Chapter 7 Managerial Planning and Goal Setting

Managers must understand no plan is perfect, but should grow and change to meet new conditions.
True
A desired future state that the individual or organization attempts to realize is a goal.
True
Goals specify today’s means; plans specify future ends.
False
Planning is the act of determining the organization goals and the means for achieving them.
True
Planning cannot tame a turbulent environment.
True
A plan tells “why” to achieve the goal.
False
The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and operational level.
True
Defining operational goals and plans occurs in the execution phase of the organizational planning process.
False
Tactical goals and plans are the responsibility of front-line managers and supervisors.
False
Operational plans and goals are those that focus on the outcomes that ma3or divisions and departments must achieve in order for the organization to reach its overall goals.
False
Tactical plans are designed to help execute the major strategic plans and to accomplish a specific part of the company’s strategy
True
A broad definition of the organization’s values, aspiration and reason for being, along with a recognition of the scope and operations that distinguishes the organization refers to a Business Plan.
False
Goals and plans provide a sense of direction and focus on specific targets and direct employee efforts toward important outcomes.
True
Tactical goals are specific, measurable results expected from departments, work groups, and individuals within the organization.
False
Top managers make the broad strategic plan and identify specific tactical plans.
False
Operational planning specifies plans for department managers, supervisors, and individual employees
True
Goals are typically stated in quantitative terms.
True
Providing innovative solutions to customer needs is a goal that would be placed in the internal business process category on a strategy map
False
A visual representation of the key drivers of an organization’s success and shows how specific goals and plans in each area are linked is called a strategy map.
True
An organization’s mission describes its reason for existence.
True
Building good relationships with suppliers and partners would be considered internal business process goals.
True
Strategic plans and goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole.
True
Management by objectives, single-use plans, and standing plans are all management planning approaches.
True
Goals are most effective when they are specific, measurable, challenging and linked to rewards.
True
Goals must be set for every aspect of employee behavior or organizational performance to be effective
False
In order for goals to be effective, they should be challenging but realistic.
True
Step 1 in Management by Objectives is to review progress.
False
An action plan defines the course of action needed to achieve the stated goals.
True
Managers believe they are better oriented toward goal achievement when MBO is used.
True
In step 1 of Management By Objectives, overall performance is appraised.
False
A key benefit of management by objectives is that it aligns individual and departmental goals with company goals
True
Standing plans define company responses to specific situations such as natural emergencies or competitive setbacks.
False
A major difference between rules and policies is that rules are broad in scope whereas policies are narrow in scope.
False
The goals should be easy, for employees to feel motivated, so that they can achieve them easily which in turn increases their motivation level.
False
Three critical planning methods are contingency planning, building scenarios, and crisis planning.
True
One of the biggest benefits of planning is that, in turbulent environments, plans create greater organizational flexibility.
False
Plans provide a standard of assessment
True
If Renae, manager at Leak Free Roofing, wanted to develop a contingency plan for Leak Free, she would need to look at factors such as new equipment, the economy, and the company workers’ compensation cases.
True
In a complex and competitive business world, traditional planning done by a select few is the only planning that works
False
Crisis plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions.
False
Some firms 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.
True
Prevention and preparation are the two stages of crisis management.
True
The ABC Corporation should create a crisis management group that is not cross-functional, but does work together well under pressure.
False
The CEO of Andre’s Autos, Inc. must do all of the planning for the company because that is the way to do things in today’s workplace.
False
Trend management is looking at trends and discontinuities and imagining possible alternative futures.
False
In centralized planning, managers at all levels work with planning experts to develop their own goals and plans
False
Managers work with planning experts to develop their own goals and plans in decentralized planning.
True
Stretch goals are typically so far beyond the current levels that people have to be innovative to find ways to reach them.
True
Sales in relation to targets is an example of a balanced scorecard metric.
False
Intelligence teams are useful when an organization confronts a major intelligence challenge.
