Getting Management

Commktment to Planning-
A New Approach
A. S. Humphrey

President, Business Planning

Et Development, London

(2) The planners, as an organised procedure which would minimise classic

The problem of getting colleagues function, produce the data and the organisational problems familiar to
committed to planning is one which plans which are presented to line students of Parkinson’s Law, Up the
many corporate planning managers management for their review and Organization and the Peter Principle, and
are we/l aware of. This article sets use. Based on these data the bring the individual and collective insight,
out in practical terms a new management issue their strategic knowledge and problem solving ability
approach to overcoming the considerations in the form of which exists within a company to the
problem. direct aid of General Management.
approved plans. Budgets are then
prepared by subsidiary functions Further, it was believed that line manage-
and the line organization prepare ment should be involved in developing
THE DEVELOPMENT OF
PARTICIPATIVE PLANNING* and present their individual budgets. their own actions and through this involve-
(3) Formal business planning, starting ment and subsequent achievements to
S INCE
&
1941,
Smith’s
FOLLOWING
classic
HOLDEN,

Management Organisation and Control”

“Top
article,
FISH
with the Chief Executive setting
forth broad objectives, then followed
become committed to the planning process
which made it possible.
by a series of meetings between the
the emphasis on formal business planning job holder and his superior with a THE NEED
has gradually shifted from ‘the need to planner present. Each meeting
plan’ to questions concerning ‘how to Without calling for strange or novel
records how the job holder can techniques, or disturbing the natural style
plan’. A growing number of companies meet the objectives set forth by the
are involved in developing technique in of the organization, Participative Planning
senior. seeks three conditions :
business planning. Most have been
concerned with the associated mathematics (4) An unstructured group approach to (1) Identification of the strengths and
planning involving the senior weaknesses, threats and oppor-
such as applications of the Monte Carlo management in a ‘get-off-for-a-
technique, decision trees and Discounted tunities inherent in the operation.
week’ session to consider broad
Cash Flow analysis. New models have (2) Formulation of realistically timed
strategic considerations and to programmes to deal collectively
been developed which permit the examina- formulate plans. These in turn
tion of “What if?” questions. During these with these problems and facilitate
provide the guidelines for the controlled development.
24 years only a few have studied the budgeting process.
organisational approach to planning in an (3) Creation of a framework within
attempt to gain management commitment. (5) A structured group approach to which the actions are actually
planning involving the senior implemented, to achieve immediate
From the work of these few three methods management for a session so struc-
have been popularized-Planners Plan, and recognizable benefit plus self-
tured that plans and budgets are generative momentum in the
Line Management Plan individually and created simultaneously.
Line Management Plan as a group. business system.
They fall into five classes: The degree of executive involvement, There is nothing fundamentally new in
exposure and commitments vary with this concept. What is new is the approach
(1) A statement or guideline concerning these approaches. In the case of Class (1)
the economic outlook is created by (a) to the emphasis on management
commitments are low and in the case of participation and (b) the rapid develop-
Planners for approval by top
management. This guideline then Class (5) they are high. This article deals ment of the plans. The pay-off lies in the
forms the framework within which with Class (5) type structured group production of a realistic timed plan to
budgets are prepared. planning, which is being adopted by which the company management team is
companies here and in the U.S.A. completely committed. This is of course no
*PARTICIPATE PLANNING is a Registered Trade
The system is called Participative more than every business of whatever size
Name (Registered No. 423,860, U.S.A. May 8th Planning and was designed with the would like to have for all its Divisions at
1972). objective of creating a simple, routine all times. The main attraction is the

