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 All of the other management functions stem from planning  How do you plan for an undefined future?  No plan is perfect  Without plans and goals, organizations flounder 2

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 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

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

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 Organizational mission – the organization’s reason for existence  Strategic goals – official goals, broad statements describing the organization’s future  Strategic plans – define the action steps the company will take  Goals should be aligned using a strategy map 6

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 Direct employees and resources  Guide toward efficient and effective performance  Includes planning approaches:  Management-by-Objectives (MBO)  Single-Use Plans  Standing Plans 8

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

 Defined in 1954 by Peter Drucker  Method for defining goals and monitoring performance 10

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Single-Use Plans  Achieve one-time goals  Programs and projects Standing Plans  Ongoing plans  Policies, rules, procedures 12

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Single-Use Plans  Program: building new headquarters, converting paper files to digital  Project: renovating the office, setting up a new company intranet 13

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Standing Plans  Policy: Sexual harassment policies, Internet and social media policies  Rule: No eating rule in areas of company where employees are visible to public  Procedure: Procedures for issuing refunds, Procedures for handling employee grievances 14

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Goals and plans provide a source of motivation and commitment Goals and plans guide resource allocation Goals and plans are a guide to action Goals and plans set a standard of performance Goals and plans can create a false sense of certainty Goals and plans may cause rigidity in a turbulent environment Goals and plans can get in the way of intuition and creativity 16

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Contingency Planning  Planning for emergencies, setbacks, or unexpected conditions  Building Scenarios  A forecasting technique to look at current trends and discontinuities and visualize future possibilities  Crisis Planning  Unexpected events that are sudden and devastating 17

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Stretch goals are highly ambitious  Clear, compelling, and imaginative  Require innovation  Goals must be seen as achievable  Like Big Hairy Audacious Goal (BHAG) from 1996 article on “Building Your Company’s Vision”  As times move faster and become more turbulent, these are important 19

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Dashboards  keep track of key performance metrics  align and track goals  can be applied throughout the company on the factory or sales floor. 20

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Intelligence teams  cross-functional group of managers  work together  gain a deep understanding of a specific competitive issue  offer insight and recommendations for planning 22