The Planning Cycle

Analysis of current SituationWhere are we now? (Base Line Data)

ForecastingWhere is the world moving to?

Develop ObjectivesWhere do we want to be within

a given period of time?

Action Plan (Work Plan)What must I do to get where I want to go?

Implementation of Work Plan

Do it!

Monitor Progress by comparing

current data with Baseline Data

Taking into consideration

policies, strategies and

national development

plans

Start of a new planning cycle

Detect weaknesses, strengths, opportunities and risks

Management Levels

Primary Activities Activity Results Activity Examples Information Requirements

Strategic Management

Long range planning and goal setting

Determine organizational resource requirements and allocations

Goals and strategic objectives

Company policies

Long range plans and other strategic decisions

Policy on industry and product diversification

Social responsibility policy

Major capital expenditure policy

ForecastsSimulations

Inquiries

External ReportsOne-time reports

Condensed internal reports

TacticalManagement

Allocate assigned resources to specific tasks

Make rules

Measure performance

Exert control

Budgets

Procedures

Rules and other tactical decisions

Personnel practices

Capital Budgeting

Marketing Mix

Forecasts and historical data

Regular Internal Reports

Exception reports

Simulations

Inquiries

Operational Management

Direct the utilization of resources and the performance of tasks in conformance with established rules

Directions

Commands

Actions and other operational decisions

Production scheduling

Inventory controlCredit management

Regular internal reportsDetailed transaction reportsProcedures manualsCurrent historical dataProgrammed decisions

The activities and information requirements of the three major levels of management

External institutional analysis examples include:

Perception/image studies of prospective students, parents, counselors, and employers

Price sensitivity studies of prospective students and parents

Competition analyses

Market share and trend analysis of college bound target populations using College Board’s EPS and ACT’s EIS

Demographic projection analyses of high school graduates and other target populations such as adults

Workforce demand projections

Analyses of prospective student, parent, counselor, adult, and employer wants and needs, including academic programs

Internal institutional analysis examples include:

Assessment of the relationship of enrollment and institutional fiscal health

Enrollment and fiscal projection scenarios

Analyses of student flows into academic majors and courses

Academic program capacity and demand analyses

Assessment of student satisfaction, engagement, and what is important

Incoming characteristic profile of students who succeed of those who don’t succeed

Price discount sensitivity studies of admitted students

Graduating student outcome analyses

Data Types and SourcesDifferent Types of Data

Student demographics, mobility, attitudes, behaviorAcademic performanceCurriculum and assessmentClassroom managementSchool management

Different Sources of DataSurveysSchool & district recordsState & local assessmentsLesson plans, student workCurriculum & assessment materialsObservation reportsDocuments e.g. faculty & PTO meeting minutes, school plans, budget

Periodic ScheduledReports

Periodic ScheduledReports

Exception ReportsException Reports

Demand Reportsand Responses

Demand Reportsand Responses

Drill-down ReportsDrill-down Reports

MajorManagementInformation Systems Reports

Sensitivity AnalysisSensitivity Analysis

What-If AnalysisWhat-If Analysis

Goal-Seeking AnalysisGoal-Seeking Analysis

Optimization AnalysisOptimization Analysis

ImportantDecision SupportSystemsAnalytical Models

ImportantDecision SupportSystemsAnalytical Models

Decision Support Framework

Management Information System

• Scheduled reports

• Key-indicator reports

• Exception reports

• Ad hoc (demand) reports

• Drill-down reports

Creates reports managers can use Creates reports managers can use to make routine business decisionsto make routine business decisions

MISMIS

Four basic types of analytical modeling activities with a DSSSensitivity Analysis

the study of the effect that changes in one or more parts of a model have on other parts of the modelExample: Let’s cut advertising by $100 repeatedly so we can see its relationship to sales.

What-if Analysischecks the impact of a change in the assumptions or other input data on the proposed solutionExample: What if we cut advertising by 10%? What would happen to sales?

Goal-seeking Analysisfind the value of the inputs necessary to achieve a desired level of outputExample: Let’s try increases in advertising until sales reach $1 million.

Optimization AnalysisFind the optimum value for one or more target variables, given certain constraints.Example: What’s the best amount of advertising to have, given out budget and choice of media?