FEBRUARY, 1974 45
simplicity and speed, the discipline which PHASE I : PRE-PLANNING- consists of not less than 40 sq. ft. and
the internal team evolves and imposes ORGANIZATION preferably 70 sq. ft. per participant,
upon itself and the subsequent committ- The organization which has been found including observers. There should be a
ment to achieve the agreed programmes. useful, non-threatening and efficient is clear wall for hanging newsprint work
simply the appointment of a senior officer sheets and comfortable chairs should be
to be the Planning Secretary as a collateral arranged around a large table, which
THE CONCEPT duty. The term ‘secretary’ is used to avoid should be segmented so that it can be re-
The overall concept of Participative any impression that this officer will plan arranged into smaller units for group work.
Planning was described by the Chairman and to give the correct impression that A large blackboard and three large
of W. H. Smith & Son (Holdings) as: this executive is to be responsible for the newsprint flipcharts are the principal
arrangements, schedules, collection of working aids. Rulers, pencils, erasers,
“A formal process (not sitting down and pre-Planning data and supervision of the
waffling) of setting out objectives for the
punch, numbering machine, felt pens,
company and working out the strategies to
activities of Phases II and III together with stapler, individual notebooks and ring
achieve these objectives against the background the subsequent re-cycling of the Planning binders for the final Plan are the main
of systematic appraisal of the internal strengths process. facilities and supplies required.
of the company, internal weaknesses of the
company and the external environmental
The Planning Secretary should be The Agenda for the 5-day Planning Session
change-that means competition. “It is further provided with a qualified executive grade is summarized as follows:
the process of translating strategy into opera- secretary to be responsible for the admini-
tional plans and seeing that these plans are Day One is devoted to reading the
strative and clerical aspects.
carried out.” employee Planning Issues, sorting them
During Phase I the Planning Secretary into meaningful groups, assigning the
If you don’t adapt you die.
(a) sets out the Schedule of Events and (b) resulting groups of Issues to executive
(1) The company cannot keep pace unless it calls for Planning Issues and instructs in
has a formal, controlled and disciplined teams and finally the development of the
method of approaching the problems that the method for completing and submitting Action titles which would appear to deal
confront it. these Planning Issues. with these Issues in aggregate.
(2) The capital committments which go toward
this must be thought out 4 or 5 years in Day Two is devoted to establishing the
advance. ‘State of Play’ on each recommended
PHASE II: THE PLANNING Action coming forward from the previous
(3) Employees want to know what is expected SESSION
of them. They like to work for a sharp, day and the assignment of Action
good, clean company. An employee wants The key to this new management technique Programmes to specific individual execu-
to know that he is going to do, when he is lies in a specially sequenced 5-day Planning tives present at the Planning Session, who
going to do it, what is the objective and Session. It is attended by the company’s
how he is going to achieve it. What help he are then responsible for developing minia-
