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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 unit’s 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

1. 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. Don’t set yourself up for failure. If you aim too high, you are dooming yourself to defeat.

4. Don’t be lazy. Don’t 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:

1. Where are we now?

2. Where do we want to be at an agreed point in time?

3. Where are we likely to be at the agreed point in time?

4. 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 organization’s situation in 5 areas

1. How well is the present strategy working?2. What are the organization’s strengths, weaknesses,

opportunities, and threats?3. Is the organization competitive on cost/other issues?4. How strong is the organization’s competitive position?5. 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

1. Is the master strategy likely to result in the target being achieved?

2. Does it make use of the org.’s strengths and does it reinforce them?

3. Does it rely on the org.’s weaknesses, and does it do anything to reduce them?

4. Are all the major threats avoided, reduced? If not, are there adequate contingency plans?

5. What major opportunities are exploited?

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EIGHT OPERATIVE STRATEGIES

1. Growth Strategies2. Risk reducing Strategies3. Diversification Strategies4. Product/service Strategies5. Market Strategies6. Organization Strategies7. Facilities Strategies8. Financial Strategies

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OPERATIVE STRATEGIES

1. Does it contribute to the proposed master strategy?

2. Is it likely to show a return on investment that exceeds the company’s expected return?

3. Is its risk profile acceptable?4. Does it make use of or reinforce strategic

strengths?

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OPERATIVE STRATEGIES

1. Does it rely on weaknesses or do anything to reduce them?

2. Is it in accordance with organizations morals?

3. Is it consistent with other operative strategies?

4. Does it exploit major opportunities?5. 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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