DM 142 Principles of Management: Managerial Planning and Goal Setting

This report, prepared for the Principles of Management course (DM 142) at the University of Colombo, delves into the critical aspects of managerial planning and goal setting. It begins by defining planning as a fundamental managerial activity and explores its characteristics and importance, including its role in providing direction, reducing uncertainty, and establishing control. The report then outlines the planning process, from the mission and vision of an organization to the setting of goals and objectives, emphasizing the SMART criteria. It further distinguishes between strategic, tactical, and operational planning levels and discusses various types of planning, including Management by Objectives (MBO), standing plans, and single-use plans. The document also covers the principles of effective planning, such as setting clear aims, developing accurate forecasts, and involving subordinates in the process. Throughout the report, practical examples are provided, making it a valuable resource for students studying management and organizational studies.

LESSON 04: MANAGERIAL PLANNING AND GOAL
SETTING
DR. TISSA RAVINDA PERERA
Senior Lecturer
Department of Management and Organization Studies
Faculty of Management and Finance
University of Colombo
DM 142 Principles of Management
Semester I ( 2020)
Diploma in Marketing
August 16, 2020
1

SKETCH OF THE SESSION
 SESSION OBJECTIVES
 FUNDAMENTALS OF PLANNING
 FUNDAMENTALS OF FORECASTING
 STRATEGIC PLANNING
 SESSION OUTCOMES
 FURTHER READINGS 2

SESSION OBJECTIVES
 To be aware of the theoretical aspects of
planning, forecasting and strategic planning
 To help students to use the theoretical
knowledge in an organizational context
3

WHAT IS PLANNING?
 This is a critical managerial activity. It is the process of
determining how the organization can get where it wants to go.
 It is the primary function of management because all other
functions depend upon how the organization plans and to achieve
its objectives.
 Planning is a decision making activity requiring the process of
establishing objectives and deciding on activities to attain theses
objectives
 IN PLANNING MANAGERS ASSESS THE FUTURE, DETERMINE THE
GOALS OF THE ORGANIZATION AND DEVELOP OVERALL
STRATEGIES TO ACHIEVE THESES GOALS.
4

WHY DO MANAGERS PLAN?
 Planning provides a direction
 Planning reduce uncertainty
 Panning establishes the goals or standards used in
controlling
5

CHARACTERISTICS OF PLANNING
 PLANNING IS ANTICIPATORY IN NATURE: this means that a
decision has to be made now as to what to do and how, before
it is actually done
 PLANNING IS A SYSTEM OF DECISIONS: it involves a process of
making decisions which will define as to what is to be achieved
in the future and the formulation of action plans for
achievement of goals
 PLANNING IS FOCUSED ON DESIRED FUTURE RESULTS: it is a
means of ensuring that the important organizational objectives
are accomplished as and when desired
6

IMPORTANCE OF PLANNING
 PLANNING IS ESSENTIAL IN MODERN BUSINESS: the growing
complexity of the modern business with rapid technological changes,
dynamic changes in consumer preferences. Since planning takes a
future outlook, it takes into account the possible future developments
 PLANNING AFFECTS PERFORMANCE: a number of studies provided
evidence of organizational success being a function of formal planning,
the success being measured by such factors as ROI, sales volume,
growth in earnings per share.
 PLANNING PUTS FOCUS ON OBJECTIVES: the effectiveness of the
formal planning is primarily based upon clarity and specificity of
objective. Planning continuously reinforce the importance of these
objectives by focusing on them
7

IMPORTANCE OF PLANNING
 PLANNING ANTICIPATES PROBLEMS AND UNCERTAINTIES: a
significant aspect of any formal planning process is collection of
relevant information for the purpose of forecasting the future as
accurately as possible. This would minimize the chances of haphazard
decisions
 PLANNING IS NECESSARY TO FACILITATE CONTROL: controlling
involves the continual analysis and measurement of actual operations
against the established standards. These standards are set in the light
of objectives to be achieved
 PLANNING HELPS IN THE PROCESS OF DECISION MAKING: since
planning specifies the actions and steps to be taken in order to
accomplish organizational objectives, it serves as a basis for decision
making about future activities.
8

