Managen Topic 1.3

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1.3 PLANNINGPlanning includes all the activities that lead to determining the future, defining what are

desired to be attained and developing appropriate schemes and actions to attain them. It is worthemphasizing that planning is a process, not an event. It is organic and ongoing. It is a way ofdefining the future and changing it if so desired. It is a key element of the overall managementprocess not only because it is the ideal starting point of the process but also because it defines theorganizations objectives that will serve as the parameter of success of every step in the process.

Taylor stressed the significance of starting any undertaking with planning when he put the firstprinciple of scientific management as First, each task must be scientifically planned so that it canreplace the old rule-of-thumb methods. Sun Tzu was bolder when he said, How much morecertain is defeat if one does not plan at all. From the way planning is done beforehand, we canpredict victory or defeat.

The significance of planning is reflected in this Parable of the Perplexed Peasant. There was apeasant who had to transport safely across a river a dog, a chicken, and a sack of corn. Great caremust be taken because if left unwatched, the chicken might eat the corn, or the dog might eat thechicken. He had a small canoe that could carry him and only one item at a time. So, to carry out histask, he let the dog swim, swooshed the chicken to fly across, and put the sack of corn aboard thecanoe. When he reached the other side, the two animals were nowhere to be found.

It may be a silly parable but it is not unrealistic! How many promising business venturesfailed because their managements had not forecast the demand correctly? How many battles are lostbecause the commanders do not put sufficient men and ammunitions? How many nations willbecome poorer because their leaders do not have any visions at all?

10 by Rumel V.Atienza


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Elements of a PlanWhen Sun Tzu warned that With careful and detailed planning, one can win; with haphazard

and vague planning, one cannot, he emphasized to the need of detailing the elements of a plan.Situation. The organization needs to review the past and present, and to predict the future

conditions of itself and the environment to know what can help or hinder it. In the parable of theperplexed peasant, he should have ascertained if the dog could swim or the chicken would haveenough strength to fly across the river. He should have appraised if the wind speed or the water

current will be harmful or helpful to the animals.Objectives. Stating the things to be attained enables the organization to focus on what it

wants, and to know if they are being attained. This is considered the most important element of theplan and of the entire management process because it is the reference point of each stage. Theperplexed peasant could have been a bit wiser if he had remembered that his objective was totransport across the river not one but the three items, and transport them safely.

Scheme. The scheme or plot by which one or more objectives will be achieved is known asstrategy (if long-term) or tactic (if short-term of 2 years or less). To transport the 3 items safelyacross the river, the tactic may be any or combination of the following alternatives: 1) Avoid leavingunwatched the chicken with the cow or the corn; 2) Find alternative transportation such as a raft ora bigger boat.

Actions. Schemes are translated to specific things to be done in the form of programs, projectsor activities. Programs are comprised of projects which are in turn comprised of activities. It ispreferred that the time and duration of each activity be determined. The activities that the perplexedpeasant may carry out sequentially to carry-out tactic # 1 are 1) Bring the chicken across 2) Bringthe dog across. Bring the chicken back 3) Bring the sack of corn across 4) Bring the chicken across.

Resource Allocations. For each action, resources or things possessed by the organization haveto be allocated to ensure it will be done productively. These resources have different units ofmeasure but are often translatable to monetary terms, also known as budgets. The followingresources need to be stipulated when possible and relevant: (Examples cited apply to the perplexedpeasant parable)

Persons (individuals or groups who will perform the action) Ex. peasant Raw materials (materials that form part of the product of the action) and supplies (things

used in producing the output other than raw material) Ex. None mentioned but stringswere likely used to tie up the animals so they would not run astray

Information (form of communicating data, written or not, such as report, record,database) Ex. None used or needed

Methods (Processes or technologies) Ex. Manual paddling is implied Equipment (Machines, tools and other implements) Ex. Boat and paddle Utilities (energy, water, air). Ex. No utility was used. The water and air belonged to the

environment and were free.Objectives of Planning

The plan, specifically its elements, aims to facilitate the conduct of the other managementfunctions. Without the elements, foremost of which are the objectives, management may find it

difficult to determine the structure and people that will make the organization successful. Leadingwithout the objectives, means, and actions is like the proverbial Blind leading the blind. And whatwill be controlled when there is no basis for control?



