Life cycle costing for construction projects

The author discusses the concept of life cycle costing—a valuable tool in an era of economic depression and high inflation. He points out the problems in the initiation of the process, the planning, realization, operation and disposal of complex systems. He describes the objectives of life cycle costing and presents a comprehensive way to apply it.     

Developing inflation scenarios

The purpose of this paper is to describe a scenario-based approach of forecasting future levels of inflation as it has been developed and applied in the context of retirement income planning. The circumstances and settings for the use of time series analysis in the generation of scenarios are discussed.     

Strategic planning in a changing corporate environment

Strategic planning is about nothing, if it is not about attempting to achieve desirable futures. In the past this has often been seen as an excuse, or indeed a necessity, for fixed goals which are constantly timed. Such a state of planning has, fortunately, for a long time now been discredited and this paper concentrates upon the concepts of strategic planning within the changing corporate environment, an environment which therefore has to effect both the goals as well as the process of planning. Furthermore, the author concentrates upon the concept of a planning, allocating, and monitoring cycle of strategic planning which sets the strategic planning concept within a process cycle as well as within an effective allocative structure. The author considers this latter point an extremely important one since, as he says, ‘planning can become a very sterile and barren activity if it is not viewed integrally with acting and doing’. Finally, this paper concentrates on the important fact that planning must, within a dynamic environment, be an iterative and a learning process.     

A New Method of Indexing Wages in Italy

ABSTRACT: Wage indexing, which has been in operation in Italy since 1946, never gave rise to any perplexities for a long time, until the innovations introduced in 1975. At this point, numerous criticisms were raised by both politicians and economists, and following this, the system was modified, starting from 1986. In this article the author illustrates these modifications and redimensions the criticisms which he retains excessive. It was only during its first years of being applied, between 1976 and 1978, that there was a high level of indexation, and then it subsequently decreased. After various resistances and contestations, the decision to reduce the degree of indexation was also accepted by the trade unions, and thus it was possible to attenuate the inflation expectations, and bring inflation under control.     

Urban management—Some models for policy making

Urban management has been the subject of much ‘integrative’ discussion and analysis, both in this country and abroad. Indeed, as the author suggests in this paper ‘the feeling is that there is a danger that planners might take on too broad a field and try to do too much’. This paper examines the notions of the planner's role within a ‘political’ decision-making process and examines a number of different models indicating their relevance, complexity and feasibility. By concentrating upon the relationship of the theories of planning with the political decision-making environment within which they are enacted, the author draws usefully upon the relevant literature and provides a comprehensive, persuasive, intelligent and, comprehensive view of the relevance of some theories and the irrelevance of others. This paper walks the narrow tight rope between the fallacious separation of policy formulation from policy implementation, whilst at the same time recognizing the distinction between these two aspects of the decision-making process. The author postulates a number of propositions relevant to a planning process of an optimal nature and, although treating some of the theory in a somewhat superficial manner, the analysis provides a useful addition to the body of planning knowledge. This paper pieces together a number of existing elements of planning theory within a theoretical and conceptual framework. This is an important contribution to planning theory, since it does not suggest that the planning process is merely a collection of techniques, but that it is a complex system for recognizing, regulating and ultimately reconciling human values.     

The social and psychological causes of inflation

It appears that it is no longer possible for the rate of inflation in Britain and other advanced industrial economies to be controlled by the traditional macro- economic reglators, at least within the limits imposed by other politico-economic goals (such as the maintenance of an acceptable level of unemployment). This has led many to look for explanations of inflation beyond economic analysis: in the psychology of wage and salary earners; in the changing class structure of our society; in the changing loci of power and means of exercising power; and in our systems of labour relations and pay determination.The author's organization (PEP—Political and Economic Planning) have just come to the end of a programme of research concerned with the contribution that non- economic perspectives can make to an understanding of the process of inflation. The author has been focusing upon the pressure on pay and has carried out two studies designed to explore the forces contributing to the apparent increase in the demand for pay increases and the conviction that these are legitimate among wage and salary earners. This article describes his findings.     

