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MultiMedia by Stephen M. Peters © 2002 South-Western
Organizational Planning
MultiMedia by Stephen M. Peters © 2002 South-Western
When Planning, Managers
Construct, review, and/or rewrite their organization’s mission.
Identify and analyze their opportunities.
Establish the goals they wish to achieve.
Identify, analyze, and select the course or courses of action.
Determine resources they will need to achieve their goals.
MultiMedia by Stephen M. Peters © 2002 South-Western
Mission Statement
References to core values.
Serves as an operational and ethical guide.
Foundation and coordinating device for the execution of management functions.
MultiMedia by Stephen M. Peters © 2002 South-Western
Peter Drucker and a Mission Statement: Two Questions
• What is our business?
• What should it be?
• These two questions must be raised and answered periodically.
MultiMedia by Stephen M. Peters © 2002 South-Western
Rule #1: Keep the statement simple; not necessarily short, but simple.
Rule #2: Allow company-wide input.
Rule #3: Involve outsiders. They can bring clarity and a fresh perspective to the statement-writing process.
Rule #4: Develop the wording and the tone to reflect the company’s personality or what the company would like to be.
Rule #5: Share the mission statement in as many creative ways as possible and in as many languages as necessary. Keep it in front of people constantly.
Rule #6: Rely on the mission statement for guidance. Challenge it continually, and judge employees by how well they adhere to its tenets. Management must say it and live it.
Rule #1: Keep the statement simple; not necessarily short, but simple.
Rule #2: Allow company-wide input.
Rule #3: Involve outsiders. They can bring clarity and a fresh perspective to the statement-writing process.
Rule #4: Develop the wording and the tone to reflect the company’s personality or what the company would like to be.
Rule #5: Share the mission statement in as many creative ways as possible and in as many languages as necessary. Keep it in front of people constantly.
Rule #6: Rely on the mission statement for guidance. Challenge it continually, and judge employees by how well they adhere to its tenets. Management must say it and live 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.
Six Rules for Writing and Implementing Mission Statements
MultiMedia by Stephen M. Peters © 2002 South-Western
Characteristic Explanation
Specific and measurable Not all objectives can expressed in numericterms, but they should be quantified when possible.
Realistic and challenging Impossibly difficult objectives demotivate people. Objectives should be challenging but attainable, given the resources and skills available.
Focused on key result areas Goals should focus on key results--sales, profits, production, or quality.
Cover a specific period A measurable objective is stated in terms of the time in which it is to be completed. Short-term goals should complement long-term goals.
Reward performance Objectives are meaningless if they are not directly related to rewards for performance.
Characteristic Explanation
Specific and measurable Not all objectives can expressed in numericterms, but they should be quantified when possible.
Realistic and challenging Impossibly difficult objectives demotivate people. Objectives should be challenging but attainable, given the resources and skills available.
Focused on key result areas Goals should focus on key results--sales, profits, production, or quality.
Cover a specific period A measurable objective is stated in terms of the time in which it is to be completed. Short-term goals should complement long-term goals.
Reward performance Objectives are meaningless if they are not directly related to rewards for performance.
Characteristics of Effective Goals and Objectives
MultiMedia by Stephen M. Peters © 2002 South-Western
Plans Answer Six Basic Questions
① What identifies the specific goals to be accomplished.
② When answers a question of timing.
③ Where concerns the place or places where the plan will be executed.
④ Who identifies specific people who will perform specific tasks.
⑤ How involves the specific actions to be taken to reach the goals.
⑥ How much is concerned with the expenditure of resources needed to reach the goals–both long- and short-term.
MultiMedia by Stephen M. Peters © 2002 South-Western
Stretch Goals Require Great Leaps Forward on
• Product development time
• Return on investment
• Sales growth
• Quality improvement
• Reduction of manufacturing cycle times
MultiMedia by Stephen M. Peters © 2002 South-Western
Strategy
A course of action created to achieve a long-term goal.
Exists for an entire organization or for its autonomous units or functional areas.
MultiMedia by Stephen M. Peters © 2002 South-Western
Plans Need Resources
• People• Money• Facilities• Equipment• Supplies• Information
• People• Money• Facilities• Equipment• Supplies• Information
MultiMedia by Stephen M. Peters © 2002 South-Western
Types of Plans
Strategic Plan
Contains the answers to who, what, when, where, and how.
Concerned with the entire organization’s direction and purpose.
How the organization intends to grow, compete, and meet its customers’ needs.
MultiMedia by Stephen M. Peters © 2002 South-Western
Tactical Plan
Is concerned with major organizational subsystems:-what they must do-how they must do it-when things must be done-where activities will be performed-what resources are to be utilized-who will have the authority
Has more details
Shorter time frames
Narrower scope than strategic plans
Usually one year or less
Types of Plans
MultiMedia by Stephen M. Peters © 2002 South-Western
Operational Plan
Support of tactical plans.
First-line manager’s tool for executing daily, weekly, and monthly activities.
Operational Plan
Support of tactical plans.
First-line manager’s tool for executing daily, weekly, and monthly activities.
Types of Plans
MultiMedia by Stephen M. Peters © 2002 South-Western
Strategic Plan Deals With Future Events
Will there be a recession?
Will inflation continue at its present
rates?
What will be the situation in our industry with regard to
local, state, and federal regulations?
What will the competition do?
MultiMedia by Stephen M. Peters © 2002 South-Western
An Organization’s Mission and Levels of Goals
MultiMedia by Stephen M. Peters © 2002 South-Western
Operational Plans
Single-Use Plan
Once the activity is completed, the plan is no longer needed.
Examples are programs and budgets.
Standing Plan
Specifies how to handle continuing or recurring activities.
Continues to be useful over many years.
Examples include policies, procedures, and rules.
Single-Use Plan
Once the activity is completed, the plan is no longer needed.
Examples are programs and budgets.
Standing Plan
Specifies how to handle continuing or recurring activities.
Continues to be useful over many years.
Examples include policies, procedures, and rules.
MultiMedia by Stephen M. Peters © 2002 South-Western
Hierarchy of Unified Goals and Objectives
MultiMedia by Stephen M. Peters © 2002 South-Western
Assessing theInternal Environment Considerations
Human resources
Material resources
Financial resources
Time
Informational resources
Needs of internal customers
MultiMedia by Stephen M. Peters © 2002 South-Western
Assessing the ExternalEnvironment Considerations
Strengths and weaknesses of suppliers.
Availability of additional labor and technology.
Needs of external customers.
MultiMedia by Stephen M. Peters © 2002 South-Western
Implementing the Plan
Who will do what
By what date
What resources
MultiMedia by Stephen M. Peters © 2002 South-Western
Planning is Based On
Assumptions … what planners believe to be true and real.
Forecasts … predictions about the probable state of relevant conditions over the span of time covered in their plans.
MultiMedia by Stephen M. Peters © 2002 South-Western
Planning Tools
Management by Objectives (MBO)
-a technique that emphasizes collaborative objective setting by managers and their subordinates.
Linear Programming
-a planning tool that can be used to determine the optimum combination of resources and activities.
MultiMedia by Stephen M. Peters © 2002 South-Western
Lack of commitment Fear of failure Out-of-date or inaccurate information Failure to consider the long term Overreliance on the planning department Overemphasis on controllable variables
Barriers to Effective Planning