Organizational Planning

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 learning objectives

1. Explain the importance of planning

2. Describe the importance of an organization’s mission
statement
3. Discuss the purposes of strategic, tactical, operational,
and contingency plans
4. Explain the relationships between strategic, tactical,
and operational goals
5. List and explain the steps in a basic planning process
6. Discuss various ways to make plans effective
7. Describe the barriers to planning

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 Planning
1

Preparing for tomorrow, today

Planning

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 Planning Responsibilities
1

1. Construct, review, and/or rewrite

organization’s mission

2. Identify and analyze their opportunities

4. Identify, analyze, and select the course(s) of action

required to reach goals
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 Mission Statement
2

When a mission is formalized in

Mission to all
writing and communicated
organizational Statement
members

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 Mission Statement
2

. Includes references to core values and principles

. Serves as an operational and ethical guide
. Serves as the foundation and coordinating device for
the:
.

– execution of management functions

– behaviors of organizational members
– shaping of the organization’s culture
–

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 Mission Statement
2
Questions

What is o

What sh

From Peter Drucker

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 Rules for Mission2 Statements
Rule
Rule#1:
#1: Keep
Keepthe
thestatement
statementsimple;
simple;not
notnecessarily
necessarilyshort,
short,but
butsimple.
simple.
Rule
Rule#2:
#2: Allow
Allowcompanywide
companywideinput.
input.
Rule
Rule#3:
#3: Involve
Involveoutsiders.
outsiders. They
Theycancanbring
bringclarity
clarityand
andaafresh
fresh
perspective
perspectiveto
tothe
thestatement-writing
statement-writingprocess.
process.
Rule
Rule#4:
#4: Develop
Developthe thewording
wordingand andthethetone
toneto
toreflect
reflectthe
thecompany’s
company’s
personality
personalityor
orwhat
whatthethecompany
companywould
wouldlikeliketo
tobe.
be.
Rule
Rule#5:
#5: Share
Sharethethemission
missionstatement
statementin inas
asmany
manycreative
creativeways
waysas as
possible
possibleand
andininas
asmany
manylanguages
languagesas asnecessary.
necessary. Keep
Keepititin
infront
frontofof
people
peopleconstantly.
constantly.
Rule
Rule#6:
#6: Rely
Relyononthe
themission
missionstatement
statementfor forguidance.
guidance. Challenge
Challengeitit
continually,
continually,and
andjudge
judgeemployees
employeesby byhowhowwell
wellthey
theyadhere
adhereto toits
itstenets.
tenets.
Management
Managementmust mustsaysayititand
andlive
liveit.
it.

Source: From Say it and Live It by Patricia Jones and Larry Kahaner. Copyright © 1995 by Kane Associates International, Inc. Used by permission of
Doubleday, a division of Bantam Doubleday Dell Publishing Group, Inc.

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 Effective Goals and
2
Objectives
Characteristic
Characteristic Explanation
Explanation
Specific
Specificandandmeasurable
measurable Not Notall
allobjectives
objectivescan
can
expressed in numeric terms, but they should
expressed in numeric terms, but they should be be
quantified
quantifiedwhen whenpossible.
possible.
Realistic
Realisticand andchallenging
challenging Impossibly
Impossibly
difficult
difficult objectives demotivate people. Objectives
objectives demotivate people. Objectives
should be challenging but attainable.
should be challenging but attainable.
Focused
Focusedon onkey
keyresult
resultareas
areas Goals
Goalsshould
should
focus
focuson onkey
keyresults--sales,
results--sales,profits,
profits,production,
production,oror
quality.
quality.
Cover
Coveraaspecific
specificperiod
period AAmeasurable
measurable
objective
objective is stated in terms of the timeininwhich
is stated in terms of the time whichitit
isistotobe
becompleted.
completed.Short-term
Short-termgoals
goalsshould
should
complement long-term
complement long-term goals. goals.
Reward
Rewardperformance
performance Objectives
Objectivesareare
meaningless if they are not directly related
meaningless if they are not directly related to to
rewards
rewardsfor forperformance.
performance.

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 Plans2

The end result of the planning effort

—
Commits individuals, departments,
Planthe
entire organizations, and
resources of each to specific courses
of action for days, months, and
years into the future

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 Plans2

What identifies the specific goals to be accomplished

When answers a question of timing

Who identifies specific people who will perform

tasks essential to the plan

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 Stretch Goals
2

The end result of the planning goals

that require great leaps forward
Stretch Goals

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 Strategies and
2
Tactics

A course of action created to achieve

a long-term goal
Strategy

Tactic

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 Determining Resource
2
Requirements

People

Money

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 Types of Plans
3

Operational
Plans
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 Strategic Plans3 and Goals

Contains the answers to who, what,

when, where, how, and how much
StrategicPlans
for achieving strategic goals

Strategic Goals

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 An Organization’s Mission and Level of Goals
3

MissionCEO and

Strategic GoalsTop

Tactical ObjectivesMid
Operational ObjectivesFirst-LineManageme O

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 Tactical Plans and
3
Objectives

Developed by middle managers, this

plan has more details, shorter time
TacticalPlan
frames, and narrower scopes than a
strategic plan
Usually spans one year or less

TacticalObjectives

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 Operational Plans and
3
Objectives

The first-line manager’s tool for

executing daily, weekly, and monthly
activities OperationalPlan
• Single-Use Plans
• Standing Plans

OperationalObjectives

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 Operational3 Plans
Single-Use Plans Standing Plans
. Programs . Policies
. Budgets
. Procedures
. Rules

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 Unified Hierarchy
4
of Goals

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 Contingency
4
Plans

An alternative goal and course or

Contingency
courses of action to reach that goal
Plan
if and when circumstances and
assumptions change so drastically as
to make an original plan unusable

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 Basic Planning5 Process

Setting
Step 1 Objectives

Analyzing
Step 2 and Evaluating the Environments

Evaluating
Step 4 the Alternatives

Identifying
Step 3 the Alternatives
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 Analyzing and Evaluating the Environment
5
•

Internal Environment
• Availability of resources
• Needs of internal customers

External Environment
. Strengths and weaknesses of suppliers and partners
. Availability of labor and technology
. Needs of external customers

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 Making Plans6Effective

Basis for P
•

• Assumptions
• Forecasts

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 Making Plans6Effective

Increasing the Prob

•

• Effective communication
• Quality of information
• Involvement of others

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 Planning 6Tools
MBO
A technique that emphasizes
collaborative setting by managers
and their Managementby
subordinates Objectives

A planning tool that can be used to

determine the optimum combination
Linear
of resources and activities
Programming

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 Barriers to Planning
7

Inability to plan

Lack of commitment to the planning process

Lack of focus on the long term

Inferior information
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