ADVANTAGES OF PLANNING
 IT CREATES A UNITY OF PURPOSE FOR ORGANIZATION, since the
objectives are formally expressed and the methods and procedures to
obtain these objectives are clearly defined
 Proper planning HELPS IN THE PROCESS OF MOTIVATION
 IT REDUCES THE RISK AND UNCERTAINTY
 Effective planning results in EFFECTIVE UTILIZATION OF
ORGANIZATIONAL RESOURCES
 IT IMPROVES THE COMPETITIVE STRENGTH OF THE COMPANY, since
operations are planned in advance the company is bale to take its time
in shopping around for human resources
 Formal planning forces managers to understand and evaluate all
variables that influence events. Therefore, MANAGERS ARE WELL
AWARE OF THE ORGANIZATION
9

DISADVANTAGES OF PLANNING
 Planning is EXPENSIVE AND TIME CONSUMING
 Planning itself can be a HINDRANCE TO INNOVATION
 Planning can be sometimes be very frustrating because it
REQUIRES AN EXTREMELY DETAILED, CAREFUL AND
ANALYTICAL THOUGHT PROCESS
10

PRINCIPLES OF EFFECTIVE PLANNING
 KEEP AIMS CRYSTALLIZED: the aims and objectives must be clear,
unambiguous, solid , reasonable and attainable. Badly define objectives do
not lend to accurate and effective planning
 DEVELOP ACCURATE FORECASTS: accurate events and trends in the future
are the most important inputs in planning
 INVOLVE SUBORDINATES IN THE PLANNING PROCESS: this will ensure the
acceptance of the plans by those who are going to implement them
 THE PLAN MUST BE A SOUND ONE: in order for a plan to be effective it must
be based on sound assumptions and correct information
 DO NOT BE OVER OPTIMISTIC: objectivity is an essential ingredient of
effective planning. Over optimism is based on feelings, emotions and
intuition
11

PRINCIPLES OF EFFECTIVE PLANNING
 DECIDE IN ADVANCE THE CRITERIA FOR ABANDONING A PROJECT: there is
no need to continue to stick to the plan if it is not working out as expected.
However, the criteria for abandoning a particular project should be
established in the beginning
 KEEP YOUR PLANS FLEXIBLE: revised and modified as the situation
demands
 REVIEW LONG RANGE PLANS ON A SHORT RANGE BASIS: long range plans
are risky due to dynamic environment. Accordingly long range strategic
plans should be split up into manageable periods.
 FIT THE PLAN TO THE ENVIRONMENT: assess the current as well as future
environment. If the environment is comparatively stable, a plan can be
more rigid.
12

THE PLANNING PROCESS
 The planning process for all organizations is built on the
framework of the statement of formal mission, specific
objectives that are established on the basis of mission
statement and the plans that can be developed to achieve these
objectives
13
MISSION OBJECTIVES PLANS

THE ORGANIZATIONAL PLANNING PROCESS
14

THE PLANNING PROCESS
 THE MISSION: the mission of an organization is the very reason for
its existence. It sets out why the organization exits and what it
should be doing. The mission describes the organization’s
values, aspirations, and reason for being. A well-defined
mission is the basis for development of all subsequent goals
and plans.
MISSION OF UNIVERSITY COLOMBO : To be the benchmark setting
seat of higher learning and scholarship with an uncompromising
commitment and dedication to providing society with human capital
of high ethical standards, a proven sense of social responsibility,
innovative, independent, and analytical in thinking and capable in
becoming partners of socio-economic, cultural and environmental
development.
 The purpose of the mission statement is to guide managers, work
units and individual employees throughout the organization
 A clear mission statement is concise, focused, worthy ,
imaginative and realistic 15

