Chapter 5 Management

BCG matrix

(named for the Boston Consulting Group, which developed it) organizes businesses along two dimensions?business growth rate and market share.

1. Specific and measurable 2. Have a define time period 3. Cover key areas 4. Are challenging but realistic 5. Are linked to rewards

5 Characteristics of effective goals

1. Develop a plan 2. translate the plan 3. plan operations 4. execute the plan 5. Monitor and Learn

5 steps in the organizational planning process

abbreviated scenario thinking

Scenarios are like stories that offer alternative vivid pictures of what the future will be like and how managers will respond. Typically, two to five scenarios are developed for each set of factors, ranging from the most optimistic to the most pessimistic view.

strategy

The plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals.

operational goals

The results expected from departments, work groups, and individuals

Define mission, vision and set goals

What happens in developing a plan stage of organizational planning

management by objectives, performance dashboard, decentralized responsibility

What happens in execute the plan stage of organizational planning

hold planning reviews and operational reviews

What happens in monitor and learn stage of organizational planning

Define operational goals and plans, set stretch goals, crisis planning

What happens in the plan operations stage of organizational planning

define tactical plans and objectives, develop strategy map, define contingency plans

What happens in translating the plan of organizational planning

planning

usually incorporates both ideas; it means determining the organization's goals and defining the means for achieving them.

decentralized planning

Planning involving everyone in an organization. Planning experts work with managers in major divisions or departments to develop their own goals and plans.

tactical goals

After strategic goals are formulated, this is the next step... which are the results that major divisions and departments within the organization intend to achieve.

scenario building

An extension of contingency planning is a forecasting technique

scenarios

are alternative vivid pictures of what the future might be like.

tactical plans

are designed to help execute the major strategic plans and to accomplish a specific part of the company's strategy.

standing plans

are ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization.

stretch goals

are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence, typically so far beyond the current levels that people have to be innovative to find ways to reach them.

threats

characteristics of the external environment that may prevent the organization from achieving its strategic goals.

contingency plans

define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. managers identify important factors in the environment, such as possible economic downturns, declining markets, increases in cost of supplies, new technological developments, or safety accidents.

strategic plans

define the action steps by which the company intends to attain strategic goals, the blueprint that defines the organizational activities and resource allocations?in the form of cash, personnel, space, and facilities?required for meeting these targets.

mission

describes the organization's values, aspirations, and reason for being, the basis for development of all subsequent goals and plans.

single-use plans

developed to achieve a set of goals that are not likely to be repeated in the future

crisis planning

enables an organization to cope with sudden, unexpected events that have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response.

management by means (MBM)

focuses attention on the methods and processes used to achieve goals.

SWOT analysis

includes a careful asssessment of strengths, weaknesses, opportunities, and threats that affect organizational performance.

weaknesses

internal characteristics that might inhibit or restrict the organization's performance.

plan

is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.

mission statement

is a broadly stated definition of purpose that distinguishes the organization from others of a similar type.

goal

is a desired future circumstance or condition that the organization attempts to realize.

management by objectives (MBO)

is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.

core competence

is something that the organization does especially well in comparison to its competitors.

strategy execution

is the stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes.

triple bottom line

refers to measuring an organization's social performance, its environmental performance, and its financial performance. This is sometimes called the three Ps: People, Planet, and Profit.

strategic management

refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

competitive advantage

refers to what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace.

strategic goals

sometimes called official goals, are broad statements describing where the organization wants to be in the future.