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PLANNING PROCESS

*STAGES*

PLANNING

ELEMENTS*

Figure 4. Elements & Stages of a Plan

Planning is essential to enable the members, specially the managers, know, understand andown the elements of the plan. By being involved in the planning process members are exposed to therationale and background behind the forecast, objectives, means, etc. By participating in planningthey perceive that they were instrumental in the formulation of each or some of the elements.

Planning compels management to anticipate the future and immediately adjust to it. Planningforces forward-thinking. Coupled with the knowledge of the rationale and background of theelements, the organization can adapt easily to the future that is different from the original forecast.

When collaborative planning is done in cooperation with the customers, suppliers and otherpartners in the organizations supply chain, it aims to establish stronger symbiotic ties and open


SITUATION APPRAISAL SCHEME FORMULATION OBJECTIVE SETTING

OBJECTIVES

Project Project

PROGRAMS

TacticTactics Tactics Tactics

MISSION

VISION

GOALS

TARGE

STRATEGIESP - personsR - raw materialsI - information

M - methodsE - equipmentU - utilities

RESOURCES

ENVIRONMENT


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communications with these partners. These linkages are instrumental in improving the performancesof the organization and its partners.

Hierarchy of ObjectivesThe mission is the lifetime objective of an organization in service of mankind. It is intended to

inspire faith among the owners, members, customers, suppliers and other stakeholders of anorganization. In 50 words or less, it embodies the customers (sector of humanity that will be served),

the product (goods or service and the benefits the customers can get), and the business process(manner by which the product will be served to the customers). Sometimes distinctive competencies(characteristics of any of the three that distinguishes the organization from others) are incorporatedin the mission. Mission statements are reviewed revised as necessary usually every five years by topmanagement. In its mission statement contained in the charter like any government organization, theUN defines as its customers the nations of the world, and its processes and products are maintainpeace and security, develop friendly relations, achieve international co-operation in solvinginternational problems, and be a centre for harmonizing their actions. The DLSU-College ofEngineering (COE) has the following mission: To nurture technically-competent and practicingengineers imbued with La Sallian values who will spearhead the technological development of thePhilippines and the Filipinos quality of life. (See Figure 5)

The vision is the way management sees its organization in an ideal state, particularly itsrelative position in the sector of society where it will belong, the conditions of its owners, customers,employees and other stakeholders. The vision may be timeless but many organizations define theirvisions 20, 50 or 100 years from the current time. It is reviewed and revised as necessary usuallyafter every five years by top management. DLSU-COE envisions itself as the Center of Excellencein South East Asia in the field of engineering education, research and consulting.

Both mission and vision are often publicized by organizations in their pamphlets, websites oroffice lobbies for the stakeholders and general public to know.

Goals are long-term objectives which detail the mission and vision. Some of COEs 10-yeargoals sometime ago are: 1) For at least 80% of its faculty possess a doctorate degree 2) For all of itsfaculty department be certified as Center of Excellence

Targets are medium- or short-term objectives that detail the goals. In relation to goal #1,some of COEs 5-year targets are 1) For at least 50% of its faculty to posses doctorate degrees 2)For at least 40% of faculty possess master degrees.

Standards are objectives that are used to measure operational performance. Among hundredsof COEs standards pertaining to faculty are 1) At least satisfactory rating (3+ in a 5-point scale) inteaching as evaluated by students 2) No unmade-up absence 3) One published research in a year.

Fig. 5 Objectives and their Time FramesTime Frame (in years)

Objective 5 10 15 20 25 ...... lifetimeMissionVisionGoals

TargetsStandards >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Planning ProcessPlans belong to a hierarchy. On top of this is a strategic plan that spans over the long-term,

usually at least 2 years depending on the type of the organization. Some organizations, like manyestablished companies, have longer than 2 years for its long-term while others have shorter (likehigh-technology and projects). A strategic plan is comprised of several tactical plans, each of whichspans over the medium-term (usually a month to two years). In turn, each tactical plan is comprisedof operational plans that may span over an hour, day or week.



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Strategic and tactical planning are normally carried out for the entire organization under thestewardship of senior management. Strategic planning is often done over a longer period of timethan tactical planning. However, tactical plans are more detailed and are revised or updated moreoften.

Operational planning involves mainly the middle and junior because its scope corresponds totheir respective areas of responsibility. It is the most detailed, most frequent and the fastest amongthe three types. It is also the most visible to and most participated in by the non-managers.

