Planning and Forecasting
Engr. Joseph Ricohermoso, REE, RME
cetinerg@itu.edu.tr
President & CEO, JCP Engineering Services
Director of Quality, Washington DC, United States of America
Assistant Vice-President & Head,Operations Transformation
Professor, Universal College of Paranaque Dr.B.G.Cetiner
Country Manager, Compliance & Technical, Philippines
Planning and Forecasting

Planning
The general who wins a battle makes many
calculations in his temple before the battle.

The general who loses a battle makes few

calculations before hand.

It is by attention to this point that I can see who is

likely to win or lose.

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

Planning
It is probably the most important of the
identified managerial functions. It focuses
you on how best to achieve the desired
results. Thus, without it organizing,
leading, and controlling have little
purpose.

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

Planning
Planning: To decide in advance…
What to do
How to do it
When to do it
Who is to do it

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting
Planning/Decision-Making Process:
Recognize the
problem or
opportunity
Overall mission, long-
range objectives and
Define problem, strategy
specify premises and
constraints

Gather Formulate value

information (decision) model

Formulate/develop
alternatives

Evaluate alternatives

Follow-up and Implement best

review effectiveness alternative

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

The Foundation for Planning

Vision, Purpose, Mission

Clear vision of the basic purpose or mission for
which an organization exists is essential for long-
term success of any enterprise.

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

The Foundation for Planning

Vision, Purpose, Mission

Vision is the basic purpose of the organization. For
example, the vision of AT&T (our business is
service) or the Vietnam war.

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

The Foundation for Planning

Vision, Purpose, Mission

Mission needs to be revised from time to time to
ensure the underlying assumptions are still valid.

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Role of Strategy
Planning and Forecasting

Strategic Planning:
Once a mission is chosen, an organization needs to
achieve that mission. Strategic planning is the
organized process for selecting these strategies.

Strategic planning is the strategy which defines how

the organization plans to move from its current
state to the state envisioned in its mission and vision
frameworks.

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

Strategic Planning:

Needs strategic
plans Future
State

Current
State

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

Strategic Planning: Choose Specific Key Areas

There are essentially eight key areas for

establishing objectives:
Market share
Innovation
Productivity
Physical and Financial Resources
Manager Performance and Development
Worker Performance and Attitude
Profitability
Social Responsibility

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

Strategic Planning:

Management by Objectives
Develop work assignments based on organizational needs and
objectives.

Plans are agreed between manager and subordinate.

Objectives should be stretch objectives

Objectives should be quantifiable (increase income by 5%) or at least

tangible (written policy).

Needed resources should be determined and agreed to.

Plans should include employee development as well.

Plans are for a 6 month to 1 year time span.

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

Strategic Planning:

Market Market Share

Small Large

Fast Growth ?? Stars

cash
Slow Growth dogs cow

Business Portfolio Matrix

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Steps in Construction Project Planning
Planning and Forecasting

Strategic Management of Technology

Base Technologies
Key Technologies
Pacing Technologies

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

Some Planning Concepts

Responsibility for Planning:

It is the continuing responsibility of each manager.

The higher managers rise the more time they spend

on planning.

Ultimate responsibility lies with top and middle

management.

Plans must lead to action.

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

Some Planning Concepts

Planning Premises:
These are the assumptions under which the
developed plans are expected to be executed.

Assumptions are based on forecasts and trends

in market and technology.

When there is uncertainty, there is a need to

develop contingency plans.

cetinerg@itu.edu.tr Dr.B.G.Cetiner
Planning and Forecasting

Some Planning Concepts

Planning Horizon:
Shows how far into the future do you want to plan.

Varies depending on:

The nature of the business
The market organization is in
The required details for the plans

Details
of
Plans

Future Time
Planning Horizon Dr.B.G.Cetiner
cetinerg@itu.edu.tr
Quiz # 1

Activity Name:

"Future Success Roadmap"

Objective: To help students set clear goals, identify the steps
needed to achieve those goals, and develop a strategic plan
for their academic and personal success.

