goal setting & planning human relations. goals and plans a blueprint of the actions necessary...

Goal Setting Goal Setting & Planning& Planning

Goal Setting Goal Setting & Planning& Planning

Human RelationsHuman Relations

Goals and PlansGoals and Plans

A blueprint of the actions A blueprint of the actions necessary to reach the desired necessary to reach the desired goal. goal.

GoalGoal A desired future state that the A desired future state that the organization wants to achieve.organization wants to achieve.

PlanPlan

What do we want?What do we want?

How do we get there?How do we get there?


Levels of Goals/Plans - Levels of Goals/Plans - NASANASA

Mission Mission StatementStatement

Strategic Strategic GoalsGoals

Strategic Strategic PlansPlans

Senior ManagementSenior Management

A Mission Statement describes our purpose. A Mission Statement describes our purpose.

Strategic level is the “Big Picture”.Strategic level is the “Big Picture”.

Tactical Tactical GoalsGoals

Tactical PlansTactical Plans

Middle Middle ManagementManagement

Operational GoalsOperational Goals Operational PlansOperational Plans

Lower ManagementLower Management

Tactics break strategies into steps.Tactics break strategies into steps.

And smaller steps.And smaller steps.

Everything we do is focused on gettingEverything we do is focused on getting there. there.

Take a man to the moon by 1970.Take a man to the moon by 1970.

Build a rocket and launch pad.Build a rocket and launch pad.

Build part of a rocket.Build part of a rocket.


Mission StatementMission Statement


Answers the question:Answers the question: What drives us?What drives us?

“ “Beat GM!”Beat GM!”

A good Mission Statement:A good Mission Statement:

Elicits an emotional, motivational response in company Elicits an emotional, motivational response in company employees.employees. Is easily understood and can be transferred into individual Is easily understood and can be transferred into individual action.action. Points to a tangible and measurable goal.Points to a tangible and measurable goal. Speaks to the competitive environment in which the Speaks to the competitive environment in which the company operates.company operates.

HondaHonda




A Mission StatementA Mission Statement points to goals that are points to goals that are definable, measurable, actionable, and with emotional definable, measurable, actionable, and with emotional appeal that everyone understands and can act upon.appeal that everyone understands and can act upon.

Principles of Management

An Organization’s An Organization’s MissionMission::

Reflects management’s vision of Reflects management’s vision of whowho the firm serves. the firm serves.

Provides a clear vision of Provides a clear vision of whatwhat the firm provides the firm provides customers.customers. Directs managers Directs managers wherewhere the firm should be staking out a the firm should be staking out a competitive position in the marketplace.competitive position in the marketplace.


““To provide any customer a means of moving people To provide any customer a means of moving people and things up, down, and sideways over short and things up, down, and sideways over short distances, with higher reliability than any similar distances, with higher reliability than any similar enterprise in the world.”enterprise in the world.”

ElevatorElevator




““To offer food prepared in the same high-quality To offer food prepared in the same high-quality manner world-wide, tasty, reasonably priced, and manner world-wide, tasty, reasonably priced, and delivered in a consistent, low-key and friendly delivered in a consistent, low-key and friendly atmosphere.”atmosphere.”




““To offer all of the fine customers in our territories To offer all of the fine customers in our territories all of their household needs in a manner in which all of their household needs in a manner in which they continue to think of us fondly.”they continue to think of us fondly.”




““To provide our customers with error-free financial To provide our customers with error-free financial instruments delivered in a timely fashion. Error-free instruments delivered in a timely fashion. Error-free means absolutely no errors. Timely means within means absolutely no errors. Timely means within 48 hours.”48 hours.”






Strategic level is the “Big Picture”.Strategic level is the “Big Picture”.

Strategic Goals and PlansStrategic Goals and Plans

An Organization’s An Organization’s Strategic GoalsStrategic Goals:: Helps managers at lower levels focus. Avoids pitfall of them Helps managers at lower levels focus. Avoids pitfall of them trying to move in too many directions at once.trying to move in too many directions at once.

