The importance of analysis and analytical skills to the manager making Essay

The importance of analysis and analytical skills to the manager making decisions in business - Essay ExampleFrom this question it is clear that the importance of analysis and analytical skills to the manager making decisions in a business gougenot be refuted. This is more so in todays rapidly changing business environment and the availability of too much information due to the convergence of information technology, media and tele communication theory. As is in life or any other important event in our lives, before embarking on a project proviso is the first thing that managers have to do. As the clich goes, reverse to plan is planning to fail. Planning involves a series of decisions that may range from operational to strategic. Project planning is a subset of operational planning whose core work out is to come up with a document referred to as a project plan. Within the project plan, managers and other stakeholders who were involved in the planning process countersink the objec tives of the project, its scope, how the project will be conducted, the time allocated, cost estimates and roles and responsibilities of all the personnel who will be involved. Project planning involves four main steps that can be subdivided into additional steps depending on the task at hand. These steps atomic number 18 establishing project goals, setting project deliverables, agreeing on project schedule and ensuring that at that place are support plans in place. The advantages of project planning are derived from each of these steps. In step one, stakeholders are identified, there needs outlined and project goals are set prioritizing the stakeholder needs. The advantage of this is that the outcomes are SMART goals which imply that it will be easy to detect whether the project is advancing, stagnant or regressing. Step both specifies the items to be delivered, how they are to be delivered and when they should be delivered. This advantage of this stage is that it sets up the ke y parameters that can be optimised using software tools to design the most effective and efficacious project schedule. With a plethora of project management software currently in the market managers can easily identify critical path. Step two and three enable managers to balance the tetrad trade-off of product scope, quality grade, time-to-produce and cost-to-complete. The final step of setting up support plans involves establishing risk management plans, communications plans and HR plans. The advantages here are numerous such as having contingencies in place in case of anything, ensuring information goes to the right people during project instruction execution and using HR allocation to aid in establishing the project budget. There are also disadvantages to project planning such as (1) at clock it may take too long to come up with a plan as rival companies catch up (2) at times the planning committee may get lose sight of the purpose of the planning as they get bogged down in u nnecessary detailing and (3) it may deject implementation flexibility which is dangerous in a rapidly changing environment since personnel will may feel restricted by the options availed in the plan. 2.0. Financial modelling Investopedia (2011) defines financial modelling