As the old adage goes, to fail to plan is to plan to fail. As mortals devoid of supernatural powers, planning is our only link to the future. Planning takes on a more relevant role in large enterprises. In this context, planning is not only the link to the future, but it is the glue the binds peoples’ actions together, towards common objectives. Furthermore, in the context of large enterprises, it is not only known as planning per se, but planning system. This implies that in order to be effective, a framework should exist from which the planning should be done. Based on these premises, I feel that the crucial ingredients in making a planning system work are:


1. Buy-in
2. Balance
3. Boundaryless Communications


Buy-in

It is imperative that top management to line managers be sold to the planning system. They should sincerely believe that working in the planning system is a worthwhile and engaging activity. They should be motivated enough to take ownership of the system. Otherwise, it would be a waste of time to proceed.

A key element in getting buy-in is customization. The system should suit management and their work processes. It should be something they are comfortable with. In order for this to materialize, line management should be involved every step of the way into designing and implementing planning system. Staff planners should take their usual support role with regard to the planning process.

Immersion into the planning system also induces managers to have deep insights about the company’s future. As Anthony and Govindarajan state, “it is not an overstatement to say that in formal strategic planning, the process itself is a lot more important than the output of the process, which is a plan document.” In Dwight Eisenhower’s words, "The plan is nothing, planning is everything."

Balance

Balance relates to several elements:

o Balance in Rules – the rules should be tight enough to promote coherence but it should be loose enough to promote creativity and innovation.

o Balance in Data – garbage in, garbage out. In computer science, we fondly call this GIGO. The manager’s judgment on which data is relevant and which data is trivial should be the main reason he is given his paycheck.

o Balance in Detail – it is often the pitfall for planners to obsess and get lost in the details, more specifically, get lost in the numbers. The level of detail should be balanced. General enough to be understood by everyone yet specific enough to be practical.



Boundaryless Communications

The larger the organization, the harder clarity and consistency in communications is achieved. To remedy this, a boundaryless communications system should be in place. Since planning is generally more of creative work, the communication system should be able to cut through bureaucracy. This entails a certain degree of informality or arms reach culture. Such culture is present in today’s best performing companies: Google, Yahoo!, Microsoft and GE among others. Boundaryless communications enables frictionless communications, which is crucial in getting the best ideas.


In conclusion, a planning system is meaningless without implementation. This is where
management control systems come in to play since it is essentially strategy implementation. Peter Drucker articulates it best by saying, “The essence of management is to make knowledge productive.”