is going to be given. Chief Executive and those officers who ture Plans for accomplishing the agreed
“This system (through the usage of a
report immediately to him. Following a Action. These miniature Plans include a
Planning Issue) involves a systematic look at closely controlled agenda this top executive specific statement of work, a calendar for
the company. It allows everyone to feel that team converts the Planning Issues culled accomplishing this work, a budget for
they are taking part and then after every from throughout the organisation into a doing it and a statement of measurable
Planning Issue has been considered to Get a comprehensive, actionable Business Plan.
Move on Generally (GAMOG)“. results which can be achieved from such a
In practice, the 5-day Planning Session is a programme.
Described in another sense the planning highly disciplined procedure, each hour
being filled with a specific sequence of Day Three is devoted to summarizing
process must ensure that: the individual Action Plans into a whole.
tasks. The Session must produce a Plan
(1) The voices of all the employees are This provides for calculating an Operating
which can be actioned within a matter of
heard. days from its ending and which should Statement and Balance Sheet covering a
result in noticeable effects on profitability 5-year period, built from the individual
(2) All of the middle management see within a few months. An How To Do It
Action programmes brought forward from
their personal impact on year-end the previous day.
profit. Manual has been developed which
instructs on each step and stage, allowing Day Four is devoted to first refining the
(3) All top management see and be for review and authorization as well as overall Business Plan and then the
constantly reminded of their role in detailing the implementation phase during preparation of strategy and the description
directing the growth of the company. which progress is monitored against Plan. of the company’s ‘Management Style’. The
Periodic re-cycling and revision is allowed Plan is then assembled.
The system is based on first gathering the
views of all the employees, followed by a for in keeping with the speed of change Day Five provides for new and second
5-day Planning Session which translates generated at this time. Space does not thoughts and the creation of a purpose
these views into Action Programmes and allow the description of specifics here, and objective statement. On this final day
Plans and then by the actual implemen- only the highlights of the process. the process for presenting the Plan to
tation of these agreed Actions. This is Attendees at the Planning Session are higher authority, its implementation and
followed by the repeat of the entire cycle. provided with ring binders which contain the appropriate monitoring and control
(a) a copy of the existing budget, (b) a systems to be used are agreed.
There are three phases to this process: copy of the current plan if one exists, and Immediately following the Planning Session
(1) Phase I: Pre-Planning (c) a current Operating Statement and and before the presentation, the Planning
Balance Sheet. All employee Planning Secretary and Accounting officer check
(2) Phase II: The Planning Session Issues are brought unopened to the the group’s mathematics to detect and
(3) Phase III : Post-Planning, Planning Session. eliminate any possible errors. The final
Implementation and The Planning Session should be held in Plan is then distributed to each member of
Control. a well lighted and ventilated room which the Planning Session.

