DEVELOPING PLANNING SYSTEMS IN FIRMS

Plans do not have to be bulky. Indeed the best plans may be short statements of intended actions, their anticipated results, and a statement of strategy & assumptions behind them. Methods of encouraging this reviewed in the process design. Not all levels may produce written plans, but can give valuable contribution via questionnaires.

Further information on this 2 day Module see Prospectuses Section 8.

4. CORPORATE PLANNING - Business Planning at HQ

This Module mainly considers the HQ activity for Business Planning. It provides inputs to, and uses outputs from, the Business Planning Process.

Business Planning: most of the headings in Sections 2 & 3
Financial Planning: setting criteria + inflation problems
Prospects for the present business: methods, gaps
Methods of identifying opportunities
Assessing the company's capabilities
Longer term future

A 2 day Module. For further information see Prospectuses Section 8.

This is as far as a lot of firms go in planning. It lacks a process to determine the future strategy of the firm itself. This is given in the next 2 Modules.

5. CORPORATE STRATEGY - Strategic Planning

The aim is to form and agree a Strategy, for subsequent enactment. The question is whether any overall change is needed in the direction of the business as a whole, especially in large Groups. Lead times for changes often long.

Forecasting the Business Environment
Performance of the firm in the Environment
Strategy formation - alternatives from the above items
Selection of Strategy - identification of current decisions
Turning Strategy into action - link with Business Planning

Strategy is much in vogue at present, and many large firms are involved in such activity. However, there has been a realisation that Strategic Planning does not really work. The failure points are that the lead times are usually long, while the firm often does not have the capability at the present time to undertake the change of direction necessary. Trying to agree a Strategy prior to taking action thus also becomes a failure point.

The Strategic Management approach in Section 6 is designed to overcome these problems.

6. STRATEGIC MANAGEMENT

Does not put emphasis on producing and agreeing a detailed strategy. Instead, it aims to establish if change is necessary, and tackle the Capability or Core Competence issues at once.

Building a Business Environment Forecast
Impact of the Environment on the firm
The relation of the performance of the business to the forecast future conditions, and refining both. The Sector and Market growths & contractions, the product cycle portfolios, competitive positions, industry structure, technology trends, substitutions. Conclusions on the need for change, its urgency (if any), and possible forms this change could take. In order to do this it may be necessary to establish a .....
Strategic Data Bank - sound information base needed
Additional information necessary, data which needs to be monitored regularly. May include historical market data, market share and competitor analysis. The data bank will be added to over time.
Decision Making: need for change, its urgency, opportunities
Experience is that a different decision making process is needed from that used for operating decisions. Need to come to conclusions on: performance of the firm in its future environment, need for change and its urgency; forms the change may take in terms of opportunities and alternatives.
Capability: assessment of those needed and those available
Some 20 Capabilities needed to plan, decide and implement change and innovation. Desirability of outside help.
Scheduling actions within Capability
Actions which are definitely needed where Capabilities exists can go ahead at once.
Strengthening Capability: actions to install needed Capabilities

Actions only proceed when necessary Capabilities installed. Strategy evolves all the time. Informal approach - more ad hoc working groups. The planning system changes with time.

This Module offered as a sequel to Scenarios from the Business Trends Library as how to use Scenarios within the firm. For further information, see:
Prospectuses Section 8.

7. CONSORTIUM STUDIES

Firms in an industry often like to work together to produce a picture of the operating environment. This is sometimes considered a Pre-competitive Research; where costs can be pooled and so reduced for an individual firm, while expertise from the industry can be increased. This can be applicable to smaller firms, whereas full scenario planning exercises are generally the province of the world's largest firms.

Where one or two firms are interested in such an approach, Planning & Control Investments offers to see if a Consortium can be formed. The starting point is generally Scenarions from the Business Trends Library.

This is then evaluated by the Consortium, and advanced further under the Strategic Management heading above. If interested in exploring a Consortium formation, please Email Dr R H G Whaley or write to the address below.

8. PROSPECTUSES

The usual mode is to provide the 1st Module Overview of the Planning Process, which takes 1 day - then issue a Prospectus for the other Modules. The cost of the 1st Module is Ł5247. Modules 2 & 3 - 6 take two days each.

Documentation is provided in each Module, which builds up to a planning manual. It can be tailored to a particular client.

Where a Module is repeated in substantially the same form, say in management training, half the above fees are charged. There are discounts for more Modules taken.

For a Prospectus on the Overview of the Planning Process, or any other Module, please contact:

Planning & Control Investments Limited

2 Rotherwick Court, Alexandra Road, Farnborough, GU14 6DD, UK
Tel 01252 548115, Email

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