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Developing a climate for planning
Developing a Climate for Planning* Raimo Nurmi t
Technical advances of long range planning have been constrained by a human factor which has emerged as a planning bottleneck. The planning "climate" can be a major facilitator or inhibitor of successful long range planning. Therefore the development of long range planning systems would benefit from including the planning climate as a planned systematic module in the total projecL This article reports the background, contents and results of a programme for developing a proper planning climate.
DEVELOPING
A PLANNING
CLIMATE
L
ONG RANGE PLANNING IS A RECENT DEVELOPment in Finland. Planning of production, marketing and products have longer traditions, and historically the heavy war indemnities gave a strong impetus particularly to budgeting and production planning. But in the 1960s comprehensive long range planning as a systematic procedure began to attract many enthusiasts. Now, in the 1970s there are many Finnish companies with quite sophisticated long range planning methods and systems. At the same time increasing competition and increases in the cost of material, energy and human talent have made planning a necessity for the survival of companies. No doubt, new methods have been a factor that has increased the practice of long range planning. In the same way, advances in system development have integrated the various functional plans and planning devices into a coherent whole. But in line with the technical progress a new concern area has emerged as a real bottleneck of planning utilization--i.e, the planning 'climate'. Without an appropriate planning climate even the finest methods produce just heaps of paper which do not affect the way things are, will be or ought to be. Indeed, "The material for the article was developed from a project in Mec-Rastor, the Finnish unit of the International Maynard Group. 1"Dr. Nurmi is at the Turku School of Economics, Finland.
48
an inappropriate planning climate may lead to tremendous bureaucracy, irresponsibility, change resistance, and other negative effects that make up a caricature of planning despite the amount of work done and the technical competence of that planning. Long range planning does not work well with technical sophistication only. After all the point of all planning is, in the improvement of results that the planning should lead to. The planning climate, planning culture, human side of planning, participation and involvement in or commitment to planning is obviously not just a Finnish concern. Similar points have been recorded elsewhere. Even the many names used reflect the appearance of a relatively new, ambiguous, and difficult phenomenon. The growing number of articles about the issue is another manifestation of the topicality. 1-3 And empirical observations of Steiner & Sch611hammer4 point clearly to the human side as a pitfall of planning. While being a concern, the human side could and should be the spark and energy source for all planning. It is the factor by which the methods are adapted meaningfully or unmeaning, fully, for better or for worse, so that planning influences the future of the organization. Consequently, the planning climate--a critical inhibitor or facilitator of planning success--earns its place as a module and a project in the development of long range planning. A Need for a Pragmatic Grasp
It is easy to be an evangelist for a suitable planning climate as for any human aspect of organizations. The point and the difficulty is to get an operational grasp over the concept. A planning climate does not develop by way of preaching, but by way of a systematic, planned programme that is tied with other modules of long range planning. Without going into the intricacies of finding a conceptually valid definition of a planning climate or without trying to reach the eternal truth in it, we need the kind of pragmatic working definition from which operations for influencing the planning climate can be derived. If somebody wants to call this module of planning by some other name, then this is no
LONG RANGE PLANNING
reason for disagreement. If somebody suggests some other operations to influence the planning climate, the discussion of these and their comparison to those that follow would be most profitable. THE
PROGRAMME
Background and Principles
By now it will be evident that there is a growing need for a systematic planned programme to develop a proper planning climate. What follows is the 'how-to-do-it' relating to the planning climate. Before going to the contents of the programme a few words are needed about the general characteristics of the programme. With the aforementioned in mind, a planning climate is defined here with reference to three board behavioural categories that have been found to determine organizational climate in critical studies5 as well as in long range planning experiences and which can be influenced by means of organization development. These three broad behavioural categories are (a) creative view of the purpose of the organization, (2) co-operation and flexibility and, (3) willingness to change. So the operations to influence the planning climate should deal with all three. In addition the operations should make a systematic, planned programme extended over a proper period of time and integrated with the system and substantial modules of planning, so that each distinct operation would support the others as well as the overall planning. The programme grew out of the practical problems which were met while engaged in long range planning consultancy. A group of people in Oy Mec-Rastor Ab, a member of the International Maynard Group, had developed systems of strategic planning, operative planning and development planning. In the installations the systems were enriched by means of the planning climate. Though the programme had been originally developed to influence the climate in connection with long range planning, it, or parts of it, can be used and have been used in modified versions in connection with production planning and other kinds of the comprehensive functional or departmental planning. The programme is an action oriented experience for those who participate in it. Any material presented or produced must pose the questions: What can we do as a company ? What can we do as a group ? What can I do as the member of the group and the company? This trains the participants for responsible problem solution. The sessions are highly team oriented and change oriented; the two go hand in hand. Real change in an organization is never a matter of individual decision. Real change can take place only in the mutual dependence of the individuals, groups, departments, and other social units. The programme should not be considered a tightly wrapped package run through mechanically neglecting the widely varying predicaments of
JUNE, 1976
Table 1.