Strategic planning is often done bottom-up which starts with planning starting with low-levelmanagement and culminating at the top level. The shorter-term planning is usually implemented top-down, where planning commences from the top and disaggregates to the lower levels. Someorganizations practice both in strategic planning and rarely in shorter-term planning.

In general, the planning process is preceded by gathering relevant data about the stakeholdersand related environment, and retrieving data from previous plans. Stakeholders are those who areaffected by the organizations success or failure. They are internal to the organization (owners,managers and other employees), or external (customers, suppliers, distributors, competitors,governments, media, general public directly affected by the organizations activities). Non-stakeholders comprise the other part of the environment. In the case of a construction firm thatintends to operate exclusively in a certain region of a country, the non-stakeholder environment

include the population outside of the region and of the country, and their respective governments.The data are about their pasts, present situations and forecasts of their future situations.Management must discern which data types are necessary for the planning process so that it will notbe saddled with irrelevant data. It must also devise an information system to ensure that data will benecessary, sufficient, accurate, timely and highly usable.

The output of the process is the plan, detailing its elements. Most, if not all of the details ofthe plan will be disseminated to the owners and most managers, except those that seniormanagement consider as accessible only to a few. Other stakeholders will have different securityaccess levels for the various elements of the plan. Obviously, the competitors, media and generalpublic will have limited access to many elements of the plan such as the means, actions andresources.

The planning process is carried out in five dynamic stages, that is, previous stages may beredone or revisited when certain developments in the current stage so dictate.

Situation Appraisal. Management conducts a prognosis and diagnosis of various features ofthe organization and the environment to determine what can help or hinder the organization,specially in the pursuit of its objectives.

Prognosis, also known as forecasting, is predicting the future based on the present and thepast. It can be done qualitatively or quantitatively. Qualitative techniques such as delphi method,market survey and experts opinion entail gathering the opinions of consumers, or market experts, ormanagers and owners regarding the condition of certain aspects of the organizations and theenvironment. Quantitative methods process numerical data using forecasting models and processinghardware such as calculators and computers. The forecasting models may simply be time-series( such as nave approach, moving average, exponential smoothing, and simple regression ) where the

variable is forecast using its historical values. Multi-factor models, ( such as multivariate regression,system of equations, and Tobit) make use of historical and/or predicted data of variables thatinfluence the performance of the variable being predicted. As to which models suit an organizationdepends on the criteria to be used in evaluating them: cost of processing, time efficiency, oraccuracy. For accuracy, management may measure the mean absolute deviation, mean square error,or tracking signals, among others. Expectedly, more sophisticated models like multi-factor aregenerally more accurate but are more costly and time consuming to process, too.

Management evaluates which among the features of the organization or of the environmenthelp in or manifest the attainment of one or more main objectives (usually in the mission and vision



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statement). An internal feature that helps in or manifests the attainment of an objective is a strength;else, it is a weakness. An external feature that helps in or manifests the attainment of an objective isan opportunity; else, it is a threat. The SWOT Identification Matrix illustrates the differencesbetween the characteristics of these four types of feature. In some cases, it is possible that an internalfeature helps one objective but hinders another; that is, a strength for one objective and a weaknessfor another. Similarly, an external feature may be both an opportunity and a threat.

Sun Tzu poetically captures the essence and significance of situation appraisal with these

words of wisdom: Know yourself, know your enemy and your victory will not be threatened. KnowHeaven and Earth and your victory will be complete.

OBJECTIVE:

HELP/MANIFEST HINDER/NOTMANIFEST

INTERNAL STRENGTH WEAKNESS

EXTERNAL

OPPORTUNITY THREAT

Fig. 6 SWOT IDENTIFICATION MATRIX

Here is the Saga of the Sagacious Survivors to help illustrate situation appraisal at work.Titanic, a private yacht, is adrift in the South Pacific. As a consequence of a fire of unknown

origin, some of the passengers died, and much of the yacht and its contents have been destroyed.The yacht is now sinking fast. Its location is unclear because of the destruction of criticalnavigational equipment and because the crew and the passengers were distracted trying to bring thefire under control. The best estimate is that the survivors are approximately 2 to 3 days away fromthe nearest land southeast if the wind and wave will move towards one direction. However, a storm

is brewing, in the southeast. The survivors have a rubber life raft large enough to carry them andsome of the 10 items below. Which among these will the survivors hold on? In deciding, thesurvivors disregard the weight and size of an item. In addition to these ten items, the survivorspockets contain, a box of 100 matches and 5 ten-peso bills

