Unit 3. MANAGEMENT PLANNING

planning

process of formulating objectives and determining the steps which will be employed in obtaining them

developing a pathway to accomplish the organization’s mission and goal using resources and time

deciding in advance what is to be done

provides direction

strengthen confidence in understanding where the organization is heading and how best the organization move along the chosen path

analyze alternative course of action

analyze alternative course of action

reduces uncertainties

encourages managers to probe and cut-through complexities of the environment and to take control over the elements of changed

1. WHERE ARE WE TODAY?

2. WHERE ARE WE GOING?

3. WHERE DO WE WANT TO GO?

4. HOW ARE WE GOING TO GET THERE?

CONCEPT OF PLANNING

Identify what the organization wants to do: (4)

WHERE ARE WE TODAY?

CONCEPT OF PLANNING:

begin with honest and realistic appraisal of the current position of the organization

determine which opportunity to pursue

WHERE ARE WE GOING?

WHERE DO WE WANT TO GO?

CONCEPT OF PLANNING:

vision and mission statements, goals and objectives

basis where the organization is going

HOW ARE WE GOING TO GET THERE?

CONCEPT OF PLANNING:

provides how goals should be attained and how resources are allocated

Plan

predetermined course of action intended to facilitate the accomplishment of task, work or mission

mission

statement of the organization’s reason for being

final and ultimate goal

defines the organization’s purpose

vision

internal document, by design

non-specific directional and motivational guidance for the entire business

what will the business be like in five yeas’ time

intended to inspire those within the organization to maximize their potential, and by so doing, to maximize the potential of the organization as a whole

objectives

goals through which an organization aims (mission) to achieve ahould be quantifiable statements which are achievable over a designated period of time

goals

specific statement of anticipated result
end or an outcome that one hopes to attain

strategies

general program of action implying commitment of emphasis and resources to attain broad objectives

means to a defined end or an action taken to reach a goal

Policies

general statements which guide or channel thinking and action in decision-making

procedures

establishes a required method of handling future activities

rules

required actions chosen from among alternatives

programs

complex of goals, policies, procedures, task assignment, steps to be taken, resources to be employed necessary to carry out a give coarse of action

Budget / Numerical Program

statements of expected results expressed in numerical terms

1. Short Range or Tactical Plan

2. Operational Plan

3. Strategic Plan

3 Types of Plan

Short Range or Tactical Plan

consists of the detailed, day-to-day operations needed to meet the immediate needs of the laboratory and works toward meeting the long-term strategic goals that have been set

covers a 1-5 year period

focuses on tasks that can be completed in this time frame

methods for achieving goals identified in the strategic planning process

operational;

technical;

supervisory staff

Short Range or Tactical Plan requires _________ or _________skill and is generally a logical responsibility of the __________________

Operational Plan

3 Types of Plan:

covers maybe a year or one budget period

mostly concerns operation

Strategic Plan

3 Types of Plan:

process by which high level decisions are made

deciding on the objectives of the organization and the need to modify existing objectives if appropriate; allocating resources to attain these objectives; and establishing policies that govern the acquisition, use, and disposition of these resources

based on long-term projections and a global view that can have an impact on all levels of a laboratory’s operations

tactical and operational

Strategic Plan involves _________ and __________ plan as well as forming alliances and partnerships with key players

Strategic Plan

3 Types of Plan:

methodical process whereby an organization defines its mission, identifies directions, develops a unified approach, prioritizes longand short-term goals, assigns accountabilities, and allocates financial resources

develop an action-oriented approach and identify the pieces needed to build a successful laboratory operation

“Good strategic planning is a structured process”

Successful strategic planning requires preplanning, organization, welldefined goals, communication, and a firm belief in what is to be accomplished

1. Histograms/Graphs/Scattergrams

2. Brainstorming

3. Fishbone Diagrams

4. Storyboarding

5. Pareto Analyses

6. Delphi Analyses

6 Techniques used to facilitate the strategic planning process:

Histograms/Graphs/Scattergrams

6 Techniques used to facilitate the strategic planning process:

What they are:
Statistical and visual tools that display data patterns and relationships.

Purpose / Use:

• Analyze trends, variations, and relationships

• Support evidence-based decision-making

• Identify problem areas and priorities

Used for:

• Performance analysis

• Quality improvement

• Monitoring outputs and outcomes

Brainstorming

6 Techniques used to facilitate the strategic planning process:

What it is:
A group creativity technique where ideas are freely generated without immediate evaluation.

Purpose / Use:

• Encourage innovation

• Generate multiple solutions to a problem

Used for:

• Strategy formulation

• Problem-solving

• Idea generation

Fishbone Diagram

6 Techniques used to facilitate the strategic planning process:

What it is:
A visual tool that identifies possible causes of a problem, arranged like a fish skeleton.

Purpose / Use:

• Determine root causes of problems

• Organize contributing factors

Used for:

• Quality management

• Process improvement

• Problem analysis

Storyboarding

6 Techniques used to facilitate the strategic planning process:

What it is:
A visual planning technique using pictures, notes, or diagrams arranged in sequence.

Purpose / Use:

• Present ideas logically

• Visualize strategy development step-by-step

Used for:

• Strategic planning sessions

• Process mapping

• Project planning

Pareto Analysis

6 Techniques used to facilitate the strategic planning process:

What it is:
A decision-making technique based on the 80/20 principle—80% of problems come from 20% of causes.

Purpose / Use:

• Identify the most significant factors affecting outcomes

• Focus resources on critical issues

Used for:

• Priority setting

• Resource allocation

• Quality improvement

Delphi Analysis

6 Techniques used to facilitate the strategic planning process:

What it is:
A structured method of gathering expert opinions through repeated rounds of anonymous questionnaires.

