1. Organizational Planning
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2. When Planning, Managers
 Construct, review, and/or rewrite their organization’s
mission.
 Identify and analyze their opportunities.
 Establish the goals they wish to achieve.
 Identify, analyze, and select the course or courses of
action.
 Determine resources they will need to achieve their goals.
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3. Mission Statement
References to core values.
Serves as an operational and ethical guide.
Foundation and coordinating device for the
execution of management functions.
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4. Peter Drucker and a Mission
Statement: Two Questions
• What is our business?
• What should it be?
• These two questions must be raised and answered
periodically.
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5. Six Rules for Writing and Implementing
Mission Statements
Rule #1: Keep the statement simple; not necessarily short, but simple.
Rule #1: Keep the statement simple; not necessarily short, but simple.
Rule #2: Allow company-wide input.
Rule #2: Allow company-wide input.
Rule #3: Involve outsiders. They can bring clarity and aafresh perspective to
Rule #3: Involve outsiders. They can bring clarity and fresh perspective to
the statement-writing process.
the statement-writing process.
Rule #4: Develop the wording and the tone to reflect the company’s
Rule #4: Develop the wording and the tone to reflect the company’s
personality or what the company would like to be.
personality or what the company would like to be.
Rule #5: Share the mission statement in as many creative ways as possible
Rule #5: Share the mission statement in as many creative ways as possible
and in as many languages as necessary. Keep it in front of people constantly.
and in as many languages as necessary. Keep it in front of people constantly.
Rule #6: Rely on the mission statement for guidance. Challenge it
Rule #6: Rely on the mission statement for guidance. Challenge it
continually, and judge employees by how well they adhere to its tenets.
continually, and judge employees by how well they adhere to its tenets.
Management must say it and live it.
Management must say it and live it.
Source: From Say it and Live It by Patricia Jones and Larry Kahaner. Copyright © 1995 by Kane Associates International, Inc. Used by permission of
Doubleday, a division of Bantam Doubleday Dell Publishing Group, Inc.
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6. Characteristics of Effective Goals and Objectives
Characteristic
Characteristic Explanation
Explanation
Specific and measurable
Specific and measurable Not all objectives can expressed in numeric
Not all objectives can expressed in numeric
terms, but they should be quantified when possible.
terms, but they should be quantified when possible.
Realistic and challenging
Realistic and challenging Impossibly difficult objectives demotivate people.
Impossibly difficult objectives demotivate people.
Objectives should be challenging but attainable, given
Objectives should be challenging but attainable, given
the resources and skills available.
the resources and skills available.
Focused on key result areas
Focused on key result areas Goals should focus on key results--sales, profits,
Goals should focus on key results--sales, profits,
production, or quality.
production, or quality.
Cover aaspecific period
Cover specific period A measurable objective is stated in terms of the time in
A measurable objective is stated in terms of the time in
which it is to be completed. Short-term goals should
which it is to be completed. Short-term goals should
complement long-term goals.
complement long-term goals.
Reward performance
Reward performance Objectives are meaningless if they are not directly
Objectives are meaningless if they are not directly
related to rewards for performance.
related to rewards for performance.
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7. Plans Answer Six Basic Questions
a. What identifies the specific goals to be accomplished.
b. When answers a question of timing.
c. Where concerns the place or places where the plan will be executed.
d. Who identifies specific people who will perform specific tasks.
e. How involves the specific actions to be taken to reach the goals.
f. How much is concerned with the expenditure of resources needed to
reach the goals–both long- and short-term.
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8. Stretch Goals Require Great Leaps
Forward on
• Product development time
• Return on investment
• Sales growth
• Quality improvement
• Reduction of manufacturing cycle times
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9. Strategy
A course of action created to achieve a long-term
goal.
Exists for an entire organization or for its
autonomous units or functional areas.
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10. Plans Need Resources
•• People
People
•• Money
Money
•• Facilities
Facilities
•• Equipment
Equipment
•• Supplies
Supplies
•• Information
Information
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11. Types of Plans
 Strategic Plan
 Contains the answers to who, what, when, where, and
how.
 Concerned with the entire organization’s direction and
purpose.
 How the organization intends to grow, compete, and
meet its customers’ needs.
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12. Types of Plans
 Tactical Plan
 Is concerned with major organizational subsystems:
-what they must do
-how they must do it
-when things must be done
-where activities will be performed
-what resources are to be utilized
-who will have the authority
 Has more details
 Shorter time frames
 Narrower scope than strategic plans
 Usually one year or less
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13. Types of Plans
 Operational Plan
 Operational Plan
 Support of tactical plans.
 Support of tactical plans.
 First-line manager’s tool for executing daily, weekly,
 First-line manager’s tool for executing daily, weekly,
and monthly activities.
and monthly activities.
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14. Strategic Plan Deals With Future Events
What will be the situation in
our industry with regard to
local, state, and federal
regulations?
Will inflation
Will there be a What will the
continue at its present
recession? competition do?
rates?
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15. An Organization’s
Mission and
Levels of Goals
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16. Operational Plans
 Single-Use Plan
 Single-Use Plan
 Once the activity is completed, the plan is no longer
 Once the activity is completed, the plan is no longer
needed.
needed.
 Examples are programs and budgets.
 Examples are programs and budgets.
 Standing Plan
 Standing Plan
 Specifies how to handle continuing or recurring activities.
 Specifies how to handle continuing or recurring activities.
 Continues to be useful over many years.
 Continues to be useful over many years.
 Examples include policies, procedures, and rules.
 Examples include policies, procedures, and rules.
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17. Hierarchy of Unified Goals and Objectives
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18. Assessing the
Internal Environment Considerations
 Human resources
 Material resources
 Financial resources
 Time
 Informational resources
 Needs of internal customers
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19. Assessing the External
Environment Considerations
 Strengths and weaknesses of suppliers.
 Availability of additional labor and technology.
 Needs of external customers.
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20. Implementing the Plan
Who will do what
By what date
What resources
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21. Planning is Based On
Assumptions … what planners
believe to be true and real.
Forecasts … predictions about the
probable state of relevant conditions
over the span of time covered in their
plans.
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22. Planning Tools
 Management by Objectives (MBO)
-a technique that emphasizes collaborative
objective setting by managers and their
subordinates.
 Linear Programming
-a planning tool that can be used to determine the
optimum combination of resources and activities.
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23. Barriers to Effective Planning
 Lack of commitment
 Fear of failure
 Out-of-date or inaccurate information
 Failure to consider the long term
 Overreliance on the planning department
 Overemphasis on controllable variables
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