Management:

The New Workplace

Chapter 5
Planning and Goal Se-ng
 Planning
• All of the other management func8ons stem
from planning
• How do you plan for an undefined future?

• No plan is perfect
– Without plans and goals, organiza5ons flounder
 Overview of the Goal-Se-ng and
Planning Process
A goal is a desired future state that the
organiza8on aAempts to realize

PLANNING

A plan is a blueprint for goal

achievement and specifies the
necessary resource alloca8ons,
schedules, tasks and other
ac8ons
Levels of Goals and Plans
 Goals in Organiza=ons
• Organiza5onal Mission – Our company’s mission is to
the organiza8on’s reason extend and enhance human life
by providing the highest-quality
for existence. pharmaceutical and related health
care products.

• Mission Statement
– Basic business scope
– Distinguishes it from
other organizations
Mission Statement for DaVita Inc.
 Goal-Se-ng in Organiza=ons
• Strategic goals – future goals, for the whole
organiza8on, involve long-term plans
• Tac5cal goals – for major divisions and departments, for
middle management, involve plans for a shorter 8me
frame
• Opera5onal goals – specific, measurable results, for
departments, units & individuals, involves daily and
weekly opera8ons
Goals should be aligned
 Purpose of Goals and Plans
• Planning has a posi8ve effect on
performance
– Send message to external and internal
audiences; create legi8macy
• Source of mo8va8on and commitment
• Resource alloca8on
• Guides ac8on
• Ra8onale for decisions
• Establishes standard of performance
The Organiza=onal Planning Process
A Strategy Map for Aligning Goals
 Opera=onal Planning
• Direct employees and resources
• Guide efficient and effec8ve performance
• Include planning approaches:
– Management By Objec8ve (MBO)
– Single-use Plans
• Achieve one-8me goal (Programs and Projects)
– Standing Plans
• Ongoing plans (Policies, rules, procedures)
Characteris=cs of Effec=ve Goal
Se-ng
Benefits and Limita=ons of Planning
• Planning:
– Provide a source of mo8va8on and commitment
– Guide resource alloca8on
– A guide to ac8on
– Set a standard of performance
• But, plans can also
– Provide a false sense of certainty
– Cause rigidity in a turbulent environment
– Get in the way of intui8on and crea8vity
Planning for a Turbulent Environment
Con=ngency Planning
– Planning for emergencies, setbacks or unexpected
condi8ons
Building Scenarios
– A forecas8ng technique to look at current trends
and visualize future possibili8es
Crisis Planning
– Sudden, devasta8ng unexpected events
•“Planning is everything.
•Plans are useless.”

• - Dwight D. Eisenhower

16
 Thinking Strategically
• Take the long-term view
• See the BIG PICTURE
• Strategic thinking is important for all
organiza8ons
– Impacts an organiza8on’s performance
– 51% of execu8ves are unhappy with strategy
formula8on process
Strategic management pertains to the compe88ve ac8ons in
the marketplace. It aims at a superior fit between the
organiza8on and its environment.
What is Strategic Management?
• Define explicit strategy/plan of ac5on
– Achieve compe88ve advantage
• Exploit Core Competencies – what does the
organiza8on do well compared to
compe8tors?
• Build Synergy – joint effort to gain special
advantage
• Deliver Value – combina8on of benefits and
costs
 The Strategic Management Process
Strategy Formula5on
– Planning and decision making that lead to goals
and plans
Strategy Execu5on
– Managerial tools to direct resources toward
strategic outcomes
The Strategic Management Process
SWOT Analysis
 Audit Checklist for Analyzing
Organiza=onal Strengths and Weaknesses
Formula=ng Business-Level Strategy
• Michael E. Porter developed model for the
development of business-level strategy
• Porter’s Five Compe55ve Forces – help
determine a company’s posi8on in the industry
– Poten8al new entrants
– Bargaining power of buyers
– Bargaining power of suppliers
– Threat of subs8tute products
– Rivalry among compe8tors
Porter’s Five Compe==ve Forces
Organiza=onal Characteris=cs of
Porter’s Compe==ve Strategies
 Strategy Execu=on
ü Execu8on is how strategy is put into ac5on
ü Execu8on is most important, and most
challenging
ü A key to effec8ve execu8on is alignment
ü Execu8on requires all aspects of the
organiza8on to be in congruence
ü Execu8on is tough because organiza8onal
barriers may hinder implementa8on
Six Silent Killers of Strategy
Tools for Pu-ng Strategy into Ac=on