Developing a climate for planning

Technical advances of long range planning have been constrained by a human factor which has emerged as a planning bottleneck. The planning ‘climate’ can be a major facilitator or inhibitor of successful long range planning. Therefore the development of long range planning systems would benefit from including the planning climate as a planned systematic module in the total project. This article reports the background, contents and results of a programme for developing a proper planning climate.     

Organization for long range planning—A survey of German companies

Whilst much is written about the theory of long range planning it is a fact that unfortunately, the organization of long range planning of business strategy within companies, has not proved to be an attractive object of research for business theorists. This paper is the exception. By an examination of more than 200 companies residing in the Federal Republic of Germany, long range planning is shown to be gaining more importance as a tool for company management. The organizational design of the planning system and its integration into the overall company structure is, according to this analysis, shown to be one of the most central problems of the implementation of corporate planning systems. This paper presents a theoretical framework and the empirical findings on structural and procedural aspects of long range planning, systems. The empirical study was carried out by means of interviews and a questionnaire survey. The survey results show some interesting and important features of the problems engendered by corporate planning and some of the advantages accruing from its successful implementation. Additionally, the analysis provides an interesting backcloth against which to view the implementation of planning and the relationships between the different levels of planning.     

The human side of merger planning

This article argues that chief executive officers and staff planners must more explicitly integrate ‘change planning’ with the other dimensions of merger planning (e.g. financial, marketing) if implementation is to be successful. Based on recent research, guidelines for gaining acceptance of merger are presented and discussed. The need to distinguish between gaining initial acceptance, on the one hand, and continuing acceptance on the other is stressed, and the guidelines carry forward that distinction. Such guidelines should be integrated into the overall strategic plan developed for merger.     

The Relationship Between Information System Planning Sophistication and Information System Success: An Empirical Assessment*

Literature on information systems (IS) planning implicitly assumes that a sophisticated IS planning process leads to greater IS success. This paper questions the exclusive reliance on this traditional belief. Instead, because IS planning requires significant organizational resources, prior IS success is essential to convince top management of the importance of IS planning sophistication. Therefore, IS success may influence IS planning sophistication. Several theoretical arguments are advanced in support of this explanation. Data from a survey of 236 academic institutions are used to empirically assess the two alternative directions of the relationship between IS planning sophistication and IS success. Four structural models including the alternative causal directions are evaluated. Two of these models are supported. Together, they imply that for a high level of IS planning sophistication, either the previous ISs should have been successful or the organization should possess advanced information technology capabilities. Thus, empirical results suggest that the explanation presented here (i.e., IS success facilitates IS planning sophistication) provides an equally good alternative to the more traditional explanation (i.e., IS planning sophistication facilitates IS success).     

Paradoxes in planning

A paradox may be described as: ‘an idea which seems to conflict with conventional logic’. Strategic planning has acquired such a conventional logic, or set of paradigms, which enables its practitioners to structure and understand their activities. However, some years of being a practitioner has convinced the author that good management and good planning often violate these principles. It is necessary to restate them, or frequently to invert them, to obtain a useful structure for successful planning.     

PLANNING PROCESS ARCHETYPES AND THEIR EFFECTIVENESS

Case studies of planning were profiled to identify how practitioners carry out a planning process. Five archetype processes emerged from the analyses which were named evaluative, historical model, off-the-shelf, search, and nova. These five processes were compared in terms of their adoption rate and perceived quality. The evaluative process was found to be the most successful, followed by the historical model and off-the-shelf processes. Nova and search processes had the least success. Contextual factors, such as time pressure and resources available, were included in the analyses to identify conditions of use for each process type. In situations where time pressure was high or the planning concerned services, the off-the-shelf model produced the best results; in situations where time pressure was low or the planning concerned internal operations, the historical model produced the best results. Most of the planning activity in organizations appears to be informal and heuristic, ignoring the methods described in the planning literature.     