THE PLANNING PROCESS
 THE VISION: what the organization is to become. Vision is
general directional and motivational guidance for the entire
organization.
 VISION OF UNIVERSITY OF COLOMBO: Inspired by historic links to
the first University College of the country and inherited
intellectual traditions, the University of Colombo strives to be a
world class institution promoting human development through
synergizing knowledge, education, research, and creativity, and
entrepreneurship whilst upholding democratic values in a plural
society.
 THE MISSION OF THE ORGANIZATION ADDS SPECIFICITY TO
VISION 16

THE PLANNING PROCESS
 GOALS: the goals of an organization are refinements of its mission.
They are open ended statements of purpose which help describe
an organization's philosophy.
 Goals are more specific than mission but address such key issues
as market share, productivity, profitability, efficiency, growth.
 Objectives: these are specific statements about anticipated end
results of any activity. They further defines organizational goals.
They should have SMART characteristics.
Eg: Goal of a college may be: increase the number of students.
The objective would be to increase the number of incoming
students by 5% per year
17

18

19

THE PLANNING PROCESS
 CHARACTERISTICS OF SOUND OBJECTIVES IN WRITING TIME BOUNDED: a time limit must be set for achievement of given
objectives MEASURABLE REALISTIC AND ATTAINABLE MUTUALLY SUPPORTIVE: multi objectives should be mutually
supportive. One objective should not be achieved at the cost of the
other.
 Some argue that objectives should have SMART ( SPECIFIC,
MEASURABLE, ACHIEVABLE, REALISTIC, TIME BOUNDED)
characteristics
20

THE PLANNING PROCESS
 For objectives to be realistic and attainable they should
be established with the following considerations ENVIRONMENTAL CONDITIONS ECONOMIC CONDITIONS INTERNAL RESOURCES ANTICIPATION OF FUTURE EVENTS
21

PLANNING PROCESS
 AFTER THE MISSION OF THE ORGANIZATION HAS BEEN ESTABLISHED AND
THE OBJECTIVES FORMULATED AND STATED, THE NEXT STEP IS CREATION
OF PLANS
 PLANS are ACTION STATEMENTS PROPOSED TO HELP THE ORGANIZATION
ACHIEVE ITS OBJECTIVES
 Developing logical plans and then putting these plans into action is the
critical part of management of any organization. GOOD PLAN SHOULD
ADDRESS THE FOLLOWING QUESTIONS. What activities are required to accomplish the objectives? When should these activities be carried out ? Who is responsible for doing what? Where should the activities be carried out? When should the action be completed?
22

LEVELS OF PLANNING
 STRATEGIC PLANNING: Strategic planning is the process of
determining overall objectives of the organization and the
policies and strategies adopted to achieve those objectives. It
is a process by which an organization makes decisions and
takes actions that affect its long term performance. Top
management of the organization is involved in strategic
planning. A strategic plan covers a time period of up to ten
years.
 TACTICAL PLANNING: tactical planning is know as intermediate
planning. Such planning generally covers a shorter period of
time, usually between one and two years and involves middle
management such as functional managers, department heads.
 OPERATIONAL PLANNING: operational plans are the
responsibility of lower level management and involve unit
supervisors, foremen. These are short range plans covering a
time span of about one week to one year. 23

24

TYPES OF PLANNING
 MANAGEMENT BY OBJECTIVES (MBO): A method of management
whereby managers and employees define goals for every
department, project, and person and use them to monitor
subsequent performance. Four activities must be occur MBO to
be successful. They are: SET GOALS: this is the most difficult step in MBO process. Setting
goals involves employees at all levels and looks beyond day to
day activities to answer the question “ what we are trying to
accomplish?”. A good goal should be concrete and realistic,,
provide a specific target and time frame and assign responsibility.
They can be qualitative or quantitative. In the case of teams, all
team members may participate in setting goals DEVELOP ACTION PLANS: an action plan defines the course of
action needed to achieve a stated goals. Action plans are made for
both individuals and departments 25