Purpose / Use:

• Achieve consensus among experts

• Forecast trends and future scenarios

Used for:

• Strategic forecasting

• Policy development

• Long-term planning

SWOT Analysis

useful tool for guiding a marketing strategy and can be used in developing such a program

Strengths & Weaknesses

SWOT Analysis:

• environmental factors internal to the laboratory

Opportunities & Threats

SWOT Analysis:

• external environmental factors

Strengths

SWOT Analysis:

• characteristics the business or project team that give it an advantage over others

Weaknesses

SWOT Analysis:

• Limitations

• characteristic that place the team at a disadvantage relative to others

Opportunities

SWOT Analysis:

• external chances to improve performance in the environment

Threats

SWOT Analysis:

• external elements in the environment that could cause troble for the business or project

2. Statement of Objectives/Goals

Planning Process:

• Where we want to be and what we want to accomplish and when

goal

should be broad

allow all employees to work toward a common result

Objectives

written to achieve specific tasks

task to achieve goals

focused on achieving goals

written using action verbs

evaluated against specific and specified numerical criteria should be SMART

3. Consider planning premises

Planning Process:

• In what environment (internal or external) will are plans work?

4. Identify alternatives

Planning Process:

• What is the most promising alternatives to accomplish our objectives?

• Compare alternatives in light of goals sought

• which alternative will give us the best chance of meeting our goals at the lowest cost and highest profit

5. Choose an alternative

Planning Process:

• Selecting the course of action the organization pursue

6. Formulate Supporting Plans

Planning Process:

• Buy equipment and materials

• Hire and train workers

• Develop a new method

7. Numberized plans by making budget

Planning Process:

• Volume and price of test

• Operating expenses necessary for the plan

• Expenditures for capital equipment

1. Opportunity awareness or Statement of the Problems/Needs

2. Statement of Objectives/Goals

3. Consider planning premises

4. Identify alternatives

5. Choose an alternative

6. Formulate Supporting Plans

7. Numberized plans by making budget

Planning Process (7) Steps

operational data;

goals

There must be balance between the sum of the organizational circumstances (________________) and the ends towards which the efforts are directed (_____) .

identification of goals;

methods for their accomplishments

Both strategic (_________________) and tactical (_________________________)

Past Experience

Essential Factors in Laboratory Planning (Operational Data):

• organization’s awareness based upon the prior observations and participation of its members

• Uses the laboratory’s previous observations, performance data, and staff experiences as a planning guide.

Market Potential

Essential Factors in Laboratory Planning (Operational Data):

• known or estimated expenditures for given service in a given locale or as projections of these expenditures contingent upon specific plans and anticipated developments

• The total current and projected spending for laboratory services in a specific area, based on existing demand and future developments.

Competition

Essential Factors in Laboratory Planning (Operational Data):

• analysis of most market potential areas will usually disclose a relatively consistent set of competitive forces

• Analysis of other laboratories or healthcare facilities offering similar services within the same market.

Hospital/Laboratory Relations

Essential Factors in Laboratory Planning (Operational Data):

• difficulties and problems that result between those responsible for providing laboratory services and those accountable for administering overall hospital policy

• The working relationship between laboratory management and hospital administration.

Regulatory and Accrediting Forces

Essential Factors in Laboratory Planning (Operational Data):

• regulations and performance standard bodies

• Government regulations and accrediting bodies that set standards for laboratory operations.

Laboratory Trends

Essential Factors in Laboratory Planning (Operational Data):

• series of events constituting a pattern that suggests both origin and probabilities for continuation

• Patterns in laboratory technology, methods, workload, and service delivery that indicate future direction.

Medical Trends

Essential Factors in Laboratory Planning (Operational Data):

• pattern of test requests that is useful indicator of the relative value with which the physician perceives the wide range of laboratory services

• Patterns in physicians’ test requests that reflect how valuable or relevant laboratory services are perceived.

Socio-political Trends

Essential Factors in Laboratory Planning (Operational Data):

• events which affect hospital laboratory operation

• includes legislation of unions, equal job opportunity

• External social and political events that affect laboratory operations.

1. Past Experience

2. Market Potential

3. Competition

4. Hospital/Laboratory Relations

5. Laboratory Trends

6. Medical Trends

7. Socio-political Trends

8 Essential Factors in Laboratory Planning (Operational Data)

• Late submission of results/reports

• Idle machines

• Overworked and underworked staff

• Skilled workers doing unskilled work

• Quarrelling, bickering, buck-passing and confusion

INDICATORS OF POOR PLANNING

Peter Drucker (1954);

Practice of Management

Management by Objectives came from _________________________ in his book _________________________

Management by Objectives (MBO)

• management model that aims to improve performance of an organization by clearly defining objectives that are agreed to by both manager and employees

• having a say in goal setting and action plans should ensure better participation and commitment among employees as well as alignment of objectives across the organization

• every employee has a set of objectives to achieve, which together with all other employees in the organization will pull the enterprise toward its overall objectives

management information system

A key tenet of MBO is the establishment of a ___________________________ to measure actual performance and achievements against defined objectives

Management by Objectives (MBO)

• Major benefit: improves employee motivation and commitment and ensures better communication between manager and employees

• Objectives are determined with the employees and are challenging but achievable

daily feedback;

rather

in MBO, there is _______________ and the focus is on rewards ________ than punishments

Personal growth and development

_____________________________ are emphasized rather than negativity for failing to reach the objective