Strategic plans. Detailed action steps mapped out to reach strategic goals. Issues – how to respond to changing conditions, to allocate resources, what actions should be taken to create unified and powerful organizationwide effort aimed at strategic goals. From 3-5 years and more.
Tactical plans. The means charted to support implementation of the strategic plan and achievement of tactical goals. 1-3 years. Developed by middle managers, who may consult lower-level managers before commitments to top managers. Generally more specific and concrete than strategic plans.
Operational plans. The means charted to support implementation of the tactical plans and achievement of operational goals. Less than 1 year. Developed by lower – first line managers in conjunction with the middle management levels. Spell out what must be accomplished over short time periods.
Organizational plans:
Single use: programs, projects, budgets
Standing plans: policies, standard operating procedures, rules.
Single use plans:
Aimed at achieving a specific goal that, once reached, will most likely not recur in the future.
Program: Comprehensive plan that coordinates a complex set of activities related to a major goal.
Project: a plan that coordinates a set of limited-scope activities that do not need to be divided into several major projects in order to reach a major non-reccuring goal.
Policy: a general guide that specifies the broad parameters within which organization members are expected to operate in pursuit of organizational goals.
Procedure: a prescribed series of related steps to be taken under certain recurring circumstances.
Strategic management and MBO process
MBO – a process through which specific goals are set collaboratively for the organization as a whole and every unit and individual within it; the goals are then used as a basis for planning, managing organizational activities, and rewarding contributions.
Six steps:
Develop overall organizational goals
Establish specific goals for various departments, subunits and individuals
Formulate action plans
Implement plans and maintain self-control
Review progress periodically
Appraise performance
Goals are based on the overall mission of the organization and address targets to be achieved by the organization as a whole (increase in market share, ROI). Essentially strategic goals set by top management.
Goals are set for various levels of org-n, so that cumulative affect achieved and lead to reaching overall goals. Begins – upper level managers formulate specific objectives, later developed in collaboration with managers at the next level.
Once goals are set – need to develop action plans, focused on methods (activities) necessary to reach the particular goals. Action plans – help assess the feasibility of reaching goals, identify problem areas, facilitate search for more efficient and effective ways to achieve objectives.
Once goals and plans are set – individuals should be given latitude (svoboda, samostoyatelnost) in carrying out their activities. Self-control is important.
To ensure that plans are being implemented as expected and goals are met. Provide good opportunity for checking performance to date, removing obstacles, solving problems, altering action plans.
Managers meet with each subordinate (after 1 year) to conduct an appraisal of performance over the cycle. Focuses on the extent goals are met, on shortfalls, reasons for them, and actions to be taken.
Strengths:
Aids coordination of goals and plans
Help clarify priorities and expectations
Facilitate vertical and horizontal communications
Fosters employee motivation
Weaknesses
Tends to falter without strong, continual commitment from top management
Need for considerable training of management
Can be misused as a punitive device
May cause an overemphasis of quantitative goals
Need: adequate support from top mngt; poor goal setting and communication skills among managers who must implement the system.
Strategic management
Strategies: large scale action plans for interacting with the environment inorder to achiev long-term goals.
Strategic management: a process through which managers formulate and implement strategies to optimize strategic goals achievement, given available environmental and internal conditions.
The process:
Identification of current mission and Strategic Goals
Develop specific strategies: corporate, business, functional
Carry out strategic plans
Maintain strategic control
Competitive advantage: a significant edge over the competition in dealing with competitive forces
Competitive analysis:
SWOT analysis: a method of analyzing an organization’s competitive situation that involves assessing organizational strengths (s), weaknesses (w), environmental opportunities (o) and threats (t).