An Example of the Contents of Phase I.
Phase I 1st Day a.m. p.m. evening 2nd Day a.m. p.m.
The threats of the company The possibilities of the company Preliminary strategies Creativity. General exercises Creativity. Exercises with the morphological method about the product-market mix Creativity. Introducing the collective notebook method for product innovation
evening 3rd Day a.m. p.m. evening
Creativity. Brainstorming about market Creativity. Futurological assessments Creativity, The purpose of the organization
4th Day a.m. p.m. evening
Criteria of ideas Objectives of the organization Outcomes of collective notebook
5th Day a.m. p.m. evening
A revision of the sessions so far A critical assessment of ideas so far Priorities and action recommendations
Table 2,
An Example of the Contents of Phase II.
Phase II 1st Day a,m. p.m. evening 2nd Day a.m. p,m.
evening 3rd Day a.m. p.m. evening 4th Day a.m. p.m. evening 5th Day a,m. p.m. evening
Vertical confrontation meetings Horizontal confrontational meetings Other confrontation meetings relevant for the organization Leadership styles. Self analyses Leadership styles. Feed back from the group Leadership styles. Superior subordinate pairs Team-building. Behavioural exercises Team-building. Structural agreements Team-building. Project exercises Conflict. Superior subordinate role plays Interdepartmental conflict. Role play Other conflict plays relevant for the organization A revision of the sessions so far A critical assessment of point of friction Priorities and action recommendations
equally widely varying organizations. What Tables 1-3 illustrate is just a specimen of what can and should be modified according to predicament. In the name of flexibility operationality should not be bargained, yet. The planning climate cannot be 49
Table 3.
A n Example of the C o n t e n t s of Phase III.
Phase III 1st Day Resistance to change. An assessment Willingness to change. Assessment of objectives evening Willingness to change, Delineation of programmes a.m.
p.m.
2nd Day Monitoring the purpose of the organization p,m, Setting long range objectives for units/ functions evening Reviewing progress towards long range objectives a.m.
3rd Day a.m.
p.m. evening
Goal setting for the near future Performance reviews Job improvement plans
4th Day a.m,
p.m. evening
Potential reviews Personnel policy Integration of the sessions to the system developments
5th Day a,m.
p.m. evening
A revision of the sessions so far A critical assessment of long range planning so far A view of future needs in long range planning
Table 4.
50
tackled without a systematic programme operationalized in instruments within the programme. It is good practice to begin each of the three phases with a brief team survey of the prevailing situation. When the next sessions are based on this, optimal flexibility and operationality can be achieved. Tables 4-6 illustrate schemes for this first survey session of each phase. The sequence from creative view of the purpose through co-operation to change is not accidental. The sequence is partly related to the systems developments, but there is a logic within it. Everything is based on creatively built purpose of the organization, which is, however, critically checked in the two subsequent phases. As co-operation is part of the objective, human relations are not dealt in an isolat, but interact with the strategy and operations. Change in turn can be built both on the strategic and human sides, which is necessary for any profound, long-term change. The boundaries between the phases are not rigid. Nevertheless, the change of emphasis, from creativity and purpose through co-operative themes to a willingness to change is an approach whose merits have grown out of experience. The Phases
Phase I jointly focuses on two subjects. The purpose of the organization is challenged and creativity is
A S c h e m e for t h e Beginning of Phase I.
