A look at major planning methods: development, implementation, strengths and limitations

The purpose of this paper is to prepare an overview of planning as it is carried out in an organizational setting. The format utilized will be to examine the planning process in the context of three of the most popular planning models; management by objectives (MBO), program evaluation and review technique (PERT), and planning— programming—budgeting system (PPBS). Each of these models will be discussed in terms of the reasons for its development, the mechanics of implementing the model, the strengths of the model, and its basic limitations.     

Participative planning at Swiss reinsurance

Reinsurance—the insurance of insurance companies—is very much a behind-the-scenes business. It is not surprising to see that planning seminars and planning literature rarely touch on the problems of developing and implementing corporate planning models in this field. The Swiss Reinsurance planning example might show how sources from various industries and ‘doctrines’ were blended together and built to form a compact medium-term planning ‘package’ for a very specific type of service business.     

Environmental forecasting and non-profit professional organizations

To undertake any kind of realistic planning activity, it is useful to have a long-term environmental forecast which provides the planner with an overall perspective. The planner will be functioning over the next decade in a very dynamic, complex and challenging political, economic, technological and social environment, and will require very effective planning efforts to cope with such changing environment. This article presents an approach and methodology that a planner could use in his/her organization's planning process. To the best of our knowledge, very few organizations—profit and non-profit oriented—undertake a formal long-term environmental forecast. This article might encourage several planners to examine this area of long range planning in their respective organizations. The long- term environmental forecasting approach presented in this article could be applied by planners in all types of organizations—small or large, profit oriented or non-profit oriented, old or new. This article, however, is based on a study which the authors did for a non-profit organization.     

Involving managers in system-improvement planning

The planning of an organization is conceptualized as two separate but complementary processes. One of these two, namely system-improvement planning—which is concerned with changing the nature of the ongoing activities of the organization with a view to improving them—is generally neglected or poorly performed. It is suggested here that the reason for this neglect is the prevailing organizational philosophy which inhibits system-improvement planning. An alternative philosophy would be required for its effective implementation. But initially structural changes to support the new philosophy would have to be introduced.     

Introducing corporate planning in a medium-size company—A case history

Within an organization pursuing a participative style of management, the organizational effort required to implement a corporate planning process—as against a corporate plan—is not generally recognized. In this article the author describes the mechanisms adopted in one company to establish and control the planning process. These include the use of network analysis, the creation of questionnaires to obtain information and necessary data, and the construction of a set of computer models. A full assessment of the success and failures during the first year of the process is given, together with an account of the turning away from planning that has taken place in subsequent years.     

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     

A commonsense approach to portfolio planning

For the diversified firm, business portfolio planning offers a way of determining its individual businesses' roles and developing a synergistic corporate strategy. In practice, however, the common tools of portfolio planning—the growth/share and market attractiveness/business position matrices—present problems in that often neither of the matrices is precisely suitable for a given individual business. This article makes use of modifications of the growth/share and market attractiveness/business position matrices in order to make them more operational. The authors believe that a step-by-step ‘shirt-sleeve’ approach to portfolio planning can make this type of analysis accessible and invaluable to a small diversified firm, as well as providing insights to larger corporations with formal planning departments.     

Horizons for strategic planning

In this paper we present a normative model for setting time horizons for planning. Provided that certain conditions are met, we can state that only part of the future is relevant for present strategic planning, and a study of the future beyond that time horizons is a waste of resources.Following the introduction the impact of predetermined planning horizon on planning is discussed. Next, the model is presented: the problem is defined, developed and solved. The discussion of the model is designed to incorporate—and to show its implication on—existing views and methods for setting time horizons for strategic planning. Thus, simplifying assumptions which facilitate the mathematical solution of the problem, are discussed and relaxed in order to show how realistic situations are illuminated by the model.     

Computer assisted strategic planning

This paper describes a representative, sectionalized, computer assisted strategic planning system, as developed and used by the authors. It suggests that the future direction of such programmes—with several already in use—is toward the development of approaches which combine simulation and linear programming to simultaneously address long and short-term objectives.     

Creating a climate conducive to planning

An improved climate for long-range planning, a better understanding of divergent viewpoints among planning participants and increased satisfaction with planning systems do not automatically occur with more experience in planning. Learning to cope with planning problems requires a continuing investment of management time and energy. Many of the companies included in this study were willing to make this investment—progress has been slow and more needs to be done. This article describes the lessons that mature systems companies have learned.     

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.     

