Planning without action is futile, action without planning is fatal Planning without action is futile, action without planning is fatal. (Unknown)

Goal - A desired future state that the organization attempts to realize Plan - A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals Planning – determining the organization’s goals and the means for achieving them

Three Steps in Planning Determining the Organization’s Mission and Goals Defining the organization’s overriding purpose and its goals. Formulating strategy Managers analyze current situation and develop the strategies needed to achieve the mission. Implementing strategy Managers must decide how to allocate resources between groups to ensure the strategy is achieved. 3

Purpose of Goals and Plans Internal and External Messages Goals and Plans Send: 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 10/10/2019

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 organizational activities and resource allocations Long-term 10/10/2019

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 strategic plans Shorter time frame than strategic plans 10/10/2019

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 10/10/2019

Hierarchy of Goals(Means-End Chain) 10/10/2019 Exhibit 5.3

Characteristics of Effective Goal Setting Characteristics of Effective Goal Setting Specific and measurable Challenging but realistic Defined time period Linked to rewards 10/10/2019

SMART S = Specific M = Measureable A = “Actionable” R = Realistic T = Time-bound

Questions for SWOT Analysis

SMART OBJECTIVES- not to be confused with SWOT

Management by Objective Process (MBO)

Now This is What I Call a Strategy! Find the Fugitive!

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 –”when the going gets tough…” 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 10/10/2019

The Chico Mentor Center Let’s Build a Business! The Chico Mentor Center “Purpose + People = Success Unlimited” I need a Quick Plan to launch my imaginary initiative. Mission Statement: Enhance the learning and life quality of participants through meaningful and mutually supportive mentoring relationships with like-minded others Slogan: Meeting Life’s Challenges through Proactive, Passionate and Purposeful Partnership Core Values: Passion and a sense of purpose lead to personal growth Our focus is on fostering a context for personal and professional success We support a learning culture CMC stands for cultural diversity, cross-generational communication, mutual support, and respect

Objectives Related to Goal Steps to Attain The Objective Related to my Goal Measures Timeframe – Date Objective is to be Accomplished Notes   Scope, Time, Risk, Human Resources, Procurement, Quality, Communication, Cost, Stakeholders, Integration

MBO Benefits and Problems Problems: Constant change prevents MBO from taking hold Poor employer-employee relations reduces MBO effectiveness Strategic goals may be displaced by operational goals Mechanistic organizations and values that discourage participation Too much paperwork saps MBO energy Benefits: Manager and employee efforts are focused Performance can be improved Employees are motivated Departmental and individual goals are aligned 10/10/2019

Building Scenarios “WAR ROOMS” Managers can rehearse mentally what they would do if their best-laid plans were to collapse. Here, they consider contingencies. 10/10/2019

Three Stages of Crisis Management 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. 10/10/2019

Managing During Turbulent Times Stay Calm Be Visible People Before Business Tell the Truth Know When to Get Back to Business

Strategic Emphasis Value – Core Competence – the combination of benefits received and costs paid Core Competence – something the organization does especially well in comparison to its competitors Synergy – A joint effect that is greater than the sum of the parts acting together 10/10/2019

Forces & Strategy According to Porter

Porter’s Competitive Strategies Differentiation Flexible, loose knit with strong coordination Creative flair, thinks “out of box” Strong marketing abilities Rewards employee innovation Reputation for quality or technical leadership Cost Leadership Central authority, tight cost controls Efficient procurement and distribution systems Close supervision, finite employee empowerment 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 10/10/2019

Principal Corporate-Level Strategies Concentration on a single industry Vertical integration Diversification International expansion Concentration in Single Business Organization uses its functional skills to develop new kinds of products or expand its locations Appropriate when managers see the need to reduce the size of their organizations to increase performance Vertical integration strategy that involves a company expanding its business operations either backward into a new industry that produces inputs (backward vertical integration) or forward into a new industry that uses, distributes, or sells the company’s products (forward vertical integration) Diversification strategy of expanding a company’s operations into a new industry in order to produce new kinds of valuable goods or services Related Diversification strategy of entering a new industry and establishing a new business division that is linked to a company’s existing divisions because they share resources that will improve the competitive position Unrelated Diversification Firms establish divisions or buy companies in new industries that are not linked to their current business or industry Portfolio strategy Apportioning resources among divisions to increase returns or spread risks International Expansion Basic Question: To what extent do we customize products and marketing for different national conditions? Global strategy Undertaking very little customization to suit the specific needs of customers in different countries. Standardization provides for lower production cost. Ignores national differences that local competitors can address to their advantage. 28

Partnership Strategies Collaboration is an alternative form of strategy – “More of us is smarter/better than one” Competition and collaboration are often present at the same time. The Internet is driving and supporting more partnerships. 10/10/2019