We live the year 198x, and have become bankrupt. List down reasons for this outcome
The probability of occurrence for each reason (p --= 0.00-1 "00)
The fatality of each reason (u = 0.00-1.00)
pxu
What can be done (a) in the long run (b) during the next year to overcome the threat
We live the year 198x, and have a turnover of a mk:s and a return on investment of b%, and the success of the company is better than anyone could have imagined. List down reasons for this very positive outcome
The probability of occurrence for each reason (p = 0.00-1.00)
The utility of each reason (u = 0.00-1.00)
pxu
What can be done (a) in the long run (b) during the next year to realize the possibility
LONG RANGE PLANNING
Table 6. List down your expectations of group A
A Scheme f o r t h e Beginning of Phase II. List down what you think group A expects of your group
What can you do to ease cooperation with group A (a) in the long run (b) next week
The groups (departments, units, etc.) make the assessment first within the group. After that the groups get together, share the information and reach agreement. Table 6.
A Scheme f o r t h e Beginning o f Phase III.
List down the reasons for the change of . . . . change that is evident from the long range planning
List down the consequences of the changes
What can be done to utilize the positive consequences and to overcome the negative consequences (a) in the long run (b) during the next year
List down the reasons against the change of . . . . change that is evident from the long range planning
List down the consequences of not doing the changes
What can be done to utilize the positive consequences and to overcome the negative consequences (a) in the long run (b) during the next year
JUNE, 1976
51
exercised. The purpose, the threats and the possibilities (see Table 4) and the objectives refer to the strategic problems of long range planning. In creativity training there have been developed tested techniques 6 like Brainstorming, the Gordon method, Synectics, Collective Notebook etc., which are utilized in this phase in the order of their contribution to innovating the whole company. Phase II respectively concentrates on co-operation, which can be built realistically on the outcomes of phase I. Operative planning and development planning are counterparts of phase II. The tools of phase II are much used and tested in the realm of organization development. Unfortunately, long range planning and organization development are too often practised with little mutual interaction, though co-operation is a most important meeting ground of the two. Particularly Beckhard's 7 confrontation technique (see also Table 5) is extremely rewarding when used in the critical friction points, or points where demands of co-operation will be especially great in the long range planning. Leadership styles, teamwork, and communication skills are likewise borrowed from organization development programmes, though at present used in the larger framework of long range planning. The contents of phase III have the widest variation from organization to organization. The degree and direction of change that is needed and attainable is to a great extent dependent on the circumstances in question as well as on the forces inhibiting and facilitating the change. The latter are faced in the beginning of this phase (see Table 6), and acted upon consequently. The system installa-
tions brought into this phase from other modules of long range planning need human and social practice. This practice is a theme of this phase. At the end, priorities for the future are assessed to avoid the impression that after the project is over long range planning could work mechanically without continuous development and human drive.
The Timing The timing of the programme is illustrated in Figure 1, which also indicates the connections of the planning climate with other modules of long range planning. A calendar time of approximately 2 years seems to be needed to make long range planning an organizational practice. 3 x 5 days for development of the planning climate seems also to be the necessary time in most instances, though there have been exceptions where evident improvement has been reached even in a shorter series of sessions. The two first phases should be placed at the beginning of the whole project so that phase I is the start of it all and phase II follows after 6 months or so. Phase III should be placed at the end of the whole project so that the change theme and system exercises are confirmation of the work done. A 5 day phase would be ideally run through during a 5 week period 1 day a week, but problems of finding common suitable times for the participants may cause harmless deviations from the ideal. A planning climate does not change abruptly, but only as a result of a systematic, planned
Strategic Pbmning
Operative Planning
,4~ 'm
¢ ¢1
[
Development Planning
i=
I"
o
=E~m
PhaseI
Planning Climate
I
i
0
I
Phase~
t
. . . . .
