Planning in the IBM Corporation

• Published in: Long range planning Vol. 2; no. 3; pp. 2 - 7
• Main Author: Katz, Abraham
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.06.1978
• ISSN: 0024-6301; 1873-1872
• DOI: 10.1016/0024-6301(78)90044-4

A planning and control system for an organization (be it corporate or governmental) reflects the heritage of the organization, the style and philosophy of its management and the inherent characteristics of the larger environment in which the organization functions. IBM management deals with a continuing flow of complex products (hardware and software) characterized by a rapidly advancing technology. These products are used in diverse ways to solve problems across the entire spectrum of human activity and in every part of the world. The system described here rests on a few basic principles: (a) The ‘doer’ is the planner. Operating unit management is responsible for developing and implementing its plans. Within any unit, planning is further decentralized to the plant and laboratory levels; (b) Given this decentralization, there must be widespread understanding at all levels of management as to individual roles and responsibilities in the planning and control processes; (c) Top management must maintain a continuing focus both on the strategic direction of the business and the commitment to, and control against, the plan of record.