1. MultiMedia by Stephen M. Peters© 2002 South-Western Organizational Planning

2. MultiMedia by Stephen M. Peters© 2002 South-Western 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.

3. MultiMedia by Stephen M. Peters© 2002 South-Western Mission Statement References to core values. Serves as an operational and ethical guide. Foundation and coordinating device for the execution of management functions.

4. MultiMedia by Stephen M. Peters© 2002 South-Western Peter Drucker and a Mission Statement: Two Questions ŒWhat is our business? What should it be? These two questions must be raised and answered periodically.

5. MultiMedia by Stephen M. Peters© 2002 South-Western Rule #1: Keep the statement simple; not necessarily short, but simple. Rule #2: Allow company-wide input. Rule #3: Involve outsiders. They can bring clarity and a fresh perspective to the statement-writing process. Rule #4: Develop the wording and the tone to reflect the company’s personality or what the company would like to be. 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. Rule #6: Rely on the mission statement for guidance. Challenge it continually, and judge employees by how well they adhere to its tenets. Management must say it and live it. Rule #1: Keep the statement simple; not necessarily short, but simple. Rule #2: Allow company-wide input. Rule #3: Involve outsiders. They can bring clarity and a fresh perspective to the statement-writing process. Rule #4: Develop the wording and the tone to reflect the company’s personality or what the company would like to be. 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. Rule #6: Rely on the mission statement for guidance. Challenge it continually, and judge employees by how well they adhere to its tenets. 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. Six Rules for Writing and Implementing Mission Statements

6. MultiMedia by Stephen M. Peters© 2002 South-Western Characteristic Explanation Specific and measurable Not all objectives can expressed in numeric terms, but they should be quantified when possible. Realistic and challenging Impossibly difficult objectives demotivate people. Objectives should be challenging but attainable, given the resources and skills available. Focused on key result areas Goals should focus on key results -- sales, profits, production, or quality. Cover a specific period A measurable objective is stated in terms of the time in which it is to be completed. Short-term goals should complement long-term goals. Reward performance Objectives are meaningless if they are not directly related to rewards for performance. Characteristic Explanation Specific and measurable Not all objectives can expressed in numeric terms, but they should be quantified when possible. Realistic and challenging Impossibly difficult objectives demotivate people. Objectives should be challenging but attainable, given the resources and skills available. Focused on key result areas Goals should focus on key results -- sales, profits, production, or quality. Cover a specific period A measurable objective is stated in terms of the time in which it is to be completed. Short-term goals should complement long-term goals. Reward performance Objectives are meaningless if they are not directly related to rewards for performance. Characteristics of Effective Goals and Objectives

7. MultiMedia by Stephen M. Peters© 2002 South-Western Plans Answer Six Basic Questions ŒWhat identifies the specific goals to be accomplished. When answers a question of timing. ŽWhere concerns the place or places where the plan will be executed. Who identifies specific people who will perform specific tasks. How involves the specific actions to be taken to reach the goals. ‘How much is concerned with the expenditure of resources needed to reach the goals–both long- and short-term.

8. MultiMedia by Stephen M. Peters© 2002 South-Western Stretch Goals Require Great Leaps Forward on Product development time Return on investment Sales growth Quality improvement Reduction of manufacturing cycle times

9. MultiMedia by Stephen M. Peters© 2002 South-Western 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.

10. MultiMedia by Stephen M. Peters© 2002 South-Western Plans Need Resources People Money Facilities Equipment Supplies Information People Money Facilities Equipment Supplies Information

11. MultiMedia by Stephen M. Peters© 2002 South-Western 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.

12. MultiMedia by Stephen M. Peters© 2002 South-Western  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 Types of Plans

13. MultiMedia by Stephen M. Peters© 2002 South-Western  Operational Plan  Support of tactical plans.  First-line manager’s tool for executing daily, weekly, and monthly activities.  Operational Plan  Support of tactical plans.  First-line manager’s tool for executing daily, weekly, and monthly activities. Types of Plans

14. MultiMedia by Stephen M. Peters© 2002 South-Western Strategic Plan Deals With Future Events Will there be a recession? Will inflation continue at its present rates? What will be the situation in our industry with regard to local, state, and federal regulations? What will the competition do?

15. MultiMedia by Stephen M. Peters© 2002 South-Western An Organization’s Mission and Levels of Goals

16. MultiMedia by Stephen M. Peters© 2002 South-Western Operational Plans  Single-Use Plan Once the activity is completed, the plan is no longer needed. Examples are programs and budgets.  Standing Plan Specifies how to handle continuing or recurring activities. Continues to be useful over many years. Examples include policies, procedures, and rules.  Single-Use Plan Once the activity is completed, the plan is no longer needed. Examples are programs and budgets.  Standing Plan Specifies how to handle continuing or recurring activities. Continues to be useful over many years. Examples include policies, procedures, and rules.

17. MultiMedia by Stephen M. Peters© 2002 South-Western Hierarchy of Unified Goals and Objectives

18. MultiMedia by Stephen M. Peters© 2002 South-Western Assessing the Internal Environment Considerations  Human resources  Material resources  Financial resources  Time  Informational resources  Needs of internal customers

19. MultiMedia by Stephen M. Peters© 2002 South-Western Assessing the External Environment Considerations  Strengths and weaknesses of suppliers.  Availability of additional labor and technology.  Needs of external customers.

20. MultiMedia by Stephen M. Peters© 2002 South-Western Implementing the Plan Who will do what By what date What resources

21. MultiMedia by Stephen M. Peters© 2002 South-Western 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.

22. MultiMedia by Stephen M. Peters© 2002 South-Western 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.

23. MultiMedia by Stephen M. Peters© 2002 South-Western  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 Barriers to Effective Planning