MBA/MPM/M.Sc.

in Management Program 2009
MMS 5101 - Management

Setting the Future:
The Process of Planning

By Mr. M.V.S.S. Udayanga Shyaman Udayanga
University of Sri Jayewardenepura Nugegoda

Planning

Activities Involved in Planning

Process of establishing goals and Strategies

1. Setting the goals & objectives 2. Setting Strategies

The Process of Planning
Social Responsibilit y Establishment of Mission Policy Statement Agree/Revise Strategic Objectives

Formulation of Mission
Management Values

Environmental Analysis Internal Favourable Unfavourable Strengths Weaknesses External Opportunities Threats

Determination Of Corporate Strategies

Mission
Interests of owners
Interests of the Society

Agree On Strategic Plan Issuance of Key Targets to Departments

Preparation of Tactical/Operational Plans

Evaluation and Revision as necessary

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Mission
The fundamental, unique purpose that sets a business apart from other firms of its types and identifies the scope of its operations in product and market terms.

Core purpose: a company’s reason for being
• 3M: To solve unsolved problems innovatively • Cargill: To improve the standard of living around the world • Hewlett-Packard: To make technical contributions for the advancement and welfare of humanity • Merk: to preserve and improve human life • Walt Disney: To make people happy

Core Purpose & Core Values Core Purpose
•To experience the joy of advancing and applying technology for the benefit of the public

Contents of Mission Statement
• Fundamental Purpose - and • Business Scope • Business philosophy

Core Values
Elevation of the Japanese culture and national status Being pioneer – not following others; doing the impossible Encouraging individual ability and creativity

MISSION

Mission – Sri Lanka Telecom "To be the most innovative, trusted and best processquality provider of financial services in the region."
To anticipate and fulfill the communications requirements of all sectors of the nation, in a service oriented work ethic which will provide total customer satisfaction through the most modern telecommunication facilities.

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LECO - Mission

CEB - Mission

To provide the best energy solutions to the society through continuous innovations

To develop and maintain an efficient, coordinated and economical system of electricity supply to the whole of Sri Lanka while adhering to our core values: Quality Serve the nation Efficient and effective Commitment Safety Professionalism Sustainability

Mission Vs Vision

Envisioned Future Sony –1950s
• We will create products that become pervasive around the world…..We will be the first Japanese company to go in to the US market and distribute directly….We will succeed with innovations that US companies have failed at – such as the transistor radio ….. Fifty years from now, our brand name will be as well known as any in the world… and will signify innovation and quality that rival the most innovative companies anywhere…. “Made in Japan” will mean something fine, not something shoddy.

• " A Vision Statement is... a lighthouse that gives direction rather than a destination"

Colourful dream of the future of the business, deeply embedded in the founder’s mind

LECO - Vision

Enjoy being the light for lives of people through innovative eco-friendly business

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CEB - Vision

Core values- Merck
• Corporate social responsibility • Unequivocal excellence in all aspects of the company • Science-based innovation • Honesty and integrity • Profit, but profit from work that benefits humanity

Enrich Life through Power

Corporate Goals
• • • • • • • • • Market Standing Innovation Productivity Resourcing Profitability Employee Development Employee relations Social Responsibility ……..

Environmental Analysis
Environment Effect

Internal

External

Long Term goals established for the whole Business in the areas such as

Favourable

Strengths Opportunities Unfavourable Weaknesses Threats

Strategy
• •

Corporate Strategies

The broad programme for achieving an organization’s objectives and implementing its mission. (Stoner &
Freeman)

A comprehensive plan for accomplishing an organization’s goals
(Griffin)

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Tactical Plans
• Normally refers to

Operational Plans
– Business Unit Plans

XY Group of Companies Ltd.

– Functional plans

Plans that provide the details needed to incorporate strategy into day to day operations. Eg,
• Policies • Rules and regulations • Budgets

XY Electronics Ltd.

XY Newspapers Ltd.

XY Foods & Beverages Ltd.

• Procedures • Programs

P

M

F

E

P

D

P

M

F

• Projects

Hierarchy of Plans
Corporate plan
Group

Types of Plans
Corporate Strategic Plan (At Corporate Level) SBU Strategic Plans (At SBU Level) Tactical Plans Functional Plans Operational Plans • Single use • Standing
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SBU Plans Functional Plans Operational Plans

SBUs SBUs

Divisions

Types of Operational Plans

Benefits of Planning
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Provide a sense of direction Prerequisite to successful growth Set up the organizational framework Helps delegation Helps motivate people Serves as a communication media Lays the basis for control Provides coordination Facilitates efficient use of resources. Reduces uncertainty by anticipating change

SingleSingle-Use Plans

Standing Plans

Single use plan is a detailed course of action used once or only occasionally to solve a problem that does not occur repeatedly.

Standing plan is an established set of decisions used by managers to deal with recurring organizational activities.

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Effective Plan Implementation
1. 2. 3. 4. 5. 6. 7. 8. 9. Communicate strategies Develop and communicate planning assumptions etc. Make sure actions plans reflect major objectives and strategies Review strategies regularly Develop contingency plans and programs Ensure that organization’s structure follows planning needs Continue to remember plans implementations Create an organization culture which drives for planning Establish a supporting organizational leadership and culture

Contents of a Good Planning Document
• Organisational Profile • Executive Summary • Detailed SWOT Analysis (Highlight distinct Competencies) • Hierarchy of Aims (Vision, Mission, Goals & Objectives) • Strategies (Corporate, Functional and Operational Level) • Policies and Ground Rules • Programmes and Procedures (SOP’s) • Work Instructions and Operational Guidelines • Budgets • Monitoring and Review Guidelines

Thank You !

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