TYPES OF PLANNING
 REVIEW PROGRESS: a periodic review is important
to ensure that action plans are working. This
periodic check up allows managers and employees to
see whether they are on target or whether corrective
action in necessary. In this step action plans can be
changed whenever goals are not being met
 APPRAISE OVERALL PERFORMANCE: this step in
MBO is to carefully evaluate whether annual goals
have been achieved for both individuals and
departments. Success or failure to achieve goals can
become part of the performance appraisal system
and the designation of salary increases and rewards.
The appraisal of departmental and overall corporate
performance shapes goals for the next year. The
MBO cycle repeats itself on an annual basis.
26

TYPES OF PLANNING: MODEL OF THE MBO PROCESS
27

28

TYPES OF PLANNING
 STANDING PLANS are those which remain
roughly the same for long periods of time and
are used in organization situations that occur
repeatedly. Most of the common types of
standing plans are polices, procedures and rules
 SINGLE USE PLANS focus on relatively unique
situations within the organization and may be
required to be used only once. These plans can
be sub divided into Programs and budgets.
29

TYPES OF PLANNING
30
ORGANIZATIONAL PLANS
STANDING PLANS
SINGLE USE PLANS
POLICIES PROCEDURES RULES PROGRAMS BUDGETS

TYPES OF PLANNING
 CONTINGENCY PLANNING: contingency planning is an approach which has
become necessary in today’s rapidly changing environment. Contingency planning is
proactive in nature and the management tries to anticipate changes in the environment
and prepares to cope with the future events
 Contingency planning is necessary at each level of management and for strategic, tactical,
and operational planning. ( The manager of the production department probably has a
contingency plan to cover for any machinery breakdowns)
31
DEVELOP PLAN,
CONSIDERING
CONTINGENCY
EVENTS
IMPLEMENT
PLAN
AND
FORMALLY
IDENTIFY
CONTINGENCY
EVENTS
SPECIFY
INDICATORS
FOR THE
CONTINGENCY
EVENTS AND
DEVELOP
PLANS FOR EACH
POSSIBLE EVENT
SUCCESSFULLY
COMPLETE
PLAN
OR
CONTINGENCY
PLAN
On going planning process

TYPES OF PLANNING
 BUILDING SCENARIOS: An extension of contingency planning is a
forecasting technique known as scenario building. Scenario building involves looking at current trends and discontinuities and
visualizing future possibilities. Rather than looking only at history and
thinking about what has been, managers think about what could be With scenario building, a broad base of managers mentally rehearses
different scenarios based on anticipating varied changes that could affect
the organization.
 CRISIS PLANNING : Surveys of companies’ use of management techniques
reveal that the use of contingency and scenario planning surged after the
September 11, 2001, terrorist attacks in the United States and has
remained high ever since, reflecting a growing emphasis on managing
uncertainty. Some firms also engage in crisis planning to enable them to
cope with unexpected events that are so sudden and devastating that they
have the potential to destroy the organization if managers aren’t prepared
with a quick and appropriate response. Crises have become integral
features of organizations in today’s world
32

33

FORECASTING
 FORECASTING PLAYS A MAJOR ROLE IN THE OPERATIONS OF MODERN
MANAGEMENT. IT IS AN IMPORTANT AND NECESSARY AID TO PLANNING
AND PLANNING IS THE BACKBONE OF EFFECTIVE OPERATIONS
 Many organizations have FAILED BECAUSE OF LACK OF FORECASTING or
faulty forecasting on which the planning was based
 Some of the areas in which accurate forecasts are needed are as follows ECONOMIC DEVELOPMENT FORECASTS: GNP, GDP, Job market, inflation
rates TECHNOLOGICAL FORECASTS: these forecasts predict the new
technological developments that may change the operations of an
organization COMPETITION FORECASTS: it is equally necessary to predict as to what
strategies your competitors would be employing to acquire gains in the
market share. SOCIAL FORECASTS: these forecasts involve predicting changes in the
consumer tastes, demands and attitudes.
34

