pmgt 402 week 7 w10 planning

7/31/2019 PMGT 402 Week 7 W10 Planning

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School of Business

PMGT 4 0 2Project Leadership

Mario Vasilkovs


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Agenda

Housekeeping:

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Student Centre Main Events Hall

Thursday, June 24, 1030 Hrs.

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Mid-Term: June 30 (2 wks., today)

Foundations of Planning

The Basics

Goals and Plans

Project Application

2PMGT 402 Week 7 Foundations of Planning


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School of Business

PMGT 4 0 2Project Leadership

Foundations of Planning


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W hat is Planning ?

Managerial Function:

Defining the organizations goals

Establishing an overall strategy forachieving those goals

Developing a comprehensive set ofplans to integrate and coordinateorganizational work



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Types of Planning

Informal:

Undocumented

Short-Term Horizon

Narrow in focus, e.g. individualorganizational unit

Formal:

Documented

Specific

Can encompass Long-Term Horizon

Broad focus, i.e. whole Organization, andbeyond



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Types of Planning ( Continued)

Informal:

Difficult to share

Subjective biases

Formal:

Communications tool

Exposed to reality checks



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W hy Plan?

Provide Direction: Where is the organization going?

Articulated goals

Guide individual actions

Align actions for efficiency

Reduce Uncertainty:

Anticipate change

Consider impact

Anticipate reaction to change

Consider most effective response to change



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W hy Plan?

Reduce overlap and waste: Common ends and means

Minimize redundancy

Basis for control:

Establish expectations / standards

Measuring goal attainment



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Planning and Per form ance

Generally:

Planning correlates with better financialperformance

Balance Sheet or Income StatementQuality of implementation probably more

significant than the plans

Negative external factors constrain impactof planning

Studies of poor performance

Studies may have been too early:

4+ year lag between planning & results



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Planning Elem ents

Goals / Objectives:

Desired Outcomes

Individuals

Groups

Organizations

Direction for Activities

Measurement criteria for success

Plans:

The outline for how goals are accomplished

Activity Schedules

High-level resource allocations



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Traditiona l Goal Set t ing

Broad goals are set at the top ofthe organization

Assumes: top knows best

Goals are then broken intosubgoals for each organizationallevel

Goals are intended to direct,guide, and constrain from above



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PMGT402

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W hat s this guy doing here?

Started t he Prussians thinking on some m ilitary ideas

http://www.gutenberg.org/files/21352/21352-h/images/img-063.jpg


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W ell Designed Goals

Outcomes rather than actionsAuftragstaktikEmpowerment

Measurable and quantifiableClear time frameChallenging yet attainable

DocumentedCommunicated to all necessary

organizational members



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Steps in Goal Set t ing

Review the organizations mission statement

Do goals reflect the mission?

Evaluate available resources

Are resources sufficient to accomplish the mission?

Determine goals individually or with othersAre goals specific, measurable, and timely?

Write down the goals and communicate them

Is everybody on the same page?

Review results and whether goals are being met

What changes are needed in mission, resources, orgoals?



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Plan Character ist ics

BreadthStrategic Plans

Apply to the entire organization Establish the organizations overall goals

Seek to position the organization in terms of itsenvironment

Cover extended periods of time

Operational Plans Specify the details of how the overall goals are to

be achieved Cover short time period



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Time Frame Long-Term Plans

Beyond three yearsShort-Term Plans

One year or less

SpecificitySpecific Plans

No room for interpretation

Directional Plans General guidelines, provide focus, yet

allow discretion in implementation



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Specificity illustrated:


Exhibit 3- 4


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Frequency of Use

Single-use Plan

A one-time plan specifically designed to

meet the needs of a unique situation Plan for a Unique Need?

Standing Plans

Ongoing plans that provide guidance for

activities performed repeatedly Rules, Procedures, Policies



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Contem porary Planning I ssues

Planning creates rigidity

Assumes constant conditions withinthe time frame

Formal plans not suitable fordynamic environments

Same assumption

Formal plans replace intuition andcreativityPeters lawyers and accountants effect

Many case studies: GM, Apple19PMGT 402 Week 7 Foundations of Planning


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Contem porary Planning I ssues

Planning focused on today, nottomorrow

Optimize current conditions

Disrupt or reinvent the space

Cede leadership to the nimble

Planning ingrains focus on current

successCling to current leadership

Launched into discomfort



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Contingency Factors

Degree of environmental uncertaintyStable environment: specific plans

Dynamic environment: specific but

flexible plansPrepare to rework or discard plans

Plan anyway: the 4 year lag finding

Length of future commitmentsCurrent plans affecting future

commitments must be sufficiently long-term to meet the commitments



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Applicat ion to Project Managem ent

Managerial Function: Defining the projects goals

PRODUCT SCOPE

Establishing an overall strategy forachieving those goals

PROJECT SCOPE

Developing a comprehensive set of plansto integrate and coordinate organizational

work PM-specific techniques

Formal



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Purposes: Provide Direction

Communications

Reduce Uncertainty Anticipate Contingencies

Reduce Overlap and Waste

Coordination

Basis for Control

Expected to compare to Actual



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Well Designed Goals:Outcomes rather than actions

Past a certain level

Measurable and quantifiable UnambiguousClear time frameChallenging yet attainable

Hopefully, a result of planning

Documented

Communicated to all necessaryorganizational members Communications tool



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Contemporary Planning Issues:

Planning creates rigidity

Formal plans not suitable for dynamic

environments PM we want the rigidity

Recognize a Change Control Process

Formal plans replace intuition andcreativity Replace or complement?

Document intuition to act as basis for lessonslearned.



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Contemporary Planning Issues:

Planning focused on today, nottomorrow

Todays survival vs. tomorrowspossibilities

Different objectives

Different degree of openness

Planning ingrains focus on currentsuccess

Objective of PM to be reproducible



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Planning Summary:

Goals

Strategies

Plans

General animates the specific

Increase awareness of the thinking

around planning, and itsapplication to Project Management



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Preparing for t he Mid- term

Planning can't eliminate change.Managers plan in order to __________.

A) reduce or eliminate the need for controls

B) maximize the overlap in work activities

C) focus attention on how things should bedone rather than ultimate achievements

D) anticipate changes and develop the mosteffective response



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Preparing for t he Mid- term

Name and describe in a sentence ortwo, two of Hofstedes five dimensionsof national culture from his study at

IBM.

Power Distance

Individualism vs. Collectiveism

Quality vs. Quantity of Life

Uncertainty Avoidance

Long vs. Short Term Orientation


pmgt 402 week 7 w10 planning

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