managerial planning and goal setting
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Managerial Planning and Goal Setting. Week 8. Planning. What? Why? When? Where? How? Who? How do you plan for an undefined future? No plan is perfect Without plans and goals, organizations flounder. Overview of the Goal-Setting and Planning Process. - PowerPoint PPT PresentationTRANSCRIPT
Managerial Planning and Goal Setting
Week 8
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Planning• What?
• Why?
• When?
• Where?
• How?
• Who?
• How do you plan for an undefined future?
• No plan is perfect
– Without plans and goals, organizations flounder
Copyright ©2013 by South-Western, a division of Cengage Learning. All rights reserved.
Overview of the Goal-Setting and Planning Process
A goal is a desired future state that the organization attempts to realize
A plan is a blueprint for goal achievement and specifies the necessary resource allocations,
schedules, tasks and other actions
PLANNING
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The Organizational Planning Process
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Goal-Setting in Organizations• Organizational Mission
• Strategic goals
• Tactical goals
• Operational goals
Goals should be aligned
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Mission Statement for DaVita Inc.
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Operational Planning
• What and Why?• Planning approaches:– Management By Objective (MBO)– Single-use Plans– Standing Plans
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Characteristics of Effective Goal Setting
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Benefits and Limitations of Planning
• Benefits– motivation and commitment– resource allocation– Action– standard of performance
• Limitations– Provide a false sense of certainty– Cause rigidity in a turbulent environment– Get in the way of intuition and creativity
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Planning for a Turbulent Environment
Contingency Planning
Building Scenarios– A forecasting technique to look at current trends
and visualize future possibilities
Crisis Planning
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Essentials Stages of Crisis Planning
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Set Stretch Goals for Excellence• Stretch goals are reasonable yet highly
ambitious goals that are clear and compelling– Require innovation– Fire up employees– Engender excellence
• Big, inspiring goals are sometimes called Big Hairy Audacious Goals (BHAG)
BHAGs and stretch goals are important because things move fast
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Thinking Strategically• Take the long-term view• See the BIG PICTURE• Strategic thinking is important for all
organizations– Impacts an organization’s performance– 51% of executives are unhappy with strategy
formulation process• Tough decisions and choices define and support
strategy
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What is Strategic Management?• Define explicit strategy/plan of action– Achieve competitive advantage
• Exploit Core Competencies
• Build Synergy
• Deliver Value – combination of benefits and costs
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The Strategic Management Process
Strategy Formulation
Strategy Execution
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The Strategic Management Process
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SWOT Analysis
Analysis of strengths, weaknesses, opportunities and threats
Internal Strengths and Weaknesses
External Opportunities and Threats
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Audit Checklist for Analyzing Organizational Strengths and Weaknesses
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Formulating Business-Level Strategy
Michael E. Porter• Porter’s Five Competitive Forces– Potential new entrants– Bargaining power of buyers– Bargaining power of suppliers– Threat of substitute products– Rivalry among competitors
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Porter’s Five Competitive Forces
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Organizational Characteristics of Porter’s Competitive Strategies
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Strategy ExecutionExecution is how strategy is put into actionExecution is most important, and most
challengingA key to effective execution is alignmentExecution requires all aspects of the
organization to be in congruenceExecution is tough because organizational
barriers may hinder implementation
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Six Silent Killers of Strategy
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Tools for Putting Strategy into Action