Recent changes in long range corporate planning in Japan

In his article the author discusses an emerging new stage in Japanese long range corporate planning which reflects the struggles of Japanese companies against the new economic situation in which it is very difficult to enjoy a high economic growth rate. Among the many long range plans launched in 1976 and 1977 Hitachi's new long range plan provides an excellent illustration of the main features of the struggles. Using Hitachi as an example various new aspects manifested in Stage IV of Japanese long range corporate planning are described with reference to the economic and social background and its implications for Japanese companies.     

Strategic planning for social and political change

Formalized planning is currently applied to planning for operations and capital investment, planning for products and markets, and occasionally for manpower. However, there is little evidence that companies are producing formal plans and programmes to deal with social and political change. Unfortunately, public opinion is moving against business, action groups inside and outside companies are challenging the authority of management, and public officials and politicians are already framing new laws and regulations. Unless managers begin to get more involved in the framing of these controls they are likely to find laws enacted and enforced by people who have little knowledge or sympathy with business. In this article the author points up the necessity to assess the social and political challenge to their business, and formulate and implement social and political strategies and plans aimed at ensuring the survival and prosperity of their organisations.     

Elements of effective corporate planning

This paper focuses on several specific areas in corporate planning which heretofore have received limited attention in the literature. These areas include perception of a need for planning, analysis of planning from a process viewpoint with particular emphasis on organizational structure, and elements of effective planning. Data on which conclusions are based were developed through structured in-depth interviews with key planning executives of 14 large corporations in the Pittsburgh Metropolitan area.The study determined that the most prevalent event associated with perception of a need for more formalized planning was a change in top management. The emphasis on planning usually arose from three sets of factors—organizational, external, and performance. The typical planning process involves establishing corporate goals and objectives, setting environmental premises, collecting information and forecasting, establishing divisional goals and objectives, developing divisional plans, and revising objectives and plans if objectives are not met. The major participants in the planning process are top management, the corporate planning department, divisional general management, divisional staff groups, and intermediary planning groups.The study identified necessary conditions for effective planning which included planning knowledge and skills, planning climate, psychological commitment, and effective group behavior. The study also includes a discussion of planning weaknesses, current trends, and recommendations.     

Long range planning— Japan-USA— A comparative study

This article reports on a comparative study carried out in the U.S.A. and Japan. He concludes that in the U.S.A. long range planning is used to integrate the strategies of divisions and to control the divisions. The planning process is usually bottom-up rather than top-down.In Japan, long range planning is used for improving strategic decisions of top management, so the planning process is a centralized interactive process.Project emphasis rather than quantitative planning is a common characteristic in both the U.S.A. and Japan. However American corporations are more advanced in this respect. Many Japanese corporations suggest that project emphasis is the key success factor for planning.To cope with uncertainty, American corporations tend to update their plans every year or even at shorter intervals, while adopting contingency plans.To the same end, Japanese corporations are using two time horizon plans which are composed of a long range strategy and a medium range plan.With respect to follow-up and implementation, American corporations follow-up more closely and long range planning is used for the evaluation of managers of divisions. The quality of plan and accomplishment are reflected to the economic rewards.Japanese corporations are less inclined to follow up the long range plan itself, but it is considered as important to implement it through the budget and also through the project plan. Project teams are quite frequently used.     

The components of strategic planning

What is the current level of strategic planning in the United States? What objectives are quantified in the strategic plans? What kinds of environmental factors are identified in the planning process? What areas are planned for? How often are the strategic plans reviewed? These are among the questions which were raised in a recent survey of 323 companies whose results are summarized in this paper. It is hoped that this study will permit practitioners to compare their planning with planning being performed in their industry.Suggested improvements in the stategic planning process include more frequent monitoring of performance against the plans, more comprehensive environmental surveillance, and greater emphasis on organizational structure plans. The strategic planning process was found to be constantly evolving and cyclical. The strategic planning activity expanded during adversity and contracted when business prospects were good.     

Forest policy— formulation and implementation

This paper is concerned with the development of plans and policy with the U.K. State Forestry industry. The author outlines the structure within which plans and policies are developed. He emphasises the need for governments and foresters to be more aware of each others needs and potentials in planning. He highlights the problems of valuation in forestry (social as opposed to the private costs and benefits). Finally he suggests the components of an effective planning system in the forestry environment.     

