SlideShare a Scribd company logo
1 of 10
Benefits of Planning
• Intensified effort
• Persistence
• Direction
• Creation of task strategies
© 2012 Cengage Learning
Pitfalls of Planning
• Impedes change and prevents or slows
adaptation
• Creates a false sense of certainty
• Detachment of planners
© 2012 Cengage Learning
How To Make a
Plan That Works
© 2012 Cengage Learning
Setting Goals
S.M.A.R.T. Goals
• Specific
• Measurable
• Attainable
• Realistic
• Timely
© 2012 Cengage Learning
Developing Commitment to Goals
• Goal commitment
– the determination to achieve a goal
• Set goals collectively
• Make the goal public
• Obtain top management’s support
© 2012 Cengage Learning
Developing Effective Action Plans
An action plan lists…
• Specific steps (how)
• People (who)
• Resources (what)
• Time period (when)
…for accomplishing a goal
© 2012 Cengage Learning
Starting at the Top
• Strategic plans
– make clear how the company will serve customers
and position itself against competitors in the next 2 to
5 years
• Purpose statement
– a statement of a company’s purpose or reason for
existing
• Strategic objective
– a more specific goal that unifies company-wide
efforts, stretches and challenges the organization, and
possess a finish line and a time frame.
© 2012 Cengage Learning
© 2012 Cengage Learning
Case Study
• Wicked Good Cupcakes
– #1 Objective – SMART Expansion
Watch the video about this enterprising young
company
http://youtu.be/PAv6HJj8f9I
© 2012 Cengage Learning
Strategic Planning
Objective Timeline Action Plan Resources Measurement
6 mos
1 year
5 years
© 2012 Cengage Learning
Resources can include capital, employees, partners, or equipment.
Action plans should include duties of responsible parties

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Ch5ppt

  • 1. Benefits of Planning • Intensified effort • Persistence • Direction • Creation of task strategies © 2012 Cengage Learning
  • 2. Pitfalls of Planning • Impedes change and prevents or slows adaptation • Creates a false sense of certainty • Detachment of planners © 2012 Cengage Learning
  • 3. How To Make a Plan That Works © 2012 Cengage Learning
  • 4. Setting Goals S.M.A.R.T. Goals • Specific • Measurable • Attainable • Realistic • Timely © 2012 Cengage Learning
  • 5. Developing Commitment to Goals • Goal commitment – the determination to achieve a goal • Set goals collectively • Make the goal public • Obtain top management’s support © 2012 Cengage Learning
  • 6. Developing Effective Action Plans An action plan lists… • Specific steps (how) • People (who) • Resources (what) • Time period (when) …for accomplishing a goal © 2012 Cengage Learning
  • 7. Starting at the Top • Strategic plans – make clear how the company will serve customers and position itself against competitors in the next 2 to 5 years • Purpose statement – a statement of a company’s purpose or reason for existing • Strategic objective – a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possess a finish line and a time frame. © 2012 Cengage Learning
  • 8. © 2012 Cengage Learning
  • 9. Case Study • Wicked Good Cupcakes – #1 Objective – SMART Expansion Watch the video about this enterprising young company http://youtu.be/PAv6HJj8f9I © 2012 Cengage Learning
  • 10. Strategic Planning Objective Timeline Action Plan Resources Measurement 6 mos 1 year 5 years © 2012 Cengage Learning Resources can include capital, employees, partners, or equipment. Action plans should include duties of responsible parties

Editor's Notes

  1. Managers and employees put forth greater effort when following a plan. Planning leads to persistence, that is, working hard for long periods. In fact, planning encourages persistence even when there may be little chance of short-term success. The third benefit of planning is direction. Plans encourage managers and employees to direct their persistent efforts toward activities that help accomplish their goals and away from activities that don’t. The fourth benefit of planning is that it encourages the development of task strategies. In other words, planning not only encourages people to work hard for extended periods and to engage in behaviors directly related to goal accomplishment, it also encourages them to think of better ways to do their jobs. Finally, perhaps the most compelling benefit of planning is that it has been proven to work for both companies and individuals.