46 LONG RANGE PLANNING

 Long Range Planning without Tears. factors affecting consumption and
price.

Two obstacles that any chief executive has to overcome in introducing formal Long Range (2) He reads a synopsis of his Division’s
Planning is the antagonism that arises between line management and Planners and the fear of overall ‘Purpose. Creed and Objec-
making commitments in the face of uncertainty. tives’, followed by key Divisional
Participative Planning is the name we have given to a unique planning system which prevents strategies.
this antagonism and dispels the fear by involving line management in the planning process from
(3) He presents a listing of the specific
the very start. Aside from line management involvement, what else does Participative Planning
provide ?
Action Programmes in order of
priority, along with the Programme
Firstly: A 5-year Financial Projection for planned growth with Profit & Loss statement,
Balance Sheets and funding requirements. budgets.
Second/y: Detailed Action Programmes by which these financial targets will be accomplished (4) He presents the Operating State-
complete with castings, time schedules and assignment of management responsibility. ment, Balance Sheet and Cash
Thirdly: All the support papers in terms of underlying assumptions, strategy statements and so Flow statements and describes at
on that must accompany any formal plan. least one set of measures indicating
How long does this take ? Because Participative Planning is a highly disciplined, well documented that the Plan is deserving of
system a company can produce its first formal Long Range Planning Corporate Plan over a 45-day
approval and authorization.
preparation period using a special (5-day) Executive Planning Session. This will include both a
detailed Development Plan and an Operations Budget covering the areas of Diversification, (5) He shows the Action Schedules,
Production, Marketing, Finance and Administration. the names of those assigned to the
The speed of preparation is not made at the expense of quality or accuracy. work and reads out key Programme
Once this first Plan has been produced the company will be in possession of an established Assumptions.
Planning system that it can continue to manage, routinely recycle, monitor and control.
Lastly, he requests authority to imple-
The introduction of Long Range Planning can be both a difficult and a protracted process-but
ment the Plan, that is, authorisation to
not this way.
take the specific Actions shown for each
Programme through Phase I and to commit
and spend the money, if any, which is
The final step before actual implemen- Board of Directors of the company. associated with this first step. Also, that
tation is the formal presentation of the Small conglomerates are treated in exactly the intent in both scope and direction of
Plan for authorization by the Executive or the same way. There are three important the overall Plan is endorsed not only for
Board responsible for the unit being rules to be observed in the protocol of the first year but for each of the succeeding
planned. This is a very important step, Plan Review and Authorization. 4 years, subject to annual or more frequent
bhich, if improperly handled, will reduce Plans should be presented only re-cycles and reviews. The mechanics of
(1)
the effectiveness of all the previous work. once and to only one level of the system are sufficiently reliable to
Planners will remember the controversy authority. Courtesy copies of enable the Group Executive to make on-
which existed for years over the correctness Authorization and Review Minutes the-spot decisions and give work instruc-
of ‘top-down’ or ‘bottom-up’ planning. can be sent to the next level up as tions to the Managing Director. He can be
Participative Planning requires that the well as the next level down. advised of the implications of such
Business Plan be created at the profit All levels of authority should have decisions and instructions during the
(2)
generating level, where the business is a Plan which, although it picks up discussion period of the Plan Presentation
most clearly understood in the technical subsidiary responsibility is primarily itself. There is no mechanical or business
sense. The Plan is then presented as a to describe the work which the reason why authority to proceed with
recommendation to the next level for particular level itself is going to do. implementation of the Plan should be put
authorization. It is at that level that off, deferred or sent back for re-planning
(3) Plans at Group and Holdings level
authority is directed back to the unit to or revising. A deferred decision on a Plan
for most companies are simply the
carry out or to modify the recommenda- or a condition of ‘unapproved-without-
summation of operating unit Plans.
tions. instruction’ places the subordinate in a
In Participative Planning Groups
The review and authorisation of the state of business limbo and hence reflects
and Holdings levels produce their
Plan is primarily required to create a more on the organization, its authority and
own Plans, using the same Planning
reliable communication system and for structure.
Issues and 5-day Group approach.
better understanding between levels of Having heard the presentation, the
They are treated in the same manner
authority. In Participative Planning the Chairman leads a discussion of sufficient
as subsidiaries but with a higher
Plan and the budget are synonymous. length and depth to satisfy himself not
order of magnitude, having a
Thus, a review is also required to grant only that the Plan is in the best interests of
broader scope of activity and
authority to commit and spend money, the shareholders but to enable him to
responsibility.
both capital and expense. announce his own decision to implement
The Plan authorization procedures In presenting his Division’s Plan to the the Plan and delegate Authority to
described in this article are written to Group Chairman the Division Managing proceed under one of the following
cover the large public holding type Director proceeds as follows: conditions:*
organization, but they apply equally to a (1) He describes the business situation
small, private, single-product company. in which his company operates- *Just as the Managing Director may at Depart-
In the latter case Departmental Plans are the total market (History and mental level, so can the Group Chairman at the
eliminated, as are the Group and Holdings Outlook), that portion which he Divisional level, add or subtract programmes to
Plans. The single company Plan is created actually serves (History and Out- or from the Plan by calling for (a) special studies,
(b) greater profits, (c) slower rate of expansion,
by the Managing Director and his look), the number and position of
(d) accelerated growth, (e) eliminations of
immediate subordinates and is then re- competitors, trends in product specific programmes and (f) substitutions in part
viewed and authorised directly by the development, technical trends and or totally.