True
____refers to a desired future state that an organization attempts to realize.(C)
a. Plan
b. vision statement
c. Goal
d. Mission statement
e. Idea
____ specify future ends and ____ specify today’s means.
(A)
a. Goals; plans
b. Plan; goals
c. Planning; organizing
d. Ideas; behaviors
e. Mission; vision
A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n)_____.(B)
a. goal
b. plan
c. mission
d. vision
e. objective
Of the strategic management functions, which is considered the most fundamental?(D)
a. Executi8ng
b. Analyzing
c. Controlling
d. Planning
e. Leading
The planning process starts with:(A)
a.a formal mission that defines the organization’s purpose.
b. tactical planning.
c. strategic planning.
d. operational planning.
e. controlling performance
_____ is the act of determining the organization’s goals and the means for achieving them(C)
a. Brainstorming
b. Organizing
c. Planning
d. Developing a mission
e. A blueprint
Which type of plan helps managers implement the overall strategic plan?(C)
a. Operational
b. Contingency
c. Tactical
d. Crisis
e. Corporate-level
The planning process begins with which of these?(B)
a. The development of operational goals
b. The development of a mission statement
c. Communication of goals to the rest of the organization
d. A company-wide meeting
e. Brainstorming
The ____is the basis for the strategic level of goals and plans which in turn shapes the ____, and ____ level.(D)
a. goal; mission, tactical
b. objective; operational, mission
c. operational goal; mission and tactical
d. mission; tactical, operational
e. tactical plan; operational, mission
____ is primarily responsible for strategic goals/plans.(D)
A. Middle management
B. Board of directors
C. Consultants
D. Top management
E. Lower management
____is primarily responsible for operational goals/plans.(E)
A. Middle management
B. Board of directors
C. Consultants
D. Top management
E. Lower management
Which of these is(are) primarily concerned with tactical goals/plans?(A)
A. Middle management
B. Board of directors
C. Consultants
D. Senior management
E. Lower management
Which of the following is not a step in the organizational planning process?(E)
a. Monitor and learn
b. Plan operations
c. Translate the plan
d. Develop the plan
e. Plan marketing tactics
Sherry is a first-line supervisor at Rooftop Corporation. She is most concerned with which level of goals?
a. Operational goals(A)
b. Tactical plans
c. Strategic goals
d. Mission statement
e. Vision
Which of the following is NOT a tool for executing a plan?
a. Management by objectives
b. Operations map(B)
c. Performance dashboards
d. Single use plans
e. Decentralized responsibility
A statement that identifies distinguishing characteristics of an organization is known as a(n):
a. goals statement.
b. values statement.
c. income statement.
d. mission statement.(D)
e. competitive-edge statement.
Which of these are described by mission statements?
a. Corporate values
b. Product quality
c. Location of facilities
d. All of these(D)
e. Done of these
“We respect our employees and value their diversity” is an example of a statement you are most likely to find in the organization’s _____.
a. mission(A)
b. strategic goals
c. tactical goals
d. strategic plans
e. tactical plans
“We seek to become the premier business school in the west” is an example of a statement you are most likely to find in the organization’s _____.
a. tactical goals
b. operation goals
c. mission(C)
d. tactical plans
e. operational plans
____ refers to a broadly stated definition of the organization’s basic business scope and operations that distinguishes it from similar types of organizations.
a. Mission statement(A)
b. Goal statement
c. Management by objective
d. Goal setting
e. Corporate competitive-value statement
At the top of the goal hierarchy is:
a. strategic goals
b. tactical goals.
c. operational goals
d. a mission(D)
e. employee goals
____are the broad statements of where the organization wants to be in the future.
a. Operational goals
b. Tactical goals
c. Strategic goals(C)
d. Operational goals
e. Tactical plans
The official goals of the organization are best represented b& the ____.
a. strategic goals(A)
b. tactical goals
c. operational goals
d. competitive goals
e. none of these
A long-term time frame is most closely associated with:
a. operational plans
b. tactical plans
c. strategic plans(C)
d. mission plans
e. tactical goals.
____ are called the action steps by which an organization intends to attain its strategic goals.
a. Tactical goals
b. Operational goals
c. Tactical plans
d. Operational plans
e. Strategic plans(E)
____goals lead to the attainment of ____ goals, which in turn lead to the attainment of _____ goals.
a. Operational; strategic; tactical
b. Tactical; operational; strategic
c. Strategic; tactical; operational
d. Operational; tactical; strategic(D)
e. Done of these
Sarah is a middle manager at Stylin’ Snea5ers Corporation. She is most likely responsible for the achievement of _____ goals
a. operational
b. tactical(B)
c. strategic
d. lower-level
e. top-level
Goals that define the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals is called:
a. strategic goals
b. tactical goals(B)
c. operation goals
d. a mission on
e. a plan
Silver Star Automobiles holds monthly planning and operational reviews to ensure that it is on track for meeting organizational goals. This involves which stage of the organizational planning process?