A concept of an integrated transport model

This paper is one of a series being produced on the application of Operational Research techniques in the integrated planning of public service resource provision and consumption. It describes a conceptual basis for planning transportation services within the context of a public service, the others are related to Health Services, Educational Services and community development services.Two sub-models, a linear sub-model and a dynamic sub-model are linked to form the integrated approach to the planning problem. The overall concept is to evaluate in terms of penalties and benefits the alternative plans of resource provisions.It is of interest to know that the principles of the Linear model described here has been applied to long range planning in the Health Service in the U.S.A. and U.K., and has been reported at the NATO conference, Portugal (1974). The Dynamic model has been used, in a more unstructured fashion than described here, by the Greater London Councils. The model in this paper is to form the basis of a more detailed evaluation of alternative transportation plans.     

Spatial Planning in Ghana: Exploring the Contradictions

The purpose of this research is twofold: to explore the complexity of spatial plan preparation and implementation in Ghana using Kumasi as a case study; and second, to examine the contradictions of spatial plans and ‘actual development’ occurring in Kumasi. Using social science research methods (semi-structured interviews) and physical survey (land use plans), findings indicate that spatial planning in Kumasi is a bureaucratic process hijacked by urban planning agencies with limited involvement of urban residents. As a result, urban development is considerably influenced by spontaneous informal development patterns (i.e. self-organization). This phenomenon of self-organization is expressed in a context of uncertainty created by weak spatial planning system which encourages haphazard development. Regrettably, in Kumasi, self-organization is often overlooked by spatial planning agencies as they focused on rigid and exclusionary spatial plans. This paper advocates consideration and integration of self-organization processes in spatial planning efforts to respond adequately to the urban development challenges confronting Kumasi.     

Effective planning and control of large projects—Using work breakdown structure

This article is designed to make planning managers aware of a concept and practice that offers great promise of assisting in the development of plans, particularly budgets, and allowing improved visibility in the control phase. The work breakdown structure (WBS) concept pinpoints individuals and organizations responsible for budget preparation in large and complex organizations and provides the management team with information on responsibility, costs and schedules.     

Corporate Planning and Control in German industry

This article records some important results of an extensive empirical investigation in GFR. In so doing the structure and the stage of development of Corporate Planning and Control Systems in 355 industrial companies were analyzed—in addition other systems were investigated. Within the context of the planning and Control Systems, the multi-echelon organization of the system, the time scale and the differentiation of the plans as regards content, co-ordinated planning between various management levels (multi-echelon co-ordination) as well as the harmonization, adaptation and formalization of the plans and the planning, were investigated. Furthermore the content of the planning— for example, objectives, programmes, resources, and budgets—, the various sectional plans of the company, the organizational units, information as well as the interrelationship between the different management levels as regards information and the instruments for planning and control, were surveyed. In relation to the other systems, the organization, information, and management development systems as well as the general management system were analyzed.Within the context of the empirical investigation the structure and developmental stage of Planning and Control Systems in 355 industrial companies in the GFR were analyzed. As the basis for the empirical study a technological concept for Planning and Control Systems was worked out, which is based on a comprehensive planning and control theory.     

Psychological aspects of planning

This article examines the role of psychological variables in implementing planning models. Specifically, the impact of perceptual processes, cognitive ability, motivation, and values on planning models are explored. Topics discussed include; (1) resistance to planning activities and plans, (2) motivation for improved performance against plans, (3) cognitive limitations in implementing plans, and (4) blocks to innovate planning. Strategies for facilitating the implementation of planning models in each of these areas are reviewed.     

Strategic planning—A new arrival in Hungarian industry

This paper outlines the fairly recent history of strategic planning in Hungary, which is still by no means widespread. Strategic planning in business has to co-exist with the official national 1 and 5 year plans. At the present time some 30 percent of Hungarian industrial companies have some type of strategic planning practice, and the rest have some version of official planning. Those with good independent planning practices have proved more able to survive in a changing environment.     

Hospital and medical staff strategic planning: developing an integrated approach

The physician as the principal customer of the hospital is a relatively new concept, indicative of the shift to a more complete market orientation in strategic planning. Although medical staff and medical community dynamics receive increasing attention in strategic planning, much more sophistication is now needed to involve physicians constructively in strategic planning for the hospital and medical staff. While full consonance of physician and hospital plans may be achievable only in a completely integrated delivery system, there is considerable room for improvement in current organizational models.     

Business planning in successful small firms

Strategic planning has been widely publicized during the last decade, but what has been accomplished by this management activity in smaller, high-growth firms? Business plans have been widely recommended for start-up funding, but we have noted additional uses for business plans in pratice. This article reports methods and results of strategic planning and written business plans in high-growth ‘INC. 500’ firms. In spite of a variety of obstacles, over half of the firms conduct strategic planning on a regular basis. Results of this study show that fast-growth firms develop written business plans as a product of strategic planning, mainly by five key management personnel. Written business plans are used more for internal management purposes than for start-up funding. Finally, the completion of strategic planning is positively associated with a firm's profitability. Based on survey and interview data, this article describes a four-phase model to help ensure effective integration of strategic planning processes and the resulting written business plans.     

