02 <Goal Setting in Organizations>

Organizational Mission
An organizational mission, also
known as a mission statement, The
mission describes the organization’s
values, aspirations, and reason for
being, so the mission absolutely is
the organization’s existence
Microsoft: “Our mission is to
empower every person and every
organization on the planet to
achieve more.” TikTok “ Our mission
is to capture and present the world's
creativity, knowledge, and moments
that matter in everyday life.” Vivint:
“Vivint helps families live intelligently
in safer, smarter homes.”
Mission focus on several difficult
queries:
> What you do
> Who you do it for
> How you do it
> How it helps them
> Why did you get started
> What do you want to be know for
>>… (more and more)
Examples of organizational missions
 Company: A restaurant
  Purpose: Serving tasty home-style meals in a family-friendly
environment
 Plan: Providing large portions and a welcoming experience
 Organizational mission: "To provide you with an experience that
leaves your belly and heart full."

This restaurant's organizational mission suggests that dining with them is both
physically satisfying and emotionally pleasant.

Goals and Plans

Strategic goals (official goals) are
broad statements of where the
organization wants to be in the
future and pertain to the
organization as a whole, rather than
to specific divisions or departments.
Strategic plans are the action steps
by which an organization intends to
attain strategic goals
The outcomes that major divisions
and departments must achieve for
the organization to reach its overall
goals are called tactical goals.
Tactical plans are designed to help
execute major strategic plans and to
accomplish a specific part of the
company’s strategy.
Operational goals are specific,
measurable results that are
expected from departments, work
groups, and individuals.
Operational plans specify the action
steps toward achieving operational
goals and support tactical activities
Align Goals Using a Strategy Map
A strategy map is a visual
representation of the key drivers of
an organization’s success, because it
shows how specific goals and plans
in each area are linked and provides
a powerful way for managers to see
the cause-and-effects relationships
among goals and plans
04) Benefits and Limitations of
Planning
Benefits
- Provide a source of motivation
and commitment: Reduce
uncertainty for employees and
clarify what they should accomplish.
- Guide to action: Focuses attention
on specific targets and directs
employee efforts toward important
outcomes
- Guide resource allocation:
Planning helps managers decide
where they need to allocate
resources, such as employees,
money, and equipment
- Set a standard of performance:
Managers can measure whether
things are on-or off-track
Limitations:
- Creat a false sense of certainty:
Having a plan can give managers a
false sense that they know what the
future will be like
- Rigidity in a turbulent
environment: Planning can lock the
organization into specific goals,
plans, and time frames, which may
no longer apporiate
- Can get in the way of intuition
and creativity: Success often comes
from creativity and intuition, which
can be hampered by too much
routine planning
Enron scandal
Leadership is the main reason for
the fall of Enron, the 7th largest
company in the United States. The
top leaders and senior executives set
up a plan to hide debts and inflate
profits. Overall, the acts of the
Kenneth Lay and Jeffrey Skilling
created a culture of fraud and
cheating at Enron that permeated
the whole organization and
encouraged unethical behavior
among the employees
06) Innovative Approaches to
Planning
Set Stretch Goals for Excellence
Stretch goals are reasonable yet
highly ambitious goals that are so
clear, compelling, and imaginative
that they fire up employees and
engender excellence
Use Performance Dashboards
- Companies began using business
performance dashboards as a way
of executives to keep track of key
performance metrics
- Dashboards have evolved into
organizationwide systems that help
align and track goals across the
enterprise
Deploy Intelligence Teams
An intelligence team is 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
Top managers might form an
intelligence team to identify when
and how this might happen and how
it might affect the organization