a. Developing the plan
b. Translating the plan
c. Plan operations
d Executing the plan
e. Monitoring and learning(E)
The organization’s reason for existence is known as the organization’s _____.
a. value
b. vision
c. mission(C)
d. goal
e. service
Roxanne is a manager at Geronimo Gaming. She recently attended a seminar on goal setting. She wishes to use goals to provide a sense of direction to her staff. She is using goals as
a. a way to legitimize her department.
b. a source of motivation.
c. a standard of performance.
d. a guide to action.(D)
e. a way to impress others.
Which of the following refer to specific results expected from individuals?
a. Operational goals(A)
b. Tactical goals
c. Strategic goals
d. Operational plans
e. Mission statements
Which of the following represent plans developed at the organization’s lower levels that specify action steps toward achieving operational goals and that support tactical planning activities?
a. Tactical plans
b. Strategic plans
c. Operational plans(C)
d. Supervisory plans
e. Organizational plans
The _____ is the department manager’s tool for daily and weekly operations.
a. conventional goal
b. strategic goal
c. strategic plan
d. operational plan(D)
e. targeted plan
Which of the following is a visual representation of the key drivers of an organization’s success, showing the cause-and-effect relationships among goals and plans?
a. Operational plan
b. Gantt chart
c. Strategy map(C)
d. SWOT analysis
e. Strategic plan
Managers use a____ to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively.
a. strategic goals
b. operational goals(B)
c. growth goals
d. financial results
e. internal business process goals
According to the strategy map described in chapter 7, which of the following is NOT a type of goal
(E)
a. Financial performance goals
b. Customer service goals
c. Internal business process goals
d. Learning and growth goals
e. External business process goals
In developing a strategy map for her interior design business, Carla has decided to promote employee development by providing online training tools. This involves goals in which strategy map category?
a. Financial performance goals
b. Learning and growth goals(B)
c. Internal business process goals
d. Customer service goals
e. Supply chain goals
Kate is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales for the current quarter. She is unhappy because she knows that the most any salesperson has sold in one quarter in the past is $150,000.Her goal of $265,000is probably:
a. not specific and measurable
b. not realistic(B)
c. irrelevant
d. lacking a specific time period
e. does not cover key result area
You are violating which of these goal characteristics when you attempt to create goals for ever& aspect of employee behavior?
a. Specific and measurable
b. Linked to rewards
c. Defined time period
d. Cover key result areas(D)
e. Challenging but realistic
Darren set goals for each of his employees. Each employee ended up with at least twenty-five goals. This process violates which of the following criteria for effective goals?
a. Specific and measurable
b. Challenging but realistic
c. Covers key result areas(C)
d. Defined time period
e. Linked to rewards
Which of these is lacking in the goal “profits should be increased in the coming year?”
a. Specific and measurable(A)
b. Challenging but realistic
c. Covers key result areas
d. Defined time period
e. None of these
All of the following are characteristics of effective goal setting except:(B)
a. goals should be challenging but not unreasonably difficult
b. goals should be set for every aspect of employee behavior
c. specific and measurable
d. cover key results areas.
e. linked to rewards
The ultimate impact of goals depended on the extent to which goal achievement is linked to:
a. rewards
b. salary increases
c. promotions
d. all of these(D)
e. salary increases and promotions
Focusing manager and employee efforts on activities that will lead to goal attainment is a benefit of what management method?(D)
a. Tactical planning
b. Contingency planning
c. Single-use planning
d. Management by objective
e. Management by walking around
____ is the first step in the MBO process.
a. Setting goals(A)
b. Developing action plans
c. Appraising overall performance
d. Reviewing progress
e. None of these
Which of these is a method of management whereby managers and employees define goals for every department, pro3ect, and person and use them to monitor subsequent performance?
a. Organizational planning
b. Management b objectives(B)
c. Goal setting
d. Mission development
e. Vision development
High Fence Corporation is currently implementing an MBO program. Managers and employees jointly set objectives and develop action plans, and goal achievement is evaluated on an annual basis. High Fence is missing which major activity that must occur in order for MBO to be successful?