Lower level managers know where the firm is at present.Lower level managers know where the firm is at present. And know where the firm is headed.And know where the firm is headed.

Senior Management formulates Senior Management formulates Strategic Goals Strategic Goals so:so:





Strategic Goals and PlansStrategic Goals and Plans

Protect and improve Nike’s position as the number one Protect and improve Nike’s position as the number one athleticathletic brand in America.brand in America. Intensify the company’s effort to develop products that womenIntensify the company’s effort to develop products that women want and need.want and need. Explore the market for products specifically designed for the Explore the market for products specifically designed for the requirements of maturing Americans.requirements of maturing Americans. Continue the drive for increased margins through inventory Continue the drive for increased margins through inventory management and new product development.management and new product development.

NikeNike


Tactical and OperationalTactical and Operational Goals and Plans Goals and Plans

Tactical Tactical GoalsGoals

Tactical PlansTactical Plans

Middle Middle ManagementManagement

Operational GoalsOperational Goals Operational PlansOperational Plans

Lower ManagementLower Management

Tactics break strategies into smaller Tactics break strategies into smaller more specific steps .more specific steps .

And operational goals are And operational goals are even more specific steps .even more specific steps .


Tactical and OperationalTactical and Operational Goals and Plans Goals and Plans

Strategic GoalStrategic Goal: Build momentum in fitness market.: Build momentum in fitness market.

Marketing manager works with advertising manager and sales Marketing manager works with advertising manager and sales manager to devise point-of-purchase displays for fitness manager to devise point-of-purchase displays for fitness centers. Sales manager incorporates sales calls to fitness centers. Sales manager incorporates sales calls to fitness centers in each salesperson’s sales plan. centers in each salesperson’s sales plan.

Strategic GoalStrategic Goal: Increase margins via inventory management.: Increase margins via inventory management. Purchasing managers evaluate production lead times and Purchasing managers evaluate production lead times and tighten ROPs. Information Technology manager assigns tighten ROPs. Information Technology manager assigns inventory analyst to task of updating with more current inventory analyst to task of updating with more current software.software.


Our Mission StatementOur Mission Statement::Our goal is to help our customers increase the public’s awareness Our goal is to help our customers increase the public’s awareness of their names by providing them with premium bottled water of their names by providing them with premium bottled water labeled with their own name.labeled with their own name.

Cool Bottled Water, Inc.Cool Bottled Water, Inc.

Cool Bottled WaterCool Bottled Water is a company that sells private label water is a company that sells private label water drawn from the Sammamish Slough near Woodinville, Washington drawn from the Sammamish Slough near Woodinville, Washington State. “Private Label” refers to the labeling of the bottles. Major State. “Private Label” refers to the labeling of the bottles. Major companies and restaurant chains that want to create brand companies and restaurant chains that want to create brand awareness order bottles to be labeled with their own custom awareness order bottles to be labeled with their own custom brand.brand.


Strategic GoalStrategic Goal::To develop a source of water, a bottling plant, and a marketing team To develop a source of water, a bottling plant, and a marketing team to develop and promote the product to large companies and to develop and promote the product to large companies and restaurant chains in Washington, Oregon, and California, and to restaurant chains in Washington, Oregon, and California, and to launch “Day Zero” on August 15launch “Day Zero” on August 15thth, 2002. To achieve ROI of 15%., 2002. To achieve ROI of 15%.

Strategic LevelStrategic Level

Strategic PlanStrategic Plan:: Product developmentProduct development will be the responsibility of the Research will be the responsibility of the Research and Development team, who are charged with maintaining purity and Development team, who are charged with maintaining purity and clarity standards. and clarity standards.

ProductionProduction will be the responsibility of the Production and will be the responsibility of the Production and Warehouse Team. Plant specifications to be suited to needs.Warehouse Team. Plant specifications to be suited to needs.

MarketingMarketing Plan developmentPlan development will be the responsibility of the will be the responsibility of the Marketing team. Marketing team.