ISs to support decisionsManagement Information Systems

Decision Support Systems

Decision support provided

Provide information about the performance of the organization

Provide information and techniques to analyze specific problems

Information form and frequency

Periodic, exception, demand, and push reports and responses

Interactive inquiries and responses

Information format

Prespecified, fixed format Ad hoc, flexible, and adaptable format

Information processing methodology

Information produced by extraction and manipulation of business data

Information produced by analytical modeling of business data

Executive Support Systems (ESS) in PerspectiveTailored to individual executivesEasy to use- colour and graphicDrill down capabilitiesSupport need for external dataCan help when uncertainty is highFuture-orientedLinked to value-added processes

Exhibit 18.7Exhibit 18.7

Managerial Decisions in the Control Process

Capabilities of an ESSSupport for defining an overall visionSupport for strategic planningSupport for strategic organizing & staffingSupport for strategic controlSupport for crisis management

Key issues to consider in developing the strategic plan:

• Quality– Sample result oriented Goal: “To reduce medication administration errors by 10%”

• Information Technology– Consider implementation of electronic charting/drug administration system

• Staff Levels– Analyze staff to patient ratios– Are nurses overworked?– What is the customer satisfaction level?

• Baylor of Garland case study– Baylor of Garland still uses paper charting -- because of this it is easier for medication errors occur

• Access– Sample result oriented Goal: “Provide care to 15% more patients than we did last

year”• Assess resources available to achieve the objective

– How much additional staff will be needed?– How much additional space will we need?

• Will we need new construction?– New wing or modular building?– How will we pay for the addition – seek funding, charity or debt financing?

• Cost– Sample result oriented Goal: “Increase the accuracy of billing for supplies by 5%”

• Implement incentive-based motivation for staff to decrease wasted supplies– Consider implementing a competition for the least amount of supplies wasted, winner gets first right on

holiday scheduling decisions– Require supply charge to patient– Consider implementing additional policies for supply uses? (Example: Mandatory workshops on

improving sterile technique)

Desired characteristics of Information

•Accurate

•Complete

•Economical

•Flexibility

•Reliable and verifiable

•Relevant

•Simple

•Timely

•Accessible and Secure

Figure 9.3 An example of a mission statement, strategic goals, and tactical objectives for an in-line skate manufacturer

PERT AND CPM

• PERT (Programmed Evaluation and Review Technique and CPM (Critical Path Method) are important network techniques useful in planning are especially useful for planning.

• 1. The project is divided into a number of clearly identifiable activities which are then arranged in al logical sequence.

• 2. A network diagram is prepared to show the sequence of activities, the starting point and the termination of the project.

• 3. Time estimates are prepared for each activity. PERT requires the preparation of three time estimates optimistic.

• 4. The longest path in the network is identified as the critical path. It represents the sequence of those activates which are important for timely completion of the project and where no delays can be allowed without delaying the entire project.

The Nature of Managerial Work

• Controlling– Managers control activities by comparing plans to results.

Table 1.1 A Categorization of Decision Characteristics

Category I Decisions Category II Decisions

Classifications Programmable; routine; Nonprogrammable; unique;generic; computational; judgmental; creative;negotiated; compromise adaptive; innovative; inspirational

Structure Procedural; predictable; Novel, unstructured,certainty regarding consequential, elusive, andcause/effect relationships; complex; uncertain cause/recurring; within existing effect relationships; non-technologies; well-defined recurring; informationinformation channels; channels undefined, incom-definite decision criteria; plete information; decisionoutcome preferences may criteria may be unknown;be certain or uncertain outcome preferences may

be certain or uncertain

Strategy Reliance upon rules and Reliance on judgment,principles; habitual intuition, and creativity;reactions; prefabricated individual processing;response; uniform heuristic problem-solvingprocessing; computational techniques; rules of thumb;techniques; accepted general problem-solvingmethods for handling processes

What is Strategic Planning?

Strategic Planning is a long-term, future-oriented process of assessment, goal-setting, and decision-making that maps an explicit path between the present and a vision of the future. It relies on careful consideration of an organization's capabilities and environment, and leads to priority-based resource allocation and other decisions.

Strategic Planning=

Align organization with

its environmentto promote stability

and survival

Traditional Planning

=Set goals then

develop steps toachieve those goals

Strategic Planning in the Organization

• Strategic planning as a management process includes the following steps:1. Clearly define the purpose of the organization2. Establish realistic goals and objectives consistent with the mission of

the organization3. Identify the organization’s external constituencies or stakeholders, then

determine their assessment of the organization’s purposed and operations

4. Clearly communicate the goals and objectives5. Develop a sense of ownership of the plan6. Develop strategies to achieve the goals7. Ensure the most effective use of resources is made8. Provide a base from which progress can be measured9. Provide a mechanism for informed change as needed10.Build a consensus about where the organization is going