a. Developing a mission statement
b. Developing tactical goals
c. Reviewing progress(C)
d. Reviewing operational plans
e. None of these
In using MBO, objectives should be set by the:(C)
a. supervisor
b. employee
c. supervisor and the employee jointly
d. accounting department
e. top management
Frostburg Fireplaces has used MBO for the past year. Top management just finished evaluating overall performance. The next step in the MBO process should be:(B)
a. to develop new action plans.
b. to develop new objectives based on the review of last year’s performance
c. to begin a new MBO “cycle”, using the same objectives as last year.
d. to wait several months to allow information to be digested.
e. none of these.
____ is the final step in the MBO process.(A)
a. Appraise overall performance
b. Develop an action plan
c. Review progress
d. Set goals
e. Conduct periodic checkups
Which of the following is NOT one of the benefits of MBO?
(D)
a. Performance can be improved at all company levels.
b. Employees are motivated.
c. Efforts are focused on activities that will lead to goal attainment.
d. Operational goals are able to displace strategic goals.
e. Individual and department goals are aligned with company goals.
Which of these is true about single-use plans?(A)
a. They are developed to achieve a set of goals that are unlikely to be repeated in the future.
b. They are used to provide guidance for tasks performed repeatedly within the organization.
c. They define plans that define company responses to specific situations, such as emergencies or setbacks.
d. They are most important in the organizations.
e. None of these
Standing plans:(B)
a. are developed to achieve a set of goals that are unlikely to be repeated in the future.
b. are used to provide guidance for tasks performed repeatedly within the organization.
c. define company responses to specific situations, such as emergencies or setbacks.
d. are the most important in the organizations.
e. are none of these.
A project is an example of a :(D)
a. policy
b. standing plan
c. procedure
d. single-use plan
e. rule
Cheyenne Creamery requires that all absent employees bring a note from their doctor when returning to work. This is an example of a:
a. single- plan use
b. standing plan.(B)
c. program.
d. procedure.
e. project
___ define boundaries within which to make a decision.
a. Programs
b. Policies(B)
c. Rules
d. Procedures
e. Projects
An example of a _____ is a statement supporting the organization’s efforts in the area of sexual harassment.
a. procedure
b. rule
c. policy(C)
d. single-use plan
e. program
“No food and/or drink in the classroom” is an example of a ____.
a. procedure
b. rule(B)
c. policy
d. single-use plan
e. project
Which of the following is a commonly-cited limitation of planning?(E)
a. Plans limit employee motivation and commitment
b. Plans make resource allocation more difficult
c. Plans make it more difficult to measure standards of performance
d. Plans boost intuition and creativity
e. Plans can create a false sense of security.
One major limitation of goals and plans is:(B)
a. goals and plans guide resource allocation.
b. goals and plans may cause rigidity in a turbulent environment
c. goals and plans decrease employee motivation.
d. goals and plans decrease employee commitment.
e. none of the above.
Which of these are true about contingency plans?(C)
a. They are developed to achieve a set of goals that are unlikely to be repeated in the future.
b. They are used to provide guidance for tasks performed repeatedly within the organization.
c. They define company responses to specific situations, such as emergencies or setbacks.
d. They are most important in the organizations.
e. Done of these
Contingency plans are also referred to as:(C)
a. standing
b. plans
c. scenarios
d. procedures
e. operationally tactical plans
____ involves looking at trends and discontinuities and imagining possible alternative future to build a framework within which unexpected future events can be managed.
a. Scenario building(A)
b. Crisis planning
c. Contingency planning
d. Trend management
e. Caution planning
Jerrica, a finance manager at LRV industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of plan is known as _____.
a. contingency planning(A)
b. financial planning
c. crisis planning
d. consumer protection
e. environmental planning
____enables firms 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
a. Incident planning
b. Contingency planning
c. Strategic planning
d. Crisis planning(D)
e. Emergency planning
The two stages of crisis planning include:(C
a. prevention and control
b. planning and leading
c. prevention and preparation
d. preparation and control
e. leading and organizing
The crisis management plan should be a _____ that specifies the actions to be taken, and by whom, if a crisis occurs.(E
a. vague, verbal plan
b. detailed, verbal plan
c. long, difficult to read plan
d. vague, written plan
e. detailed, written plan
Which of the following is NOT involved in the stages of crisis planning?(C)
a. Setting up effective communication systems
b. Creating detailed crisis management plans
c. Investigating all stakeholders
d. Designating a crisis management team and spokesperson
e. Building relationships
Traditionally, if Stephanie, CEO of Butterfly Pillows, needed to conduct corporate planning, it would be performed by all of the following except:(B)
a. central planning departments
b. decentralized planning groups.