Item to be Prioritized in the Saga1. Shaving mirror2. 10-liter bottle of water3. Mosquito net4. Map of the Pacific Ocean (2ftX2ft)5. 5-liter can of oil-gas mixture6. 10-sq.m of thick opaque plastic7. 1-liter rum (45% alcohol)8. 8 meters of abaca rope



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9.100 pieces of Hershey kisses10. Fishing kit

The survivors determine what the internal and external features are. For the internal featuresthey review the resources or PRIMEU (Persons, Raw materials/Supplies, Information, Methods,Equipment, and Utilities) and come out with the following list.

Persons: Crew and passengers (In this situation, they comprise the organization) Raw Materials/Supplies: matches, bills, clothes, shaving mirror, mosquito net, plastic, rum, rope,

chocolate Information: Map Methods: None Equipment: Yacht, raft, fishing kit Utilities: water, oil-gas mixture,

For the external features, they review the external stakeholders and other environment Customers: Their relatives and friends (The product being the lives of the survivors) Suppliers: The owners of the yacht Distributors: Other vessels in the south pacific, planes, other transportation means Competitors: Other passenger yachts and vessels

Government/Media/Public: Coast Guard, Navy, Air Force, people in South Pacific Other Environment: weather, ocean and its creatures

Next, they elucidate their mission. Of course, paramount is their survival. But to survive theyrealize they have 1) to be rescued within 24 hours. 2) While awaiting for rescue, they have to meettheir physiological needs, mainly water, food, shelter and clothing. (Sex can wait).

Then, they deliberate fast which of the features are helping or hindering the attainment of thetwo objectives and how each may be hindering or helping. The preliminary results of theirdeliberation are shown in the table below. The saga momentarily ends here to give the readers achance to be a hero in this saga by expounding the matrix and ranking the 10 items.



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Preliminary SWOT Identification for the Saga of Sagacious Suvivors

Strengths Opportunities

1. Raft can be used as their vessel1. Rain from the storm may be source ofwater

2. Matchsticks can be used forlighting/heating 2. Ocean may be a source of food3. The crew is familiar with the territory 3. Vessels may pass by and rescue them

Weaknesses Threats1. Raft is not big enough to carry items 1. Storm is brewing in the east2. Yacht is sinking fast 2. Ocean creatures may harm the survivors3. Navigational aids have been burned 3. Sun and salty water will dehydrate them

Objective Formulation. Stating the things to be attained enables the organization to focus onwhat it wants, and to know if they are being attained. This is considered the most important elementof the plan and of the entire management process because it is the reference point of each stage.Objective Formulation and Situation Appraisal are interchangeable stages In some organizations,situation appraisal is done using the mission statement as reference point. This was the case for theParable of the Perplexed Peasant. In other organizations, the appraisal is used to formulate the

objectives, and eventually, perform further situation appraisal. Such was the case of the Saga of theSagacious Survivors.

For an objective to be fully understood and achieved, it should posses SMART characteristics. Specific. The objective statement must give a clear and precise picture of what is to be

accomplished. It must not be subject to various interpretations. It must answer what (orwho when applicable) and where. To attain a 520% labor productivity in productionnext year is specific compared to To attain 520% productivity next year or To performbetter than last year.

Measurable. Whenever applicable, the result must be quantified so that performance can begauged. It must be able to answer how much?. In cases when quantification is not realistic( e.g., color, human behavior), specific qualitative descriptions may be used instead. To

attain a 520% labor productivity next year is measurable unlike To attain high productivitynext year.

To produce only Grade D to Grade A white polymer grains by the year 200x is measurablecompared to To produce only grayish and other white polymer grains by the year 200xconsidering that there can be more than four grades that may be classified as grayish orwhite.

Attainable. An objective must have challenge, incorporating an improvement factor. But atthe same time, it must be achievable by the organization . A review of history andcomparison with similar systems may help determine the attainability of the objective. Toattain a 800% labor productivity next year shows an improvement compared to last years520% productivity, but may be unreachable and frustrating.

