DPA 507 DEVELOPMENT PLANNING

ALEXIS C. CRUZ, MPA

DPA Student

DR. ZANDRA PARUJINOG

Professor

Theories and Practices of Program Administration

VI. Project Activities and Scheduling Techniques

The management function of planning is one of the most important and fundamental ones.
Without good planning, no organization can function in an efficient manner.

The act of planning is a necessary step before taking any action. It refers to organizing one's
thoughts in a methodical manner before making decisions about how to proceed in order to reach
a particular goal.

In its most basic form, planning is the act of deciding in advance what tasks are to be carried out,
when and where they are to be carried out, how they are to be carried out, and by whom they are
to be carried out. To plan means to contemplate the future and map out how one will go about
carrying out one's business activities.

The manager determines both the overarching goals of the organization as a whole as well as the
specific objectives of each of the organization's departments through the process of planning.
Then, he moves on to the next step, which is to create a sort of "blueprint" that outlines the
procedures for achieving these goals.

Planning is “an intellectual process, the conscious determination of courses of action, the basing
of decisions on purpose, facts and considered estimates.”

- Koontz and O’Donnell

“By means of planning management members try to look ahead, anticipate eventualities, prepare
for contingencies, map out activities and provide an orderly sequence for achieving the
objective.”

- George Terry

PRINCIPLES OF PLANNING

1. Principle of Commitment
This implies that specific resources must be allocated or pledged to help the planning process.
Planning is not an effortless endeavor. Therefore, the support of qualified professionals is
necessary. To properly implement a plan, the organization must be willing to exhaust all of its
available resources.
2. Principle of The Limiting Factor
A plan considers numerous factors, each of which is of different importance. Due to this
principle, it is essential to concentrate a greater emphasis on the component that is either in poor
supply, has limited availability, or bears an extraordinarily high price. Considering this
information, the most advantageous choice can be picked.
3. Principle of Reflective Thinking
As an intellectual effort, planning is based on logical and rational concepts. They necessitate
reflective thought, a form of problem-solving mental activity. Reflective thinking is a process
whereby past experiences are superimposed on the realities of the present situation and potential
future tendencies. No one can be a planner if their intellect is inactive, if they lack intentional
power, and if they lack a keen sense of judgment.
4. Principle of Flexibility
Even if a plan is developed after great analysis and debate, there is still opportunity for departure
while it is being implemented. The plan should be drafted in such a way as to provide adequate
room for modifications at various points in time. During the implementation of the plan,
modifications must be made to account for any new conditions that may develop.
5. Principle of Contribution to Enterprise Objectives
The development of a core plan and a number of secondary plans to support it. Nonetheless, each
strategy must positively contribute to the achievement of the organization's goals.

6. Principle of Efficiency
The creation of a primary plan and supplementary plans to support it. However, each strategy
must contribute favorably to the attainment of the organization's objectives.

