5th step to basic management: planning


Planning is one of the pillars of management. It is the cornerstone of control. Without it, it is impossible to systematically target and attain organisational objectives.

After the structure is set in the previous 4 steps and the team is aligned, internally, the best next step is to commence the planning process. The following processes is the ingredients to a well-constituted environment for success for all industries and organisations. The level of detail and frequency of control will vary between organisations, depending on the industry, maturity and management capability.

The processes below has actual practical steps that are not elaborated upon. These detail steps are discussed in training sessions and will be released in online training material.

The strategic planning process involves:

Determining the overall strategy and plan how to fulfill consumer needs;
Determining the strategic direction of the organisation;
Determining the strategic indicators to guide the organisation in the right direction;
Determine a strategic plan to measure progress against with measurements – these measurements are normally not as defined as operational measurements, but nevertheless specific enough to provide progress on a quarterly and annual basis.

The capacity planning process involves:

Determining the required volume to be processed by using one or a combination of various forecasting models or soliciting forecasts from the sales/marketing force;
Determining the capacity required to support the forecasted volume;
Determining the specific resources and organisation structure for the operation;
Raising/Requesting the resources from the organisation.

The mobilisation planning process involves:

The annual/seasonal delivery plan (Master Production Schedule);
Monthly/Weekly delivery plans/buckets;
The quarter/monthly resource roster (Medium Term resource planning);
The weekly/daily resource schedule;
Shift plans and schedules;
Management teams and their objectives.

The performance and progress planning process involves:

Determining the key performance indicators (KPIs) for quality and quantity;
Determining the targets for annual/monthly/weekly/daily/hourly KPI measurements (not necessarily all KPIs at all levels);
Determining the review frequencies, review forums and escalation procedures;
Determining the mechanism for collecting data and aggregating data to information used in the reviews.


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