1. Elements of Planning and Decision-Making
A Brief Review

2. Key Concepts for Strategic Thinking
Vision
Mission
Strategy

3. Decision Making and the Planning Process
Strategic goals
Strategic plans
Tactical goals
Operational goals
Operational plans
The organization’s mission
The Environmental Context •
Purpose
Premises
Values
Directions
Tactical plans

4. Organizational Goals Purposes of Goals
Provide guidance and a unified direction for people in the organization.
Have a strong affect on the quality of other aspects of planning.
Serve as a source of motivation for employees of the organization.
Provide an effective mechanism for evaluation and control of the organization.

5. Kinds of Goals
By Level
Mission statement is a statement of an organization’s fundamental purpose.
Strategic goals are goals set by and for top management of the organization that address broad, general issues.
Tactical goals are generally set for middle managers; their focus is on how to operationalize actions to strategic goals.

6. Responsibilities of Setting Goals
Who Sets Goals?
All managers and staff should be involved in the goal-setting process.
Managerial responsibility for goal setting is to communicate the beliefs and opinions of the staff that they supervise and to express their own view of progress, gaps, and direction.

7. Responsibilities of Setting Goals
Sorting Out Multiple Goals
Optimizing allows managers to balance and reconcile inconsistent or conflicting goals.

8. Organizational Plans Strategic Plans
A general plan outlining resource allocation, priorities, and action steps to achieve strategic goals.
Tactical Plans
A plan aimed at achieving the steps and timeframe set by and for middle management.

9. Time Frames for Planning
The Time Dimension of Planning
is based on the principle of commitment. Planning must provide sufficient time to fulfill the managerial commitments involved.
Long-range Plans (may not be strategic)
cover present and future strategic issues; normally extend beyond five years in the future.

10. Responsibilities for Planning
Planning Staff (can be permanent or assigned)
Planning staff personnel gather information, coordinate planning activities, and help collect information for managerial review
Planning Task Force
Created when the organization wants a special circumstance addressed.

11. Responsibilities for Planning
Board of Directors
Establishes/confirms/approves the organization’s policy, such as the corporate mission and strategy.
Chief Executive Officer
Has the lead role in the planning process and oversees the implementation of strategy by supervising department directors.

12. Responsibilities for Planning (cont’d)
Executive Committee
Composed of top officers within the organization. Meet when the Board is not scheduled to meet to review progress of the strategic plans.
Line Management - Persons with formal authority and responsibility for management of the organization. Help to formulate strategy by providing information. Responsible for executing the plans developed by top management.

13. Ongoing planning process
Contingency Planning
Contingency is the determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate. These plans help managers to cope with uncertainty and change.
Ongoing planning process
Action point 1
Action point 2
Action point 3
Action point 4
Develop plan,
considering
contingency events
Implement plan and
formally identify
Specify indicators
for the contingency
events and develop
contingency plans for
each possible event
Successfully complete
plan or contingency
plan
Monitor contingency event indicators and
implement contingency plan if necessary

14. Tactical Planning Developing and Executing Tactical Plans
Developing tactical plans •
Recognize and understand
overarching strategic plans
Specify relevant resources and
time issues
Recognize and identify human
resource commitments
Executing tactical plans
Evaluate each course of action
in light of its objective
Obtain and distribute
information and resources
Monitor horizontal and vertical
communication and integration
of all activities/steps
Evaluate ongoing activities

15. Types of Operational Plans

16. Barriers to Goal Setting and Planning
As part of managing the goal-setting and planning process, managers must understand the barriers that can disrupt implementation. Managers must collaborate to overcome the obstacles.

17. Using Goals to Implement Plans
A formal goal-setting process can be an effective technique for integrating the ideas and expertise of staff. It provides staff with a voice and promotes acceptance of what they are expected to accomplish.
Starting
the formal
goal-setting
program
Establishment
of organiza-
tional goals
and plans
Collaborative
goal setting
and planning
Communicat-
ing organiza-
Meeting
Verifiable
goals and
clear plans
Counseling
Resources
Periodic
review
Evaluation

18. Using Goals to Implement Plans: The Effectiveness of Formal Goal Setting
Strengths for Success
Improved employee motivation
Enhances communication
Fosters more objective performance appraisals
Focuses attention on appropriate goals and plans
Helps identify managerial talent
Provides a systematic management philosophy
Facilitates control of the organization
Cause of Failure
Poor implementation of the goal setting process
Lack of top-management support for goal setting
Delegation of the goal-setting process to lower levels
Overemphasis on quantitative goals
Too much paperwork and record keeping
Managerial resistance to goal setting

19. The End