I
,1 Year
Phase~ I
g ff}ff} --..~e
•
¢J •
2 Years
Figure 1. A time schedule for installing long range planning. 52
LONG RANGE PLANNING
Table 7.
Results of the Project in a Wood-Working Company as Expressed by the Participants. =
Business Results 1. 2. 3. 4. 5. 6.
Increase in value added of the sawmill New plant New products Increased importance of PR-activities Integration of operative and personnel planning Effects to enlarge the financial basis
programme. Too short a time during too short a period is waste of time, and only after prolonged exposure are the results worthwhile and enduring. Before and after each phase there is a meeting of the steering committee of long range planning. The committee is always led by the top management. The co-ordination of the planning climate programme with the strategic, operative and development planning takes place in these meetings. The material, recommendations and problems relating to the planning climate are dealt with, and critical decisions are made which influence the forthcoming phases of the planning climate programme. The interaction of the steering committee and the sessions of the programme is of utmost importance for its success. The interaction should guarantee that those participating should be provided with the results from their previous sessions. This is necessary to ensure continuing enthusiasm during the extended period. On the other hand the procedure guarantees that the critical points are emphasized and brought to the attention of top management. RESULTS Content and Process
Personnel Results 1. 2. 3. 4. 5. 6.
Enwidened views of the organization Awareness of the big problems Improvement of co-operetion Better fluency in teamwork Better awareness of cost factors Better awareness of goals
without proper processual throughput, planning is more of paper than of action. A Case
Development of a planning climate as a definite project and integrated to system developments and substantial planning decisions is a major endeavour that influences the organization profoundly and on a long term basis. We have begun a systematic enquiry into these long-term effects as regards the planning climate. We await the data from this enquiry. In the meantime it would be helpful to illustrate the effects of planning climate programme through an example. Table 7 illustrates the outcome of the project as listed at the end of the project by the participants of the 3 x 5 days sessions during 2 years in a wood-working company. The list is probably too positive so far that some of the items had presumably been realized even without the project or even without long range planning. Nevertheless, these items had been on a much less secure basis, and most of the items would not have come about without systematic long range planning and without the decisive effort applied to the development of the planning climate. •
The immediate results o f the sessions are two-
fold. I n the first place, substantial material is produced which is needed for decision making in Other modules of planning. Now, the material is processed in the creative and critical sessions with a wider audience before it is brought for the final decision. This fact does not exclude, however, the possibility of further critical analysis of the material nor decisions against the recommendations. The programme educates its participants into a comprehensive, matter-of-fact viewpoints, so they can accept changes when the reasons for those changes are explained. Another sphere of immediate results comes out of the processual learning. During the session the participants are involved in action processes-creative, confronting etc.--that influence them in many ways beyond what is seen in the material output. This processual side brings out the proper climate, creativity, co-operativeness and willingness to change. While it is true that it is not only the process that counts in planning, it is as true that
JUNE, 1976
REFERENCES (1) P. W. Bennett, Participation in planning, J. Genera/
Management, 1, 12-16 (1974). (2) D. I. Cleland and W. R. King, Developing a planning culture for more effective strategic planning, Long
Range Planning, pp. 70--74, June (1974). (3) A. S. Humphrey, Getting management commitment to planning--A new approach, Long Range Planning, pp. 45-51, February (1974). (4) G. A. Steiner and H. Sch611hammer, Pitfalls in multinational long range planning, Long Range Planning, pp. 2-12, April (1975). (5) See e.g., H. M. F. Rush, Organization development.
A reconnaissance. The Conference Board (1973). (6) See e.g., T. Rickards, Problem Solving Through CreativeAnalysis, Gower Press (1974). (7) R. Beckhard, Organization Development: Strategies and Models. Addison-Wesley Publishing Company (1969).
