‘There is nothing more wasteful than becoming highly efficient at doing the wrong thing.’ Peter Drucker
Planning- Identifying and selecting appropriate goals and courses of action for an organization. Planning is necessary to give the organization a sense of direction and purpose. Can be used to coordinate and control the managers.
Strategy- decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals
Mission Statement- declaration of an organization’s purpose that identifies the organization’s products and customers and distinguishes the organization from its competitors (usually very generally written, but with a clear purpose)
Steps of planning:
Determining the mission and goals
Implementing strategy –allocating resources and responsibilities
Purpose, premises, values, directions
Strategy is the most general. Goal has to be evaluated – whether we are achieving it or not. It HAS to be concrete, measurable.
Purpose of plans goals:
-Plans and goals are neccesary for company to function OR
-Developing them is more important than plans and goals themselves
-they guide the organization
-you can’t plan without goals- good plan needs good goals
-good point of refference
Strategic goals- goals set by and for the top management.
TOP-DOWN – top management dictates what to do – strategy provides
BOTTOM-UP- strategy is being updated
INTERACTIVE- everyone is equal, common effort (THE BEST)
Strategic planing is a self-containing process (you also plan a strategy for planning a strategy)