7. Principle of Selection Of Alternatives

Planning is primarily a difficulty involving decision-making. At the center of the planning
procedure is the decision-making process between different courses of action. Planning is not
required when there is just one way to complete a task since there are no alternatives. The
optimal option among available alternatives is the one that contributes to the successful
achievement of a desired goal in the most time- and resource-efficient manner.
8. Principle of Planning Premises
Planning Premises are the foundations or contexts against which a plan is created and developed.
In order for the structure of the plan to be correctly developed, it is necessary for all managers to
be in perfect agreement with the planning premises.
9. Principle of Timing And Sequence Of Operations
Time and the order in which operations are done determine the start and finish times for each
task according to a given schedule. In addition, they give work performance a form that is both
physical and usable in the real world.
10. Principle of Securing Participation
It is essential that the strategy be communicated to the employees and explained to them in such
a way that they have a thorough understanding of it in order to ensure that they will execute the
plan with wholehearted cooperation. This understanding serves as the basis for the employees to
obtain additional knowledge about new facts and other topics. This is vital to enhance the quality
of the planning as a whole. In addition, it ensures that the enterprise's personnel are required to
contribute individually and collectively in the plan's execution.
11. Principle of Pervasiveness
Even though the highest level of management is primarily responsible for planning, this role is
not limited to that level. It is the responsibility of every manager at every organizational level to
fulfill this obligation.
12. Principle of Strategic Planning
When there is significant competition, careful strategic planning is essential. It is created with the
strategies of the competitors' other businesses in mind. Planners are obligated to consider the
strategies of competing groups; failure to do so may result in unfavorable outcomes caused by
the anticipated prediction.
13. Principle of Innovation
To be effective, a planning system must be able to respond to new opportunities as they emerge.
Enhancing client satisfaction through the introduction of something unique is a crucial aspect of
innovation. One might also refer to this as a crucial element of a business plan. Growth that can
be sustained over time in our ever-changing world requires ongoing innovation. Research and
development are the tools through which innovation is achieved, and planning is required to
provide the required scope.
14. Principle of Follow-Up
In the course of executing a plan, obstacles may emerge in the middle of the process, requiring
the planning to be amended, altered, or corrected. Consequently, a structure for follow-up must
be incorporated into the planning process itself. This not only improves the success of the
planning process, but also enables fast changes.

PLANNING FOR THE UNKNOWN (RISK MANAGEMENT AND MITIGATION)

A risk management strategy highlights the dangers that could possibly harm a firm as well as the
steps that employees need to take in order to keep these risks within acceptable bounds. Several
different risk management programs can be found inside an organization.

Through the creation of a risk management strategy, key stakeholders such as senior
management, compliance officials, and department managers can manage high-level and
strategic risks. In contrast, when it comes to the management of projects, a manager will
collaborate with the team in order to devise a risk management strategy that is adapted to the
particular risks that are associated with the project.

Regardless of the extent to which the risk management strategy will be implemented, the
development of the project will benefit from the contributions of a team of risk detection and
analysis specialists.

Many people, unfortunately, are under the impression that a risk assessment and a plan for
managing risks are one and the same thing. Documentation of the entire process, beginning with
detection and continuing through review and prevention, is included in a risk management
strategy. This includes doing a cost-benefit analysis as well as monitoring the financial impact.

On the other hand, risk assessment is a component of risk management that places a greater
emphasis on specifics. You should begin by categorizing each potential hazard according to its
probability and severity before moving on to defining probable outcomes and selecting
approaches to control risk. This will be the initial stage in both of these processes. The aim of
risk assessment, which is an essential component of risk management, is to identify and evaluate
the potential for harm caused by a given situation.

Any business could be vulnerable to danger at any given moment. Risk management, which
requires us to plan for a wide variety of unusual events, including everything from natural
catastrophes to cyberattacks, is the method through which we address these issues and overcome
them.

The effective management of risks is essential to the smooth running and profitable operation of
any firm. Evidence of risk assessments and other actions to avoid data breaches and secure
sensitive information is frequently required for organizations to demonstrate that they are in
compliance with the laws, rules, and industry compliance frameworks that govern their
industries.

It is impossible for risk management to create a world free of danger. Instead, it selects the
course of action that will result in the least amount of risk while making the most efficient use of
the resources available.

There are several different processes involved in the process of developing a plan for risk
management. It is absolutely necessary to complete each step in the correct sequence. This
manual can function as a guide for developing an all-encompassing program that identifies new
dangers and addresses both long-standing issues and newly surfaced concerns.

Set Objectives

The members of the team need to first conduct an analysis of the business or project goals, regardless of
whether or whether the target is the production of a brand-new good or the establishment of commercial
partnerships with other parties. The process of risk management needs to be associated with both the
present and the future objectives of the company, and it needs to start with those objectives.
Risk Identification

The next thing that needs to be done is an audit of all of your digital assets, which should include your
systems, networks, software, devices, and vendors. The key stakeholders will be able to generate ideas
and evaluate potential dangers associated with these assets if the assets are cataloged.