Some reflections on inflation accounting

The basis accounting is considered in this article which questions the fundamental tradition of the annual cyclic approach. The author considers that inflation accounting (which itself is a challenge to traditional methods) must be considered in this context. Further the underlying assumptions made in order to arrive at profit utilising historic cost (for which inflation accounting would make substitutions) are also questioned. Emphasis is placed on the distorting effect of the annual taxation system in accounting at present. The conclusion reached is that accounting methods could well be changed in an industrial society and that inflation accounting as such should not be introduced as ancillary or by way of supplement to an accounting system on the traditional basis.     

Business planning at Sperry Rand

A minor change in planning procedure which proved to be a vital ingredient in business planning at Sperry Rand is described in this paper. The author argues that the change and other pressures increased commitment to planning throughout the corporation. However he concludes that it is by no means certain that the present trend towards more intensive planning will continue. Nonetheless that the odds appear to be largely in favour of business planning surviving and being highly regarded by management.     

Where marketing planning fails

This article discusses the results of a recent study of marketing planning in U.K. manufacturing companies. A sample survey revealed some strengths in marketing planning, but also revealed many weaknesses. For example, only a small proportion of companies prepare a comprehensive marketing plan. These identified weaknesses suggest that, in many situations, marketing planning has failed and the author suggests where it has failed. After discussing the results in detail, the author summarizes the identified strengths and weaknesses and suggests several implications for managers who are responsible for marketing planning.     

INFLATION RISK PREMIA IN THE TERM STRUCTURE OF INTEREST RATES

This paper estimates the size and dynamics of inflation risk premia in the euro area, based on a joint model of macroeconomic and term structure dynamics. Information from both nominal and index‐linked yields is used in the empirical analysis. Our results indicate that the inflation risk premium on euro area 10‐year nominal yields was approximately equal to 20 basis points on average over the 1999–2007 period. The inflation premium has also been subject to moderate, but statistically significant fluctuations. For the post‐2003 period in which reliable index‐linked bond prices are available, our results suggest that increases in the raw break‐even inflation rate above 2%, the upper bound of the European Central Bank's definition for price stability, have mostly reflected variations in the inflation risk premium, while long‐term inflation expectations have remained well anchored.     

Making planning relevant to public agency management

The special considerations of planning in the public area have exercised many minds during the last decade. In this article the author reports on the particular experience of the (U.S.) Food and Drug Administration (FDA) from the initiation of a new planning system in 1972 to 1975. The lessons learned and the conclusions drawn from this experience are described in the article, many of which will have relevance to public sector planning in other environments.     

How Singapore makes central planning work

In this article the author points out that, contrary to the assumptions of many, and the statements of some well-known writers in the fields of economics and management, central planning does work. It may be that Singapore has achieved success with it over a 25 year period because of the exceptional qualities of the leaders. Certainly that is part of the story, but the author suggests that the Singapore central decision-making body has been implementing what corporate planners would identify today as ‘orthodox theory’. He asks: ‘Could the same kind of success have been possible elsewhere?’     

Corporate planning at Dunlop

It has often been said that corporate planning is an art which, like all art perhaps, means all things to all men. As other papers have attempted to do this approaches the concepts of corporate planning in an analytical manner and illuminates a number of approaches which the author considers to be preferable. The problems of corporate planning in Dunlop Limited are then analysed and the author's own experience of corporate planning in that company are utilized describing a practical and comprehensive system.     

Will Hong Kong's entrepreneurs move to planning?

This article is based on a research study carried out in Hong Kong on a group of eight of the most significant companies in that area. The study found that in general Hong Kong businesses did not undertake much corporate planning but that the situation was changing and organizations were becoming more appreciative of the need to plan, particularly as business became ever more complex and competitive. The author describes how two somewhat exceptional organizations undertook corporate planning.     

