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PLANNING AND GOAL SETTING - Coggle Diagram
PLANNING AND GOAL SETTING
6.1 GOAL SETTING AND PLANNING OVERVIEW
Overview & Core Concepts
Management & Planning Role
Managers must plan future organizational direction.
Managers must plan for unexpected events.
Plans must meet environmental changes and stakeholder expectations.
Planning is fundamental and everything stems from planning.
Tools of Navigation (Goals vs. Plans)
Goal:
The destination; a desired future state the organization attempts to realize.
Plan:
The map; a blueprint for goal achievement defining specific means and action steps.
Planning:
The act of determining goals and defining the means to achieve them.
Organization Mission
The "Why":
The fundamental reason the organization exists.
The Apex:
Sits at the very top of the goal hierarchy.
The Guide:
Outlines stated purpose, values, and aspirations to stakeholders.
The Baseline:
The absolute basis for all strategic, tactical, and operational goals.
Levels of Goals and Plans
Strategic Goals
Official goals and broad statements about the organization.
Define action steps the company intends to attain and act as a blueprint defining activities.
Tactical Goals
Help execute major strategic plans.
Focus on specific parts of company strategy and plans of divisions/departments.
Operational Goals
Expected results from lower-level departments, work groups, and individuals.
Involve specific action steps.
HIERARCHY OF GOALS
Mission
Why we exist
Values, aspirations, and purpose
Strategic
Senior Management
Official blueprint and broad action steps for the whole organization
Tactical
Middle Management
Execution plans for major divisions and functions
Operational
Lower Management
Specific results expected from departments, work groups, and individuals
PLANNING PROCESS
Develop the Plan:
Define mission, set goals, manage conflic
Translate the Plan:
Define tactics, map strategy, contingency scenarios
Plan Operations:
Set operational goals, measures, and crisis plans
Performance Management:
Use MBO, standing/single-use plans
Monitor & Learn:
Hold reviews, adapt
6.3 PERFORMANCE MANAGEMENT
I. CRITERIA FOR EFFECTIVE GOALS
Are specific and measurable
Have a defined time period
Cover key result areas (KRAs)
Are challenging but realistic
Are linked to rewards
Key performance indicators (KPIs)
Tool used to assess what is important to an organization and how well the organization is progressing toward achieving its strategic goal
Ex: Customer service call waiting time is less than 60 seconds.
II. MANAGEMENT BY OBJECTIVES (MBO)
1. Definition & Origin
Management by objectives (MBO): system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.
Defined by management scholar Peter Drucker (1954) book,
2. MBO Process (4 Steps)
Step 1: Set Goals (Corporate, Dept, Individual).
Step 2: Develop Action Plans.
Step 3: Review Progress (Crucial step: take corrective action here if off-track).
Step 4: Appraise Performance (Evaluate overall success, aligns motivation with company goals).
3. Benefits of MBO
Manager and employee efforts are focused on activities that will lead to goal attainment.
Performance can be improved at all company levels.
Employees are motivated.
Departmental and individual goals are aligned with company goals
4. Problems with MBO
Constant change prevents MBO from taking hold.
An environment of poor employer-employee relations reduces MBO effectiveness.
Strategic goals may be displaced by operational goals.
Mechanistic organizations and values that discourage participation can harm the MBO process.
Too much paperwork saps MBO energy.
III.Single-use and Standing Plans
Single-use plans
Plans developed to achieve objectives that are not likely to be repeated in the future.
Include programs and projects
Standing plans
Ongoing plans that provide guidance for task or situations that occur repeatedly within the organization.
Include organizational policies, rules, and procedures
6.2 GOAL SETTING IN ORGANIZATIONS
Organizational Mission
Definition:
Reason the organization exists
Position:
Top of the goal hierarchy
Role:
Basis for all other goals (Strategic → Tactical → Operational)
Core Content:
Outlines stated purpose, values, and aspirations to stakeholders
Strategy Map & Goal Alignment
Definition:
Visual representation of key drivers of organizational success
Core Logic
: Goals must be consistent & mutually supportive (low-level goals drive high-level goals)
Teamwork:
Individuals, teams, and departments work in concert
5-Level Hierarchy (Bottom to Top):
3.Customer Service:
Relationships, quality/reliability, innovative solutions
4.Financial Performance
: Increased revenues, higher productivity
2.Internal Business Processes:
Supplier relations, operational efficiency, innovative products
5.The Mission:
Achieving optimal value
1.Learning & Growth:
Employee development, continuous learning, innovation culture
Effective Goals Criteria
5 Essential Criteria (SMART framework)
Attainable yet Challenging
Realistic & Relevant
Measurable & Quantifiable
Time-bound (Target date)
Specific & Goal-oriented
Key Question:
What separates effective goals from weak ones?
6.4 Benefits and Limitations of Planning
Benefits
Provides motivation & commitment
Guides resource allocation
Sets a definitive standard of performance
Limitations
Creates a false sense of certainty
Causes rigidity in a turbulent environment
Gets in the way of intuition & creativity
6.5 Planting for a Turbulent environmet
Contingency Planning
Scenario Building
Stretch Goals
Crisis Planning