A positive or unfavorable occurrence that could have repercussions for one's finances, operations, or
reputation is considered a risk. A risk registry will typically include a listing for each potential danger that
has been uncovered.

Risk Assessment

After recognizing the hazards, the team responsible for risk management conducts an assessment
of them. There is always the possibility that a positive risk, such as an early product delivery,
will lead to a negative risk, such as a client paying their bill late. As a direct result of this, the
team working on the project is going to hold another session dedicated to brain storming
potential outcomes.

Risk Analysis

After identifying and assessing a risk, the team working on the project is obligated to analyze the
likelihood of the risk and then evaluate the potential consequences of the risk. The team will be
able to better prioritize the risk occurrences that need the greatest attention and robust ways to
mitigate them with the help of this activity.

In many cases, a risk assessment matrix is utilized in order to graphically display the possible
results. On one axis, you should measure the likelihood from low to high, and on the other, you
should measure the severity from low to high. The risk events located in the upper right quadrant
should be given emphasis because of the high frequency and severity associated with them.

Determine Risk Tolerance

The risk management plan of a firm is made easier when the organization's risk tolerance is
understood, and the distribution of risk management resources is determined by risk tolerance.
For instance, if a corporation has a low risk tolerance, it would invest a lot more money in
information security procedures to secure sensitive and secret data. These precautions will help
prevent data breaches.
Create Risk Mitigation Strategies

It is the responsibility of the project team to develop risk mitigation methods for any risks that
the team decides to transfer, minimize, or avoid. As a consequence of this, this section needs to
contain risk responses and mitigation measures, as well as dependencies and contingency plans.

During this phase, the project team should also be designing risk monitoring activities in order to
determine whether or not preventative and mitigating measures are functioning as intended.

Risk Management Best Practices

Create a Strong Risk-Aware Culture

An important part of any successful risk management program is cultivating a positive risk
culture. The risk ideas, values, and behaviors shared by all members of an organization. The
company's culture and tone should start at the top with the board of directors and executive
management.

Make Stakeholders Aware of the Process

Successful risk management requires continuous participation from key stakeholders beginning
with the planning phase. Internal and external stakeholders include people like employees,
customers, and suppliers. This sizable team accurately depicts all facets of your company and the
risks that come with it.

Proper Risk Management Policies

Roles, responsibilities, and standard operating procedures should all be laid out in a policy
statement for a systematic approach to risk management. Using this definition, you may more
easily catalog every risk that might have an effect on your company, evaluate the impact of each
risk on an ongoing basis, and choose the best course of action for reducing those risks.
Communication

It is absolutely necessary to raise awareness throughout an entire organization of the risks and
ways for mitigating them in order to secure buy-in and adoption.

Evaluate and Persist

Processes of transparent risk monitoring ensure that all risk reduction efforts perform as planned.
The practice of risk management is one that is ongoing and ever-changing. With any luck, you've
been able to formulate a game plan for your company with the assistance of these recommended
procedures for risk management.

References:

1. PERT VS CPM

https://byjus.com/commerce/difference-between-pert-and-cpm/

2. Project Evaluation Review Technique (PERT)

https://corporatefinanceinstitute.com/resources/management/project-evaluation-review-
technique-pert/

3. Planning: Importance, Elements and Principles | Function of Management

https://www.yourarticlelibrary.com/organization/planning-organization/planning-importance-
elements-and-principles-function-of-management/70029

4. Seven principles for strong planning

https://www.theglobeandmail.com/report-on-business/small-business/sb-managing/seven-
principles-for-strong-planning/article4301336/

5. Risk Management

https://www.techtarget.com/searchsecurity/definition/What-is-risk-management-and-why-is-
it-
important#:~:text=Risk%20management%20is%20the%20process,errors%2C%20accidents
%20and%20natural%20disasters