6
The Chapter Basics of Planning and Project Planning
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Chapter Outline
Coping with Uncertainty
x x x
Three Types of Uncertainty Organizational Responses to Uncertainty Balancing Planned Action and Spontaneity in the 21st Century
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Chapter Outline
(continued)
The Essentials of Planning
x x x x x
Organizational Mission Types of Planning Objectives Priorities The Planning / Control Cycle
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Chapter Outline
(continued)
Management by Objectives and Project Planning
x x
Management by Objectives Project Planning
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Chapter Outline
(continued)
Graphic Planning / Scheduling / Control Tools
x x x
Sequencing with Flow Charts Scheduling with Gantt Charts PERT Networks
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Chapter Outline
(continued)
Break-even Analysis
x x x x
Fixed Versus Variable Costs The Algebraic Method The Graphic Method Break-even Analysis: Strengths and Limitations
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COPING WITH UNCERTAINTY Three Types of Uncertainty State uncertainty: the environment, or a portion of it, is unpredictable. (e.g., "Will it rain the day of our wedding?")
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COPING WITH UNCERTAINTY
(continued)
Effect uncertainty: inability to predict the effects of specific environmental changes or events. (e.g., "Will our outdoor reception guests get disgusted and leave early if it rains?")
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COPING WITH UNCERTAINTY
(continued)
Response uncertainty: being unable to predict the consequences of a particular decision or organizational response. (e.g., "Will our outdoor wedding reception still be fun if we decide to have it inside rented tents and it doesn't rain?")
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ORGANIZATIONAL RESPONSES TO UNCERTAINTY 1. Defenders: "Be very good at doing a few things." 2. Prospectors: "Stay a step ahead of the competition." 3. Analyzers: "Follow the leader." 4. Reactors: "If it isn't broken, don't fix it."
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ORGANIZATIONAL MISSION STATEMENTS
A well-written mission statement should do these things:
1. Define your organization for key stakeholders. 2. Create an inspiring vision of what the organization can be and can do. 3. Outline how the vision is to be accomplished. 4. Establish key priorities.
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ORGANIZATIONAL MISSION STATEMENTS
(continued)
5. State a common goal and foster a sense of togetherness. 6. Create a philosophical anchor point for all organizational activities. 7. Generate enthusiasm and a "can do" attitude. 8. Empower present and future organization members to believe every individual is a key to success.
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ORGANIZATIONAL MISSION STATEMENTS
(continued)
Individual or Team Exercise: Select an organization and write a mission statement for it.
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Figure 6.1 Planning: The Primary Management Function
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TYPES OF PLANNING AND PLANNING HORIZONS
Strategic Planning: process or determining how
to pursue long-term goals with available resources.
Intermediate planning: process of determining
the contribution subunits can make with allocated resources.
Operational planning: process of determining
how specific tasks can best be accomplished on time with available resources.
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TYPES OF PLANNING AND PLANNING HORIZONS
(continued)
Planning horizon: the time that elapses between the formulation and the execution of a planned activity.
x
x
x
Strategic planning horizon = One to ten years Intermediate planning horizon = Six months to two years Operational planning horizon = One week to one year
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Figure 6.2 Types of Planning
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EXERCISE: CAN YOU WRITE GOOD OBJECTIVES? A well-written objective satisfies these three criteria:
1. It tells exactly what the intended result is. 2. It specifies when the intended result is to be accomplished. 3. It tells how the intended result will be measured.
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EXERCISE: CAN YOU WRITE GOOD OBJECTIVES?
(continued)
Individual Exercise: Write three personal objectives that satisfy the three criteria. Team Exercise: Write three organizational objectives that satisfy the three criteria.
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WHY OBJECTIVES ARE IMPORTANT
1. They serve as targets. 2. They provide handy measuring sticks. 3. They generate individual commitment to collective results. 4. Challenging objectives motivate employees.
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Figure 6.3 A Typical Means-Ends Chain of Objectives
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PRIORITIES Priorities: Ranking goals, objectives, or
activities in order of importance.
A B C
priorities: "Must do" objectives critical to successful performance. priorities: "Should do" objectives necessary for improved performance. priorities: "Nice to do" objectives desirable for improved performance.
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PRIORITIES
(continued)
Exercise: Make a personal "To Do" list for the next week. Next, assign each item on your list an A, B, or C priority rating.
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THE MBO CYCLE
Step 1: Setting objectives Step 2: Developing action plans Step 3: Periodic review Step 4: Performance appraisal
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Figure 6.5 MBO's Strengths and Limitations
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PROJECT PLANNING Stages in the Project Life Cycle:
x x x x Conceptualization Planning Execution Termination
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Figure 6.6 The Project Life Cycle and Project Planning Activities
Source: Adapted in part from Figure 1.2 and discussion in Jeffrey K. Pinto and O.P. Kharbanda, Successful Project Managers: Leading Your Team to Success (New York: Van Nostrand Reinhold, 1995), pp. 17-21. Copyright Houghton Mifflin Company. All rights reserved. 6-27
PROJECT PLANNING AND CONTROL Project Planning Activities:
Conceptualization stage: x Develop overall project goals, budget, and schedule
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PROJECT PLANNING AND CONTROL
(continued)
Planning Stage: x Acquire needed facilities and equipment x Acquire needed personnel and assign duties (goal setting) x Schedule and coordinate individual and team efforts
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PROJECT PLANNING AND CONTROL
(continued)
Termination stage: x Turn project over to client x Identify new project opportunities
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PROJECT PLANNING AND CON...