Page 173 - Fundamentals of Management Myths Debunked (2017)_Flat

172 Part 2 • Planning
We conclude this chapter by addressing two contemporary issues in planning.
Specifically, we’re going to look at planning effectively in dynamic environments and then at
how managers can use environmental scanning, especially competitive intelligence.

Try It 2!
If your professor has assigned this, go to the Assignments section of mymanagementlab.com to
complete the Simulation: Planning.

How Can Managers Plan Effectively in Dynamic Environments?

Dynamic Environments = Planning Challenges

As we saw in Chapter 2, the external environment is continually changing. How can
managers effectively plan when the external environment is continually changing? We
already discussed uncertain environments as one of the contingency factors that affect the
types of plans managers develop. Because dynamic environments are more the norm than the
exception, let’s look at how they can effectively plan in such environments.
In an uncertain environment, managers should develop plans that are specific, but
flexible. Although this may seem contradictory, it’s not. To be useful, plans need some speci-
ficity, but the plans should not be set in stone. Managers need to recognize that planning is an
ongoing process. The plans serve as a road map although the destination may change due to
dynamic market conditions. They should be ready to change directions if environmental con-
ditions warrant. This flexibility is particularly important as plans are implemented. Managers
need to stay alert to environmental changes that may impact implementation and respond as
needed. Keep in mind, also, that even when the environment is highly uncertain, it’s impor-
tant to continue formal planning in order to see any effect on organizational performance. It’s
the persistence in planning that contributes to significant performance improvement. Why? It
seems that, as with most activities, managers “learn to plan” and the quality of their planning
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improves when they continue to do it. Finally, make the organizational hierarchy flatter to
effectively plan in dynamic environments. A flatter hierarchy means lower organizational lev-
els can set goals and develop plans because organizations have little time for goals and plans
to flow down from the top. Managers should teach their employees how to set goals and to
plan and then trust them to do it. And you need look no further than Bangalore, India, to find
a company that effectively understands this. Just a decade ago, Wipro Limited was “an anon-
ymous conglomerate selling cooking oil and personal computers, mostly in India.” Today,
it’s a $6.4 billion-a-year global company with most of its business coming from information-
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technology services. Accenture, EDS, IBM, and the big U.S. accounting firms know all too
well the competitive threat Wipro represents. Not only are Wipro’s employees economical,
they’re knowledgeable and skilled. And they play an important role in the company’s plan-
ning. Since the information services industry is continually changing, employees are taught
to analyze situations and to define the scale and scope of a client’s problems in order to offer
the best solutions. These employees are the ones on the front line with the clients and it’s their
responsibility to establish what to do and how to do it. It’s an approach that positions Wipro
for success no matter how the industry changes.

Watch It 2!
If your professor has assigned this, go to the Assignments section of mymanagementlab.com to
complete the video exercise titled CH2MHill: Planning.