Presentation on theme: "Leaders Facilitate the Planning Process"— Presentation transcript:
1 Leaders Facilitate the Planning Process Chapter 2Leaders Facilitate the Planning Process
2 Learning ObjectivesAfter completing this chapter, you should be able to:• Explain basic principles of planning, with an emphasis onhow employees can assist, and procedures useful in managing planning information.• Describe how a value statement, vision statement, and mission statement are developed and implemented.• State the importance of SMART goals in the planning process.• Review procedures for conducting a SWOT analysis.
3 Learning Objectives continued: After completing this chapter, you should be able to:• Identify how restaurant and foodservice managers use long-range, business, and marketing plans and operating budgets, and explain the relationship among these planning tools.• Explain the need to consider employees’ abilities and touse an organized process in implementing effective plans.
20 Step 1: Develop the PlanStep 2: Implement the PlanStep 3: Evaluate the PlanStep 4: Apply the Results
21 1. Explain basic principles of planning, with an emphasis on how employees can assist, and procedures useful in managing planning information.Restaurant and foodservice operations benefit from several types of plans.Employees can help develop and implement plans and can make them better.A wide range of information is important in planning decisions, and this information must be effectively managed.
22 2. Describe how a value statement, vision statement, and mission statement are developed and implemented.Several broad planning tools set the foundation for an operation’s more detailed planning.These include value statements (standards that guide operations), a vision based on the value statements that describes why an establishment exists and what it wants to become, and a mission statement that states the operation’s purpose.Once developed, these planning tools can be used to construct plans that drive day-to-day operations.
23 3. State the importance of SMART goals in the planning process. Goals state the desired results that help an operation measure how well it is doing.Goals are an important first step in developing plans.Goals should be SMART: specific, measurable, achievable, relevant, and timebound.
24 4. Review procedures for conducting a SWOT analysis. SWOT analysis helps managers identify an operation’s strengths and weaknesses and examine its opportunities and threats.Then managers can set goals using this information.
25 5. Identify how restaurant and foodservice managers use long range, business, and marketing plans and operating budgets, and explain the relationship among these planning tools.The vision and mission statements drive four basic types of operating plans.The long-range plan indicates what an operation would like to accomplish over the next three to five years, and the business plan identifies goals for the next 12 months.Marketing relates to activities that attract, retain, and expand the number of customers for an establishment.Marketing plans describe activities to help the operation increase its revenue, and operating budgets estimate revenue, expenses, and profit expected for a specific time period.
26 6. Explain the need to consider employees’ abilities and use an organized process in implementing effective plans.Plans benefit from considering employees’ abilities and using an organized implementation process.Managers must develop, implement, and evaluate the plan and ensure that the results are applied to improve operations.
27 Key Terms:Benchmark A standard by which something can be measured or judged.Business plan A statement of goals and activities to be addressed within the next 12 months to move the operation toward its mission.Core value A key element of an operation that indicates the most basic reasons the business exists.Departmental (team) goal A goal that is set at the second highest level in the operation.Employee turnover rate The percentage of the total number of employees who must be replaced during a specific time period such as a month or a year.Income statement A summary of the establishment’s profitability during a certain time period.
28 Key Terms continued:Individual performance goal A goal that focuses on each employee’s personal efforts.Long-range plan A statement of goals and the activities necessary to reach them that can be used over the next three to five years to move the operation toward its mission.Marketing plan A calendar of specific activities designed to meet the operation’s revenue goals.Operating budget A financial plan that estimates the revenue to be generated, the expenses to be incurred, and the profit, if any, for a specified time period.Organizational goal A goal at the highest level, focusing on broad statements of what the entire operation wants to achieve.SMART goal A goal that is SMART is specific, measurable, achievable, relevant, and timebound.
29 Key Terms continued:Stakeholder The persons who affect or are affected by the establishment. Stakeholders include owners, managers, supervisors, employees, and customers.Strategic priority An operation’s highest-level concern for employees to address.Strategy A plan of action to reach a goal.SWOT analysis An analysis that identifies an operation’s strengths and weaknesses and examines its opportunities and threats.Value The relationship between what is paid for something and the quality of the product or service that is received.Value statement A set of standards that guides restaurant and foodservice operations, which is the foundation for developing the vision statement and mission statement.