53
Technical advances of long range planning have been constrained by a human factor which has emerged as a planning bottleneck. The planning "climate" can be a major facilitator or inhibitor of successful long range planning. Therefore the development of long range planning systems would benefit from including the planning climate as a planned systematic module in the total projecL This article reports the background, contents and results of a programme for developing a proper planning climate.
DEVELOPING
A PLANNING
CLIMATE
L
ONG RANGE PLANNING IS A RECENT DEVELOPment in Finland. Planning of production, marketing and products have longer traditions, and historically the heavy war indemnities gave a strong impetus particularly to budgeting and production planning. But in the 1960s comprehensive long range planning as a systematic procedure began to attract many enthusiasts. Now, in the 1970s there are many Finnish companies with quite sophisticated long range planning methods and systems. At the same time increasing competition and increases in the cost of material, energy and human talent have made planning a necessity for the survival of companies. No doubt, new methods have been a factor that has increased the practice of long range planning. In the same way, advances in system development have integrated the various functional plans and planning devices into a coherent whole. But in line with the technical progress a new concern area has emerged as a real bottleneck of planning utilization--i.e, the planning 'climate'. Without an appropriate planning climate even the finest methods produce just heaps of paper which do not affect the way things are, will be or ought to be. Indeed, "The material for the article was developed from a project in Mec-Rastor, the Finnish unit of the International Maynard Group. 1"Dr. Nurmi is at the Turku School of Economics, Finland.
48
an inappropriate planning climate may lead to tremendous bureaucracy, irresponsibility, change resistance, and other negative effects that make up a caricature of planning despite the amount of work done and the technical competence of that planning. Long range planning does not work well with technical sophistication only. After all the point of all planning is, in the improvement of results that the planning should lead to. The planning climate, planning culture, human side of planning, participation and involvement in or commitment to planning is obviously not just a Finnish concern. Similar points have been recorded elsewhere. Even the many names used reflect the appearance of a relatively new, ambiguous, and difficult phenomenon. The growing number of articles about the issue is another manifestation of the topicality. 1-3 And empirical observations of Steiner & Sch611hammer4 point clearly to the human side as a pitfall of planning. While being a concern, the human side could and should be the spark and energy source for all planning. It is the factor by which the methods are adapted meaningfully or unmeaning, fully, for better or for worse, so that planning influences the future of the organization. Consequently, the planning climate--a critical inhibitor or facilitator of planning success--earns its place as a module and a project in the development of long range planning. A Need for a Pragmatic Grasp
It is easy to be an evangelist for a suitable planning climate as for any human aspect of organizations. The point and the difficulty is to get an operational grasp over the concept. A planning climate does not develop by way of preaching, but by way of a systematic, planned programme that is tied with other modules of long range planning. Without going into the intricacies of finding a conceptually valid definition of a planning climate or without trying to reach the eternal truth in it, we need the kind of pragmatic working definition from which operations for influencing the planning climate can be derived. If somebody wants to call this module of planning by some other name, then this is no
LONG RANGE PLANNING
reason for disagreement. If somebody suggests some other operations to influence the planning climate, the discussion of these and their comparison to those that follow would be most profitable. THE
PROGRAMME
Background and Principles
By now it will be evident that there is a growing need for a systematic planned programme to develop a proper planning climate. What follows is the 'how-to-do-it' relating to the planning climate. Before going to the contents of the programme a few words are needed about the general characteristics of the programme. With the aforementioned in mind, a planning climate is defined here with reference to three board behavioural categories that have been found to determine organizational climate in critical studies5 as well as in long range planning experiences and which can be influenced by means of organization development. These three broad behavioural categories are (a) creative view of the purpose of the organization, (2) co-operation and flexibility and, (3) willingness to change. So the operations to influence the planning climate should deal with all three. In addition the operations should make a systematic, planned programme extended over a proper period of time and integrated with the system and substantial modules of planning, so that each distinct operation would support the others as well as the overall planning. The programme grew out of the practical problems which were met while engaged in long range planning consultancy. A group of people in Oy Mec-Rastor Ab, a member of the International Maynard Group, had developed systems of strategic planning, operative planning and development planning. In the installations the systems were enriched by means of the planning climate. Though the programme had been originally developed to influence the climate in connection with long range planning, it, or parts of it, can be used and have been used in modified versions in connection with production planning and other kinds of the comprehensive functional or departmental planning. The programme is an action oriented experience for those who participate in it. Any material presented or produced must pose the questions: What can we do as a company ? What can we do as a group ? What can I do as the member of the group and the company? This trains the participants for responsible problem solution. The sessions are highly team oriented and change oriented; the two go hand in hand. Real change in an organization is never a matter of individual decision. Real change can take place only in the mutual dependence of the individuals, groups, departments, and other social units. The programme should not be considered a tightly wrapped package run through mechanically neglecting the widely varying predicaments of
JUNE, 1976
Table 1.
