Topic: The Usefulness of Project Planning in Business Organizations
Venue: Addis Ababa Hilton Hotel
Presenter: Afework Yohannes, MBA
Title: Consultant, BCaD-Consulting Management

What is planning?
• “Planning is the process of coping with uncertainty by formulating future courses of action to achieve specified results.” Kreitner

• “Planning is the process of setting objectives and determining what should be done to accomplish them.” Elizabeth Chell
Three types of uncertainty
• State uncertainty: unpredictable environment;

• Effect uncertainty: impact of environmental changes are unpredictable;

• Response uncertainty: consequences of decisions are unpredictable.
Different Organizational responses to an uncertain environment
• Defenders: primary attention devoted to efficiency of current operations;
• Prospectors: Primary attention devoted to searching for new market opportunities;
• Analysers: Simultaneous operations in stable and changing product market domains;
• Reactors: Frequently unable to respond quickly to perceived changes in environment.
What is a plan?
• “A plan is a specific, documented intention consisting of an objective and an action statement.” Kreitner

• The objective statement is the end whereas the action statement is the means to that end.

• Properly conceived plans tell what, when and how something is to be done.

Three types of planning

• Strategic level; determining how to pursue long term goals.

• Intermediate level; determining subunits’ contributions with allocated resources.

• Operational level; determining how to accomplish specific tasks with available resources.
The advantages of planning
• Focus and flexibility: Knowing what business you are in and what as a business you do best;
• Improves performance: results oriented, focus on priorities, best use of resources, problem solving;
• Improved coordination: better coordination of objectives horizontally and vertically (means-end);
• Improved control: more effective evaluation of performance due to clearer objectives;
• Time management: not to overlook the strategically important, longer term issues;
What is PROJECT?
• Projects are ad hoc and temporary as they are normally undertaken outside the normal organizational hierarchy or chain of command; (Kreitner)

• Projects are single-use plans in that they are plans to accomplish a specific task or meet the exigencies of a unique situation; (Chell)

What are some of the examples of projects in business organizations?
• Corporate venturing (intrapreneuring) i.e. expansion, diversification, rehabilitation, new proj., etc.;

• Performance improvement (cost, time, quality) for customer satisfaction;

• Staff skill upgrading training;

What is the benefit of project planning for business organizations?
• Build a competitive advantage with profit and growth as necessary by-products,

• Maximize customer satisfaction via obtained useful results;

Tools for managing projects?
• Sequencing: putting activities in sequential order; (flow charts)

• Scheduling: fixing timeframe for carrying out activities; (Gantt chart)

• Programming: simultaneous sequencing and scheduling; (PERT)