Course 1: Planning and Control systems

Introduction to the principles of Planning and Control systems in a “learning-oriented” perspective through the use of the system dynamics methodology.

Level: graduate; 10 ECTS points. The course is conducted entirely in English.

2. Learning Outcomes

Knowledge and understanding

Students know about the fundamentals of designing planning & control (P&C) systems to support the steering and management processes of different organisations.

They gain a systemic and design-oriented view of P&C. They are also able to position SD models into the wider P&C system of an organisation.

They also learn to analyse and diagnose business solvency and profitability, and to draw up ‘dynamic’ business plans.

Applying knowledge and understanding

The students will engage in real life case-study analyses that will be conducted with reference to both the public and the private sectors, in which they will apply their knowledge and understanding acquired from the field of Planning and Control facilitated through the use of system dynamics. These applications will extend into the courses P2 (“System Dynamics for Business Strategy”), P3 (Planning, Policy Design and Management in the Public Sector”), and P4. (“System Dynamics Models for Planning, Policy Design, and Management in the Public Sector”).

Making judgements

Students should be able to reflect on the method to use while adopting planning and control systems as a viable means to foster empowerment, accountability, communication and learning, particularly in organisations operating in a complex and dynamic environment.

Communication

Students will present and discuss relevant literature as well as the result of their case studies in class.

Learning skills

Students will acquire skills that are required for self-studies of the literature on the subject and to investigate the relationship between Planning and Control and systems performance.

3. Course Content

The course is divided into three parts:

1. Principles and techniques for P&C Systems Design;
   • Planning & Control as a System;
   • Different levels of control
   • Levers of control – Organizational control
   • Defining performance – Outlining goals objectives and performance indicators.
   • Linking objectives & performance indicators to strategic resources, policy levers, responsibility areas, and management processes
   • Designing P&C systems: Common errors
2.  Tools for business solvency & profitability analysis
   • Financial analysis: ratios
   • Profitability& Patrimonial ‘solidity’ analysis
   • Financial analysis:flows
   • Assessing solvency profitability and patrimonial “solidity” in relation to growth.
   • Cost analysis
   • Contribution margin analysis
3. Dynamic Business Planning
   • Outlining the business idea. Identifying the product, Strategic Business Areas, Customer, Exploring the competitive system.
   • Mapping processes related to different business sub-systems. Defining product price
   • Identifying cost drivers and standards
   • Drawing up a financial business plan
   • Moving from a static to a system dynamic business plan.