Forecasting the future business environment— The state of the art

The future business environment, from the standpoint of the Corporation, encompasses both internal and external factors. These factors are also interrelated; thus the task of forecasting needs to be undertaken having in mind a multitude of elements which may interact. The author argues that, given this complex environment; corporations should support the planning operation if it is to develop and if they are to benefit from it. This support includes being open to recommendations made, for without it a planning group cannot function and the forecasting element loses momentum.     

Strategic planning for the armed forces

The author points out that in most countries the defence department is a very large ‘business’. He claims that, although long-range planning in the Canadian Department of National Defence may not be perfect, it does follow the stages of traditional strategic planning. He describes these stages, pointing out some innovations which he feels could be of value to other government departments in other countries as well as to large corporations in the private sector. He emphasizes the importance of feedback and describes ‘capability components’ which have been developed in the Canadian defence department to replace the traditional thinking in terms of ‘Army, Navy, Air Force’. Each capability component focuses on the required output/result and has a sponsor who is responsible for developing plans for the long-term ‘state of health’ of his capability component. Overall, the author makes a strong case for forward-looking and results-oriented strategic planning.     

The annual planning cycle

The practical business man, be he the boss or an employee, usually accepts that systematic planning of some sort is almost certain to be of benefit to his company, and he can usually agree with many of the planning techniques put forward. What often worries him though, is how to actually operate a planning system in his company day by day: what instructions to give, systems to use, how to make it really work. In this article, the author describes an Annual Planning and Budget Cycle Chart which was developed at the Avon Rubber Company. This chart goes a long way to solving the practical businessman's dilemma referred to above, it gives set dates during the year for completion of specific planning and budgeting jobs and it explains how they are interconnected to make up a coherent and workable corporate planning system.     

Modelling Wage Growth Dynamics in Italy, 1960-90

ABSTRACT: In this work we analyse the common dynamic properties of wage inflation, price inflation, unemployment and labour productivity using Italian annual data (1960-90, source: Prometeia). Applying multivariate cointegration technique we test for the presence of a wage equation and a price mark-up equation. The preferred identification suggests that it is possible to build up an error correction representation for the wage inflation, in which the rate of acceleration in wages depends on the contemporaneous rate of acceleration in prices and on the adjustment to long-run disequilibrium as represented by a Phillips type relation. This representation is rejected for the price inflation which turns out to be weakly exogenous within the system. Furthermore, there is evidence that wage inflation does not Granger-cause price inflation. The overall conclusion is that wage inflation does not contribute in explaining the price inflation process and the traditional mark-up view of inflation is not supported by data. The policy implication is that monetary policy need not respond to wage data because they do not contain additional information about the future path of inflation.     

Strategic Manufacturing Planning Systems and Their Linkage to Planning System Success

Academics and practitioners alike are focusing more attention on manufacturing strategy after having recognized the important role it plays in shaping the success of industrial firms. Even though research in this area has increased in the last decade, the focus of much of that work has been on the content rather than the process of the manufacturing strategy. Consequently, this study attempts to understand the important elements of the strategic manufacturing planning process and its effectiveness. Borrowing from the extant literature in the fields of strategic management and information systems, we propose a research model that relates strategic manufacturing planning system design to planning system success. Using structured questionnaires, empirical data is collected from over 200 manufacturing executives to test the model hypotheses. Planning process in manufacturing was found to be a bottom‐up approach from a corporate or business perspective, which differs from the top‐down planning process prevalent in strategic information systems planning process. Findings also indicate that greater planning system success in manufacturing is associated with a planning system that combines some “rational” elements (formality, comprehensiveness, control focus, longer horizon) with others that lend adaptability (wider participation and more intense interaction). But the strategic manufacturing planning system is more than just a collection of independent planning characteristics. Instead, it can be viewed as a gestalt planning system whereby planning characteristics move together in affecting overall planning system success.     

Development of corporate planning staff

This article considers the problems associated with the development of corporate planning staff in multi-divisional organizations. The author points out that formal planning has grown phenomenally during the last decade and there is a need to consider the development of corporate planning staff to meet the exacting challenges of the job.