Lecture 5

Planning, Controlling and Strategy

Link of planning to plan SMART Goals Steps in planning process Tool for planning Steps in controlling process Types of control Steps in strategic management process Individual exercise

Link of Planning to Plan

Plan to increase sales Planning
Content: 1. Objectives & SMART goals 2. How to achieve goals How to make a plan Plan is the result of planning

Which one do you make first?

SMART Goals
S = Specific M = Measureable A = Achieveable and Stretch R = Relevant T = Timely

Steps in Planning Process

Performance 1. Define SMART Goals (Where do we want to go?)

5. Implement plan and evaluate result 4. Choose the best alternative to achieve the goals (How do we go there?)

3. Identify the barrier (What are the barriers?)

2. Evaluate current result (Where are we now?)

Time

Tool for Planning: SWOT Analysis and Actions

Strengths-S
List Strengths -------------------------------------------------------------

Weaknesses-W
List Weaknesses __________________ __________________

Opportunities-O
List Opportunities _________________ ________________ _________________ _

SO Actions
Use strengths to take advantage of opportunities

WO Actions
Overcome weaknesses by taking advantage of opportunities

Threats-T

ST Actions
Use strengths to avoid threats

WT Actions
Minimize weaknesses and avoid threats

List Threats _________________ _________________

Steps in Controlling Process

Objectives & goals from a PLAN

Check objectives & standards

Measure actual performance

Compare results with objectives and standard

Take corrective action as needed

Type of Control
Sub-process Process

Business process / activity

Input 1 2 3 4 5 6 7 8 Output

Feed forward control

Concurrent control

Feed back control

Competitive Strategy
Wealthy Profit Revenue

Uniqueness Capability

Steps in Strategic Management Process

Strategy formulation
Creating strategies

Strategy implementation
Putting strategy into action

Analyze inIdentify ternal &external vision,mission environment and objectives (SWOT)

Choose strategy

Implement strategy

Evaluate result (strategic control)

1. Determine SMART Goals 2. Evaluate the current result 3. Identify the barrier SWOT Analysis & Action (Tool to help in finding 2, 3 and 4) 4. Choose the best alternative to achieve the goals Identify feed forward, concurrent and feed back control

PLAN

CONTROL