Strategic Planning for Business Success

1. Planning without action is futile, action without planning is fatal. (Unknown)

2. Goal- A desired future state that the organization attempts to realize • Plan -A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals • Planning – determining the organization’s goals and the means for achieving them

3. Three Steps in Planning

5. Purpose of Goals and Plans Internal and External Messages Goals and Plans Send: • Legitimacy • What the organization stands for - reason for being • Employees identify with purpose • Source of Motivation and Commitment • Employees’ identification with the organization • Motivate by reducing uncertainty • Resource Allocation • Allocate employees, money, and equipment • Guides to Action • Provide a sense of direction; focus attention on specific targets • Direct efforts toward important outcomes

6. 0 Strategic Goals and Plans Strategic Goals • Future plans • Plans for whole organization Strategic Plans • Action Steps used to attain strategic goals • Blueprint that defines the organizational activities and resource allocations • Long-term

7. 0 Tactical Goals and Plans • Tactical Goals • Apply to middle management • Goals that define the outcomes that major divisions and departments must achieve • Tactical Plans • Plans designed to help execute strategic plans • Shorter time frame than strategic plans

8. 0 Operational Goals and Plans • Operational Goals • Specific, measurable results • Expected from departments, work groups, and individuals • Operational Plans • Action steps toward operational goals • Daily and weekly operations • Schedules are an important component

9. Hierarchy of Goals(Means-End Chain) Exhibit 5.3

10. 0 Characteristics of EffectiveGoal Setting • Specific and measurable • Challenging but realistic • Defined time period • Linked to rewards

11. SMART • S = Specific • M = Measureable • A = “Actionable” • R = Realistic • T = Time-bound

12. Questions for SWOT Analysis

13. SMART OBJECTIVES- not to be confused with SWOT

14. Management by Objective Process (MBO)

15. Now This is What I Call a Strategy! • Find the Fugitive!

16. 0 Planning In The New Workplace • Have a strong mission statement and vision • Set stretch goals for excellence • Establish a culture that encourages learning • Embrace event-driven planning –”when the going gets tough…” • Utilize temporary task forces • Planning still starts and stops at the top Planning comes alive when employees are involved in setting goals and determining the means to reach them

17. Let’s Build a Business! The Chico Mentor Center “Purpose + People = Success Unlimited” I need a Quick Plan to launch my imaginary initiative. Mission Statement: Enhance the learning and life quality of participants through meaningful and mutually supportive mentoring relationships with like-minded others • Slogan: Meeting Life’s Challenges through Proactive, Passionate and Purposeful Partnership Core Values: • Passion and a sense of purpose lead to personal growth • Our focus is on fostering a context for personal and professional success • We support a learning culture • CMC stands for cultural diversity, cross-generational communication, mutual support, and respect

18. Scope, Time, Risk, Human Resources, Procurement, Quality, Communication, Cost, Stakeholders, Integration

19. Benefits: Manager and employee efforts are focused Performance can be improved Employees are motivated Departmental and individual goals are aligned Problems: Constant change prevents MBO from taking hold Poor employer-employee relations reduces MBO effectiveness Strategic goals may be displaced by operational goals Mechanistic organizations and values that discourage participation Too much paperwork saps MBO energy 0 MBO Benefits and Problems

20. 0 Building Scenarios“WAR ROOMS” Managers can rehearse mentally what they would do if their best-laid plans were to collapse. Here, they consider contingencies.

21. 0 Three Stages of Crisis Management • Prevention • Build trusting relationship with key stakeholders • Open communication • Preparation • Crisis Management Team & Plan • Establish an Effective Communications system • Containment • Activate the crisis management plan. • Get the awful truth out. • Meet safety and emotional needs. • Return to business.

22. Managing During Turbulent Times • Stay Calm • Be Visible • People Before Business • Tell the Truth • Know When to Get Back to Business

23. Strategic Emphasis Value – the combination of benefits received and costs paid Core Competence – something the organization does especially well in comparison to its competitors Synergy – A joint effect that is greater than the sum of the parts acting together

24. Forces & Strategy According to Porter 5 Forces

25. Porter’s Competitive Strategies

26. Principal Corporate-Level Strategies

27. Partnership Strategies • Collaboration is an alternative form of strategy – “More of us is smarter/better than one” • Competition and collaboration are often present at the same time. • The Internet is driving and supporting more partnerships.