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Importance of Goal Setting and Planning Management

Presentation · October 2016

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Ahmad Majar
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 Importance of Goal
Setting and Planning
Management
Ahmad Majar
PhD. of engineering
Training course in high management, BMC – Dubai, 2016
content
 Strategic Planning
 Steps of a Strategic Plan
 The concept of vision
 The Mission
 Strategic Analysis
 SWOT analysis
 Annual planning
 Contingency Planning
 Role of stakeholders in effective planning
 General and specific objectives
 Ranking of goals
 SMART rule for the formulation of objectives
 Management by Objectives
Strategic Planning

 The “big picture” of what your organization is doing and

where it is going
 Helps determine where your organization is going over the
next year or more
 Why is this important?
Takes you outside the day-to-day activities of your organization or
project and helps give you clarity about what you actually want to
achieve and how to go about achieving it rather than a plan of
action for day-to-day operations
Strategic Planning Process Stages

 Determining the Organization’s Mission and vision

 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.
Steps of a Strategic Plan

 Where is your organization in its development

RIGHT now?
 Assess the Internal and External Environments
 Create a Vision
 Define core beliefs and values of your
organization
 Identify your agency’s mission
Steps of a Strategic Plan

 Identify critical strategic issues

Sometimes referred to as barriers
 Develop goals and detailed action plans for
each strategic issue
How can you maximize the forces in favor and minimize forces
against?
Steps of a Strategic Plan

 Monitor
Action Plans your agency has
developed in response to the critical issues
 Evaluate progress of achieving the outcomes
 Revise the plan as necessary
The concept of vision

 A vision statement tells people

 Where we want to go
 What we want to become
 What we want to accomplish
 Why it is important
The Mission

 The mission expresses the organization’s:

 Purpose - the needs we exist to address
 Business - what are we doing to address these
 Values - what principles or beliefs guide our work
Vision and mission

 Exercise: can you suggest a mission and vision of

your organization (15 min)
Strategic Analysis

When we do the strategic analysis we ask our self the

following questions:
 where are we now?
 Where would you like to go?
 How do you achieve that?
Strategic Analysis

To answer the mentioned questions there are many mays we

recommend the following:
 External influences
 Internal influences
 Comparisons with others
 Strengths, Weaknesses, Opportunities and Threats (SWOT)
External influences

 What is going out of your organization?

 How it will affect your organization?
 Examples of external influences: Increasing customer
requirements, new legislation, commitment to standard
criteria, competition, new technologies, availability of
resources.. etc.
 Usually you are not able to control that, but you will be
able to predict and be ready to face it.
Internal influences

 Marketing (price policy, public relations….. Etc.)

 Research and development
 Managing team (skills, experiences and effectivity).
 Operations.
 Financial affairs(budget rates, financial influences)
 Human resources(capacity of employees, training and
labor rules)
Comparisons with others

 Determination of Sign System to comparing your

organization with others.
 Comparison with assumed ideal organization.
SWOT analysis

 Regardless of whether your

organization is future planning for
specific products, work, personal or
any other area, the SWOT analysis
process is the same.
SWOT analysis

Step 1 – In the here and now… List all

strengths that exist now . Then in turn,
list all weaknesses that exist now. Be
realistic but avoid modesty!
SWOT analysis

 Step 2 – What might be… List all

opportunities that exist in the future.
Opportunities are potential future
strengths. Then in turn, list all threats that
exist in the future. Threats are potential
future weaknesses.
SWOT analysis

 Step3 – Plan of action… Review your SWOT

matrix with a view to creating an action
plan to address each of the four areas.
SWOT analysis

 Step 4 – Develop Operational Plans, Monitor

Actions, Evaluate Progress, and Revise the
Plan!
SWOT analysis

 Exercise:
Please make a SWOT analysis of
your organization (20 min).
Strategic analysis

Think about the role of strategic analysis in your

organization (30 min).
 Dose it change with change of circumstances?
 Dose it get advantages from the opportunities?
 Are there any Barriers prevent its development?
 As manager are you sure that you are ready to face the
future?
(In class or might be home work).
Annual planning

Usually the annual plan include the following data:

 Activity of the organization depending on
strategic plans.
 Resources
 Priorities
 Budget
How the annual planning takes place in your
organization (5 – 10 min).
Contingency Planning

