session 2 planning & goal setting ch05-st version (1)

8/6/2019 Session 2 Planning & Goal Setting Ch05-St Version (1)

1/32

Planning andPlanning and

Goal SettingGoal Setting


2/32

7/10/2011 2

Learning Objectives

Define goals and plans and explain the relationship between them.

Explain the concept of organizational mission and how it influences goalsetting and planning.

Describe the types of goals an organization should have and why theyresemble a hierarchy.

Define the characteristics of effective goals.

Describe the four essential steps in the MBO process.

Explain the difference between single-use plans and standing plans. Describe and explain the importance of the three stages of crisis

management planning.


3/32

7/10/2011 3

Learning Objectives (contd.)

Summarize the guidelines for high-performance planning in a fast-changingenvironment.

Define the strategic planning process and SWOT analysis.

Describe business-level strategies, including Porters competitive forcesand strategies and partnership strategies.

Explain the major considerations in formulating functional strategies.

Discuss the organizational dimensions used for implementing strategy.


4/32

Planning Is A Three Step Activity

4

DETERMINING THE ORGANIZATION'S MISSION AND GOALSDefine the business

Establishing major goals

FORMULATING STRATEGYAnalyze current situation and develop strategies

IMPLEMENTING STRATEGYAllocate resources and responsibilities to achieve goals


5/32

7/10/2011 5

Goals and Plans

Goal - A desired future state that theorganization attempts to realize

Plan - A blueprint specifying the resourceallocations, schedules, and other actionsnecessary for attaining goals

Planning determining the organizations goalsand the means for achieving them


6/32

7/10/2011 6Exhibit 5.1

Levels of Goals/Plans


7/32

7/10/2011 7

Purpose of Goals and Plans

Legitimacy What the organization stands for - reason for being

Employees identify with purpose Source of Motivation and Commitment

Employees identification with the organization

Motivate by reducing uncertainty

Resource Allocation Allocate employees, money, and equipment

Guides to Action Provide a sense of direction; focus attention on specific

targets

Direct efforts toward important outcomes


8/32

7/10/2011 8

Purpose of Goals and Plans

Rationale for Decisions Learn what organization is trying to accomplish

Make decisions to ensure that internal policies, roles,performance, structure, products, and expenditures will be

made in accordance with desired outcomes

Standard of Performance Serve as performance criteria

Provide a standard of assessment


9/32

7/10/2011 9

Organizational Mission

Mission - organizations reason for

existing Mission Statement

Basic business scope

Distinguishes it from otherorganizations

Ourcompanys mission is to extend and enhance

human life by providing the highest-quality


10/32

7/10/2011 10

Strategic Goals and Plans

Strategic Goals

Future plans

Plans for whole organization

Strategic Plans

Action Steps used to attain strategic goals

Blueprint that defines the organizationalactivities and resource allocations

Long-term


11/32

7/10/2011 11

Tactical Goals and Plans

Tactical Goals

Apply to middle management

Goals that define the outcomes that major

divisions and departments must achieve

Tactical Plans

Plans designed to help execute st

rategicplans

Shorter time frame than strategic plans


12/32

7/10/2011 12

Operational Goals and Plans

Operational Goals

Specific, measurable results

Expected from departments, work groups,

and individuals

Operational Plans

Action steps toward operational goals Daily and weekly operations

Schedules are an important component


13/32

7/10/2011 13

Goal Alignment

Means-end Chain

Achievement of goals at lower levelspermits the attainment of high-level goals.


14/32

7/10/2011 14

Hierarchy of Goals

Exhibit 5.3


15/32

7/10/2011 15

Characteristics of Effective

Goal Setting

Specific and measurableSpecific and measurable

Challenging but realisticChallenging but realistic

Defined time periodDefined time period

Linked to rewardsLinked to rewards


16/32

7/10/2011 16

Single-Use Plans - Goals

Not Likely To Be Repeated

A program is a complex set of

objectives and plans to achieve an

important, one-time organizational

goal

A projectis similar to a program, but

generally smaller in scope and

complexity


17/32

7/10/2011 17

Standing Plans Tasks

Performed Repeatedly

A policy is a general guide to action andprovides direction for people within the

organization

Rules describe how a specific action is tobe performed

Procedures define a precise series of stepsto be used in achieving a specific job


18/32

7/10/2011 18

Contingency Plans

UnexpectedC

onditions

Identify Uncontrollable Factors Economic turndowns

Declining markets Increases in costs of supplies

Technological developments

Safety accidents

Flexible Plans

Multiple Future Alternatives


19/32

7/10/2011 19

Building Scenarios

Looking at trends and discontinuities and

imagining possible alternative futures to builda framework within which unexpected future

events can be managed.