Result - or Resource- Oriented. Because they are the basis for measuring systemperformance, objectives state resource (inputs) constraints to be observed and results(outputs) to be achieved , not procedure, methodology, nor activities to be implemented. Toattain a 520% labor productivity next year is result oriented, To spend no more than 10million dollars next year is resource-oriented , whereas To computerize polymerizationprocess next year is neither.

Time-bound. Goals and targets must set the time within which the result must be achieved orresource constraint must be observed. Whenever applicable vision and standards may alsohave time frame. Mission is a life-time objective. To attain a 520% labor productivity nextyear is time-bound unlike To attain 520% labor productivity.



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In the Saga of the Sagacious Survivors, recall that the mission of the crew and the passengersis twofold: 1) To be rescued within 24 hours, and 2) To meet the physiological needs for food, waterand shelter.

Scheme Design. In plotting the manner by which one or two objectives can be attained,management has to consider the situation that confronts the organization. In this regard, the schemecan be direct, matching or conversion. (Please refer to Table below)

Ex. In The Peasant Real-Life Examples1. Strengthen theStrength

Use the10 items forrescue and physiologicalneeds

DLSU established the LinkageCenter to use and intensify itsties with Industry

2. Weaken theWeakness

Abandon the boat SMC, covered its backdoor,and increased sales

3. Ward Off Threat Avoid the storm Land Transportation Office (LTO)used nuisance stencil boys tofacilitate its registration process

4. Avail ofOpportunities

Call attention of vesselsand aircrafts that maypass by

SMC, after retrieving design ofcompetitors to-be-launchedproduct from a garbage can,used the design for its newestproduct

5. Match the Weaknesswith Strength orOpportunity

Use the raft before theyacht sinks

LTO used malls as venues wheredrivers can renew their licensesso that long-processing time willbe shortened

6. Match the Threatwith Strength orOpportunity

Gather water from the rainresulting from the brewingstorm

DLSU-COE sought the help ofalumni to establish LINKAGE, aunit that would address thegrowing need for on-the-jobtrainings of students.

5. Convert Weaknessto Strength

Bring back an item toensure no one will eatanother

Coca-Cola, due to customerscomplaints, marketed RTO asAng orange soft drinks na maypulp bits

6. Convert Threat toStrength

Let the Dog chase theChicken, so that the dogwill swim across and thechicken will fly to the otherside

Importer of packing machines,left with canceled orders,decided to produce Zesto, thateventually became best selling

juice drink

Direct. Direct scheme may strengthen the strength, weaken the weakness, ward off the threator avail of opportunities. In the saga, the survivors will use a few of the 10 items (strength)for rescue and fulfillment of physiological needs. Because the yacht is sinking fast (weakness)they have to abandon it immediately. They have to avoid the storm (threat) brewing and callthe attention of vehicles that may pass by (opportunity).

Matching. Weaknesses and threats may be addressed by matching them with strengths oropportunities. Since the raft is sinking fast (weakness) the survivors can use the raft as thevessel. Rain (opportunity) may be a source of water to avoid dehydration (threat)

Conversion. The most challenging for many managers is to transform the weakness or threatinto a strength. Opportunity easily becomes a strength if the organization avails of it. In the



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saga, storm brewing in the east (threat) becomes a strength if the survivors collect the rainthat it triggers for drinking water. The smallness of the raft (weakness) forces the survivorsto think of ways how each item can be used for rescue and meeting physiological needs.

Alfred Yao, a mechanical engineer, used to supply tetra packs to various companies in thePhilippines. A new packaging material, doy packs, was offered to him by a foreign supplier. Basedon his talks with his customers, the new materials would be a viable alternative for most of them. So,

he ordered the machines that would produce the new materials. Upon receipt of the machines, mostof the customers said they could not order the new package, to Alfreds dismay. So he was left withmachines that could not be used. But rather than be daunted by the situation, he thought of makingthe most use of his idle machines. He asked a chemist to concoct a fruit juice for him and producedthe juice for commercial purpose using the new packaging material. The fruit juice market loved theproduct so much that in five years time the new product, Zesto Orange, became the largest selling inthe Philippines.

Action Setting. Management translates the schemes into actions, ensuring that the latter areconsistent and productive. To check on consistency, management identifies possible programs (orprojects and activities) and minimizes conflicting results. For example, consider the sets of activities

that will implement the strategies 1) Avoid the storm and 2) Use rain for water.Two of the activities that may conflict in result are Paddle to the west and Gather water triggeredby the storm. One of the ways to resolve the conflict is to schedule Gather water triggered by thestorm first, followed by Paddle to the west fast. As to the productivities of each and all actionstogether, these are better addressed by the section Resource Allocation.