An Example of the Contents of Phase I.
Phase I 1st Day a.m. p.m. evening 2nd Day a.m. p.m.
The threats of the company The possibilities of the company Preliminary strategies Creativity. General exercises Creativity. Exercises with the morphological method about the product-market mix Creativity. Introducing the collective notebook method for product innovation
evening 3rd Day a.m. p.m. evening
Creativity. Brainstorming about market Creativity. Futurological assessments Creativity, The purpose of the organization
4th Day a.m. p.m. evening
Criteria of ideas Objectives of the organization Outcomes of collective notebook
5th Day a.m. p.m. evening
A revision of the sessions so far A critical assessment of ideas so far Priorities and action recommendations
Table 2,
An Example of the Contents of Phase II.
Phase II 1st Day a,m. p.m. evening 2nd Day a.m. p,m.
evening 3rd Day a.m. p.m. evening 4th Day a.m. p.m. evening 5th Day a,m. p.m. evening
Vertical confrontation meetings Horizontal confrontational meetings Other confrontation meetings relevant for the organization Leadership styles. Self analyses Leadership styles. Feed back from the group Leadership styles. Superior subordinate pairs Team-building. Behavioural exercises Team-building. Structural agreements Team-building. Project exercises Conflict. Superior subordinate role plays Interdepartmental conflict. Role play Other conflict plays relevant for the organization A revision of the sessions so far A critical assessment of point of friction Priorities and action recommendations
equally widely varying organizations. What Tables 1-3 illustrate is just a specimen of what can and should be modified according to predicament. In the name of flexibility operationality should not be bargained, yet. The planning climate cannot be 49
Table 3.
A n Example of the C o n t e n t s of Phase III.
Phase III 1st Day Resistance to change. An assessment Willingness to change. Assessment of objectives evening Willingness to change, Delineation of programmes a.m.
p.m.
2nd Day Monitoring the purpose of the organization p,m, Setting long range objectives for units/ functions evening Reviewing progress towards long range objectives a.m.
3rd Day a.m.
p.m. evening
Goal setting for the near future Performance reviews Job improvement plans
4th Day a.m,
p.m. evening
Potential reviews Personnel policy Integration of the sessions to the system developments
5th Day a,m.
p.m. evening
A revision of the sessions so far A critical assessment of long range planning so far A view of future needs in long range planning
Table 4.
50
tackled without a systematic programme operationalized in instruments within the programme. It is good practice to begin each of the three phases with a brief team survey of the prevailing situation. When the next sessions are based on this, optimal flexibility and operationality can be achieved. Tables 4-6 illustrate schemes for this first survey session of each phase. The sequence from creative view of the purpose through co-operation to change is not accidental. The sequence is partly related to the systems developments, but there is a logic within it. Everything is based on creatively built purpose of the organization, which is, however, critically checked in the two subsequent phases. As co-operation is part of the objective, human relations are not dealt in an isolat, but interact with the strategy and operations. Change in turn can be built both on the strategic and human sides, which is necessary for any profound, long-term change. The boundaries between the phases are not rigid. Nevertheless, the change of emphasis, from creativity and purpose through co-operative themes to a willingness to change is an approach whose merits have grown out of experience. The Phases
Phase I jointly focuses on two subjects. The purpose of the organization is challenged and creativity is
A S c h e m e for t h e Beginning of Phase I.
