5 - Planning Flashcards
Planning
Coping with uncertainty by formulating future courses of action to achieve specified results
Defenders
Expert at producing and selling narrowly defined products or services
Prospectors
Focus on developing new products or services and in seeking out new markets rather than waiting for things to happen
Analysers
Let other organisations take the risks of product development and marketing and then imitate (or perhaps slightly improve on) what seems to work best
Reactors
Make adjustments only when finally forced to by environmental pressures
Mission
An organisation’s purpose or reason for being
Mission statement
Expresses the purpose of the organisation
Vision
Long-term goal describing ‘what’ an organisation wants to become. It is a clear sense of the future and the actions needed to get there
Vision statement
Expresses what the organisation should become, where it wants to go strategically
Strategic planning
Determining what the organisation’s long-term goals should be for the next 1-5 years with the resources they expect to have available
Tactical planning
Determining what contributions departments or similar work units can make with the given resources during the next 6-24 months
Operational planning
Determining how to accomplish specific tasks with available resources during the next 1-54 weeks
Goal
A specific commitment to achieve a measurable result within a stated period of time
Means-end chain
A hierarchy: in the chain of management (operational, tactical, strategic) the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends
Strategic goals
Set by and for top management; they focus on objectives for the organisation as a whole
Tactical goals
Set by and for middle managers; they focus on the actions needed to achieve strategic goals
Operational goals
Set by and for the first-line managers; they are concerned with short-term matters associated with realising tactical goals
Action plan
Defines the course of action needed to achieve the stated goal, such as a marketing plan or sales plan
Operational goals
Set by and for first-line managers; they are concerned with short-term matters associated with realising tactical goals
Action plan
Defines the course of action needed to achieve the stated goal, such as a marketing plan or sales plan
Operating plan
Is typically designed for a 1-year period. It defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow and market share
Standing plans
Plans developed for activities that occur repeatedly over a period of time consisting of policies, procedures and rules
Policy
A standing plan that outlines the general response to a designated problem or situation
Procedure
(For standard operating procedure) A standing plan that outlines the general response to particular problems or circumstances
Rule
A standing plan that designates specific required action
Single use plans
Plans developed for activities that are not likely to be repeated in the future e.g programs and projects
Program
Single-use plans encompassing a range of projects or activities
Project
A single-use plan of less scope and complexity than a program
SMART goal
Is specific, measurable, attainable, results-oriented and has target dates
Management by Objectives (MBO)
A four-step process in which 1) Managers and employees jointly set objectives for the employee 2) Managers develop action plans 3) Managers and employees periodically review the employee’s performance and 4) Manager makes a performance appraisal and rewards the employee according to results
Cascading
Objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organisation e.g organisational, divisional, departmental and individual
Planning-control cycle
Has two planning steps (1 and 2) and two control steps (3 and 4) as follows: 1) Make the plan 2) Implement the plan 3) Manage the plan by reviewing how the results are tracking against the initial plan 4) Take corrective action by a) correcting any differences or b) improving future plans
