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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

1.2.4 When to complete business planning

Business plans also form the foundation for translating into the organisational planning process any external factors that may impact an operational areas' capacity to set meaningful objectives.

Note:
There are many environmental issues affecting business planning. Bowles and Graham (1994 & revisited 2002), identified the following as major external issues from 1992-2002, that were major considerations when framing operational plans.

1. Government and societal Shifting tax base
   • Growth of global markets
   • Aging population
   • Higher demand for knowledge workers
   • Best practice benchmarks
     
2. Enterprise Strategies Customer focus
   • Leaner organisation
   • Quality Strategies
   • Flatter organisation
   • Staff participation
   • Supply chain management
     
3. New technologies Growth of 'e' in business
   • New communications and infrastructure technology (ICTs)
   • Integration of systems
   • Added value or technology
   • Speed and cost efficiencies
   • New work practices
     
4. Competitors Benchmarking
   • Speed of response and new product development
   • Further decentralisation
     
5. Industrial relations Team work
   • Multiskilling
   • Total flexibility
     
6. Customer needs and expectations Customers are 'king'
   • Satisfying needs
   • Budget and finances Shrinking funding
   • Doing more with less
   • Financial Management
   • Improvement

Activity 1

Developing a plan from vision to performance indicators/ standards/ measures.

(rtf) Planning and Setting Objectives and Indicators Tool

(pdf) Planning and Setting Objectives and Indicators Tool

Access the self-paced tool Planning and Setting Objectives and Indicators . If you are completing this course in sequence you may already have completed components of this tool relating to Key Performance Indicators during earlier study. This is an integrated assessment tools and covers all aspects of preparing a plan covered within this Unit of Study. All components of the tool must be completed including drafting:

• Visions
• Values
• Key Result Areas
• Priority Areas
• Key Performance Indicators

Each is dealt with as a component part in the planning process.

Reading 1

Krell, E (June, 2002) The State of Corporate Performance Management , Business Finance, 3 pages. Sourced November 2003 at http://www.businessfinancemag.com/magazine/archives/article.html
?articleID=13878&Print=Y

Reading 2

Business Link (2004) 'Setting business targets', Online Manual Business Manual , UK Government. Available at http://www.businesslink.gov.uk/bdotg/action/layer?r.l2=1074404826&r.l 1=1074404796&r.s=tl&topicId=1074428638

Activity 2

1. Work though the business planning process and especially the KPI section and exercise provided in the Business Link online process/manual.
2. Compare and contrast the planning cycles the reading from Krell suggests are undertaken in different US-based organisations.
3. How could the frequency of the planning cycle affect the data and KPIs set by supervisors?
4. Apply some of the survey questions to your organisations - for instance how often do supervisors have to report on their KPIs? Is compensation/reward tied to these KPIs? How do managers get access to data related to performance?

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