Managerial Planning and Goal Setting

1. Managerial Planning and Goal Setting Week 8

2. Planning • What? • Why? • When? • Where? • How? • Who? • How do you plan for an undefined future? • No plan is perfect • Without plans and goals, organizations flounder

3. Overview of the Goal-Setting and Planning Process 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

4. The Organizational Planning Process

5. Goal-Setting in Organizations • Organizational Mission • Strategic goals • Tactical goals • Operational goals Goals should be aligned

6. Mission Statement for DaVita Inc.

7. Operational Planning • What and Why? • Planning approaches: • Management By Objective (MBO) • Single-use Plans • Standing Plans

8. Characteristics of Effective Goal Setting

9. Benefits and Limitations of Planning • Benefits • motivation and commitment • resource allocation • Action • standard of performance • Limitations • Provide a false sense of certainty • Cause rigidity in a turbulent environment • Get in the way of intuition and creativity

10. Planning for a Turbulent Environment Contingency Planning Building Scenarios • A forecasting technique to look at current trends and visualize future possibilities Crisis Planning

11. Essentials Stages of Crisis Planning

12. Set Stretch Goals for Excellence BHAGs and stretch goals are important because things move fast • Stretch goals are reasonable yet highly ambitious goals that are clear and compelling • Require innovation • Fire up employees • Engender excellence • Big, inspiring goals are sometimes called Big Hairy Audacious Goals (BHAG)

13. Thinking Strategically • Take the long-term view • See the BIG PICTURE • Strategic thinking is important for all organizations • Impacts an organization’s performance • 51% of executives are unhappy with strategy formulation process • Tough decisions and choices define and support strategy

14. What is Strategic Management? • Define explicit strategy/plan of action • Achieve competitive advantage • Exploit Core Competencies • Build Synergy • Deliver Value – combination of benefits and costs

15. The Strategic Management Process Strategy Formulation Strategy Execution

16. The Strategic Management Process

17. SWOT Analysis Analysis of strengths, weaknesses, opportunities and threats Internal Strengths and Weaknesses External Opportunities and Threats

18. Audit Checklist for Analyzing Organizational Strengths and Weaknesses

19. Formulating Business-Level Strategy Michael E. Porter • Porter’s Five Competitive Forces • Potential new entrants • Bargaining power of buyers • Bargaining power of suppliers • Threat of substitute products • Rivalry among competitors

20. Porter’s Five Competitive Forces

21. Organizational Characteristics of Porter’s Competitive Strategies

22. Strategy Execution • Execution is how strategy is put into action • Execution is most important, and most challenging • A key to effective execution is alignment • Execution requires all aspects of the organization to be in congruence • Execution is tough because organizational barriers may hinder implementation

23. Six Silent Killers of Strategy

24. Tools for Putting Strategy into Action