Planning

A plan is like a map.

What do you need to draw a map?

• Where do we want to go?

• Vision
• Purpose or reason

Why we exist - what we want to be.

• Where are we starting from?

• Mission
• Who we are.
• What we do.
• How we do it.

Examples

McDonald's 1
McDonald's 2
Starbucks
Airbus
Amycakes


Once we know where we are starting and where we want to go we have to develop a plan for getting there.

Strategic plans - How we will get there.

• What will we do different from other companies that will make customers value our products and services.
• Top managers are responsible for setting the overall direction.

Tactical plans - Implementation procedures

• How we will allocate our resources. People, Budgets
• Middle managers are responsible for organizing and implementing

Operational plans - Producing and delivering

• The day-to-day things that need to be done.
• First-line supervisors and team leaders have this responsibility.

Activity

MEANS AND ENDS EXAMPLE

• To be #1 consumer soap brand by 2011.
• 
  
• To increase corporate soap sales to $250M by March 1.
• 
  
• To increase unit sales of "Soapy Suds in regional markets by 100,000 units by Dec 1.
• 
  
• To increase sales in Boston by 2,000 units.
• 
  
• To get "Soapy Suds" on end caps in 50% of the stores the first week of each month

Benefits

• intensifying efforts
• increasing persistence
• providing direction
• creating task strategies

Pitfalls

• impeding change
• creating a false sense of certainty
• detachment of planners

SMART goals

• Specific
• Measurable
• Attainable
• Realistic
• Timely

Activity