c. top executives
d. consulting groups
e. the president of the company
The traditional approach to corporate planning was to:(B)
a. have a decentralized planning staff.
b. have a centralized planning department
c. set up a planning task force.
d. set up planning committees.
e. use TQM approach.
Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis?(D)
a. Building relationships with neighboring businesses
b. Detecting signals from the natural environment
c. Polling employees on the likelihood of an environmental disaster
d. Designating a crisis management team in the event of an environmental disaster
e. Dismantling the company’s ties to the external media
Alabama Airlines has three planning specialists who help division managers develop their own division plans. Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function?
a. Centralized planning department
b. Decentralized planning staff(B)
c. Planning task force
d. Centralized planning committee
e. TQM
___are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence
a. Operational goals
b. Stretch goals(B)
c. Strategic goals
d. Tactical goals
e. Bottom-up goals
Sam is in charge of strategy control at Lanser’s, a large clothing retailer. He regularly tracks sales in relation to targets, number of products on back order, and percentage of customer service calls resolved within specified time periods. These metrics are known as
a. financial indicators.
b. tactical goals.
c. performance dashboards.(C)
d. balanced scoreboards.
e. operational standards.
A(n) ____ is a cross-functional group of managers and employees who work together to gain a deep understanding of a specific business issues, with the aim of presenting insights related to that issue.
a. espionage team
b. functional team
c. task force.
d. project team
e. intelligence team(E)
At Save-tech, Sophia, director of marketing, is a member of a cross-functional group of managers and employees. The purpose of the group is to gain a deep understanding company’s competitive environment and periodically present these findings to top management. Sophia is involved in what type of team?
a. Intelligence team(A)
b. unctional team
c. Task force.
d. Project team
e. Espionage team
Managers at WXYZ just announced that the new management program would be focused around MBO concepts. Katelynn Kareem had been a manager at WXYZ for ten years and she was not certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company’s objectives, but she also knew her employees well enough to know that some didn’t share the same commitment.
In the MBO process, after the first step of setting objectives is accomplished, the next step that Eatelynn should expect is:
a. reviewing prog
b. appraising overall performance.
c. developing action plans.(C)
d. having a company party to celebrate.
e. none of these.
What can Katelynn expect to be doing during the final step of the MBO process?(C)
a. Setting goals
b.Reviewing progress
c. Appraising overall performance
d. Defining mission
e. Developing action plans
Katelynn can anticipate enjoying the advantages of MBO which include:(E)
a. increased orien
b. performance can improve at all compan& levels.
c. employees are more motivated.
d. increased orientation toward goal achievement and motivation.
e. all of these.
A(n)____ is a desired future state that the organization attempts to realize.
goal
A(n) ____ is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions.
plan
The act of determining the organization’s goals and the means for achieving them is referred to as ____.
planning
____ and plans are the responsibilities of middle managers
Tactical goals
Operational plans that focus on specific tasks and processes that help to meet tactical and strategic goals are developed by ______ managers and supervisors
front-line
________describes the organization’s reason for existence.
Mission
A(n) _____ is a broadly stated definition of basic business scope and operations that distinguishes the organization from others of a similar type.
mission statement
Broad statements describing where the organization wants to be in the future are called _____.
strategic goals
_____define the action steps by which an organization intends to attain its strategic goals.
Strategic plans
Goals that define the outcomes that major departments must achieve in order for the organization to reach its overall goals are known as ______ goals.
tactical
_____ are designed to help execute major strategic plans and to accomplish a specific part of the company’s strategy.
Tactical plans
The specific results expected from departments, work groups, and individuals are the _____goals.
operational
_____plans are developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans.
Operational
_____ is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.
Management by objective
Managers believe that they are better oriented toward goal achievement when _____ is used.
