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May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 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

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 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

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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 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 using a strategy
map

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 Direct employees and resources

 Guide toward efficient and effective

performance

 Includes planning approaches:

Management-by-Objectives (MBO)
Single-Use Plans
Standing Plans

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© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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 Defined in 1954 by Peter Drucker
 Method for defining goals and monitoring
performance

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Single-Use Plans
Achieve one-time goals
Programs and projects

Standing Plans
Ongoing plans
Policies, rules, procedures

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 Single-Use Plans
Program: building new headquarters,
converting paper files to digital
Project: renovating the office, setting up a
new company intranet

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 Standing Plans
Policy: Sexual harassment policies, Internet
and social media policies
Rule: No eating rule in areas of company
where employees are visible to public
Procedure: Procedures for issuing refunds,
Procedures for handling employee
grievances

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• 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

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 Contingency Planning
Planning for emergencies, setbacks, or
unexpected conditions
 Building Scenarios
A forecasting technique to look at current
trends and discontinuities and visualize future
possibilities
 Crisis Planning
Unexpected events that are sudden and
devastating
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 Stretch goals are highly ambitious
 Clear, compelling, and imaginative
 Require innovation
 Goals must be seen as achievable
 Like Big Hairy Audacious Goal (BHAG) from
1996 article on “Building Your Company’s
Vision”
 As times move faster and become more
turbulent, these are important
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 Dashboards
keep track of key performance metrics

align and track goals

can be applied throughout the company

on the factory or sales floor.

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 Intelligence teams
cross-functional group of managers
work together
gain a deep understanding of a specific
competitive issue
offer insight and recommendations for
planning

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