Tactical GoalTactical Goal – Production Team – Production TeamProduce bottled water per industry specifications for less than 35 Produce bottled water per industry specifications for less than 35 cents per unit.cents per unit.

Tactical PlanTactical Plan – Production Team– Production TeamWater will be drawn from two locations along the Slough on Water will be drawn from two locations along the Slough on properties owned by the Clapping Hands Ranch. Water rights will be properties owned by the Clapping Hands Ranch. Water rights will be secured starting Day Zero minus 90 for 99 years via a mineral rights secured starting Day Zero minus 90 for 99 years via a mineral rights lease attached to the deed of the Ranch, which will be binding on lease attached to the deed of the Ranch, which will be binding on subsequent owners. The water will be tested monthly for purity, and subsequent owners. The water will be tested monthly for purity, and bottled in the company’s bottling plant in Woodinville adjacent to the bottled in the company’s bottling plant in Woodinville adjacent to the south source. The north-source water will be piped approximately south source. The north-source water will be piped approximately one mile to the bottling plant. Approximately 500 gallons are one mile to the bottling plant. Approximately 500 gallons are available each day, and will be bottled in clear plastic 1/8th gallon available each day, and will be bottled in clear plastic 1/8th gallon bottles with safety caps.bottles with safety caps.

Tactical LevelTactical Level


Operational GoalOperational Goal – Bottling Team Sub-unit of Production Team – Bottling Team Sub-unit of Production TeamAcquire bottling equipment of sufficient capacity and technology to Acquire bottling equipment of sufficient capacity and technology to maintain output and quality standards.maintain output and quality standards.

Operational PlanOperational Plan – Bottling Team Sub-unit of Production Team– Bottling Team Sub-unit of Production Team Prepare RFP for equipment called out in specifications from Prepare RFP for equipment called out in specifications from Research and Development. Consider cost, ease of Research and Development. Consider cost, ease of operation, reliability, and productivity, and choose operation, reliability, and productivity, and choose appropriate equipment. appropriate equipment. Install equipment per factory specifications by Day Zero 95.Install equipment per factory specifications by Day Zero 95. Test output for 90 days prior to Day Zero.Test output for 90 days prior to Day Zero.

Operational LevelOperational Level


Cool Bottled Water, Inc.Cash Flow Analysis

12 Months Ending 12-31-03

May (2.25%) June (3.25%) July (5.25%) August (6.25%)September (7%) October (8%) November (9%)December (10%)January (11%) February (12%)Revenue $16,734 $24,172 $39,047 $46,484 $52,063 $59,500 $66,938 $74,375 $81,813 $89,250

Cost of Goods SoldBeginning Inventory $20,573 $20,573 $20,573 $20,573 $20,573 $20,573 $20,573 $20,573 $20,573 $20,573+ Purchases $5,555 $8,023 $12,961 $15,430 $17,281 $19,750 $22,219 $24,688 $27,156 $29,625= Total Goods Available for Sale $26,128 $28,596 $33,534 $36,003 $37,854 $40,323 $42,792 $45,261 $47,729 $50,198- Ending Inventory $20,573 $20,573 $20,573 $20,573 $20,573 $20,573 $20,573 $20,573 $20,573 $20,573Total Cost of Goods Sold $5,555 $8,023 $12,961 $15,430 $17,281 $19,750 $22,219 $24,688 $27,156 $29,625

Gross Profit $11,180 $16,148 $26,086 $31,055 $34,781 $39,750 $44,719 $49,688 $54,656 $59,625