We live the year 198x, and have become bankrupt. List down reasons for this outcome
The probability of occurrence for each reason (p --= 0.00-1 "00)
The fatality of each reason (u = 0.00-1.00)
pxu
What can be done (a) in the long run (b) during the next year to overcome the threat
We live the year 198x, and have a turnover of a mk:s and a return on investment of b%, and the success of the company is better than anyone could have imagined. List down reasons for this very positive outcome
The probability of occurrence for each reason (p = 0.00-1.00)
The utility of each reason (u = 0.00-1.00)
pxu
What can be done (a) in the long run (b) during the next year to realize the possibility
LONG RANGE PLANNING
Table 6. List down your expectations of group A
A Scheme f o r t h e Beginning of Phase II. List down what you think group A expects of your group
What can you do to ease cooperation with group A (a) in the long run (b) next week
The groups (departments, units, etc.) make the assessment first within the group. After that the groups get together, share the information and reach agreement. Table 6.
A Scheme f o r t h e Beginning o f Phase III.
List down the reasons for the change of . . . . change that is evident from the long range planning
List down the consequences of the changes
What can be done to utilize the positive consequences and to overcome the negative consequences (a) in the long run (b) during the next year
List down the reasons against the change of . . . . change that is evident from the long range planning
List down the consequences of not doing the changes
What can be done to utilize the positive consequences and to overcome the negative consequences (a) in the long run (b) during the next year
JUNE, 1976
51
exercised. The purpose, the threats and the possibilities (see Table 4) and the objectives refer to the strategic problems of long range planning. In creativity training there have been developed tested techniques 6 like Brainstorming, the Gordon method, Synectics, Collective Notebook etc., which are utilized in this phase in the order of their contribution to innovating the whole company. Phase II respectively concentrates on co-operation, which can be built realistically on the outcomes of phase I. Operative planning and development planning are counterparts of phase II. The tools of phase II are much used and tested in the realm of organization development. Unfortunately, long range planning and organization development are too often practised with little mutual interaction, though co-operation is a most important meeting ground of the two. Particularly Beckhard's 7 confrontation technique (see also Table 5) is extremely rewarding when used in the critical friction points, or points where demands of co-operation will be especially great in the long range planning. Leadership styles, teamwork, and communication skills are likewise borrowed from organization development programmes, though at present used in the larger framework of long range planning. The contents of phase III have the widest variation from organization to organization. The degree and direction of change that is needed and attainable is to a great extent dependent on the circumstances in question as well as on the forces inhibiting and facilitating the change. The latter are faced in the beginning of this phase (see Table 6), and acted upon consequently. The system installa-
tions brought into this phase from other modules of long range planning need human and social practice. This practice is a theme of this phase. At the end, priorities for the future are assessed to avoid the impression that after the project is over long range planning could work mechanically without continuous development and human drive.
The Timing The timing of the programme is illustrated in Figure 1, which also indicates the connections of the planning climate with other modules of long range planning. A calendar time of approximately 2 years seems to be needed to make long range planning an organizational practice. 3 x 5 days for development of the planning climate seems also to be the necessary time in most instances, though there have been exceptions where evident improvement has been reached even in a shorter series of sessions. The two first phases should be placed at the beginning of the whole project so that phase I is the start of it all and phase II follows after 6 months or so. Phase III should be placed at the end of the whole project so that the change theme and system exercises are confirmation of the work done. A 5 day phase would be ideally run through during a 5 week period 1 day a week, but problems of finding common suitable times for the participants may cause harmless deviations from the ideal. A planning climate does not change abruptly, but only as a result of a systematic, planned
Strategic Pbmning
Operative Planning
,4~ 'm
¢ ¢1
[
Development Planning
i=
I"
o
=E~m
PhaseI
Planning Climate
I
i
0
I
Phase~
t
. . . . .