FEBRUARY, 1974 47
 (1) Total approval of the Plan as
presented.
Information
(2) Approval in concept but modified Flows Up
as follows :
(a) Faster;
Level 5 -
(b) Slower;
(c) Truncated.
(3) Approval to proceed along a totally
different concept and/or with major
modifications.
The Group Chairman and the Managing
Director continue their work session,
writing new Action plans, modifying
those already existing, editing strategy and
altering budgets and assumptions until an Level 3 -
agreed Plan is created and formally
authorized.*
Formal authorization is given to the
Managing Director in the same way as he
granted authority to his own Departmental
Directors. A written statement is issued Level 2 (- Ti F Ti -ye12
which would read : Info.
“The Division Plan is approved subject to
the following additions, deletions, alterations
Autho.
etc.”
and signed by the Group Chairman and Level1 - (E) (E), (> -,Level 1
the Managing Director as before. As a
matter of courtesy a copy of both authori-
sation and Minutes should be sent to the
Holdings Chairman.
Figure 1. Review Procedures for a Large Public Holdings Company-Example Structure.
Group Plans? (a) Each level has its own individual plan which is approved by the next level for implementation.
Group Plans, being created in the same (b) Each level’s plan is reviewed only once and becomes a part of the next level’s own place as a
single line element. This requires that Level 1 loses its visability at Level 3. Level 2 loses its
way as Departmental Plans, are presented
visability at Level 4.
in the same way. They consist of consoli-
dation of all earlier approved Plans to
which have been added those Action presented in the same way to the Holdings Consideration:
Programmes which the Group Chairman Board of Directors. As before, individual In this instance is simply letting one’s
has elected to recommend for implemen- Group Plans become line programmes in colleagues know when something goes
tation at his level of the organization. the Holdings Plan and form the basis on awry, when premises change and where
The presentation, as before, deals with which Holdings executives build for permission for proceeding is required.
those aspects of the Consolidated Plan additional profit growth. Thus, no indi- On the surface this may seem a little
which have not been previously authorised vidual company or subsidiary Plan is Victorian but in practice it is more a
and does not deal with any aspect of the in- presented to the Board of Directors-nor matter of common sense and standardi-
dividual subsidiary Plans already reviewed. any particular group, but rather a Con- zation than anything quite so earth-
Thus, no Plan is reviewed twice and all solidated Business Plan for which authority shaking as the application of The Ten
Plans become elements of larger Plans. is requested only on those elements of the Commandments or a spartan attitude to
Plan not already approved. work.
The Holdings Plant
The procedures consist of four elements:
The Holdings Plan is created in the PHASE Ill: POST PLANNING (1) Monitoring ‘Progress to Plan’.
same way as subordinate Plans and There is no benefit in Business Planning (2) The up-dating of Plan documents,
unless profits improve. In order to obtain filing and clerical routines.
*In a general sense the Group Chairman has the this payoff, implementation and control (3) Plan review.
same opportunities, though at a different level of
procedures must be carefully followed. (4) Re-cycle.
activity, as the Managing Director has when
reviewing the Plans of his subordinate Depart- Post-Planning psychology is that of dis-
ment heads. Thus, the same rule applies-that a cipline, honouring committments and Monitoring ‘Progress to Plan’
deferred decision or no-approval-at-all is not consideration to one’s seniors. On the wall in the Chairman’s office
acceptable. there should be an exploded view of the
tWhen Group or Holdings do not produce a Discipline:
Strategic Plan Action Schedule. On the
Plan for implementation at either Group of In this instance it is the rigourous
wall of each subordinate officer is a chart
Holdings level, then the subsidiary or Divisional treatment and use of the documents and
Plans are individually presented directly to the showing their part of the overall set of
the rigourous up-dating of Planning
Holdings Board of Directors. The individual actions. The Chief Executive visits each
Forms.
presentations are made against the background subordinate once a week to discuss
of a simple Consolidated Operating Statement progress. Should major developments
Honouring Commitments:
and Balance Sheet. This procedure is only used
when the Group or the Holdings is an artificial In this instance is simply doing what was affecting the Plan occur (such as uncovering
agency. agreed. a false or misleading assumption or