Operating ExpensesExecutive Salaries ($50k each) $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833 $20,833Payroll (20% of Sales) $3,347 $4,834 $7,809 $9,297 $10,413 $11,900 $13,388 $14,875 $16,363 $17,850Rent ($5k/mo) $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000Advertising $15,250 $0 $0 $0 $0 $0 $0 $0 $0 $0Depreciation $250 $250 $250 $250 $250 $250 $250 $250 $250 $250Utilities $250 $250 $250 $250 $250 $250 $250 $250 $250 $250Professional Services $500 $0 $0 $500 $0 $0 $500 $0 $0 $500Insurance $1,500 $0 $0 $0 $0 $0 $0 $0 $0 $0Licenses $500 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Operating Expenses $47,430 $31,168 $34,143 $36,130 $36,746 $38,233 $40,221 $41,208 $42,696 $44,683

Net Income Before Federal Tax -$36,251 -$15,019 -$8,057 -$5,076 -$1,965 $1,517 $4,498 $8,479 $11,960 $14,942Federal Income Tax (25%) -$9,063 -$3,755 -$2,014 -$1,269 -$491 $379 $1,124 $2,120 $2,990 $3,735

Net Profit -$27,188 -$11,264 -$6,043 -$3,807 -$1,473 $1,138 $3,373 $6,359 $8,970 $11,206


Model of the MBO ProcessModel of the MBO Process

Step 1: Setting GoalsStep 1: Setting Goals Step 2: Developing Action PlansStep 2: Developing Action Plans

Step 3: Step 3: Reviewing ProgressReviewing Progress

Corporate Strategic Goals Corporate Strategic Goals Departmental Departmental Goals Goals Individual GoalsIndividual Goals

Step 4: Appraising Overall Step 4: Appraising Overall PerformancePerformance

Appraisal of Overall PerformanceAppraisal of Overall Performance

Corrective ActionCorrective Action

Review ProgressReview Progress

Action PlansAction Plans

MBO Benefits and ProblemsMBO Benefits and ProblemsBenefits of MBOBenefits of MBO Problems with MBOProblems with MBO

1. Manager and employee efforts 1. Manager and employee efforts are focused on activities that are focused on activities that will lead to goal attainment.will lead to goal attainment.

2. Performance can be improved 2. Performance can be improved at all company levels.at all company levels.

3. Employees are motivated3. Employees are motivated

4. Departmental and individual 4. Departmental and individual goals are aligned with company goals are aligned with company goals. goals.

1. Constant change prevents MBO 1. Constant change prevents MBO from taking hold.from taking hold.

2. An environment of poor employer-2. An environment of poor employer-employee relations reduces MBO employee relations reduces MBO effectiveness.effectiveness.

3. Strategic goals may be displaced by 3. Strategic goals may be displaced by operational goals.operational goals.

4. Mechanistic organizations and 4. Mechanistic organizations and values that discourage values that discourage participation can harm the MBO participation can harm the MBO process.process.

5. Too much paperwork saps MBO 5. Too much paperwork saps MBO energy.energy.


Single-Use PlansSingle-Use Plansffor Goals not Likely to be Repeatedor Goals not Likely to be Repeated

A A programprogram is a complex set of objectives is a complex set of objectives and plans to achieve an important, one-time and plans to achieve an important, one-time organizational goal.organizational goal.

A A projectproject is similar to a program, but is similar to a program, but generally smaller in scope and complexity.generally smaller in scope and complexity.

A A programprogram is a complex set of objectives is a complex set of objectives and plans to achieve an important, one-time and plans to achieve an important, one-time organizational goal.organizational goal.

A A projectproject is similar to a program, but is similar to a program, but generally smaller in scope and complexity.generally smaller in scope and complexity.


Standing PlansStanding Plans

A A policypolicy is a general guide to action and provides is a general guide to action and provides direction for people within the organization.direction for people within the organization.

RulesRules describe how a specific action is to be performed. describe how a specific action is to be performed. ProceduresProcedures define a precise series of steps to be used in define a precise series of steps to be used in

achieving a specific job.achieving a specific job. Total quality management Total quality management (TQM) to improve quality and (TQM) to improve quality and

production. production. http://www.dbainc.com/public_html/dba2/library/tqm.html

6 Sigma6 Sigma – Continuous evaluation and improvement. – Continuous evaluation and improvement.http://www.isixsigma.com/sixsigma/six_sigma.asp

A A policypolicy is a general guide to action and provides is a general guide to action and provides direction for people within the organization.direction for people within the organization.