Long range planning— An open systems view

Long range planning has been identified as a major managerial factor for many years. Unfortunately, some important factors have not been adequately incorporated into the planning process. These componets of open systems theory—the environment, goals, and strategy— are discussed and integrated into the long-range planning process. This procedure will make for a more successful and effective planning operation in organizations     

Success and Failure of MRP II Implementation

This paper assesses the reasons for the success or failure of manufacturing resource planning (MRPII) implementation projects. It begins by discussing the literature and research on success and failure of these systems and presents evidence from cases prepared by the authors. The paper is not concerned to prescribe ‘best practice’ for MRP implementation. The first section reviews the relevant literature and concludes that there is a divergence of opinion as to what constitutes success, raising questions on the usefulness of current methods of establishing whether implementation is successful. The latter section of the paper uses results from longitudinal (process) research carried out by the authors. This starts with a discussion of what counts for success. The discussion highlights the importance of understanding the full potential of MRPII in effecting change of organizational structures, cultures and practice. Several factors that contribute towards MRPII failure are next considered. Finally,‘big bang’style implementations, such as those recommended by the Ollie Wight organization, are most likely to be successful if the organization follows a strategic approach to planning. There also needs to be a high degree of fit between organizational structure, culture and the demands of the MRPII system.     

Decision Processes for Developing Strategic Applications of Information Systems: A Contingency Approach*

Strategic applications of information systems (IS) are considered by IS researchers to be determined by contextual factors such as environmental uncertainty, and influenced by attributes of the processes preceding them, such as planning and top management support. For better management of the process leading to these applications, it is essential to understand the relationship between process attributes and contextual factors. Utilizing a contingency approach, this article takes a step toward such an understanding. Based on successful strategic IS applications from 81 large companies, it examines the relationship between the context of these applications and the decision-making process leading to them. The results indicate that the external environment is related to whether a rational or political decision-making process is used. The IS function seems to influence the use of the decision process implied by IS researchers, one in which the top management champions the strategic application, while the IS managers contribute by conducting in-depth analysis. However, the organization structure was not related to any decision process attribute. The implications of these findings for future research and practice are also discussed.     

Small businesses do plan and it pays off

An examination of the performance of 135 small businesses revealed that, in general, planners outperformed non-planners. The specific relationship depended on the type of business and the nature of planning their activities. Two types of activities were identified—one dealing with the active or analytical aspects of planning, the second with the more formalized aspects of planning. Only the former showed any significant relationship with planning. In fact, for one sub-group there was a negative relationship between formalized planning and performance. Avenues for further research in this area are explored as well as recommendations for improving small business planning effectiveness.     

Corporate strategy and entrepreneurial vision

The author here describes her conception of strategic vision from the basis of which she has developed a successful business using information technology and a scattered work- force working from their own homes or from a neighbourhood work centre. She defines her term ‘corporate planning by vision’ and outlines its strengths and weaknesses.     

Understanding managers' preferences for internal markets versus business planning: A comparative study of German and U.S. managers

Internal markets and centralized business planning are alternative organizational designs for coordinating the economic activities within a firm. While some preliminary theory about when to use each exists in the literature, little is known about how managers understand and decide when to use one or the other. The study develops and tests in samples of German and U.S. managers a preliminary theory about factors that influence the preferences of managers for internal markets or planning as alternative modes of coordination. Managers' preferences are influenced by key constructs of internal markets and planning theory (the perceived limits of planning, speed and efficiency of markets, motivation potential of markets), but also by differences in their institutional contexts (national government and business context, company culture, and recent company experience with planning and internal markets). The study is the first to explore the substitutability of internal markets and planning within the strategic decision process of managers, closer to where it becomes reality.     

Improving Participation in Green Infrastructure Planning

Green infrastructure is a strategic planning concept that is able to address environmental, social and even economic problems by supplying a variety of benefits for society. Especially in times of public financial crises and spatial transformation, it is important to ensure that those services are high quality to guarantee that they will provide the intended benefits by integrating stakeholders’ knowledge and experience into green infrastructure planning. Active stakeholder participation leads to legitimate and informed future planning that accounts for society’s needs. This paper investigates participation approaches of six green infrastructure investments in Belgium, the UK, Germany and the Netherlands. The major aim is to explore how and when participation should take place to optimize participation in green infrastructure planning. This is achieved by surveying the stakeholders involved and conducting stakeholder discussions to identify their views on the participation approaches employed and their integration into the planning process. We found that stakeholders were generally satisfied with how they were involved but desired a broader and more tailored mix of approaches. Furthermore, we found several Arnstein gaps, which lead us to conclude by suggesting recommendations that are helpful for successful participation in green infrastructure planning.     

