TACTICAL PLANNING. SETTING OBJECTIVES

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TACTICAL PLANNING. SETTING OBJECTIVES

• This consists of
• a). Setting objectives for each operating unit
  and the achievement of operational goals
• b)The development of action steps and activities
  to achieve the units objectives.
• c) The development of detailed budgets by each
  operating unit

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SETTING OBJECTIVES

• Definitions A Goal
• A goal is an end, a result, not just a task or
  function to be formed. It describes the
  objectives of the organization
• It is
• Something to be achieved,
• A criterion of success,
• Something tangible,
• A condition we want to achieve and is
  measurable, and valuable.
• It is something we are motivated toward.
• It is concrete and explicit, definitive and
  desirable, and pre-determined

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SETTING OBJECTIVES

• Objectives guide our actions and helps us plan
• It can be long range or short range
• Long-range goals (called objectives) help clarify
  our short-term goals.
• Major goals determine minor goals and the present
  is determined by the future---not the past.

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Goal Setting

• Goal setting can be defined as the establishment
  of a relationship between where we are, and where
  we are going

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Requirements for Goal Setting

1. The first requirement is a statement or
   statements expressing your ultimate aims.
2. Such statements should include the idea of
   development to the fullest extent possible.
3. The specific goals to support the stated purpose
   should be described in terms of short or long
   range
4. The importance of these goals must be determined,
   and goals must be ranked by the most important
   first, etc.
5. Strategies must be crafted for achieving these
   goals

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Requirements for Goal Setting

• 6. Action plans for each specific goal must be
  developed
• 7. Performance standards and measurement criteria
  should be developed.
• 8. Anticipated problems should be stated and
  alternative approaches to goal achievement should
  be defined
• 9. The resources required to carry out the
  planned action must be specified

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CATEGORIES OF OBJECTIVES

• Establishing Long-and Short-Range Objectives
• Long Range Objectives specify the results that
  are desired in pursuing the organization's
  Mission and normally extend beyond the current
  fiscal year
• Short Range Objectives are performance targets,
  normally of less than one year's duration, that
  are used by management to achieve the
  organization's long-range objectives.

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SETTING OBJECTIVES

• Objectives can be categorized as follows
• a. Growth
• b. Profitability
• c. Service to customers, clients, or other
  recipients
• d. Employee needs and well-being
• e. Social responsibility

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SETTING OBJECTIVES

• Objectives are determined by the interaction
  among the following factors
• a. Present condition of the organization as
  determined by an internal organizational
  analysis Strength/Weaknesses
• b. External environment of the organization as
  determined by competitive analysis, environmental
  scanning, and environmental forecasting
  Opportunities/Threats
• c. Corporate culture of the organization.
  Corporate Culture is the values that set a
  pattern for an organization's activities and
  actions.

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SETTING OBJECTIVES

• Objectives should be SMART
• Specific
• Measurable
• Achievable
• Reasonable
• Time Bound

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SETTING OBJECTIVES

1. Make your goals specific and measurable with
   deadlines
2. Have short and long-term goals
3. Dont set yourself up for failure. If you aim too
   high, you are dooming yourself to defeat.
4. Dont be lazy. Dont set goals that are easily
   achieved. Challenge yourself

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SETTING OBJECTIVES

• 5. Be relevant. Goals should help you achieve a
  specific aim.
• 6. Be patient and persistent
• 7. Review your goals consistently.
• Flexibility is a crucial component of goal
• setting

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GAP ANALYSIS

• 1. Organisations evaluate the difference
• between their current position and
  desired future position through gap analysis.
• 2. As a result the organization can develop
  specific strategies and allocate resources to
  close the gap and achieve its desired state.

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Gap Analysis

• Gap Analysis assist in determining
• Where are we now?
• Where do we want to be at an agreed point in
  time?
• Where are we likely to be at the agreed point in
  time?
• What is the extent of any gap between (a) and (b)?

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STRATEGIC ANALYSIS

• To determine where we are now, the strategist
  must analyze the organizations situation in 5
  areas
• How well is the present strategy working?
• What are the organizations strengths,
  weaknesses, opportunities, and threats?
• Is the organization competitive on cost/other
  issues?
• How strong is the organizations competitive
  position?
• What strategic issues does the organization face?

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THE MASTER STRATEGY

• Definition
• The Master Strategy determines the direction in
  which the organization is going to move in order
  to achieve its mission.
• It is the driving force of the organization

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ASSESING THE MASTER STRATEGY

• Is the master strategy likely to result in the
  target being achieved?
• Does it make use of the org.s strengths and does
  it reinforce them?
• Does it rely on the org.s weaknesses, and does
  it do anything to reduce them?
• Are all the major threats avoided, reduced? If
  not, are there adequate contingency plans?
• What major opportunities are exploited?

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EIGHT OPERATIVE STRATEGIES

1. Growth Strategies
2. Risk reducing Strategies
3. Diversification Strategies
4. Product/service Strategies
5. Market Strategies
6. Organization Strategies
7. Facilities Strategies
8. Financial Strategies

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OPERATIVE STRATEGIES

• Does it contribute to the proposed master
  strategy?
• Is it likely to show a return on investment that
  exceeds the companys expected return?
• Is its risk profile acceptable?
• Does it make use of or reinforce strategic
  strengths?

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OPERATIVE STRATEGIES

• Does it rely on weaknesses or do anything to
  reduce them?
• Is it in accordance with organizations morals?
• Is it consistent with other operative strategies?
• Does it exploit major opportunities?
• Does it avoid, reduce or mitigate the major
  threats?

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KEY SUCCESS FACTORS

• What factors are deemed to be critical to the
  successful implementation of the strategic plan?
• CORE COMPETENCIES
• What does the organization do especially well in
  comparison to its competitors?
• Core competencies are the cornerstone of
  strategies.

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CRITICAL SUCCESS FACTORS

• Critical Success Factors are those factors that
  are essential for the success of the organization
  to achieve its objectives.

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