I
,1 Year
Phase~ I
g ff}ff} --..~e
•
¢J •
2 Years
Figure 1. A time schedule for installing long range planning. 52
LONG RANGE PLANNING
Table 7.
Results of the Project in a Wood-Working Company as Expressed by the Participants. =
Business Results 1. 2. 3. 4. 5. 6.
Increase in value added of the sawmill New plant New products Increased importance of PR-activities Integration of operative and personnel planning Effects to enlarge the financial basis
programme. Too short a time during too short a period is waste of time, and only after prolonged exposure are the results worthwhile and enduring. Before and after each phase there is a meeting of the steering committee of long range planning. The committee is always led by the top management. The co-ordination of the planning climate programme with the strategic, operative and development planning takes place in these meetings. The material, recommendations and problems relating to the planning climate are dealt with, and critical decisions are made which influence the forthcoming phases of the planning climate programme. The interaction of the steering committee and the sessions of the programme is of utmost importance for its success. The interaction should guarantee that those participating should be provided with the results from their previous sessions. This is necessary to ensure continuing enthusiasm during the extended period. On the other hand the procedure guarantees that the critical points are emphasized and brought to the attention of top management. RESULTS Content and Process
Personnel Results 1. 2. 3. 4. 5. 6.
Enwidened views of the organization Awareness of the big problems Improvement of co-operetion Better fluency in teamwork Better awareness of cost factors Better awareness of goals
without proper processual throughput, planning is more of paper than of action. A Case
Development of a planning climate as a definite project and integrated to system developments and substantial planning decisions is a major endeavour that influences the organization profoundly and on a long term basis. We have begun a systematic enquiry into these long-term effects as regards the planning climate. We await the data from this enquiry. In the meantime it would be helpful to illustrate the effects of planning climate programme through an example. Table 7 illustrates the outcome of the project as listed at the end of the project by the participants of the 3 x 5 days sessions during 2 years in a wood-working company. The list is probably too positive so far that some of the items had presumably been realized even without the project or even without long range planning. Nevertheless, these items had been on a much less secure basis, and most of the items would not have come about without systematic long range planning and without the decisive effort applied to the development of the planning climate. •
The immediate results o f the sessions are two-
fold. I n the first place, substantial material is produced which is needed for decision making in Other modules of planning. Now, the material is processed in the creative and critical sessions with a wider audience before it is brought for the final decision. This fact does not exclude, however, the possibility of further critical analysis of the material nor decisions against the recommendations. The programme educates its participants into a comprehensive, matter-of-fact viewpoints, so they can accept changes when the reasons for those changes are explained. Another sphere of immediate results comes out of the processual learning. During the session the participants are involved in action processes-creative, confronting etc.--that influence them in many ways beyond what is seen in the material output. This processual side brings out the proper climate, creativity, co-operativeness and willingness to change. While it is true that it is not only the process that counts in planning, it is as true that
JUNE, 1976
REFERENCES (1) P. W. Bennett, Participation in planning, J. Genera/
Management, 1, 12-16 (1974). (2) D. I. Cleland and W. R. King, Developing a planning culture for more effective strategic planning, Long
Range Planning, pp. 70--74, June (1974). (3) A. S. Humphrey, Getting management commitment to planning--A new approach, Long Range Planning, pp. 45-51, February (1974). (4) G. A. Steiner and H. Sch611hammer, Pitfalls in multinational long range planning, Long Range Planning, pp. 2-12, April (1975). (5) See e.g., H. M. F. Rush, Organization development.
A reconnaissance. The Conference Board (1973). (6) See e.g., T. Rickards, Problem Solving Through CreativeAnalysis, Gower Press (1974). (7) R. Beckhard, Organization Development: Strategies and Models. Addison-Wesley Publishing Company (1969).
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