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• Module overview
• 1. Introduction to planning
  • 1.1 Types of plans
    • 1.1.1 Some definitions
    • 1.1.2 Domains of planning
    • 1.1.3 Users and levels of planning
  • 1.2 Completing a planning cycle
    • 1.2.1 A planning process
    • 1.2.2 Tactical and operational planning
    • 1.2.3 A participative planning process
    • 1.2.4 When to complete business planning
  • 1.3 Implementing an operational plan
    • 1.3.1 Define the plan's purpose
    • 1.3.2 Setting the planning period and scope
    • 1.3.3 Why plans fail - The strategic level
    • 1.3.4 Why plans fail - The operational or project level
  • 1.4 SMART goals
    • 1.4.1 S.M.A.R.T. Goal statements
  • 1.5 Contingency plans
    • 1.5.1 Why contingency plan?
    • 1.5.2 Contingency plans and risk
    • 1.5.3 Contingency planning actions

• 2. Plan and manage resources

  • 2.1 Plan and manage human resources
    • 2.1.1 Recruitment
    • 2.1.2 Selection
    • 2.1.3 Induction
  • 2.2 Enterprise Resource Planning (ERP)
  • 2.3 Purchasing resources
    • 2.3.1 Tangible and intangible assets
    • 2.3.2 Acquisition costs
    • 2.3.3 Depreciation costs
    • 2.3.4 Planning resource acquisition and utilisation
    • 2.3.5 Estimating resource needs
  • 2.4 Manage Capacity
    • 2.4.1. Planning capacity
    • 2.4.2. Measuring capacity
    • 2.4.3. Matching operations plans with capacity
    • 2.4.4. Capacity analysis and economies of scale
    • 2.4.5. Capacity and performance effectiveness
    • 2.4.6. Determinants of capacity
  • 2.5 Aggregate and Master Planning
    • 2.5.1 Master Schedule
    • 2.5.2 Operational control and resource planning
    • 2.5.3 Demand and scheduling control

• 3. Risk Management

  • 3.1 Risk Management
    • 3.1.1 Potential benefits from an effective risk management
    • 3.1.2 Classifying risk
    • 3.1.3 Risk and ANZS4360:2004
    • 3.1.4 Risk analysis
  • 3.2 Estimate the risk attached to a corrective action
    • 3.2.1 Risk analysis categories
    • 3.2.2 Prioritising risks

• 4. Planning projects

  • 4.1 Planning the project
    • 4.1.1 Setting the project plan
    • 4.1.2 Setting achievable outcomes
  • 4.2 Controlling Projects
    • 4.2.1 Personnel resources
    • 4.2.2 Managing project costs
    • 4.2.3 Value of managing project costs
    • 4.2.4 Estimates
    • 4.2.5 Cost Coding
    • 4.2.6 The time factor
  • 4.3 Scheduling project tasks and activities
    • 4.3.1 Project timelines and deliverables
    • 4.3.2 Critical Path Analysis (CPA)
    • 4.3.3 PERT
    • 4.3.4 Seven steps to project scheduling
    • 4.3.5 Completing project schedule activities

• 5. Problem solving and decision making

  • 5.1 Problem solving
    • 5.1.1 The problem solving process
    • 5.1.2 Solutions search
    • 5.1.3 Removing root causes
    • 5.1.4 Solutions implementation through inclusive communication processes
  • 5.2 Decision making
    • 5.2.1 Decision making model and leadership styles
  • 5.3 Decision making approaches
    • 5.3.1 The logical systems
    • 5.3.2 Contingency approach
    • 5.3.3 Quantitative - schematic and mathematical approaches
    • 5.3.4 Critical Path Analysis
    • 5.3.5 PERT
    • 5.3.6 Group quantitative approaches
    • 5.3.7 A qualitative approach
  • 5.4 Context and the influence on the decision processes
    • 5.4.1 Factors in decision making
    • 5.4.2 Rational decision making
    • 5.4.3 Creative decision making
  • 5.5 Scenarios for team decision making and problem solving
    • Problem scenario number 1 - Lost in the bush
    • Problem scenario number 2 - Toothpaste blues
    • Analysis of personal behaviour in groups

1.5.3 Contingency planning actions

A contingency planning process may involve the following actions.

Table 1 A contingency planning process

Action	Purpose
Alignment to an existing plan/ policy	State the purpose of having a Contingency Plan and how it fits into the normal operations of the organisation
Priority of Focus	Is the risk so great the issue is about life and safety, more than operations and performance? State what is the most important aspects for the organisation
Name the danger	Classify and define the exact nature of the hazard, disaster or danger
Business Impact Analysis	Specify the quantifiable risks and outline the potential costs
Prevention Strategies	Outline the policies and procedures to be followed to minimise impact and maximise return to normal operations
Network Interactions and Authority	Confirm who are the key decision makers, who holds authority and in what jurisdictions, task responsibilities, contact details, and legal and legislative reporting requirements
Action Plan	Outline timing, responsibilities and procedures to be followed
Testing and Maintenance	Outline the testing and maintenance or monitoring plans that can assist with scoping the risk or even prevent occurrence of the risk
Training	Map training for your organisation's employees, managers, suppliers (vendors), customers, emergency response personnel, or others who can prevent, assist recovery or need to be involved. The frequency and type of training must be specified

Contingency planning has three main benefits:

• Identification of potential problems;
• Rapid response to anticipated problems; and
• Experience in a structure and process that enable response to unanticipated problems.

Developing a contingency plan may not be necessary if the risk is low. But how many managers have never seen a contingency plan or know the risks present in a given operational process? In such cases small problems when they occur cause serious disruption to operations. Such problems should have been anticipated through contingency planning during the process of developing operational plans. While planning cannot cover all contingencies, the search can increase the organisation's chance of survival, tighten existing plans and speed the response to unanticipated problems if they do occur.

Reading 3

Courtney, H, Kirkland , J & Viguerie, P (2000) 'Strategy Under Uncertainty', The Mckinsey Quarterly . No. 3. Sourced May 2003 (free for courtesy sign up guest), at http://www.mckinseyquarterly.com/article_page.aspx?ar=1064&L2=21& L3=37&srid=116&gp=1 .

Activity 5

1. List and detail the three strategic postures vis-á-vis uncertainty, and complete three types of actions the authors suggest a company can adopt.
2. Is strategic planning only about controlling uncertainty?
3. Is the control of uncertainty the role of contingency planning?

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