TYPES OF PLANS Thursday, Dec 11 2008 

STANDING PLANS are used over and over again because they focus on organizational situations that occur repeatedly.

SINGLE USER PLANS are used only once, or at most, couple of times, because they focus on unique or rare situations within the organization.

STANDING PLANS:

Policies, Procedures and Rules:

A POLICY is a standing plan that furnishes broad guidelines for taking action consistent with reaching organizational objectives.

A PROCEDURE is a standing plan that outlines a series of related actions that must be taken to accomplish a particular task.

Procedures outline more specific actions than policies do.

Organizations usually have many different sets of procedures covering the various tasks to be accomplished.

Managers must be careful to apply the appropriate organizational procedures for the situations they face and apply them properly.

A RULE is a standing plan that designates specific required action. A rule indicates what an organization member should or should not do and allows no room for interpretation.

 

SINGLE USE PLANS:

Programs & Budgets:

A PROGRAM is a single use plan to carry out a special project within an organization. The Project itself is not intended to remain in existence over the entire life of the organization. Rather, it exists to achieve some purpose, that if accomplished, will contribute to  the organization’s long term success.

A BUDGET is a single user financial plan that covers a specificed length of time. It details how funds will be spent on labour, raw materials, capital goods, information systems, marketing and so on, as well as how the funds will be obtained.

WHAT IS A PLAN? Thursday, Dec 11 2008 

A Plan is a specific Acton proposed to help the organization achieve its objective.

A crucial part of the management of any organization is developing logical plans and then taking the steps necessary to put the plans in to action.

Regardless of how important experience related intuition may be to managers, successful management actions and strategies typically are based on reason.

Rational managers are crucial to the development of an organizational plan.

4 Dimensions of Plans:

  1. REPETITIVENESS
  2. TIME
  3. SCOPE
  4. LEVEL

REPETITIVENESS:

The repetitiveness dimension of a plan is the extent to which the plan is used over and over again. 

Some plans are specially designed for one situation that is relatively short term in nature.

Plans of this sort are essentially non repetitive.

Other Plans, however, are designed to be used time after time for long term recurring situations. These plans are basically repetitive in nature.

TIME:

The Time dimension of a plan is the length of time the plan covers.Strategical Plans cover relatively long periods of time4 and tactical plans cover relatively short periods of time.

SCOPE:

The Scope dimension of a plan is the portion of the total management system at which the plan is aimed.

Some plans are designed to cover the entire open management system: the organizational environment, inputs, process and outputs. Such a plan is often referred to as a master plan.

Other Plans are developed to cover only a portion of the management system. e.g.: A plan that covers the recruitment of new workers.

The greater the portion of the management system that a plan covers, the broader is the plan’s scope.

LEVEL:

The level dimension of a plan is the level of the organization at which the plan is aimed.

Top Level Plans are those designed for the organization’s top management; whereas the middle level and the lower level plans are designed for middle and lower management, respectively.

Since all the parts of the organization are interdependent, plans developed at any level of the organization have effect on the plans at other levels.

Need any help in planning various projects and initiatives in your organization?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

THINGS TO CHECK IN A BUSINESS PLAN Monday, Dec 1 2008 

We have been consulting an investor ( a strategic VC Operations) on investing in various projects.

Common findings:

  • The entrepreneurs who had approached the investors were operating more from their gut feelings than from data.
  • They are very optimistic about their future prospects, even though they have been facing tough times for a long time.
  • The data of the best possible scenario is generally referred to as the standard expected scenario, which is never even remotely close.
  • Expenditures are considered on a very loose levels and always underestimated.
  • Lot of challenges are discounted and overlooked till the time they become big and unconfrontable.
  • Competition is never given its dues in terms of considering market share, marketing, sales and talent retention challenges.
  • Sweeping generalities become the business plan instead of data oriented thought through strategies.
  • Cash Flow is expected to be taken care of, by the expected business revenue – which generally fail to be as per the expectations.
  • Challenges faced by the industry as a whole, are not fully considered and rarely brainstormed to create innovative solutions.
  • Scant respect for Financial Planning, strategy, HR, training and development are seen in many cases.
  • Employees are expected to be automatically aligned to the vision that is hidden in the mind of the promoters.

These are some of the observations, but definitely not applicable to everyone.

Many entreprenuers have demonstrated that they do not fall in the above pitfalls and they steer their organizations to great success and sustained performance standards by combining the entreprenuers fire in the belly, with the strategy and systems.

WHAT WORKS:

  1. Have accurate data of the past and realistic data about the future.
  2. Have all industry related information handy.
  3. Have your financial data impeccable and ready to discuss.
  4. Have your competition and various factors affecting your organization performance detailed out.
  5. Have a strong strategy and marketing plan.
  6. What are the Key requirements for success in your industry, is it technolgoy, manpower, skills, market converage? Have all the bases worked out.
  7. Realistic Growth Plans.
  8. Detailed SWOT Analysis or the reverse TOWS Analysis.
  9. Create a realistic picture of the Opportunites and Challenges and your plans for dealing with them.
  10. Clearly identify the areas where you have not yet sorted out things or you would like inputs or are working out external inputs.
  11. Have guidance from professionals like CAs, Management Consultants, Govt. liasoning officers etc., as required.
  12. Create 3 plans , worst scenario, best scenario and realistic scenario.

To discuss more, contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812