The design of computer based planning and modeling systems

Today there are nearly 2000 corporations in North America and Europe either using, developing, or experimenting with some form of corporate planning model. With the emergence of this new and rather substantial interest in the methodology of corporate planning modeling, there appears to be a definite need for a conceptual framework which can be used to design and implement computer based planning and modeling systems.In this paper the authors describe a collection of elements which they believe to be of critical importance in designing a corporate planning model. Their objective is to develop a set of criteria for not only designing a planning and modeling system, but a set of criteria which can also be used to facilitate the evaluation and comparison of alternative planning and modeling systems.There are over 50 planning and modeling software packages on the market today. These include systems such as BUDPLAN, COMOS and SIMPLAN. This paper attempts to provide the reader with a convenient checklist of possible features to consider in either designing one's own system or selecting an appropriate software package.     

Why planners don't

This paper deals with a study which the authors undertook of the planning function in five major U.S. corporations. None of the five engaged in true strategic planning. The authors advance explanations for this relatively low level of planning activity, based on the environmental, organizational, and managerial characteristics of the firms. The authors urge the rapid development of a more sophisticated contingency theory of corporate planning to facilitate practice, teaching, and research.     

Corporate planning—A systems view

This paper examines the, often disregarded, fact that the very inprecision of language often obscures basic underlying conceptual differences between corporate planning as expressed in theory and in practice. Few of the claims that confusions result both from a lack of explicit definitions and from the lack of differentiation between ‘theories of planning’ and ‘theories in planning’.

The purpose of this paper is to propose such a theory of corporate planning through discussion of the following topics: (1) Problems in concepts of corporate planning; (2) The concept of an approach of corporate planning; (3) Propositions that form the basis of a theory or model of planning, relying heavily on a systems framework; and (4) a proposed corporate planning system.     

Long range planning in large United States Corporations—A survey

This paper presents the results of a survey of the application of strategic and corporate planning in 500 large U.S. Corporations. The authors sought to update and provide new understanding on a number of important issues including; the extent of long range planning in these firms, the organizational structure of their planning function, the prevailing attitude towards long range planning in the firm, the planning process in terms of content and revision frequency, and the perceived benefits and problems associated with long range planning. In concentrating upon these issues the authors provide an interesting and important insight into the current application of strategic and corporate planning processes as well as giving a number of indications as to where the theory lags behind the practice.     

Helping managers to develop strategies

Concepts within strategic management are defined and a framework for strategic analysis and planning is presented. Within the planning operation, corporate strategy and corporate integration are central to strategic management. The timetable largely prescribes the procedural steps involved in strategic analysis and planning, and the character of each of these steps is determined by the frame of reference, or the aims and purpose of strategic managers, which are established during strategic planning. As a practical management tool, the framework developed here offers the possibility to improve management performance and to increase corporate effectiveness and flexibility.     

Airline corporate planning— a conceptual framework

In the current economic recession, efficient planning is of paramount importance. This paper constructs a conceptual framework for the long term corporate planning of an airline: the framework suggested is an integrated approach rather than the divisional one that is widespread in the industry. The paper attempts to identify the long-term objectives of an airline, the various types of constraints under which it must operate, and the decision variables that are under its control.     

Evaluating the benefits of formal planning systems

While empirical studies indicate that formal planning influences corporate effectiveness, no systemic understanding exists regarding how and why formalization of the planning activity affects corporate performance. This article proposes a framework for analyzing the impact of formalization on the quality of the planning exercise.It is suggested that by formalizing the planning activity, certain benefits accrue which cannot result from informal planning. Also, the intrinsic purposes of planning are furthered in several ways by formalization. However, there are also disadvantages resulting from formalization, some inherent and some arising from faulty design. The consequences of formalization with respect to the generally accepted purposes of planning are examined and a checklist intended to help designers develop more effective formal planning systems is proposed.     

Corporate planning in small companies— a survey

The current state of research on corporate planning is directed at investigations of actual practices within specific industries. It is believed that by so doing, a more generally applicable theory of corporate planning will ultimately be developed. Within this broad framework, the study reported upon in this article was undertaken so that a determination could be made of the current level of actual planning by small businesses. More specifically, it focuses upon the corporate planning process within small and medium sized companies located in New England, U.S.A.     

Evaluating alternative approaches to strategic planning

The question which, unfortunately, often goes unanswered, is whether a company's process of corporate planning is optimal. Furthermore, even if they wished to answer such a question there is little in the literature which can provide them with a direct, and explicit evaluative model. This paper examines the development of planning and the many different contributors towards its theoretical underpinning. Whilst recognizing that planning is a field which is a ‘semantic's jungle’ the authors carefully pick their way through the mine-field of misunderstanding and misquotation and clearly establish a base-line for evaluation and indeed propose a detailed methodology. It is hoped that this paper will be a fore-runner of many which will assist the executive in his important evaluative role concerning alternative planning approaches.     

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.     

Corporate planning in local government—a case study

The authors set out their view of the peculiar problems facing corporate planners in local government as compared with the private sector and their view of the nature of corporate planning in this special environment. By way of illustration as to how one local authority has attempted to introduce corporate planning, the article includes a case study of the City of Bradford Metropolitan Council.     