Ascertaining the effect of planned organizational change on the work environment

In a dynamic environment, organizations often are required to effect major changes in operations. The success of such changes invariably depends upon numerous factors one of which is how the change affects the work environment. Therefore, in planning organizational change it is important to consider the work environment and to objectively evaluate changes in the work environment in a timely fashion so that corrective actions may be formulated if needed. Such framing and monitoring of the organizational change facilitates successful implementation of the organizational change. This paper suggests a measure which may be used in evaluating an organization's work environment. A case is discussed.     

Approaches to technological forecasting as a planning tool

The various techniques discussed in this paper illustrate to managers that a number of useful approaches are available to them for approaching planning problems. Not every technique discussed can be applied to all problems. Problems related to available time, money, and information for planning can limit the usefulness of some techniques. The successful manager in light of existing constraints will develop integrative forecasts that can be used to reduce the risks of making decisions under conditions of uncertainty.     

Development and teaching a computer-assisted course in production planning

Abstract. Course development and student activities are described for a successful computer-assisted senior level course in production planning. Development was guided by the view that students must (1) understand the elements being integrated, (2) understand the problems that are being resolved through integration, and (3) participate in the integration activity. Production planning is treated as a hierarchy of individual decision situations which are to be integrated. Each decision is assisted by a software-based technique. A menu program and a common database were developed to allow a student to become the 'integrator' by directing the information flow among the individual decision situations. The paper describes the development tasks, the course elements, and student activities which provide guidelines for others developing similar courses.     

Personnel planning and information systems

Today the need for long-range planning is seen by most private and public organizations. Therefore growing attention to it is required of management in companies, in public services, in the armed services and in the school and university area. Some parts of the long-range planning problems have been widely discussed and practised. But there are some parts, which have received less attention in the business world. One of the relatively neglected areas, but one of special importance is long-range planning for personnel from the shop-floor up to top-management. This lack is remarkable, as one finds a lot of research and practical work on the use of other operations research planning systems, which cover for example queueing, inventory, production or investment problems. But in no field, is planning ahead more important than in personnel. Company growth and effectiveness depend on it. For unless a business organization has people with skill, imagination and a capacity for leadership, at the right time, its other plans may well be worthless.     

The use of multiple scenarios by U.S. industrial companies

A growing number of firms have responded to the ‘unpredictable future’ by developing ways to measure their proposed strategies against several plausible alternative futures. Probably the most widely used of these techniques is multiple (or alternative) scenario analysis (MSA).Survey results indicate that approximately 150 of the Fortune ‘1000’ industrials now use MSA in their formal planning processes. Most have begun using MSA within the last 3 or 4 years. Furthermore, a number of other companies are considering its use. Survey results also show that firms do not follow the relatively rigorous procedures as suggested in the literature. Also, MSA seems to be most successful when management is both knowledgable and involved with scenarios from the beginning.     

Rational Versus Communicative: Towards an Understanding of Spatial Planning Methods in German Planning Practice

This paper considers the use of planning methods in German planning practice against the background of the ‘communicative turn’. The debate about concepts of rationality in Germany as well as in other countries can be said to have resulted in the paradigm of communicative actor-oriented planning achieving at least the same standing as the analytical rationality of the classical expert-based planning model. The inconsistent use of the term method in research corresponds to empirical findings indicating that the term is used ambiguously in practice. Nonetheless, planning methods fulfil a number of functions in practice. The notion of a relatively clear division between ‘analytical-rational’ methods on the one hand and ‘communicative’ methods on the other hand was relativized by experimental investigations. The setting in which the methods are applied seems of more importance; even apparently ‘analytical-rational’ planning methods can be implemented in a more or less communicative fashion.