Tuesday, September 9, 2008

Distributed Corporate Planning

The aim of corporate planning is to manage uncertainties and aid in long term decision making. The planning is done based on the SWOT Analysis of the Organization and the future goals are set for organization. Since planning requires continuous changes and involves huge amount of information exchange between the planning agents, a distributed information processing is required to keep track of various events that involve continuous changes. Distributed Corporate Planning is a planning technique that helps us to achieve this through the applications of Coordination Technologies. Groupware, Workflow Management Systems, Internet and WWW (World Wide Web) are some of the tools involved in developing a Distributed Corporate Planning System.

Decentralization of the Planning process in many organizations helps many sub-processes within the organization being planned by various autonomous agents to connect through some common frameworks, tasks and resources. These events can be summarized into a single common plan which will integrate all the specific plans pertaining to a particular domain together, through an increase in scope of communication and information flow between these parties. This increases the overall workflow for Corporate Planning as it aims in minimizing threats to the organization by eliminating redundancies.

Management Information Systems and Decision Support Systems generate decisions mostly based on data and are not suitable for flexible hierarchical organizations. They support only partial aspects of Distributed Corporate Planning. Group Decision Support Systems aid in planning via the brainstorming and negotiation processes, while Distributed Decision Support Systems support through autonomous information sharing among the planning agents, which suit the requirements of a Distributed Corporate Planning to a great extent.

Three C's of Distributed Corporate Planning


Coordination, Cooperation and Communication are the three tools on which Distributed Corporate Planning is built upon. Coordination is the act of making different people work together harmoniously towards a goal. Groupware is a network that is generally used for facilitating Communication among the groups so that the time, venue and task dimensions are structured properly and information sharing takes place so that continuous formulations for Corporate Planning are discussed and goals have been revised to suit the long term requirements of the organization.















E-Mail, Conferences, Bulletin Boards form part of Communication Systems. Workflow Management systems provide the necessary support structures to design, execute and manage planning process so that coordination functions are handled properly. The information passes from one person to another without any time-lag and clearly specifies the expected targets from all the parties involved. Workgroup Computing involves Planning Systems, Electronic Meeting Systems, Sharing Tools, and Hypertext-Systems.

Shared information Systems are driven by the idea that all these systems should be viewed as a medium for Information Sharing rather than a mechanism through which information can be shared across various planning agents. They allow sharing of objects such as documents, tables, graphics or spreadsheets. For example, the recent emergence of a World Wide Web of hypertext documents accessible over the Internet has provided new possibilities for the information sharing and exchange.

In Integrated Business Information Systems, Corporate Planning processes are executed through knowledge intensive processes and interactions are sophisticated involving information sharing and exchange, negotiation and coordination between various agents, to manage interdependencies and streamline the different business processes into a single common plan to continuously revise these objectives in coherence with the long term goals of the organization. An agent-based business process management involves Distributed Corporate Planning and can be described as a more robust and scaleable approach when compared to a Conventional Workflow Management.

Reference:
Yu L., Beat Schmid and Stanoevska-Slabeva K. (1998): Supporting Distributed Corporate Planning through New Coordination Technologies.





Strategic Planning

Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) and PEST analysis (Political, Economic, Social, and Technological analysis).Continuous changes in the form of planning takes place where understanding of the changing customer needs, technological developments, competitors initiatives play a significant role.

Strategic planning determines where an organization is going over the next several years, how it's going to get there and how it'll know if it got there or not. The plan includes inputs from various partners and can be continuously revised to develop clearer vision and mission statements, objectives. Strategies and detailed action plans. There are a variety of ways to approach strategic planning. It depends on the environment in which the organization operates, culture of the organization, leadership, size of the organization, planners expertise etc.

Strategic Planning consists of eleven core elements:

1. Preparation for Planning: Prior Planning is essential for Strategic Planning and it should be conducted by a Planning Team. The Team should consist of a Coordinator who drives the development and implementation of the plan. Clarify Preferences and establish Expectations for the participants to understand the overall flow of the Planning process.

2. Vision: Vision defines where the organization wants to be in the future. It reflects the optimistic view of the organization's future. It reflects the long term future picture of the organization if it runs successfully through these years.

3. SWOT: Strengths, Weaknesses, Opportunities, Threats
SWOT Analysis helps us to understand the internal and external analysis as to what the organization is, what are its strengths, weaknesses, threats and opportunities. It is an effective tool for Strategic Decision Making. Internal Analysis is done via self-assessment by planning participants, gathering inputs from stakeholders through a survey while external analysis is done through understanding factors like economy, demographics, technological changes etc.

4. Context: Strategic Planning is done on the basis of the context in which the organization is established. Context might include Population Demographics, Economic Trends, Forecasted Growth Rate etc which can used as a basis on which planning can be done.

5. Mission: A mission defines where the organization is going now, describing why this organization exists. A mission statement reflects the purpose and includes some strategic reflection. A mission statement does not reflect what a firm should do in order to survive but what it has to do to develop in a unique way.

6. Problem Statement: A problem statement summarizes key issues that are faced by the organization and provides a background for strategic choices. It consists of the Organizational needs, Causal factors, Analysis of existing resources and leadership etc.

7. Organizational Rationale: This approach is based on the assessment of Organization’s View of best practices and come up with some Strategic Decisions that are given more priority than others, targeting say a particular segment of the market.

8. Goals: Goals are those ends that can be achieved within the planning horizon. It is the statement for a long term purpose and should clearly state specific measurable outcomes within the planning horizon. Strategic Planning produces lots of ideas and action steps while formulating the goals for the organization.

9. Objectives: Objectives may not be fully achieved within the planning horizon, but can eventually be achieved. The target objectives are even clearer statements of the specific activities required to achieve the goals, starting from the current status. Objectives basically address the difference between where we are (current status), and where we want to be (vision and goals), by spelling out what we have to do (target objectives and action plans) to get there. Objectives are specific, measurable results produced while implementing strategies.

10. Action plans: Action plans basically translate the Strategic Plan into implementation steps. People who are involved in Strategic Planning are held responsible for implementation of the plan and a Cross-functional team is made use of to ensure the plan is realistic and collaborative.

11. Evaluation: Evaluation plans help you to understand the current status of the efforts of the organizations in achieving the goals it intended to. If the steps are followed judiciously and are tracked, then it would be easier to track the outcomes. The data collected should be integrated in the Action Plan with responsibilities and timelines being clearly listed.

References:
1. Strategic Planning. http://socrates.berkeley.edu/~pbd/pdfs