1. Planning without action is futile, action without planning is fatal
Planning without action is futile, action without planning is fatal (Unknown)

2. Goal - A desired future state that the organization attempts to realize
Plan - A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals
Planning – determining the organization’s goals and the means for achieving them

3. Three Steps in Planning
Determining the Organization’s Mission and Goals
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. 3

5. Purpose of Goals and Plans
Internal and External Messages Goals and Plans Send:
Legitimacy
What the organization stands for - reason for being
Employees identify with purpose
Source of Motivation and Commitment
Employees’ identification with the organization
Motivate by reducing uncertainty
Resource Allocation
Allocate employees, money, and equipment
Guides to Action
Provide a sense of direction; focus attention on specific targets
Direct efforts toward important outcomes
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6. Strategic Goals and Plans
Strategic Goals
Future plans
Plans for whole organization
Strategic Plans
Action Steps used to attain strategic goals
Blueprint that defines the organizational activities and resource allocations
Long-term
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7. Tactical Goals and Plans
Tactical Goals
Apply to middle management
Goals that define the outcomes that major divisions and departments must achieve
Tactical Plans
Plans designed to help execute strategic plans
Shorter time frame than strategic plans
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8. Operational Goals and Plans
Operational Goals
Specific, measurable results
Expected from departments, work groups, and individuals
Operational Plans
Action steps toward operational goals
Daily and weekly operations
Schedules are an important component
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9. Hierarchy of Goals(Means-End Chain)
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Exhibit 5.3

10. Characteristics of Effective Goal Setting
Characteristics of Effective Goal Setting
Specific and measurable
Challenging but realistic
Defined time period
Linked to rewards
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11. SMART S = Specific M = Measureable A = “Actionable” R = Realistic
T = Time-bound

12. Questions for SWOT Analysis

13. SMART OBJECTIVES- not to be confused with SWOT

14. Management by Objective Process (MBO)

15. Now This is What I Call a Strategy!
Find the Fugitive!

16. Planning In The New Workplace
Have a strong mission statement and vision
Set stretch goals for excellence
Establish a culture that encourages learning
Embrace event-driven planning –”when the going gets tough…”
Utilize temporary task forces
Planning still starts and stops at the top
Planning comes alive when employees are involved in setting goals and determining the means to reach them
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17. The Chico Mentor Center
Let’s Build a Business!
The Chico Mentor Center
“Purpose + People = Success Unlimited”
I need a Quick Plan to launch my imaginary initiative.
Mission Statement: Enhance the learning and life quality of participants through meaningful and mutually supportive mentoring relationships with like-minded others
Slogan: Meeting Life’s Challenges through Proactive, Passionate and Purposeful Partnership
Core Values:
Passion and a sense of purpose lead to personal growth
Our focus is on fostering a context for personal and professional success
We support a learning culture
CMC stands for cultural diversity, cross-generational communication, mutual support, and respect

18. Objectives Related to Goal
Steps to Attain The Objective Related to my Goal
Measures
Timeframe – Date Objective is to be Accomplished
Notes
Scope, Time, Risk, Human Resources, Procurement, Quality, Communication, Cost, Stakeholders, Integration

19. MBO Benefits and Problems
Problems:
Constant change prevents MBO from taking hold
Poor employer-employee relations reduces MBO effectiveness
Strategic goals may be displaced by operational goals
Mechanistic organizations and values that discourage participation
Too much paperwork saps MBO energy
Benefits:
Manager and employee efforts are focused
Performance can be improved
Employees are motivated
Departmental and individual goals are aligned
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20. Building Scenarios “WAR ROOMS”
Managers can rehearse mentally what they would do if their best-laid plans were to collapse. Here, they consider contingencies.
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21. Three Stages of Crisis Management
Three Stages of Crisis Management
Prevention
Build trusting relationship with key stakeholders
Open communication
Preparation
Crisis Management Team & Plan
Establish an Effective Communications system
Containment
Activate the crisis management plan.
Get the awful truth out.
Meet safety and emotional needs.
Return to business.
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22. Managing During Turbulent Times
Stay Calm
Be Visible
People Before Business
Tell the Truth
Know When to Get Back to Business

23. Strategic Emphasis Value – Core Competence – the combination of
benefits received
and costs paid
Core Competence –
something the
organization does
especially well in
comparison to
its competitors
Synergy –
A joint effect that
is greater than the
sum of the parts
acting together
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24. Forces & Strategy According to Porter

25. Porter’s Competitive Strategies
Differentiation
Flexible, loose knit with strong coordination
Creative flair, thinks “out of box”
Strong marketing abilities
Rewards employee innovation
Reputation for quality or technical leadership
Cost Leadership
Central authority, tight cost controls
Efficient procurement and distribution systems
Close supervision, finite employee empowerment
Focus
Frequent, detailed control reports
Direct combination of policies to strategic target
Values and rewards flexibility and customer intimacy
Pushes empowerment to employees with customer contact
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26. Principal Corporate-Level Strategies
Concentration on a single industry
Vertical integration
Diversification
International expansion
Concentration in Single Business
Organization uses its functional skills to develop new kinds of products or expand its locations
Appropriate when managers see the need to reduce the size of their organizations to increase performance
Vertical integration
strategy that involves a company expanding its business operations either backward into a new industry that produces inputs (backward vertical integration) or forward into a new industry that uses, distributes, or sells the company’s products (forward vertical integration)
Diversification
strategy of expanding a company’s operations into a new industry in order to produce new kinds of valuable goods or services
Related Diversification
strategy of entering a new industry and establishing a new business division that is linked to a company’s existing divisions because they share resources that will improve the competitive position
Unrelated Diversification
Firms establish divisions or buy companies in new industries that are not linked to their current business or industry
Portfolio strategy
Apportioning resources among divisions to increase returns or spread risks
International Expansion
Basic Question:
To what extent do we customize products and marketing for different national conditions?
Global strategy
Undertaking very little customization to suit the specific needs of customers in different countries.
Standardization provides for lower production cost.
Ignores national differences that local competitors can address to their advantage. 28

27. Partnership Strategies
Collaboration is an alternative form of strategy – “More of us is smarter/better than one”
Competition and collaboration are often present at the same time.
The Internet is driving and supporting more partnerships.
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