Another concern in setting the action is the manner by which the action will be implementedrelative to other actions that it will replace. In the saga, Move selected items to the raft is the newaction while Keep the 10 items in good condition. Five popular alternatives can be chosen from.(see Figure below).



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-----------------------------------------------------------------1. Direct Conversion

2. Parallel Conversion

3. Phase-in/Phase-out Conversion

4. Pilot Conversion

Fig. 7. Pictographic Models of Conversion Approaches

Direct Conversion (Turnkey ). This manner means implementing a new action and stoppingthe old action/s it will replace. The old is turned off as soon as the new is turned on. When

this approach is to be used, the new system should and must be made to functionsatisfactorily because it might be difficult to go back to the old. The drastic nature of thisapproach usually restricts its use to relatively simple and non-critical actions. In our example,when Move selected items to the raft is carried out, then Keep the 10 items in goodcondition needs to be stopped.

Parallel Conversion. This method seeks to maximize security by continuing to operate the oldaction hand-in-hand with the new action until the latter has demonstrated its ability toperform satisfactorily. This approach is especially applicable when both systems have thesame or comparable outputs; otherwise, it will take extra effort to know which of the old ornew is running productively. The main disadvantage of parallel conversion is the cost andattention required in using two systems. These characteristics make the approachcommendable for actions where it is laborious and costly to correct erroneous outputs such

as the computerization of accounting systems, particularly of wage and salary computations.While Move selected items to the raft is being done Keep the 10 items in good conditioncan be simultaneously done until the survivors have finally determined which of the 10 itemswill need to be disposed of.

Pilot Conversion .. This approach applies the new action in one or two parts (e.g., branch,organizational unit, process), and once proven productive in those parts, it is implemented inthe other parts. This method clearly eliminates some of the undesirable characteristics of thepreceding approaches. It is particularly recommended for organizations whose parts arehomogenous such that if the new system is proven satisfactory in one part, only minimal


Old System

Old System New System

New System

Old System New System

New System

Old SystemPILOT


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modifications will be needed for it to be adopted by the other parts. Nevertheless, pilotconversion is not always advantageous, as in the case of a taxation system. Many will surelycomplain when only one area of the country is piloted for a proposed gross income taxationsystem while others follow the net-income taxation. Move selected items to the raft using aslide will be carried out for the first two priority items while Keep the items in goodcondition will be applied to the others. Once, the new action is proven productive, then itwill be done for the other top priority items.

Phase - in/Phase - out Conversion. This method calls for modular implementation of the action;that is, portions of the new actions are implemented one after the other. One draw-back ofthis approach is the possibility that each part of the action may work satisfactorily whentaken individually, but when integrated with the other parts of the action may be disastrous.

Resource Allocation. For each action, managers have to allocate resources to ensure it will bedone productively. To have a holistic view of the actions and the resources allocated to each, animplementation plan, such as the one shown below may be drawn. Here are some guidelines to fillout each column (Please see below an abridged implementation plan of the e-commerce trainingCOE designed to disseminate the technology).

Timetable . Start and Ending periods of an action should observe necessary precedence. Ifaction 1 has to finish before action 2 is started, then the start time of the second should be

later than the end time of the first. (Refer to Gantt charting and PERT-CPM in otherreferences for more details). The timetable also enables if there are conflicts in the use ofsome resources. Sometimes, the total amount of time each resource will be used may alsobe indicated beside the column for each resource.

Persons .individuals or groups who will perform the action are placed underImplementer and the one accountable for the implementation is the Responsible.

Raw materials. In addition to the names of materials and supplies, the volume of each isplaced in this column.

Information . Forms or records that need to be filled out, reports (written or not) that haveto be prepared to carry out each activity are stipulated to ensure that the neededinformation will be available.

Methods, Equipment and Utilities. Detailing these three enable management to determinewhich processes or technologies are overused or underused, and adjust the planaccordingly.

Budget. Monetary valuation of resources entailed in each activity will enablemanagement to determine if the organization has enough money to implement and adjustvolume of resource allocation and timetable.

Output. In this column, the expected output (and preferably, their respective quantities)are itemized as a countercheck if the action accomplishes the objective/s for which it hasbeen planned to attain.