• Plan in advance
• Rehearse via simulation
• Stipulate who the spokesperson is
• Speed and efficiency in response to crisis
• Offer accurate information or it will backfire
• Plan offers info and guidance to help decision makers deal
with long-term effects of decisions
Role of stakeholders in effective
planning
 Companies should design their engagement strategies in
line with the needs of their respective projects.
 Engaging with stakeholders from the start…enables a
proactive cultivation of relationships that can serve as
“capital” during challenging times.
 Small projects with minimal impacts may only need to
focus on the information disclosure and communication
side of the spectrum.
Role of stakeholders in effective
planning
General and specific objectives

General objectives considered to be Goals

Goals Objectives
 General • Specific
• Measurable
 Intangible
• Narrow
 Broad • Concrete
 Abstract • Tactical—short-range, set by
 Strategic—long-range direction, set managers to support the
by senior management accomplishment of goals
Ranking of goals

 Top rank objectives

 Objectives of second level.
 Objectives of third level.

The objective in lower level answer to the question (HOW),

and the objective in the topper level answer to the question
(WHY).
SMART rule for the formulation of
objectives
 An objective is derived from a goal, has the same
intention as a goal, but it is more specific,
quantifiable and verifiable than the goal.
SMART rule for the formulation of
objectives

SMART stands for:

 Specific,
 Measurable,
 Achievable/Agreeable,
 Realistic/Relevant,
 Time-Oriented Objectives
Specific objectives

Specific objectives are:

 Concrete
 Detailed
 Focused
 Well-defined
 Straightforward
 Action-oriented
Specific objectives

When setting objectives that are specific, ask the following questions:

 What am I going to do? Use action verbs such as develop, execute, conduct,
build.
 Why is it important to do this task?
 Who is going to be involved?
 When do I want this task to be completed?
 How am I going to do this task?
Measurable objectives

 Measurements for objectives help you know you are making progress toward
completing the objectives.

 Progress measurements also allow for course corrections along the way for
both direction and pace.

 If you set an objective that is measurable, you will have tangible evidence of
completion of the objective.
Measurable objectives

When setting objectives that are measurable, ask the following questions:

 How will I know when this objective has been achieved?

 What measurements can I use?

 What milestones can I use to track progress toward completion?

Achievable/Agreeable objectives

 Achievable objectives are those that you can actually accomplish (something
you can realistically do within the time frame set)—not an aspiration or
vision.

 Achievable objectives need to challenge you but not so much so as to be

unattainable or to cause frustration in being unable to complete them.

 You need to fully commit to achieving the objectives.

Realistic/Relevant objectives

Realistic objectives are those that you have the resources to accomplish,
including:

 Skills
 Funding
 Equipment
 Time
 Staff
Realistic/Relevant objectives

When setting objectives that are realistic, ask the following questions:

 Do I have the resources to accomplish this objective?

 Do I need to rearrange my priorities to accomplish this objective?

 Is it possible to complete this objective?

 How will pursuing this objective affect other performance objectives?

 Will this objective help meet/support department and company goals?

Time-Oriented Objectives

 Time-oriented objectives are those that have deadlines for completion. The
time frames create a sense of urgency and lead to action.

 The deadlines, just as with overall objectives, must be achievable and

realistic.

 For a complex objective, break it into small parts and set a deadline for
completion of each phase.
Time-Oriented Objectives

When setting objectives that are time-oriented, ask the following questions:

 What is the earliest—yet achievable and realistic—date for this objective to be

started and to be completed?

 Have I included these dates in the statement of the objective?

 Are there other projects/objectives that must be completed first, or are there
others that are reliant upon the completion of this objective?
Management by objectives (MBO)

 Management by objectives (MBO) is a systematic

and organized approach that allows management
to focus on achievable goals and to attain the
best possible results from available resources. It
aims to increase organizational performance by
aligning goals and subordinate objectives
throughout the organization.
Management by objectives (MBO)

 Management by Objectives (MBO) was first

outlined by Peter Drucker in 1954 in his book 'The
Practice of Management'. In the 90s, Peter
Drucker himself decreased the significance of this
organization management method, when he said:
"It's just another tool. It is not the great cure for
management inefficiency... Management by
Objectives works if you know the objectives, 90%
of the time you don't.
Management by objectives (MBO)

All managers should:

 participate in the strategic planning process, in
order to improve the implementability of the
plan, and
 implement a range of performance systems,
designed to help the organization stay on the
right track.
 Thank you

contact:
Email: majar2000us@gmail.com
Mobile: 00971526357279

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