Materials Needed:

Short Bond paper

Pens
Access to the internet or relevant resources (for research)
Instructions:
Step 1: Introduction (15 minutes)
•Begin by explaining the importance of setting goals and having a plan to achieve
them.
•Discuss the idea that success doesn't happen by accident but requires careful
planning and execution.
•Share some examples of successful people who achieved their goals through
strategic planning.

Step 2: Goal Setting (15 minutes)

• Student to write down three personal and three academic goals they want to
achieve in the next year.
•Encourage them to make these goals specific, measurable, achievable, relevant,
and time-bound (SMART).
•Have students share their goals with a partner and discuss why these goals are
important to them.

Step 3: Brainstorming (10 minutes)

•On the whiteboard or poster paper, create a "Goals" section and have students
share their academic and personal goals with the group.
•Then, create a "Steps" section where students will collectively brainstorm the
necessary steps to achieve each goal.
•Use sticky notes to write down these steps and place them under the respective
goals.
Step 4: Prioritizing (10 minutes)
•Have students review the steps they've brainstormed and identify which steps are most
critical to achieving their goals.
•Ask them to prioritize these steps and rearrange the sticky notes accordingly.

Step 5: Research and Resources (10 minutes)

•Discuss the importance of research and resources in achieving goals.
•Encourage students to identify the resources and information they may need to accomplish
their goals and write them down.

Step 6: Creating a Strategic Plan (15 minutes)

•Using their prioritized steps and identified resources, have each student create a one-page
strategic plan for achieving one of their goals.
•The plan should include a timeline, deadlines, and specific actions they need to take.
•Students should be encouraged to be as detailed as possible.
Step 7: Presentation (15 minutes)
•Invite each student to share their strategic plan with the class. They should explain
their goal, the steps, the timeline, and the resources they need.
•Encourage constructive feedback and suggestions from their peers.

Step 8: Reflection (5 minutes)

•Conclude the activity by having students reflect on what they've learned about goal
setting and strategic planning.
•Ask them to consider how they will implement their plans and stay accountable to
their goals.
 [Project/Initiative Name] Roadmap
Overview
[Insert a brief description or purpose of the project/initiative.]

Key Objectives
[Objective 1]: Describe the primary goal or objective.
[Objective 2]: State another key objective.
[Objective 3]: Add additional objectives if necessary.

Timeline
Timeline

Phase 1: [Start Date] - [End Date]

[Milestone 1]: Describe a significant achievement or task.
[Milestone 2]: Include another important milestone.
[Milestone 3]: Continue listing milestones as needed.
Phase 2: [Start Date] - [End Date]
[Milestone 4]: Outline milestones for the second phase.
[Milestone 5]: Add more milestones as applicable.
[Milestone 6]: Continue as required.
Phase 3: [Start Date] - [End Date]
[Milestone 7]: Continue the timeline for subsequent phases.
[Milestone 8]: List additional milestones.
Key Deliverables
[Deliverable 1]: Specify important deliverables.
[Deliverable 2]: Include another key deliverable.
[Deliverable 3]: Add more deliverables if necessary.
Team
[Team Member 1]: List team member names and roles.
[Team Member 2]: Provide information about the team.
[Team Member 3]: Continue as needed.
Resources
[Resource 1]: Mention essential resources required.
[Resource 2]: List additional resources.
[Resource 3]: Include any other relevant resources.
Risks and Mitigations
[Risk 1]: Identify potential risks.
[Mitigation 1]: Describe how to address or mitigate this risk.
[Risk 2]: List another risk.
[Mitigation 2]: Explain the mitigation strategy.
[Risk 3]: Continue this section for all identified risks.
Budget
[Budget Item 1]: Specify budget allocations.
[Budget Item 2]: List additional budget items.
[Budget Item 3]: Include any other budget-related information.
Next Steps
[Next Step 1]: Outline immediate next actions.
[Next Step 2]: Mention additional steps.
[Next Step 3]: Provide a clear path forward.
Feel free to customize this roadmap template by adding your project-specific details,
such as dates, milestones, objectives, and team members. Additionally, you can
enhance the visual appeal by using graphics, charts, or colors to make it more
engaging and informative.