1. FOUNDATION OF PLANNING

2. What Is Planning?
A primary functional managerial activity that involves:
Defining the organization’s goals
Establishing an overall strategy for achieving those goals
Developing a comprehensive set of plans to integrate and coordinate organizational work.
Types of planning
Informal: not written down, short-term focus; specific to an organizational unit.
Formal: written, specific, and long-term focus, involves shared goals for the organization.

3. Why Do Managers Plan? Provides direction Reduces uncertainty
Minimizes waste and redundancy
Sets the standards for controlling

4. How Do Managers Plan? Elements of Planning Goals (also Objectives)
Desired outcomes for individuals, groups, or entire organizations
Provide direction and evaluation performance criteria
Plans
Documents that outline how goals are to be accomplished
Describe how resources are to be allocated and establish activity schedules

5. Characteristics of Well-Designed Goals
Written in terms of outcomes, not actions
Focuses on the ends, not the means.
Measurable and quantifiable
Specifically defines how the outcome is to be measured and how much is expected.
Clear as to time frame
How long before measuring accomplishment.
Challenging yet attainable
Low goals do not motivate.
High goals motivate if they can be achieved.
Written down
Focuses, defines, and makes goal visible.
Communicated to all
Puts everybody “on the same page.”

6. Example of Company’s Goals
Example 1: Company’s goals for 2015
Become internationally recognized
Improve product quality
Increase revenue and profit
Improve customer’s satisfaction
Example 2: A production team
Improve quality
Improve productivity
Ensure high safety level

7. Procter & Gamble’s OGSM Technique
What needs to be done
Objectives
written statement of compelling business needs
Goals
numerical target and scorecard to track progress toward meeting objectives

8. Procter & Gamble’s OGSM Technique (cont.)
How we will achieve our objectives
Strategies
written statement of specific actions that must be taken to meet objectives
Measures
numerical measures to track progress on executing specific actions

9. Balanced Goals from Different Perspectives
Financial Perspective
Profitability, Return on Investment
Customer Perspective
Satisfaction, market share, repeated customers
Internal Perspective
System, operation, capability
Learning Perspective
New technology, management, ideas,

10. Characteristics of Good Plan
Prediction of environmental trends
Scenarios
Goals
SMART: specific, measurable, attainable, realistic, and time
Resources
Feasible but stretching
Actions
Specific, clear, integrated, fit with goals
Changes: flexible and creative

11. Example: A Business Plan
Business objectives
Functional objectives:
Finance, marketing, HR, production, R&D, ...
Resources
Finance, HR, management, IT, ...
Actions

12. Case: Bookstore From Management and Planning perspective, explain:
Why the Bookstore succeeded in early days?
Why did it fail later?
What do you learn?

13. Team Project: Your Team’s Goals and Plans