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planning
-coping with uncertainty by formulating future
courses of actions to achieve specified resultssetting goals and deciding how to achieve them
planning & strategic
management
1. establish the organization's mission and
vision2. formulate the grand strategy3. formulate
the strategic plans, then the tactical and
operational plans4. implement the strategic
plans5. control the strategy
how planning helps
you
1. helps you check your progress2. helps you
coordinate activities3. helps you think ahead4.
helps you cope with uncertainty
defenders
expert at producing and selling
narrowly defined products
prospectors
focus on developing new products and in
seeking out new markets, rather than waiting for
things to happen
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analyzers
let other organizations take the risks of product
development and marketing and then imitate
what seems to work best
reactors
make adjustments only when
finally forced to by
environmental pressures
adaptive cycle
businesses are continuously cycling through
decisions about three kinds of business
problems: entrepreneurial, engineering and
administrative
making plans
-mission statement-vision statement-strategic
planning-tactical planning-operational planning
mission statement
expresses the purpose of the
organization
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vision statement
-long-term goal describing "what" an
organization wants to become-clear sense of the
future and the actions needed to get there
strategic planning
determine what the organization's long-term
goals should be for the next 1-5 years with the
resources they expect to have available
tactical planning
determine what contributions their departments
or similar work units can make during the next
6-24 months
operational planning
determine how to accomplish
specific tasks with available
resources within the next 1-52
weeks
goals
-specific commitment to achieve a measurable
result within a stated period of time-aka
objective-strategic, tactical, operational
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strategic goals
set by and for top management
and focus on objectives for the
organization as a whole
tactical goals
set by and for middle managers
and focus on the actions
needed to achieve strategic
goals
operational goals
set by and for first-line managers and are
concerned with short-term matters associated
with realizing tactical goals
action plan
defines the course of action
needed to achieve the stated
goal
operating plan
-designed for a 1-year period-defines how you
conduct your business based on the action
plan-identifies clear targets such as revenue,
cash flow and market share
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standing plans
-plans developed for activities that occur
repeatedly over a period of time-consists of
policies, procedures and rules
policy
outlines the general response to
a designated problem or
situation
procedure
outlines the response to a
particular problem or
circumstances
rule
designates specific
required action
single-use plans
plans developed for activities that are not likely
to be repeated in the future-programs and
projects
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program
encompasses a range of
projects or activities
project
plan of less scope and
complexity than a program
SMART goals
-specific-measurable-attainableresults-oriented-target dates
what is MBO?
1. jointly set objectives2. develop action plan3.
periodically review performance4. give
performance appraisal and rewards, if any
MBO from the top
down
1. top management must be committed2. it must
be applied organization-wide3. objectives must
"cascade"
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the planning/ control
cycle
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1. make the plan2. carry out the plan3. control
the direction by comparing results with the
plan4. control the direction by taking corrective
action in two ways: correcting deviations &
improving future plans
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