THE HARMS SHOE COMPANY: DEVELOPMENT OF A COMPUTER MODEL FOR THE CLASSROOM

This paper describes a case that examines five key topics in production and operations management [1]—forecasting, inventory control, transportation planning, aggregate planning, and the disaggregation of the aggregate plan—in an integrated, realistic manner for upper-level undergraduate business majors [3]. The case structure stresses the linkage of these interrelated subjects and supplements the regular classroom presentations dealing with them. The case relies on computer calculations at each stage to provide the information input for calculations at the next stage. It is a static model with a twelve-month planning horizon. Students complete several exercises and assume several roles as the case unfolds. They act on their own in filling some roles and as members of teams in performing others. They do not compete with each other, as the purpose of the case is to help them develop an appreciation of the factors that persons performing the role must consider.     

Designing an ADP planning process

A great deal has been written about the frustrations of carrying out long range planning in large organizations. Although far less has been written about ADP planning, similar frustrations (as well as benefits) have been suggested.The case study described in this article deals with the recent experiences of a large, federal regulatory agency— the Food and Drug Administration—in the design and implementation of an ADP planning process from 1974 to the present. Although the process was designed to meet the Agency's specific needs, many of the lessons learned will be useful to others contemplating a process for their organization (public or private).     

The TOWS matrix—A tool for situational analysis

This article has two main purposes. One is to review general considerations in strategic planning and the second to introduce the TOWS Matrix for matching the environmental threats and opportunities with the company's weaknesses and especially its strengths. These factors per se are not new; what is new is systematically identifying relationships between these factors and basing strategies on them. There is little doubt that strategic planning will gain greater prominence in the future. Any organization—whether military, product-oriented, service-oriented or even governmental—to remain effective, must use a rational approach toward anticipating, responding to and even altering the future environment.     

Allocation of seminar applicants

The allocation of seminar applicants is an important issue in educational planning, and each semester a university administration has to deal with this kind of problem. The task here is to reconcile the preferences and priorities of the students, professorships and the university administration itself. This paper shows that if the planning procedure is based on a simple selection strategy, the capacity utilization can be suboptimal; this result is evidenced by a simulation study. To remedy this deficit—and to justify the respective interests—we propose a mixed-integer goal programming approach for assigning students to seminar courses. In addition, we show that this problem can be reformulated into a linear one. All investigations in this paper are illustrated by a real-world application for the University of Hagen, Germany.     

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.     

Tools and techniques of long-range planners

Long-range planning is concerned with the integration of predictions with corporate strategies. Both practitioners and scholars of management have frequently proposed approaches to planning that they believe to be helpful. The purpose of this paper is to report which techniques and tools and what approaches to planning are actually being used. It is hoped that this information will provide the executive or practitioner with a framework for evaluating his planning practices relative to other planners.This paper is divided into four parts. Part l provides information concerning the survey and data on which this article is based. Part ll deals with the planning process in approximately 400 business firms. Part lll examines the use of two planning tools—outside consultants and computers/mathematical models. The last section presents a summary and some general conclusions drawn from the analysis.     

Critical Dimensions of Strategic Information Systems Planning

Strategic information systems planning (SISP) is the process whereby an organization establishes a long-range plan of computer-based applications in order to achieve its goals. A number of problems can potentially impede information systems planners as they carry out the process. A survey of 80 firms who completed the SISP process revealed that the problems constitute five factors: the organization, implementation, database, hardware, and cost. A discriminant analysis showed that three factors—the organization, implementation, and database—best distinguished satisfied from dissatisfied information systems planners. A research application of the five factors suggested that organizations with more sophisticated business planning endure significantly less severe hardware and implementation problems.     

The Social Construction of Planning Systems: A Strategic-Relational Institutionalist Approach

Abstract

This article reflects on a theoretical framework for the analysis of planning systems based on an institutionalist planning theory broadened with Jessop's strategic-relational approach. The aim is to explore the concept of the planning system with an actor—structure perspective so as to underline possible research consequences for analyses and comparisons of planning systems. The article highlights the interactions of actors and social institutional elements, clarifying the strategic-relational nature of a planning system and the dialectical process at the basis of its changes and evolutions.     

The theory of the corporate life cycle

There appears to be a widespread management belief that the corporation is endowed with an inbuilt elixir for survival and growth, despite recent corporate declines.In this article, the author outlines and illustrates the operation of one of the newest theories on corporate activity—the corporate life cycle— and its use as a planning aid in determining where the company is and where it is going and as a relationary tool in predicting corporate trends for comparison with corporate objectives and the future operating environment.