Exam 2 2/6

Characteristics of Effective Goals

*Specific and measurable *Linked to rewards *Have a defined time period *Challenging but realistic *Cover key result areas

Organizational Planning Process

1. Develop the Plan 2. Translate the Plan 3. Plan Operation 4. Execute the Plan 5. Monitor and Learn

plan

A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals.

strategic goals (official goals)

A broad statement of where an organization wants to be in the future; pertains to the organization as a whole rather than to specific divisions or departments.

mission statement

A broadly stated definition of an organization's basic business scope and operations that distinguishes it from similar types of organizations.

intelligence team

A cross-functional group of people who work together to gain a deep understanding of a specific competitive issue and offer insight and recommendations for planning.

goal

A desired future state that the organization wants to realize.

Management-by-objectives (MBO) (Great to use to improve perfomance and everything in a company)

A method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. 1. Set Goals 2. Develop Action Plans 3. Review Progress 4. Appraise Overall Performance

Single-use plans

A plan that is developed to achieve a set of goals that is unlikely to be repeated in the future.

Stretch goals

A reasonable yet highly ambitious and compelling goal that energizes people and inspires excellence.

operational goals

A specific, measurable result that is expected from departments, work groups, and individuals.

Key performance indicators (KPIs)

A tool used to assess what is important to an organization and how well the organization is progressing toward attaining its strategic goal, so that managers can establish lower-level goals that drive performance toward the overall strategic objective.

strategy map

A visual representation of the key drivers of an organization's success, showing the cause-and-effect relationship among goals and plans.

strategic plans

Action steps by which an organization intends to attain strategic goals.The strategic plan is the blueprint that defines the organizational activities and resource allocations—in the form of cash, personnel, space, and facilities—required for meeting these targets. Tends to be longterm.

management by means (MBM)

An approach that focuses people on the methods and processes used to attain results, rather than on the results themselves.

Scenario building

An approach where managers look at trends and discontinuities and imagine possible alternative futures to build a framework within which unexpected future events can be managed.

decentralized planning

An approach where top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans. de

Standing plans

An ongoing plan used to provide guidance for tasks that occur repeatedly in the organization.

mission

An organization's purpose or reason for existence.

Tactical plans

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

Contingency plans

Identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions.

Tactical

Orginally came from the military

Operational plans

Specifies the action steps toward achieving operational goals and supports tactical activities.

planning

The management function concerned with defining goals for future performance and how to attain them.

tactical goals

The outcome that major divisions and departments must achieve for an organization to reach its overall goals.

business performance dashboards

a way for executives to keep track of key performance metrics, such as sales in relation to targets, number of products on back order, or percentage of customer service calls resolved within specified time periods.

goals

are socially constructured, which means they are defined by an individual or group.

Three approaches that help brace the organization for unexpected—even unimaginable—events

contingency planning, building scenarios, and crisis planning.

Stages of crisis planning

crisis prevention stage involves activities that managers undertake to try to prevent crises from occurring and to detect warning signs of potential crises. A critical part of the prevention stage is building open, trusting relationships with key stakeholders such as employees, customers, suppliers, governments, unions, and the community. The crisis preparation stage includes all the detailed planning to handle a crisis when it occurs. Three steps in the preparation stage are (1)designating a crisis management team and spokesperson, (2)creating a detailed crisis management plan, and (3)setting up an effective communications system. The crisis management team, for example, is a cross-functional group of people who are designated to swing into action if a crisis occurs.

crisis planning

enable them to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response.

operational plans

identify the specific procedures or processes needed at lower levels of the organization, such as individual departments and employees. Frontline managers and supervisors develop operational plans that focus on specific tasks and processes and that help meet tactical and strategic goals. Planning at each level supports the other levels.

coalitional management

involves building an alliance of people who support a manager's goals and can influence other people to accept and work toward them. *Talk to customers and other managers *Address conflicts *Break down barriers and promote cross-silo cooperation

managers use a number of planning approaches

management-by-objectives (MBO), single-use plans, and standing plans

Limitations of planning and goal setting

potential to create a false sense of certainty, create rigidity that hinders response to a turbulent environment, and get in the way of creativity and intuition.

tactical goals and plans

responsibility of middle managers, such as the heads of major divisions or functional units. A division manager will formulate tactical plans that focus on the major actions that the division must take to fulfill its part in the strategic plan set by top management

top managers

responsible for establishing strategic goals and plans that reflect a commitment to both organizational efficiency and effectiveness

Benefits of planning and goal setting

source of motivation, determining resource allocation, providing a guide to action, and setting a standard for performance measurement.