Management Process and Leadership

Planning

-The overall planning process

- The quality of planning
- Comprehensive planning:
An Islamic Perspective

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 Definition of Planning

The establishment of an overall strategy of

how to achieve organizational objectives and
goals and the development of a
comprehensive hierarchy of plans integrating
and coordinating the various activities.
Formal planning Specific objectives
formulated which span over a period of
years.

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 Definition of Planning

Informal planning no written objectives and

goals & employees never been told about it.
Quranic view:
- Plan ones action with specific goal in mind
- The reward is dependent on the
implementation of such plan

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 Type of Plans

PLANNING

STRATEGIC PLAN - Apply to the entire organization,

establish the overall objectives of the organization
and seek to strengthen the position of the organization
in terms of its environment.

OPERATIONAL PLAN Specifying in detail the approach

to achieve the overall objectives.

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 Type of Plans

PLANNING

Short Term Involving activities to be

carried out less than one year

Long Term Activities extending beyond

a time period of five years or more

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 Type of Plans

PLANNING

Specific Plans Those which are clearly defined and stated.

For a certain purpose and project

Directional Plan Identify general guidelines, providing

Focus but do not restrict the management to specific objective

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 Principles of Planning

Forward thinking
Apply fairness
Based on
to others
past experience

Consultation before Rational use

decision making of resources

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 Planning Process

Vision, Mission,
Goals & Objectives

Environmental
Scanning

Strategy Formulation

Strategy Implementation

Evaluation & Control

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 Planning Process

Vision Statement should answer the following

questions:
- Will it inspire and galvanize the
organizations members and external
stakeholders?
- Does it consist short, positive and vibrant
statements?
- Can everyone memorize it?

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 Planning Process

USIMs Vision Statement:

USIMs Mission Statement:

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 Planning Process

Mission should :
- Explain the purpose of the organization
- Describes to whom the organization is providing the
services and products.
- Emphasize of how distinctive the organization
service and product is and why the targeted
customer group should want to deal with the
organization instead of its competitors.

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 Planning Process

Setting the goals:

- Focus on result, rather than action
- Consistency
- Specificity
- Measurability
- Related to time
- Attainable

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 Planning Process

Plan an effective goals

by:
S Specific What the organization focus on
M Measurable How much is to be achieved
A Acceptable Is the objective acceptable to all
R Realistic Is the outcome realistic
T Timely Duration is attainable

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 Planning Process

How to make a plan that work?

Set Goals Develop commitment

Develop effective action plan who what
when how
Track progress toward goal achievement
Maintain flexibility

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 Environmental Scan

Internal analysis of the organization

Analysis of the entire industry
Analysis of the external macro environment
in terms of political, economical, social and
technological aspects (PEST analysis or
PESTEL + Environment & Legal)

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 Strategy Formulation

The usual goal of the business strategy

formulation is to achieve a sustainable
competitive advantage:
1- Cost Advantage
2- Differentiation Advantage

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 Resources and capabilities

In order to develop competitive advantage, an

organization is required to have resources and
capabilities that are superior than the competitors;
examples of the resources:
- Patents and trademarks
- Proprietary know how
- Installed customer base
- High reputation
- Brand equity

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 Value Creation

Four test of value creation;

1- The goodness of fit test How well does the
organization strategy fit with the current and
future condition.
2- Competitive advantage test.
3- The performance test.
4- The ethics (akhlaq test) behaving ethically
(Islamically) in the strategy practices.

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 The evaluation and control

Steps:
1- Define parameters to be measured
2- Define target values
3- Perform measurement
4- Compare measured result to the pre defined
standard
5- Make necessary adjusments

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 Quality of Planning

A- Building of excellence into planning

B- Building of a team
C- Acknowledgement of contributions made by
others
D- Integrate accountability into planning

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 Comprehensive Planning: An Islamic
Perspective

Strategic planning which answered:

- Where are we now
- Where do we want to be
- How do we get there?
SP involves forward thinking, reasoning into the past
and preparing into eventualities. Contingencies
strategies should be developed to be implemented in
the event a chosen plan does not materialize as
envisioned.

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 Comprehensive Planning: An Islamic
Perspective

Strategic Thinking:
- An intellectual process to the background of
strategy formulation, planning and
implementation.
- Anticipates, view the past and prepares of
the strategic moves of the rival.

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 Comprehensive Planning: An Islamic
Perspective

Strategic Management:
- The management of a pursuit to the
organizational mission, and at the same time
manages the environmental relations of the
organizations sudden change highly
uncertain business environment.

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 Comprehensive Planning: An Islamic
Perspective

A vision of paradise as success and hell as

failure in all the planning process.

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 Future Planning

Planning is not simply predicting the future,

but its for better understanding the present.
One of the tool that is use to predict the
future is scenario planning.
It started in Shell in 1970s in predicting the
increases of the oil process.
Scenario planning based on one future and
multiple future frame of mind.
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 Islamic Planning

Islamic planning revolves around the Muslims

preparation for the future life in this world for
the Hereafter world.
Quranic view of planning:-
i) Should plan ones action with specific goals
in mind
ii) The reward is dependant on the
implementation the plan.
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 Shell scenario planning
https://www.youtube.com/watch?v=srY-
hJuqYTM

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