Marketing and airline corporate planning

This article focuses upon the impact of marketing on the corporate planning process in the air transport industry. The literature of consequence to marketing, corporate planning, and airline planning is synthesized into a normative planning structure and a framework of marketing dimensional elements.     

Managerial attitudes towards computer models for planning and control

The wealth of publications, seminars and conferences on the topic of computer models for planning and control has included only a relatively small proportion of material which critically evaluates their contribution and, in particular, focuses attention on the attitudes of managers towards such innovation. There are some outstanding exceptions to this general picture, such as the excellent survey by P.H. Grinyer and J. Wooler¹ on corporate models in the U.K., and the critique by R.H. Hayes and R.L. Nolan², who argue that corporate models have fallen into disuse or disrepute in many U.S. organizations and recommend the development of simple models to aid the planning process rather than overall corporate models.

In this article the authors attempt to bring together some of the more important findings in the literature.     

An integrated corporate planning model for forest-based industries

The paper presents an integrated model for corporate planning of forest-based industries. Techniques are developed to determine the profitability of wood quality manipulations, taking into proper account the impact of uncertainties on future product prices. Production alternatives of final products are specified as functions of wood quality properties which are, in turn, functions of tree type (genotype) alternatives. The total return from processing wood depends on future prices of final products, which are unknown. Selling prices of final products are related to stochastic price indices for solid wood products and paper products. Risk can be reduced by diversifying among genotype alternatives; in a case study the value of a portfolio of genotype alternatives is significantly larger than the single ‘best’ genotype alternative. The model framework may be applicable to any other natural resource industry with similar characteristics such as agriculture, petroleum or mining.     

Corporate Political Activity: A Literature Review and Research Agenda

This paper reviews the diverse literature on corporate political activity (CPA) and develops a framework that details and integrates existing research in this field. A systematic analysis of extant CPA literatures is conducted to order them into domains that have implications for organizational performance. The paper is structured into three such domain emphases, which require further research investigation: resources and capabilities focus; institutional focus; and political environment focus. The contribution of each to an understanding of CPA in pursuit or defence of corporate competitive advantage is discussed. The authors also suggest that the internationalization of business, including the more recent emergence of developing country economies and companies, presents scholars with the challenge of understanding CPA in more varied institutional settings. CPA practices continue to expand as commerce goes increasingly global and, consequently, involves a wider array of political actors and institutions. The paper contributes by increasing the clarity of CPA classification, reflecting on the implications of a multi‐polar world for CPA research and advancing future agendas for scholars in this research community.     

Behavioral aspects of corporate planning

Most models of corporate planning neglect to include behavioral variables. This is unfortunate, as human behavior is typically the most dynamic component of any planning system. Should behavioral variables be overlooked, due to their difficult measurability, or for other reasons, the planning system will inevitably prove deficient in terms of predictability and control. Accounting for human resources and other behavioral measurements should be routinely included in any corporate planning model. A component of such a system would include the output from a stochastic process model of expected future values of employee services. The theoretical development of such a model is briefly discussed in this paper.     

Social forecasting: An integral part of corporate planning?

The increasing need for business to monitor the social dimensions of its environment and, hopefully make some forecasts of future trends has met with some constructive response from academics and consultants although not as yet on a very liberal scale. The published literature does not indicate to what extent companies in general attemp social forecasting and, where they do, the degree of integration which exists within their corporate planning systems. The authors, therefore, decided to survey a sample of British organizations to see if they could shed some light on these issues and thereby add some information to the excellent accounts of individual cases of social forecasting in, they suspect, the more advanced and atypical companies. The survey suggests a general picture of: awareness of the value of social forecasting; fairly widespread ignorance of the techniques which do exist, primitive though these may largely be; successful integration of social forecasting into the corporate planning systems of a substantial number of organizations but not in the majority.     

Integrated planning for health care organizations, especially hospitals

Planning in health care organizations is of considerable current interest in this country. Furthermore, effective planning processes require, as a necessary condition for that effectiveness, development within a framework which considers the organizational, managerial and service delivery environment.This paper examines the concept of planning in relation to health care organizations. Through an examination of the effects which proper planning can have upon industrial organizations the authors analyze the possible impacts of planning procedures upon health care institutions. Their analysis leads to certain tentative conclusions as to appropriate organizational structure which could support effective planning. Whilst the authors have yet to test their hypothesis the conclusion they draw from their initial analysis are worthy of further investigation.     

Earnings per share is a poor indicator of performance

One of the greatest dangers in corporate financial planning is failing to separate investment decision making from financial policy, because poor quality investments can appear to be desirable as a result of the particular financing vehicle employed. Management's focus of attention should not be rates of growth and earnings per share or return on net worth. Rather, the most important measure of corporate performance is the rate of return on total capital employed. The paper identifies the dangers of employing an earnings per share criterion for evaluating corporate performance, and suggests an alternative: focusing on a company's free cash flow, net operating profits after taxes minus the amount of new capital investment required in order to generate future profits. The author presents an analytical framework employing his free cash flow concept which can be applied to pricing and financing acquisitions.     

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.