48 LONG RANGE PLANNING

discovering that a task is impossible) a programmes, results and recommendations disaster, fire or loss of business. The
quick Group conference is called to for re-direction. assurance of continued success between
re-cycle the Plan. It takes about one hour Mode (I) therefore is aimed at manage- Review sessions comes from the infor-
to re-calculate the company’s Profit & ment development and Mode (2) at mation system and the daily routine of
L,oss Statement and Balance Sheet. Thus, business development. subordinate management.
there is always an undated Operating
The frequency of group meetings is
Statement showing year to date and year
related to the rate of change being imposed The Up-Dating of Plan Documents,
end expected guiding the business. Filing and Clerical Routines
on the organization. A high rate of change
To accomodate control, which is simply requires more frequent exchanges of Control, or in other words, ‘getting
avoiding surprises, the first year of the views, results and problems than does a expected results’ depends more on the
Plan is broken down into months. It is low rate of change. A plan of this relation- documentation and use of the Planning
important to monitor the operations in ship is shown below (Fig. 2). There is no Forms than on any other set of activities.
keeping with the rate of change-weekly substitute for this group exchange and Here are some rules to be followed
when things are happening and monthly individual meetings between senior and regarding the maintenance of the docu-
when change occurs more slowly. subordinate do not constitute a monitoring mentation :
Another aspect of control which must meeting in this sense of ‘reviewing Progress (I) Each officer brings his own Planning
not be overlooked is the need to review to Plan’. binder with him to any meeting
tie Planning Issues which became part with anyone else within the
There should be no requirement to
cf the Plan. When the officer responsible company.
meet more frequently than the schedule
believes that one of his Planning Issues
set above unless some major premise to (2) When a subject is discussed the
no longer pertains he asks permission
the Business Plan is incurred, i.e. a strike, appropriate Form No. 3 is laid out
t3 eliminate it. As Planning Issues are
eliminated they are filed in a folder which
carries the Action title and code of the
programme to which it belonged. The Plan
contained in the ring binder containes the
IOO-
Planning Issues, so that the size of the
Plan shrinks as they are eliminated and it
becomes visually evident that things have
happened and it is time to re-cycle.
Elimination of Planning Issues can be
dealt with either during individual meetings
with the Chief Executive or during a
period of formal Plan Review.
The monitoring of ‘Progress to Plan’
concerns two elements: (a) the work
itself-the innovative quality of the
approach and the results, and (b) the
professional development-evaluation and
review of the officer assigned to accomplish
the Action Programme and his approach
to carrying out the work.
There are two basic monitoring modes:

Mode 1
A ‘one-to-one’ conference between the
stienior (control) and the junior (assignee)
regarding the work described on his
Action Plan. This method is used to effect
professional development, evaluation and
review of the Manager, and affords an
opportunity to discuss the whole matter of
his approach and working relationship
with others etc.

Mode 2
A ‘group’ conference between the senior
and all the juniors involved in the total
Business Plan. In other words a meeting of
the basic Planning committee. The ‘group’
is used to effect progress and advance the
overall level of the business activity and
this approach emphasises the inter-reaction Rate of Growth (Compounded) per cent
of one Action to another and affords the
opportunity to communicate horizontally
and vertically on premises, Issues, Action Figure 2. Plan Monitoring Meetings versus Rate of Growth.

FEBRUARY, 1974 49
 and as the premises, direction or compound rate of profit increase of about Monthly
budget are altered the Form No. 3 30 per cent per annum: Once a month, on a specified day (the
itself is amended. third Wednesday or Friday of each
(3) Alterations affecting the Profit & Weekly month) the Officer in charge meets with
Loss Statement and noted and the On a specified day (Wednesday or his planning team for a review session
Profit & Loss Statement is changed Friday) a single Action Programme is requiring a full day. The session is called
and reported to authorisation level reviewed in depth. The Officer in charge to hear a general statement on each
for approval. meets with his planning team for a Action within the Plan. Each member of
minimum of two hours and the Manager the planning team makes a statement
(4) As progress is achieved the relevant
Planning Issues attached to the discusses in depth his Action Programme, following the format:
Action Programme are removed using the format: Is the Action ‘on target’
with the permission of the control What I said I would do Is the Action ‘off target’-what is being
officer. What I have actually done done
(5) As Action Programmes are What has happened New premises-new ideas.
completed they are removed from
What results have been achieved This is a formal presentation made by
the binder and filed under the title
What premises are altered the Manager to the group and he should
of the Action. The files of completed
stand when making his reports.
Action Programmes are destroyed What new recommendations are
at the next re-cycle Session. The general emphasis in monthly Plan
proposed.
reviews is on Re-Direction of E#ort rather
The problem of upgrading and main- If, based on this review, a new Action than specific detail. New Action Pro-
taining a Business Plan is small. The crux Programme is required it is then prepared grammes can be created. The Profit &
of the matter lies in simply keeping the and appropriate copies made. Loss statement and Balance Sheet should
document in front of the business manager be revised instantly by the group and an
If the Plan’s financial outlook is affected
and making appropriate changes as they agenda set up for the presentation of the
then the financial summaries are amended
are agreed-a small inconvenience in new financials to the higher level of
and appropriate copies made.
view of the potential rewards in profit authority.
improvement and real opportunity for Specific adjustments to budgets, title or
professional advancement. assumptions are made if agreed.
Quarterly
The following is a monitoring and The general emphasis on weekly reviews On a specified day in each Quarter a
control programme designed to effect a in depth is Detail. 2-day Plan re-cycle is held. A standard

Table 1. Monitoring Programme Summary.