An Empirical Agent‐Based Model to Simulate the Adoption of Water Reuse Using the Social Amplification of Risk Framework

Water reuse can serve as a sustainable alternative water source for urban areas. However, the successful implementation of large‐scale water reuse projects depends on community acceptance. Because of the negative perceptions that are traditionally associated with reclaimed water, water reuse is often not considered in the development of urban water management plans. This study develops a simulation model for understanding community opinion dynamics surrounding the issue of water reuse, and how individual perceptions evolve within that context, which can help in the planning and decision‐making process. Based on the social amplification of risk framework, our agent‐based model simulates consumer perceptions, discussion patterns, and their adoption or rejection of water reuse. The model is based on the “risk publics” model, an empirical approach that uses the concept of belief clusters to explain the adoption of new technology. Each household is represented as an agent, and parameters that define their behavior and attributes are defined from survey data. Community‐level parameters—including social groups, relationships, and communication variables, also from survey data—are encoded to simulate the social processes that influence community opinion. The model demonstrates its capabilities to simulate opinion dynamics and consumer adoption of water reuse. In addition, based on empirical data, the model is applied to investigate water reuse behavior in different regions of the United States. Importantly, our results reveal that public opinion dynamics emerge differently based on membership in opinion clusters, frequency of discussion, and the structure of social networks.     

Leadership skills and the group performance: Situational demands,behavioral requirements,and planning

In recent years, the role of cognitive skills in shaping leader performance has received more attention. In the present study, the role of one key set of skills, planning skills, was examined with respect to leader emergence and group performance in a sample of 55 groups, containing 195 undergraduates, working on a business planning task. Leader planning skills were assessed along with structuring and considerate behavior under conditions where task complexity, group diversity, and turbulence were examined as potential influences on the need for planning and the need for leaders possessing planning skills. It was found that complexity, diversity, and turbulence influenced the quality and originality of group plans, as well as structuring behavior on the part of leaders. Leader structuring behavior interacted with leader planning skills in determining the quality and originality of group plans. The implications of these findings for understanding the role of planning skills in shaping leader emergence and group performance are discussed.     

Corporate planning— A personal viewpoint

The theme running through this article is a plea for realism in the preparation of corporate plans. The author outlines his views on corporate planning: the steps taken by the Greater London Council to introduce corporate planning supported by a programme budgeting system are described, and a summary is given of how the planning process operates.

The effect of the current industrial, financial and economic difficulties on corporate plans is discussed, and a note of warning sounded about the utility under present circumstances of corporate planning.     

The paradox of development planning

Economic planning has become the chief hope of developing countries for ultimately achieving parity with advanced countries in living standards and social progress. Yet, given the different degree of effective control over the economic environment that distinguishes advanced from developing countries, planning is apt to entail a low probability of failure only in the former, where it is less needed or desired. Magnitudes difficult to control in developing countries include agricultural output and export proceeds, yet are the most critical to the economic stability and initial advancement of these societies. Also seriously lacking are reliable and accurate sources of data on which development plans must be based. Acceptance of planning in low-income countries should be conditioned by an awareness that it will not close the development gap overnight and must incorporate broad tolerances with respect to targets.     

Aggregate production planning using spreadsheet software

Firms can benefit by developing and using aggregate production plans. However, reports of ongoing production planning applications are rare. The complexity of production planning models has been cited as one of the reasons that firms do not develop formal production plans. This study was conducted to determine if a simple model, trial-and-error on a spreadsheet, could be used to produce cost-effective production planning solutions. Results indicate that good solutions can be obtained using this method. Furthermore, solutions tend to improve as the knowledge of the production planner increases and as time spent developing solutions increases. In addition, experience at producing spreadsheet-based solutions can translate into lower cost solutions for more complex problems while using less time for analysis. These findings indicate that spreadsheets can be effective decision aids for developing production planning solutions. By coupling the power and simplicity of a spreadsheet modelling package with the trial-and-error approach to production planning, model complexity should no longer be cited as a reason for not developing and using formal aggregate production plans.     

Formal strategy in public hospitals

This paper suggests that the difficulties associated with the application of formal strategic planning in public professional service organizations may have been underestimated in much of the literature. A survey of written strategic plans produced by Canadian hospitals showed that these plans were often heavily oriented towards expansion, ambiguous and rather loosely integrated, leading to questions concerning their realism and utility as a basis for strategic decisions. This phenomenon seems symptomatic of the complex (and often highly political) decision making environment faced by hospital administrators (and by managers of other professional service organizations such as universities and social service agencies). It is concluded that the benefits of formal planning may be different and less tangible for these organizations than for private business.