25. The obstacles to effective strategic planning and their overcoming.

Obstacles to Strategic Planning

1. Reluctance of at least some managers to formulate plans or at least to set targets because of the:

a) lack of knowledge of the environment;

b) lack of self-confidence;

c) lack of faith in subordinates

d) lack of knowledge of the subject as a whole or its parts-led;

e) fear of making the choice;

f) fear of failure.

2. Relatively higher costs of:

a) the remuneration of consultants and planners;

b) diagnostic and prognostic studies.

3. Pretending to take over initiative, and even governance by at least by some planners.

4. Pulling away of at least some planners from the realities in which the organization operates.

5. Resistance of at least some managers to change:

a) uncertainty as to the reasons of the changes;

b) awareness of the weaknesses of the proposed changes;

c) uncertainty as to the effects of the changes;

d) fear of losing their privileges.

Overcoming the Obstacles of Strategic Planning

1. Overcoming the reluctance to formulate plans and setting targets:

a) a thorough analysis of the causes of resentment;

b) the use of effective methods of planning;

c) training and giving examples.

2. Overcoming resistance to changes:

a) informing subordinates about the causes of and the need for changes;

b) ensuring participation of respective people in the planning process.

26.The obstacles to the effective implementation of the strategic plan and their overcoming.

Obstacles to implementation of Strategic Plans

1. Planning is not accepted at least by some managers.

2. Some of the managers have not been involved in the planning process

3. At least some managers do not distinguish planning, forecasting, and programming.

4. At least some managers do not know or do not understand scientific principles of strategic planning.

5. At least some managers do not have sufficient knowledge for strategic planning.

6. At least some managers are inundated with too much detailed information.

7. Responsibility for planning is passed completely or mainly on professional staff.

8. Chosen strategic planning system is unsuitable for the given organization.

9. At least some managers consider strategic plans for immutable.

10. Good strategic plans are ignored at the stage of their implementation.

27. The concept of the operational plan, the operational programme and schedule.

Operational Planning

(Refinement of the strategic plan for first year in sense of organizational units, items and time periods) process of choosing short term aims/goals having in mind the given:

a) resources;

b) means of production;

c) technology;

d) methods of production;

e) methods of operational plan implementation.

Note: there must be consistence between the respective part of the strategic plan and the given operational plan.

Operational Plans are used to identify specific results to be accomplished within a given short term time period. Contains detailed information used in the lower levels in an organization.

Operational Programs (if any);

Part of operational plan containing:

a) short term tasks;

b) resources for and methods of their realization;

c) person responsible for realization of every task;

Operational Projects (schedules), if any:

Detailed part of strategic plan containing:

a) given target (goal);

b) main steps of its realization, including 'milestones';

c) sequence of steps of the realization process;

d) resources for and methods of their realization;

e) person responsible for realization of every task.