FORECASTING TECHNIQUES
 There are TWO BROAD CATEGORIES of forecasting techniques QUALITATIVE TECHNIQUES: these techniques are primarily based upon
judgments and intuition about environment and are used especially
when quantitative information and data are not available.
a. JURY OF EXECUTIVE OPINION: this is the method by which the relevant
opinion of experts are taken, combined and averaged.
b. OPINIONS OF SALES PERSONS: this approach involves the opinions of
the sales force and these opinions are primarily taken into consideration
for forecasting future sales.
c. CONSUMER EXPECTATIONS: this method involves a survey of the
customers as to their future needs. This method is specially useful
where the industry serves a limited market based on the future needs of
the customers a general overall forecast for demand can be made. 35

FORECASTING TECHNIQUES
d. THE DELPHI METHOD: A panel of experts is given a situation and
asked to make initial predictions about it. On the basis of a prescribed
questionnaire, these experts develop written opinions. These
responses are analyzed and summarized by a certain coordinator and
submitted back to the panel for further consideration. This process is
repeated until consensus is obtained. QUANTITATIVE TECHNIQUES: these techniques involve mathematical
and statistical analyses of data, which primarily the information
related to past activities. These techniques are fairly sophisticated
and require experts in the filed to use them. Time series analysis is a
popular statistical forecasting technique.
What are the Advantages and disadvantages of qualitative and
quantitative techniques?
36

BARRIERS TO GOAL SETTING AND PLANNING PROCESS
 INAPPROPRIATE GOALS: inappropriate goals come in many forms. Paying
a large dividend to shareholders may be inappropriate if it comes at the
expense of research and development. Goals may also be inappropriate if
they are unattainable.
 IMPROPER REWARD SYSTEM
 DYNAMIC AND COMPLEX ENVIRONMENT
 RELUCTANCE TO ESTABLISH GOALS: another barrier of effective planning
is the reluctance of some managers to establish goals for themselves. The
reason for this reluctance may be lack of confidence of fear of failure.
 RESISTANCE TO CHANGE: planning essentially involves changing
something about the organization
 CONSTRAINTS: common constraints are lack of resources, government
restrictions and strong competition
37

OVERCOMING BARRIERS TO GOAL SETTING AND
PLANNING PROCESS
 UNDERSTAND THE PURPOSES OF GOALS AND PLANS
 COMMUNICATION AND PARTICIPATION
 CONSISTENCY, REVISION AND UPDATING: goals should be consistent
both HORIZONTALLY AND VERTICALLY. Horizontal consistency means
that goals should be consistent across the organization, from one
department to the next. VERTICAL CONSISTENCY means that goals
should be consistent up and down the organization- strategic, tactical
and operational goals must agree with one another. Because goal setting
and planning are dynamic processes they must be revised and updated
regularly
 EFFECTIVE REWARD SYSTEM: in general people should be rewarded both
for establishing effective goals and for successfully achieving them. 38

STRATEGIC PLANNING

INTRODUCTION TO STRATEGIC PLANNING
 STRATEGIC PLANNING IS THE PROCESS OF PLANNING AS TO
HOW TO ACHIEVE THE ORGANIZATIONAL GOALS WITH THE
AVAILABLE RESOURCES AND IS UNDERTAKEN BY THE
CENTRAL MANAGEMENT OF THE ORGANIZATION
 IMPORTANCE OF STRATEGIC PLANNING THERE ARE A LARGE NUMBER OF EXTERNAL VARIABLES NATURAL RESOURCES ARE BECOMING SCARCE: the
management must decide on how to compete for these
resources and how to allocate and utilize them properly
40

INTRODUCTION TO STRATEGIC PLANNING
 Some of the critical questions that strategic managers address in the
process of strategic planning are: What is our business? What business should we be in? Who are our customers and what do they want? Who are our competitors? What are their strengths and limitations? What is our competitive strength? How should we use our resources
to gain a competitive edge? What major changes are occurring in our environments? How will
these changes affect our businesses? 41