Jesus admonishes managers to take resource allocation seriously. He says, If one of you isplanning to build a tower, figure out what it will cost to see if you have enough money tofinish the job. If you dont you will not be able to finish the tower after laying out the

foundation.



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Actions TimetablePersons Raw

Matls.Info Method

Equipment& Utilities Budget OutputRespon

si-bleImplementer

Program-1

Project-1.1Activity-aActivity-b

Project-1.2Activity-cActivity-d

Program-2

Actions Timetable Responsible Budget Output

1. Executive Training

Market Jan - May RVA P20,000 Brochures, List ofParticipants,

Conduct June 1 - 6 CTC P80,000 Training KitEvaluate June 8 -14 JRA P 2,000 Evaluation Sheet

2. Public Training

Market July -Sep RVA P10,000Brochures, List of

Participants,Conduct Oct 1 - 6 CTC P60,000 Training KitEvaluate Oct 8-14 JRA P 2,000 Evaluation Sheet


Format of an Implementation Plan

Abridged Implementation Plan for the E-commerce Training


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Strategic PlanningIf the king goes out with 10,000 men to fight another king who comes against 20,000 men,

he will sit down first and decide if he is strong enough to face the other king. If he isnt, he will sendmessengers to meet the other king to ask for terms of peace while he is still a long way off. Theseare Jesus words to illustrate how and why strategic planning should be done by managers.

Situation appraisal in strategic planning consists of prognosticating and diagnosing in thelong-term almost all aspects of the organization and its environment, focusing on the critical success

factors (CSF). These factors are select features of the organization or the environment that willimpact on the success and survival of the organization. The table below shows the COEs CSF inthe Vision Planning for the year 2020. Often, the CSF deals with volume, value and quality ofoutput, cost, market or industry share, and distinctive competencies of the organization.

COE Critical Success Factors for Vision 2020

-Curriculum designed according to industry needs

-IT-oriented curriculum

-Critical- & analytical-thinking students

-Students intellectually at par with those of world-class institutions

-Up-to-date and innovative teaching methods./techniques-Application-oriented instructional system through practicum, thesis, etc.

-Formal linkage with industry, government, NGOs & other academic institutions

-Outreach missions emphasizing technology transfer

-Well-equipped laboratories

-Complete library materials

-Consultative & participatory management by university admin

-Visionary leadership in college & departmental levels

-Research collaborations with local/foreign academic institutions

- Research/consulting for and with foreign institutions

- Publication in international journals-Faculty members engaged in post-graduate studies (here & abroad)

-Faculty up-to-date with new trends and developments in the respective eng. fields

In forecasting, management is keenly on the look-out for cycles (peak and ebb behavior over anumber of years) of some of its CSF, particularly volume of output. Between 1960 and 1980, it wasobserved that beer and soft-drink sales had 6- to 7-year cycles. Because it is hard to predict the long-term, the forecast is often not specific and precise.

Strategic objective formulation entails the creation or updating of the mission, vision andgoals. Like forecasts, long-term objectives are expected to be less and specific and precise compared

to short-term targets.In setting strategies, managers usually go for reengineering (radical change) of supply chain,competitive schemes, or product and market. In dealing with the supply chain, Porter recommendsthat the organization acquires either some suppliers (backward integration), distributors orcustomers (forward integration) or competitors (horizontal). Or it may simply collaborate with them.On the other hand, three mutually exclusive competitive positioning strategies should be adopted:overall cost leadership, differentiating the product from competitors so that it becomes the leader inthat class, or focusing on a few market segments. Kotler offers several product strategies dependingon the stage of the product in the life cycle, either in introduction, growth, maturity and decline. Forexample, in the maturity stage where many products are, and the longest and most problematic stage



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for any product, alternative product strategies are: modify the market by increasing the number ofusers or increasing the usage rate of the product; modify the product through quality improvement,feature improvement or style improvement; or modify the marketing program such as pricing,distribution, advertising, promotion, selling or services.

Figure 8. Internal and External Stockholders of an Organization


General P

POLITICS

ARTS ANDCULTURE

TECHNOLOGYAND SCIENCE

PHYSICAL

Ownership

Management

Members

General Public

WatchersSupplier

Customer Government

Competitor Distributor

ENVIRONMENT

DIVINITY TIME

Managen Topic 1.3

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