RulesRules describe how a specific action is to be performed. describe how a specific action is to be performed. ProceduresProcedures define a precise series of steps to be used in define a precise series of steps to be used in

achieving a specific job.achieving a specific job. Total quality management Total quality management (TQM) to improve quality and (TQM) to improve quality and

production. production. http://www.dbainc.com/public_html/dba2/library/tqm.html

6 Sigma6 Sigma – Continuous evaluation and improvement. – Continuous evaluation and improvement.http://www.isixsigma.com/sixsigma/six_sigma.asp


http://www.dbainc.com/public_html/dba2/library/tqm.html

http://www.isixsigma.com/sixsigma/six_sigma.asp

http://www.dbainc.com/public_html/dba2/library/tqm.html

http://www.isixsigma.com/sixsigma/six_sigma.asp

Contingency PlansContingency Plans

May be defined as scenarios.May be defined as scenarios.Define company responses to be taken in case Define company responses to be taken in case

of setbacks or unexpected conditions.of setbacks or unexpected conditions.

May be defined as scenarios.May be defined as scenarios.Define company responses to be taken in case Define company responses to be taken in case

of setbacks or unexpected conditions.of setbacks or unexpected conditions.

Is just rolling the Is just rolling the dice good enough?dice good enough?


Strategic PlanningStrategic Planning

““Strategy” = The plan of action that describes Strategy” = The plan of action that describes resource allocation & activities for dealing resource allocation & activities for dealing with the environment to attain organizational with the environment to attain organizational goals.goals.

““Strategy” = The plan of action that describes Strategy” = The plan of action that describes resource allocation & activities for dealing resource allocation & activities for dealing with the environment to attain organizational with the environment to attain organizational goals.goals.


Strategic Management Strategic Management QuestionsQuestions

What changes and trends are occurring?What changes and trends are occurring?Who are the customers?Who are the customers?What products or services should we offer?What products or services should we offer?How can we offer these products or services How can we offer these products or services

efficiently?efficiently?

What changes and trends are occurring?What changes and trends are occurring?Who are the customers?Who are the customers?What products or services should we offer?What products or services should we offer?How can we offer these products or services How can we offer these products or services

efficiently?efficiently?


Strategic Management Process Strategic Management Process Situation Analysis via SWOTSituation Analysis via SWOT

Identify Strategic Identify Strategic FactorsFactors•StrengthsStrengths

•WeaknessesWeaknesses

Scan Internal Scan Internal EnvironmentEnvironment

•Core Core CompetenceCompetence

•SynergySynergy

•Value CreationValue Creation

Identify Identify

Strategic:Strategic:•CorporateCorporate

•BusinessBusiness

•FunctionalFunctional

Define New:Define New:•MissionMission

•GoalsGoals

•Grand StrategyGrand Strategy

Evaluate Current:Evaluate Current:•MissionMission

•GoalsGoals

•Grand StrategyGrand Strategy

Scan External Scan External EnvironmentEnvironment•NationalNational

•GlobalGlobal

•OpportunitiesOpportunities

•ThreatsThreats

Identify Strategic Identify Strategic FactorsFactors

SWOTSWOT

Implementing Strategy Implementing Strategy via Changes in:via Changes in:•StructureStructure

•Human resourcesHuman resources

•Information & Information & control systemscontrol systems

External Opportunities and ThreatsExternal Opportunities and Threats

The EconomyThe Economy

Trends in TechnologyTrends in Technology

Legal and Political FactorsLegal and Political Factors

Customers – Customers – what will they want?what will they want?

Competitors – Competitors – what will emerge?what will emerge?

goal setting & planning human relations. goals and plans a blueprint of the actions necessary...

Documents

mission statement points

good mission statement

organizations mission

organizations strategic

goal goal

principles of management

desired goal

measurable goal