STRATEGIC PLANNING PROCESS
42
1. MISSION &
GOALS
4. STRATEGIC
ANALYSIS
5. DEVELOP
SPECIFIC
STRATEGIES
6. IMPLEMENT
STRATEGIES
7. EVALUATE
RESULTS
3. ORGANIZATION
STRENGTHS
& WEAKNESSES
2. EXTERNAL
ENVIRONMENT
( THREATS
AND OPPORTUNITIES)
FEEDBACKSTRATEGY FORMULATION STRATEGY IMPLEMENTATION

STEP 01: MISSION AND GOALS
 The mission statement must be clearly stated and clearly
understood by all
 All efforts of the organization are to be directed towards the
accomplishment of the mission Mission of one company may be high quality and low cost Mission of another company may be high quality and high
cost
 The company’s guiding principles for pursuing its mission
are: quality comes first, customers are the focus of
everything we do, continuous improvement is essential to
our success, employment involvement is our way of life,
dealers and suppliers are our partners, integrity is never
compromised.
43

STEP 02: ANALYZING EXTERNAL ENVIRONMENT
 There are various types of external environmental
elements that affect the organization ( PESTEL)
 Some organizations do well because their external
environment is extremely attractive
 Others do poorly because the external environment is
hostile
 For a company to succeed, either its strategy must fit the
environment around it or it must be able to reshape the
external environment to it advantage
44

STEP 03: ANALYZING THE INTERNAL ENVIRONMENT
 The third step in the strategic planning
process involves the assessment of the
company’s strengths and weaknesses
 An internal analysis of strengths and
weaknesses will identify the unique skills
and resources that give an organization a
COMPETITIVE ADVANTAGE.
45

STEP 04: STRATEGIC ANALYSIS
 Once we become aware of threats and opportunities,
strengths and weaknesses of the organization , a
comprehensive analysis of these elements assists in
providing a realistic understanding of the
organization in relationship to its environment
 This comprehensive analysis is known as SWOT
analysis
 This analysis would assist in the DEVELOPMENT OF
STRATEGIES that make maximum advantage of
strengths and opportunities while minimizing the
negative effects of weaknesses and threats
46

STEP 05: DEVELOPING SPECIFIC STRATEGIES
 There are three levels of strategy: CORPORATE LEVEL, BUSINESS-
UNIT LEVEL AND FUNCTIONAL LEVEL DEVELOPING CORPORATE LEVEL STRATEGIES : large corporations with multi-
businesses as to how they manage and allocate resources amongst these
businesses. Helps the management in balancing resources with market
opportunities in each area of business. Top level managers are responsible and
look ahead for five years or longer Corporate Level, top mangers have two types of decisions to make when
formulating a strategy.
A. Develop a master plan called “grand strategy” which is consistent with the
overall direction of the organization
B. Develop a “portfolio strategy” that will determine the types of organization
activities and allocation or resources to these activities 47

CORPORATE LEVEL STRATEGIES A. GRAND STRATEGIES
48
 Comprehensive general strategy which provides the basis for strategic direction
that will accomplish the organization's long term goals. Three such strategies:
growth, stability, retrenchment (cutting cost)

CORPORATE LEVEL STRATEGIES B. PORTFOLIO
STRATEGY
 Conceptual techniques to assist top management of
diversified corporations to evaluate each of the
corporation's various businesses with respect to the
market place and internal resources and thus better
manage their portfolio of businesses
 WHEN ALL BUSINESSES UNITS HAVE BEEN EVALUATED, AN
APPROPRIATE STRATEGIC ROLE FOR EACH UNIT IS
DEVELOPED AND EACH ROLE IS INTEGRATED INTO AN
OVERALL STRATEGIC POLICY FOR ENTIRE ORGANIZATION
49

CORPORATE LEVEL STRATEGIES B. PORTFOLIO STRATEGY
50
 BCG MATRIX organizes businesses along two dimensions—business growth rate
and market share. Business growth rate pertains to how rapidly the entire
industry is increasing. Market share defines whether a business unit has a larger
or smaller share than competitors. The combinations of high and low market
share and high and low business growth provide four categories for a corporate
portfolio.