Managers can rehearse mentally what they would

do if their best-laid plans were to collapse.


20/32

7/10/2011 20

Planning forHigh Performance

Less top-down management planning

Involve managers throughout the organization

Strategic thinking and execution is becoming

job of all employees


21/32

7/10/2011 21

Planning In The New Workplace

Have a strong mission statement and vision

Set stretch goals for excellence

Establish a culture that encourages learning

Embrace event-driven planning

Utilize temporary task forces Planning still starts and stops at the top

Planning comes alive when employees are involved in

setting goals and determining the means to reach them


22/32

7/10/2011 22

Strategic Management Process

Exhibit 5.10


23/32

Organizations Mission & Vision

23

To determine organizations mission, managers must first:

Ddefine the business

Managers must ask3

questions: WHO are our customers?

WHAT customer needs are being satisfied?

HOW are we satisfying customer needs? Answering these questions helps managers to identify:

Customer needs they are satisfying now.

Customer needs they should satisfy in the future.

Who are their true competitors.


24/32

7/10/2011 24

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats


25/32

Questions For SWOT Analysis

25

POTENTIAL

STRENGTHS

POTENTIAL

OPPORTUNITIES

POTENTIAL

WEAKNESSESPOTENTIAL THREATS

Well-developed

strategy?

Strong product lines?

Broad market

coverage?Manufacturing

competence?

Good marketing

skills?

Good materials

management

systems?

R & D skills and

leadership?

Human resource

competencies?

Brand-namereputation?

Expand core

business?

Exploit new market

segments?

Widen productrange?

Extend cost or

differentiation

advantage?

Diversity into new

growth business?

Expand into foreign

markets?

Apply R&D skills innew areas?

Enter new relatedbusinesses?

Poorly developed

strategy?

Obsolete, narrow

product lines?

Rising manufacturingcosts?

Decline in R&D

innovations?

Poor marketing

plan?

Poor materials

management

systems?

Loss of customergoodwill?

Inadequate human

resources

Attacks on core

business?

Increase in domestic

competition?

Increase in foreigncompetition?

Change in consumer

tastes?

Fall in barriers to

entry?

Rise in new or

substitute

products?

Increase in industryrivalry?

New forms of industry

competition?


26/32

Directional Strategies

Downsizing

External GrowthStrategy

ConcentrationStrategy

Internal GrowthStrategy

Mergers and

Acquisitions


27/32

7/10/2011 27

Business-Level Strategy:

Porters Five Forces

Exhibit 5.12


28/32

7/10/2011 28

Porters Competitive Strategies

Differentiation Flexible, loose knit with strong coordination

Creative flair, thinks out of box

Strong marketing abilities

Rewards employee innovation

Reputation forquality or technical leadership

Cost

Leadership

Central authority, tight cost controls

Efficient procurement and distribution systems

Close su

pervision, finite employee empowe

rment

Focus Frequent, detailed control reports

Direct combination of policies to strategic target

Values and rewards flexibility and customer intimacy

Pushes empowerment to employees with customer

contact


29/32

Porters Business Level Strategies

29

STRATEGY

NUMBER OF MARKET SEGMENTS

SERVED

MANY FEW

Low-cost

Focused low-cost

Differentiation

Focused differentiation


30/32

7/10/2011 30

Partnership Strategies

Collaboration is an alternative form of strategy

Competition and collaboration are often

present at the same time. The Internet is driving and supporting more

partnerships.


31/32

7/10/2011 31

Implementation During

Turbulent Times

Three Key Issues: Global Mind-Set

Corporate Culture

Information Technology


32/32

7/10/2011 32

Three Stages of

Crisis Management

Prevention

Build trusting relationship with key stakeholders

Open communication

Preparation

Crisis Management Team & Plan

Establish an Effective Communications system

Containment

Activate the crisis management plan.

Get the awful truth out.

Meet safety and emotional needs.

Return to business.

session 2 planning & goal setting ch05-st version (1)

Documents