management by objectives
____ plans are used to provide guidance for work-related tasks that are performed repeatedly within the organization.
Standing
____ plans are developed to achieve a set of goals that are not li5el& to be repeated in the future.
Single-use
____ are ongoing plans that are used to provide guidance for tasks performed repeatedly within the organization.
Standing plans
Plans that define company responses to specific situations, such as emergencies, setbacks, or unexpected conditions are called ____ plans.
contingency
A special type of contingency plan that is used when events are sudden and devastating and require immediate response is called ____.
crisis management planning
The crisis management plan should be a(n) ____ that specifies the actions to be taken, and by whom, if a crisis occurs
detailed, written plan
A group of planning specialists assigned to major departments and divisions to help managers develop their own strategic plans is called ____.
decentralized planning staff
List the five characteristics of effective goals.
1. specific and measurable
2. they should cover key result areas
3. they should be challenging but realistic
4. they should have a defined time period
5. they should be linked to rewards
List the four major activities that must occur in order for MBO to succeed.
1. Set goals
2. develop action plans
3. review progress
4. appraise overall performance
List four reasons why planning generally positively affects a company’s performance?
Explicit goals and plans can serve the following functions: resource allocation, source of motivation and commitment, guide to action, rationale for decisions, and set a standard of performance
What are the two stages of crisis management?
Prevention and Preparation
Compare the four levels of goals and plans.
The highest level is the mission statement, which defines the organization’s basic business scope and operations and specifies its reasons for existence. The second level is the level of strategic goals and plans. Those pertain to the organization as a whole and specify where the organization wants to be in the future. The third level is the tactical level, with a focus on outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. The fourth and lowest level is the operational level, involving specific measurable results for departments, workgroups, and individuals.
Briefly define the characteristics of an effective goal.
Effective goals are precisely defined and allow for measurable performance. They focus on the key results
area contribute most to desired performance. They should be challenging but not unreasonably difficult. Finally, they should specify the time period that the& cover and the& should be tied to valued rewards
List and define the four major activities that must occur in order for management by objectives (MBO) to succeed.
The first step is setting goals. The setting of goals involves employees at all level’s and should incorporate the principles of effective goal setting. Goals should be jointly determined by manager and employee, so as to increase the employee’s level of commitment. The second step is developing action plans. These action plans will specify how the goals are to be achieved. Next progress review is important to make sure that the action plans are working. They maybe formal or informal and the action plan should be changed if necessary. The last step is to determine if the goals have been achieved within the specified time period. This appraisal should factor into the setting of the next period’s goals, allowing for feedback into the setting of the next set of goals.
In what ways do plans and goals benefit an organization?
Plans and goals benefit the organization in several ways. First they provide legitimacy and a reason for existence. They also provide a source of motivation and commitment, provide guides for action and decision making, and they set a standard of performance.
List three innovative approaches to planning.
Set stretch goals for excellence, use performance dashboards, and deploy intelligence teams.
Decentralized planning
An approach where top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans.
Contingency planning
Identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions.
Goal
A desired future state that the organization wants to realize.
Intelligence team
A cross-functional group of people who work together to gain a deep understanding of a specific competitive issue and offer insight and recommendations for planning.
Management by means (MBM)
An approach that focuses people on the methods and processes used to attain results, rather than on the results themselves.
Management by objectives (MBO)
A method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.
Mission
An organization’s purpose or reason for existence.
Mission statement
A broadly stated definition of the organization’s basic business scope and operations that distinguishes it from similar types of organizations.
Operational goal
A specific, measurable result that is expected from departments, work groups, and individuals.
Operational plan
Specifies the action steps toward achieving operational goals and supports tactical activities.
Plan
A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals.
Scenario building
An approach where managers look at trends and discontinuities and imagine possible alternative futures to build a framework within which unexpected future events can be managed.
Single-use plan
A plan that is developed to achieve a set of goals that is unlikely to be repeated in the future.
Standing plan
An ongoing plan used to provide guidance for tasks that occur repeatedly in the organization.
Strategic goal
A broad statement of where an organization wants to be in the future. Pertains to the organization as a whole rather than to specific divisions or departments.
Strategic plan
Action steps by which an organization intends to attain strategic goals.
Strategy map
A visual representation of the key drivers of an organization’s success, showing the cause-and-effect relationship among goals and plans.
Stretch goal
A reasonable yet highly ambitious and compelling goal that energizes people and inspires excellence.