The Foundations of Planning

1. The Foundations of Planning

2. Learning Objectives

• Define planning
• Explain the potential benefits of planning
• Identify the potential drawbacks of planning
• Compare strategic and tactical plans
• Compare directional and specific plans

3. Learning Objectives

• Discuss Management by Objectives
• Outline the strategic management process
• Describe the four grand strategies
• Explain SWOT analysis
• Learn how entrepreneurs and bureaucratic
managers approach strategy

4.

Set Control
Standards
Provide
Direction
Reasons
for Planning
Minimize Waste
or Redundancy
Reduce the
Impact of Change

5.

Rigid Assumptions
of Stability
Arguments
Against
Strategic
Planning
Environmental
Turbulence
Intuition
and Creativity
Focus on Today’s
Competition
Preoccupation with
Current Success

6. Does Planning Improve Performance?

• Financial results
• Environmental concerns
• Quality and implementation

7.

How Do Strategic and Tactical
Plans Differ?
Time Frame
Scope
Objectives

8.

The Time Frame
of Planning
Short-Term
Plans
Long-Term
Plans

9.

Specific Plans
Low
General
Directional Plans
High
Flexibility
Objectives
Clear

10.

Single-Use
and Standing Plans
Unique
Situations
Ongoing
Operations

11.

What Is Management by Objectives?
Organizational
Objectives
Divisional
Objectives
Departmental
Objectives
Individual
Objectives

12.

Common MBO Elements
Goal
Specificity
Participative
Decision Making
Explicit
Time Period
Performance
Feedback

13.

Goal
Difficulty
Goal
Specificity
Does MBO
Work?
Top
Management
Participation

14. Setting Employee Objectives

• Identify key job tasks
• Set specific hard goals
• Let employees participate
• Prioritize goals
• Build in feedback
• Reward goal attainment

15. The Downside of Objectives

Quality of
Products
Quantity of
Products
Individual
Effort
Team Focus
Potential
Improvement
Continuous
Improvement

16.

The Strategic Management Process
Set Mission,
Objectives,
and Strategies
Analyze the
Environment
Identify
Opportunities
and Threats
Analyze
Resources
Identify
Strengths and
Weaknesses
Reassess
Mission and
Objectives
Formulate
Strategies
Implement
Strategies
Evaluate
Results

17.

Starting the Strategic
Management Process

18.

Analyzing the
Environment
Environmental
Environmental
Scanning
Scanning
Competitive
Competitive
Intelligence
Intelligence

19.

Strengths
Threats
SWOT
Analysis
Opportunities
Weaknesses

20. Identifying Opportunities

Organization’s
Resources
Opportunities in
the Environment
Organization’s
Opportunities

21.

Growth
Growth
Stability
Stability
The
The Grand
Grand Strategies
Strategies
Combination
Combination
Retrenchment

22.

Determining A
Competitive Strategy
Cost
Leadership
Differentiation
Focus

23.

What Happens
After Strategies
Are Formulated?
Implementation
Implementation
Evaluation
Evaluation

24.

Benchmarking
Quality As
A Strategic
Weapon
ISO 9000
Six Sigma

25.

The Entrepreneurial
Personality
Common
Personality
Traits
Three
Critical
Factors
Other
Important
Factors

26. Comparing Entrepreneurs and Traditional Managers

Characteristics
Managers
Entrepreneurs
• Primary Motivation
• Traditional Rewards
• Personal Rewards
• Time Orientation
• Short-Term Goals
• Long-Term Goals
• Activity
• Delegate/Supervise
• Direct Involvement
• Risk Propensity
• Low
• Moderate
• View of Failure/Errors
• Avoidance
• Acceptance