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Module 2 Planning

Module 2 Planning. Understand planning and different types of planning Understand benefits and drawbacks of planning Differentiate different strategy types Understand SWOT, BCG, and Port’s Five Forces Model Understand what is meant by Management by Objectives and Six Sigma.

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Module 2 Planning

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  1. Module 2 Planning • Understand planning and different types of planning • Understand benefits and drawbacks of planning • Differentiate different strategy types • Understand SWOT, BCG, and Port’s Five Forces Model • Understand what is meant by Management by Objectives and Six Sigma

  2. What is planning? • Define Organizational objectives or goals • Establish an overall strategy for achieving these goals • Develop a hierarchy of plans to integrate and coordinate activities

  3. Why do we need planning • Provide direction • Reduce uncertainty • Coordinate activities • Reduce wastes and redundancy • Reduce the impact of change • Set the standards to facilitate control

  4. Drawbacks of planning • May create rigidity • May reduce flexibility • Can’t replace intuition and creativity • Managers may focus on today’s competition rather than tomorrow’s survival • Focusing solely on today’s success may lead to tomorrow’s failure

  5. Do we need planning? • Focus on the quality of planning • Seek opportunities • Look for weakness • Focus on customers • Allow flexibility • Encourage creativity • Implement planning

  6. Categories of planning Breath Time Frame Specificity Frequency of Use strategic Long-term Directional Single Tactical Short-term Specific Standing

  7. Types of plans • Mission or purpose – basic function or task For example, mission of Markham Stouffville Hospital (MSH) To achieve excellence in the provision of health care that is compassionate, patient and family-centred, and consistent with the needs of Markham, Stouffville and neighboring communities.  Fundamental to our mission is a commitment that each visit to Markham Stouffville Hospital will be a great experience.

  8. Types of plans (Contd.) • Objectives or goals – ends toward which activity is aim (i.e., results to be achieved) MSH example: It is our goal that the Hospital will continue to operate below our Expected Cost per Weighted Case while providing high quality care to our community.

  9. Types of plans (Contd.) • Strategies – outline general action and deployment of resources to attain objectives MSH example: Strategy priorities: • Great care and customer service • Great place to work • Great partner

  10. Types of plans (Contd.) • Policies – general statements or understandings which are officially agreed on by authority and which is used as a basis for making decisions For example, privacy policy, vacation policy

  11. Types of plans (Contd.) • Procedures – establish a required method of handling future activities

  12. Types of plans (Contd.) • Rules – spell out specific required actions or nonactions, allowing no discretion

  13. Types of plans (Contd.) • Programs – a complex of goals, policies, procedures, rules, task assignments to be taken, resources to be employed, and other elements necessary to carry out a given course of action

  14. Types of plans (Contd.) • Budget – a statement of expected results expressed in numerical terms

  15. Purpose Objectives Strategies Policies Procedures Rules Programs budgets

  16. Management by Objectives (MBO) • MBO: a system in which specific performance objectives are jointly determined by subordinates and their superiors • Four key elements: goal specificity, participative decision making, an explicit time period, and performance feedback

  17. Benefits of MBO • Align organizational goals with individual goals • Make employees feel achievement • Make realistic goals • Help identify problems and opportunities • Push forward

  18. Criticism about MBO • Focus on short-term goals rather than long-term goals • Lack of team spirit • Danger of inflexibility • Fear of punishment • Overuse quantitative goals

  19. How to overcome drawbacks • Set up multiple goals • Reward for setting difficult goals • Prioritize goals • Continuous monitoring • Fast feedback

  20. 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

  21. Strengths Threats Weaknesses SWOT Analysis Opportunities

  22. Porter’s five forces model New Entrants Competitive Battleground Suppliers Buyers Substitute products or services

  23. Boston Consulting Group (BCG) analysis High Wild cat Star Market Growth Dog Case cow High Low Low Market Share

  24. Growth Stability The Grand Strategies Combination Retrenchment

  25. What Happens After Strategies Are Formulated? Implementation Evaluation

  26. Benchmarking Quality As A Strategic Weapon ISO 9000 Six Sigma (6)

  27. “[Six Sigma - The Breakthrough Strategy] is the most important initiative GE has ever taken…it is part of the genetic code of our future leadership.” – Jack Welch, CEO, GE

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