1. Managerial Planning and Goal Setting
Chapter 7
Managerial Planning and Goal Setting

2. Planning is Fundamental
All of the other management functions stem from planning
How do you plan for an undefined future?
No plan is perfect
Without plans and goals, organizations flounder
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

3. Goals and Plans
A goal is a desired future state that the organization attempts to realize
PLANNING
A plan is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

4. 7.1 Levels of Goals and Plans
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

5. 7.2 The Organizational Planning Process
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

6. Goal Setting in Organizations
Organizational Mission – the organization’s reason for existence
Strategic goals – official goals, broad statements describing the organization’s future
Strategic plans – define the action steps the company will take
Goals should be aligned
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

7. 7.4 A Strategy Map for Aligning Goals
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

8. Operational Planning Direct employees and resources
Guide efficient and effective performance
Includes planning approaches:
Management by Objectives (MBO)
Single-Use Plans
Standing Plans
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

9. 7.5 Criteria for Effective Goal Setting
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

10. 7.6 Model of the MBO Process
Defined in 1954 by Peter Drucker
Method for defining and monitoring goals
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

11. 7.7 MBO Benefits
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

12. Single-Use and Standing Plans
Single-Use Plans
Achieve one-time goal
Programs and Projects
Standing Plans
Ongoing plans
Policies, rules, procedures
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

13. Types of Single-Use and Standing Plans
Single-Use Plans
Program: building new headquarters, converting paper files to digital
Project: renovating the office, setting up a new company intranet
Standing Plans
Policy
Rule
Procedure
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

14. Benefits and Limitations of Planning
Goals and plans provide a source of motivation and commitment
Goals and plans guide resource allocation
Goals and plans are a guide to action
Goals and plans set a standard of performance
Goals and plans can create a false sense of certainty
Goals and plans may cause rigidity in a turbulent environment
Goals and plans can get in the way of intuition and creativity
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

15. Planning for a Turbulent Environment
Contingency Planning
Planning for emergencies, setbacks, or unexpected conditions
Building Scenarios
A forecasting technique to look at current trends and visualize future possibilities
Crisis Planning
Sudden, devastating, unexpected events
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

16. 7.9 Essentials Stages of Crisis Planning
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

17. Set Stretch Goals for Excellence
Stretch goals are highly ambitious
Clear, compelling, and imaginative
Require innovation
Goals must be seen as achievable
Like Big Hairy Audacious Goals (BHAG) from 1996 article on building your vision
As times move faster and become more turbulent, these are important
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

18. 7.10 A Performance Dashboard for Planning
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.