 6, 2006 LIS580- Spring 2006 3 Purpose of Planning Manager s engage in planning to: Set the standards to facilitate control Provide direction Minimize waste and redundancy Reduce the impact of change Prentice Hall, 2002
  • 4. April 6, 2006 LIS580- Spring 2006 4 Elements Of Planning • Plan – A method for doing or making something, consisting of at least one goal and a predefined course of action for achieving that goal. • Goal – A specific result to be achieved; the end result of a plan. • Objectives – Specific results toward which effort is directed. G.Dessler, 2003
  • 5. April 6, 2006 LIS580- Spring 2006 5 Elements Of Planning (cont’d) • Planning – The process of setting goals and courses of action, developing rules and procedures, and forecasting future outcomes. • What Planning Entails – Choosing goals and courses of action and deciding now what to do in the future to achieve those goals. – Assessing today the consequences of various future courses of action. G.Dessler, 2003
  • 6. April 6, 2006 LIS580- Spring 2006 6 What Planning Accomplishes • Allows decisions to be made ahead of time. • Permits anticipation of consequences. • Provides direction and a sense of purpose. • Provides a unifying framework; avoiding piecemeal decision making. • Helps identify threats and opportunities and reduces risks. • Facilitates managerial control through the setting of standards for monitoring and measuring performance. G.Dessler, 2003
  • 7. April 6, 2006 LIS580- Spring 2006 7 The Management Planning Process • Hierarchy of Plans – A set of plans that includes the company-wide plan and the derivative plans of subsidiary units required to help achieve the enterprise-wide plan. – Top management approves a long-term plan; and each department creates its own budgets • The Planning Hierarchy – Top management formulates its plans based on upward feedback from the departments, and the departments in turn draft plans that make sense in terms of top management’s plan. G.Dessler, 2003
  • 8. April 6, 2006 LIS580- Spring 2006 8 Hierarchy of Goals FIGURE 4–1 G.Dessler, 2003
  • 9. April 6, 2006 LIS580- Spring 2006 9 Who Does the Planning? • Small businesses: – Entrepreneurs do most of the planning. • Large firms: – Traditional: • A central corporate planning group works with top management and each division to solicit, challenge, and refine the company’s plan. – Current: • Planning is decentralized and includes the firms’ product and divisional managers, aided by small headquarters advisory groups. G.Dessler, 2003
  • 10. April 6, 2006 LIS580- Spring 2006 10 Checklist 4.1 How to Develop a Plan  Set an objective.  Develop forecasts and planning premises.  Determine your options.  Evaluate alternatives.  Choose your plan, and start to implement it.  Go to Level 2. G.Dessler, 2003 } The decision- making process
  • 11. April 6, 2006 LIS580- Spring 2006 11 Setting Objectives G.Dessler, 2003
  • 12. April 6, 2006 LIS580- Spring 2006 12 Checklist 4.2 Principles of Goal-Setting  Set SMART goals—make them specific, measurable, attainable, relevant, and timely. Choose areas (sales revenue, costs, and so forth) that are relevant and complete.  Assign specific goals.  Assign measurable goals.  Assign doable but challenging goals.  Encourage participation.  Use executive assignment action plans, or management by objectives. G.Dessler, 2003
  • 13. April 6, 2006 LIS580- Spring 2006 13 Forecasts and Planning Premises • Forecasting is used to predict future requirements and opportunities – Determines the premises on which planning is based – Can be quantitative (e.g., a time series) or qualitative (e.g., jury of executive opinion) • Marketing research • Competitive intelligence – Helps build the picture of what others are doing to inform the planning process • Next step is the decision-making process we talked about yesterday • Finally, you begin to build your plans (usually more than one to realize objectives)
  • 14. April 6, 2006 LIS580- Spring 2006 14 The Business Plan And Its Components • Description of the business (including ownership and products or services) • Marketing plan • Financial plan • Management and/or personnel plan. G.Dessler, 2003
  • 15. April 6, 2006 LIS580- Spring 2006 15 FIGURE 4–3 Outline of a Marketing Plan Source: Adapted from Philip Kotler and Gary Armstrong, Principles of Marketing (Upper Saddle River, NJ: Prentice Hall, 2001), p. 70. G.Dessler, 2003
  • 16. April 6, 2006 LIS580- Spring 2006 16 FIGURE 4–4 Acme’s Potential Market Segments Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003
  • 17. April 6, 2006 LIS580- Spring 2006 17 FIGURE 4–5 Product, Pricing, and Sales Forecasts Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003
  • 18. April 6, 2006 LIS580- Spring 2006 18 FIGURE 4–6 Personnel Plan Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003
  • 19. April 6, 2006 LIS580- Spring 2006 19 FIGURE 4–7 Sales Forecast by Service: Two-Month Sales Plan for Acme Consulting, 2003 G.Dessler, 2003
  • 20. April 6, 2006 LIS580- Spring 2006 20 FIGURE 4–8 Gantt Scheduling Chart for Acme Strategic Report Projects, Jan 1–15, 2003 G.Dessler, 2003
  • 21. April 6, 2006 LIS580- Spring 2006 21 FIGURE 4–9 Acme Consulting Profit and Loss Source: Business Plan Pro, Palo Alto Software, Palo Alto, CA. G.Dessler, 2003
  • 22. April 6, 2006 LIS580- Spring 2006 22 G.Dessler, 2003
  • 23. April 6, 2006 LIS580- Spring 2006 23 G.Dessler, 2003
  • 24. April 6, 2006 LIS580- Spring 2006 24 Types of Plans Type of Plan Time Frame Specificity Frequency of Use Strategic Long Term Directional Single Use Tactical Short Term Specific Standing Operational Ongoing Very detailed Day-to-day Policies, procedures, and rules Varies Varies Varies G Dessler, 2003
  • 25. April 6, 2006 LIS580- Spring 2006 25 FIGURE 4–10 Reporting Improper Behavior Source: James Jenks, The Hiring, Firing (and everything in between) Personnel Forms Book (Ridgefield, CT: Round Lake Publishing, 1996), pp. 224–25. G.Dessler, 2003
  • 26. April 6, 2006 LIS580- Spring 2006 26 Pitfalls of Planning • Planning may create rigidity • Plans cannot be developed for a dynamic environment • Formal plans cannot replace intuition and creativity • Planning focuses managers’ attention on today’s competition, not tomorrow’s survival • Formal planning reinforces success, which may lead to failure Prentice Hall, 2002
  • 27. April 6, 2006 LIS580- Spring 2006 27 Elmer L. Anderson Library • What did the planners do right in this effort? • Was the design a result of research or creativity? • How was the planning process affected by stakeholder needs? • How much of the planning was related to political activities and how much to actual construction activity? • How was success measured for the project?
  • 28. April 6, 2006 LIS580- Spring 2006 28 Extreme Chaos • Better project success rates due to lower costs and smaller projects • Difficulty of estimating costs and schedules accurately – Often tripled up front to avoid failure – Old metrics not appropriate to modern methods – Difficult to establish benchmarks • Different skills for different roles
  • 29. April 6, 2006 LIS580- Spring 2006 29 Project Success Factors
  • 30. April 6, 2006 LIS580- Spring 2006 30 Next Time • Strategic planning – Read Chapter 5 and Cleveland Public Library Strategic Plan • Discussion questions: – How has the Gold Coast City Council been able to use evidence to aid in strategic planning? – Do you think their choice of benchmarks will achieve the overall objectives? – Are there any risks in using these measures in deciding on long-term changes in structure? – Do you think the library staff is engaged in this process? Should they be?