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| Tuesday, 19 October 2004 |
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Planning for corporate excellence by Dr. K. Kuhathasan, CEO, Centre for Leadership Excellence and Personality Development Any organisation of any size has a need to understand fully where it is now and where it chooses to go in the future. It must evolve and design its future based and built on its purposes, its markets, its structure, its culture, its policies, its philosophical guidelines on which key decisions depend, its needs in terms of human and physical resources, its total development requirements, it must evolve, in short, a long-term strategy. This is true not only of the organisation as a whole, but of its constituent parts right down to departments and project teams. That is why there is a need to recognise that strategic planning is not and cannot be the sole concern of the highly paid and highly qualified specialist sitting in an ivory tower. It is a primary responsibility of all levels of management in organisations of all sizes and types. It is the essential tool in building and developing commitment and competence of the total work team. As such it is the fundamental prerequisite for any grouping of people brought together to own and achieve organisational goals. Planning must be universal, it must be simple: a simple approach which is applied successfully at every level in the organisation to produce long and short-term plans for organisations, divisions, departments, and project teams. Model for strategic planning The key concept of the model is that it takes the team from where they are today to any ideal future they care to design. It moves thinking from the vague to the concrete, from creativity and speculation to precision. The model incorporates other models and techniques and as modified, it facilitates a clear focus on the essentials which will play a key role in achieving the future design, culture, and achievements of the organisation. Nature of planning A plan is a set of activities intended to achieve goals, whether for an entire organisation, department, or an individual. Planning involves determining what the organisation will specifically accomplish, deciding how to accomplish these goals, and developing methods to reach the goals. At the most basic level, a plan is a road map that answers the fundamental question, "How do we get there from here?" Almost everybody agrees that a map is important; however, organisations differ greatly in how they create that map. These range from formalised, detailed steps that in general verbal agreements. Developing managers Good planning involves the art of making difficult tings simple. Towards this end, the act of planning requires high levels of intellectual activity. Those who plan must be able to deal with complex, abstract ideas and information. Planners must think systematically about the present and the future. Through planning, the future state of the organisation can be improved if its manages take an active role in moving the organisation towards that future. Planning, then, implies that managers should be proactive and make things happen rather than reactive and let things happen. Through the act of planning, managers not only develop their ability to think futuristically but, to the extent that their plans are effective, their motivation to plan is also reinforced. The act to planning sharpens managers' ability to think as they consider abstract ideas and possibilities for the future. Thus, both the result and the act of planning benefit the organisation and its managers. Focus Planning is an excellent tool for getting managers to consider seriously its present status and the environment in which it operates. Forcing managers to ask basic questions about the firm's operations and customers can greatly benefit the firm. "Are we doing this operation the best way?" Motivation Planning can help create an environment conducive to motivate managers and employees. Frequently, the effects of focus and coordination arising from planning can lead to higher performance levels, as organisational members recognise the firm's overall goals. Advantages of planning Plans help you analyse where you are and can point the way to where you want to be. Plans help you determine the business you might want to go into and the best way to enter and conduct that business. Plans help you to operate your present business and can be used to raise money for your enterprise from investors, banks, venture capitalists, the public and other sources. Plans also tell your associates and employees where you are heading and how you expect to get there. Planning projects your expectations and the direction you are taking. Sharing portions of your plan with customers, suppliers and others in the trade sets the tone for your company in the marketplace. Plans are also a means to monitor performance, whether personally or professionally. Coordination One of the major tasks of management is to coordinate the activities of groups and individuals. Proper planning provides a mechanism for mixing these different segments of the organisation. For example, in many consulting companies, it is important that experts in different business area-for example, management information systems and production coordinate work activities. Without planning, each consultant is likely to concentrate on his or her own activities. The management information systems consultant may emphasize the need to develop in tracking current product flow. Proper planning takes into account these differing organisational priorities. Five elements of planning Overall planning for your business is a must, but you may also need more specific plans for the various functions or disciplines of your business, such as marketing, finance and production. The basic elements of planning are: Vision-The leader must set forth and communicate a clear concept of what defines the business, the company's philosophy, creed, purpose, beliefs, business principles and therefore what is planning to turn it into reality. Mission-The organisation's mission is second only to developing a shared vision. A mission statement should define the business that the company is in, as well as its major goals, characteristics, and guiding philosophies. It also tells everyone what the company has set forth to accomplish. Goals-Your long-term aims. Whether personal or in business, goals are the destinations you want to reach. Strategies or objectives-The way you will accomplish your aims or goals. Strategies are how you are going to arrive at the destinations you have set forth in your goals. Monitoring-The means of knowing whether your plan is moving in the envisioned direction. Just as you follow a map to reach a certain town and constantly check the road signs and your position on the map. The planning process requires a great deal of thought and analysis. The following are ten questions that must be asked during the process. Where are we now? Where do we want to go? How do we get there? When do we want to arrive? Who will get us there? What will it cost? How do we measure result? Who will help accomplish the plan? When will each goal be achieved? What are the expected results? Planning often begins with assumptions Planning deals with the future. To deal with the unknown we often have historical data that we can analyse. This helps, but it cannot always predict future events. For that reason assumptions must be made. Decisions are based on these assumptions. An analysis of the company's Strengths, Weaknesses, Opportunities, and Threats (SWOT) will lead to making reasonable assumptions. Plans need to be: Flexible, Monitored, Frequently analysed. Changes should not be made lightly, but made as required. Even if you are operating on the basis of a three-year rolling plan, sometimes you cannot wait for changes to be made in the third year. You have to break into the cycle and make immediate changes. This should be done only with very careful thought and only for absolutely necessary reasons. You can also use a fixed one-year, two-year, or three-year plan. In some situations, even a five-year or longer plan may be required. The key is this: The form of the plan should follow the function needed. |
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