DEVELOPING BUSINESS- UNIT LEVEL STRATEGIES
 AFTER FORMULATING CORPORATE LEVEL STRATEGIES,
MANAGERS ATTEND TO BUSINESS LEVEL STRATEGIES FOR MULTI-
BUSINESS CORPORATION
 In formulating strategies, various business activities that produce a
particular type of product or service are grouped together and
treated as a single business unit and this unit is know as a
‘STRATEGIC BUSINESS UNIT’- ( SBU)
 Within the guidelines of the corporate level strategies, SBUs
develop their own strategies at the business unit level
51

DEVELOPING BUSINESS- UNIT LEVEL STRATEGIES
52
 A popular and effective model for formulating strategy is Porter’s competitive
forces and strategies. Michael E. Porter studied a number of business
organizations and proposed that business-level strategies are the result of
five competitive forces in the company’s environment

DEVELOPING BUSINESS- UNIT LEVEL STRATEGIES
53
 According to Porter there are three strategies that can be
adopted at the business level. They are:
 COST LEADERSHIP STRATEGY: this strategy seeks to attain lower
costs than the competitors by improving upon efficiency of
production, distribution and other organizational systems.
 DIFFERENTIATION: the second generic strategy is to
differentiate a firm's products or services from those of its
competitors.
 FOCUS: focus strategy involves special attention to a product or
a narrow line of products or to the segment of the market that
gives the company a competitive edge.

DEVELOPING FUNCTIONAL STRATEGIES
 A functional level strategy focuses on the major
functional areas of the company and is
formulated primarily to support business level
strategy
 These strategies mainly focus on Marketing,
Finance, Operations, HR, R and D, Information
systems
54

55

6. IMPLEMENTING STRATEGIES
 ONCE THE STRATEGY HAS BEEN DEVELOPED, MANAGEMENT FACES A
CHALLENGE OF IMPLEMENTING THE STRATEGY CORRECTLY AND WITH
SUPPORT OF ALL MEMBERS OF THE ORGANIZATION
 There has to be FIT BETWEEN THE STRATEGY AND THE
ORGANIZATIONAL PHILOSOPHY
 STRATEGIC IMPLEMENTATION IS THE MOST DIFFICULT PART IN
STRATEGY PROCESS
 It has to be implemented correctly and effectively
 This is the synchronization of the principal internal elements such as
Technology, Structure, leadership, HR, Information systems etc.
56

7. EVALUATION RESULTS
 Last step of the Strategic management process is to
MONITOR THE PROGRESS OF THE IMPLEMENTED
STRATEGY IN ORDER TO ENSURE THAT IT IS
OPERATING PROPERLY
 Monitoring involves establishing control mechanisms
so that the feedback from the actual
implementation of the strategic plan at each step
can be analyzed and evaluated
 If there are deviations and there should be
mechanism to correct such deviations 57

STRATEGIC PLANNING PROCESS
58
1. MISSION &
GOALS
4. STRATEGIC
ANALYSIS
5. DEVELOP
SPECIFIC
STRATEGIES
6. IMPLEMENT
STRATEGIES
7. EVALUATE
RESULTS
3. ORGANIZATION
STRENGTHS
& WEAKNESSES
2. EXTERNAL
ENVIRONMENT
( THREATS
AND OPPORTUNITIES)
FEEDBACKSTRATEGY FORMULATION STRATEGY IMPLEMENTATION

59

SESSION OUTCOMES
 Learned the theoretical aspects of planning,
forecasting and strategic planning
 Helped students to understand the usage of
theoretical knowledge in an organizational
context
60

Questions?
Thank you !
61