Weekly Monthly Quarterly Annually

Required for high growth Required for above average Required for average. Required for GNP rate of
companies. growth. growth.

What What What What

Time-2 hours. Time-l day. Time-2 days. Time-5 days.
A single action programme is Every action programme is Every action programme is Planning Issues are collected,
selected for in depth review by superficially reviewed. reviewed and the financial new action programmes are
the planning group. statement revised. created. New Budgets, schedules,
operating statements and balance
sheets.

Who Who Who Who

Formal presentation by a single Formal presentation by each Formal presentation by each Total group participation.
member of the planning group. member of the group. member of the group.

Presentation and Format Presentation and Format Presentation and Format Presentation and Format
What I said I’d do? Is plan on target ? What I committed ? Form 3 plan detailed in total for
What I actually did do ? Is plan off target and what’s What I did? each action programme. Total
What results were achieved ? being done about it ? What results achieved 7 business plan is summarized.
What new premises established ? Any new ideas as to scope and New premises ?
What new recommendation ? intent 7 New recommendations?

Out Flow Out Flow Out Flow Out Flow

PI’s eliminated individual action New action programmes can be Old programmes eliminated. A new total business plan.
programme can be revised if created and changes to the New ones created and plan
new information warrants plan summary statements made. summary statements revised.
changes are reflected in the Any re-direction goes up for New financial statements go up
plan summary statements i.e. authorization and approval. for approval and authorization.
specific adjustments to budgets,
to title, to assumptions.

Emphasis Emphasis Emphasis Emphasis

Is on Detail. Is on Re-Direction of Effort. Is on Profit and Re-Investment. Is on Total Strategy.

50 LONG RANGE PLANNING

Plan re-cycle is discussed in more detail in then requiring senior management as a (9) Support won for your own aims:
the following section. This is an in depth group to develop Action Programmes to from your boss;
review of each Action Programme, basic deal with these Issues some important from lenders and financiers;
premises and financial pro-j&ma-a 2-day benefits actually accrue. Some of these from suppliers;
procedure which appears in practice as the benefits are listed below. All contribute to from your employees.
last two days of a 5-day Planning Session. improved profits. It will be noted that 00) Provides a future picture of
these are the traditional, long sought for currentactivity.
Pnnually benefits originally ascribed to planning. (11) Points out what you are not doing
The annual 5-day Planning Session -shows the gaps.
follows the procedures outlined earlier and Takes advantage of employees’
(12)
requires the generation of Planning Issues Benefits own knowledge, interest and skills.
and a total re-cycling of the Plan’s strategy, (1) Improved morale of employees.
budgets and Action Programmes. (13) Eliminates internal employee
The emphasis lies on the revision of the (2) Greater understanding of what is friction.
important. (14) Helps anticipate problem areas
company’s Total Strategy.
(3) Great executive commitment before they become disaster areas.
toward agreed goals. (15) Provides the basis for quick
RESULTS AND CONCLUSIONS (4) Greater insight of what is possible. changes in direction.
For many years business pundits have been (5) Greater flexibility in meeting 06) Eliminates Parkinson’s Law and
urging managers to plan. Through changing conditions. Peter’s Principles. Because of the
planning, benefits accrue. The logic variety of benefits there is ‘some-
(6) Faster response to business wind-
supports these claims but actual experience thing for everyone’ in this process
falls or losses.
and practice over the past 20 years has not. and for this reason as well as
However, Participative Planning has (7) Faster preparation of budgets. prolit improvement Participative
achieved these ends. By involving em- (8) Prove to others that you know Planning wins management com-
ployees in creating Planning Issues and what you are doing. mitment. ??

FEBRUARY, 1974 51