Running head: PLANNING FOR LONG-TERM SUCCESS 1

PLANNING FOR LONG-TERM SUCCESS

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Abstract
Planning is the first step towards the running of a successful organization. The first and most
crucial step in the entrepreneurial journey is the ability to identify a need and work towards
fulfilling it. Once a need is there together with a viable market supporting structures can be
built that enhance and move the organization towards set goals and objectives. At every stage
of the organizational development process are hurdles that need to be overcome through the
implementation of strategies that evaluate and monitor the progress made by the organization
as it transitions through the different stages of its growth.
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PLANNING FOR LONG-TERM SUCCESS

Long term planning is a strategic tool used in coming up with a framework on which

the core values and objectives are fulfilled. Organizational growth and development comes

from successful planning that maps the path an organization takes in achieving its goals.

Describe the six (6) developmental tasks that are necessary for long-term success.

The six fundamental developmental tasks that an organization should undertake for its

success include first and foremost the identification and defining of a viable market niche in

identifying the niche there should be an identified need for a marketable service or product. A

well-positioned company will have a sustainable competitive edge in the market This

involves identifying you customers and how best to meet their needs. The second task is to

develop the product or services for the identified market which also includes analysis of the

customers in the targeted market. For a production firm this includes designing of the

manufacturing processes and with a service firm that means coming up with a system for the

provision of services to the customer. Resource acquisition then takes place, after to the

successful identification of the market need and moving towards fulfilling it. The resources

needed include the physical, financial and human resources. Provision should be made for

the future of the venture in order to withstand the pressure of the present and future increases

in demand for the product or service. The fourth critical task is the development of the day to

day operations which includes accounting, billing collection, advertising, personnel recruiting

and training, sales, production, delivery and related systems. (Marc J. Epstein, 2016).

Development of management systems is a task that is essential for long term viability. The

systems include planning i.e. budgeting and contingency planning, organizing and controlling

and most importantly coming up with a management structure that can fulfil the business

strategy. Lastly the development of a corporate culture, societies have their own unique ways

of doing things. An organization has to have a culture which is made up of shared values,
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beliefs and norms. Shared values are reflected in product quality, customer service and

treatment of employees. Beliefs are the ideas that people hold about themselves and the

organization they are in and norms are known non written rules that govern interactions

between people.

Discuss the keys to success in developing Stage I and Stage II organizations. Provide an

example of a successful company in each stage.

Stage I is the critical starting point where there is a new venture and markets and

products are identified, at this stage it is essential to consider viability of the venture and its

where we have the proof of the business concept which is very critical to the survival of the

business. Companies like EBay successfully went through stage I by enabling the buying and

selling of goods over the internet. At Stage II the business concept has been proved valid. The

organization must now acquire resources and develop systems that are required for its

growth. For an organization to be successful at this stage it needs infrastructure that will

enable it to carry out its day to day functions effectively and efficiently. Without proper

infrastructure that matches the organization’s size they will be increased “growing pains”

which hinder the growth of the organization. At this stage the classic entrepreneurial skills

are crucial, a long term vision and resilience. Apple successfully went past stage two with a

huge revenue but infrastructure that did not match its growth.

Stages I and II represent the entrepreneurial phase of organizational

development while Stage III represents the professional management phase. Discuss the

differences between an entrepreneurship and a professionally managed organization.

As the organization is now expanding there is need for a qualitative change in ow the

organization operates. During the entrepreneurial phase the organization is being operated

with a considerable degree of informality (Eric G. Flamholtz, 2015). In a professionally

managed organization profit is an explicit goal that has to be met whereas in the
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entrepreneurial phase it is a byproduct of the incoming revenue. Planning involves strategic

planning, contingency planning and operational planning. Entrepreneurial management has

informal planning with no specific objectives, targets or measurements. The management and

leadership development of a professional organization identifies the requirements for

development and then designs systems to meet the needs as compared to ad hoc training that

is mainly made up of on the job training. In Entrepreneurial management the organization

leans towards major innovations with willingness to take great risks unlike when there is

professional management, risks are well calculated and innovation is taken in incremental

steps. Also the organizational culture is well defined at this point.

Discuss the keys to success in developing a Stage III organization and a critical

challenge that must be met if an organization is to make the transition from an

entrepreneurship to a professionally managed organization.

The keys to success in developing a stage three organization is to have well defined

structures and roles within the organization. At this stage goals and a clear vision should be

set as to where the organization should be. Strategic planning comes into effect in order to

maintain the viability of the organization.as managers with adept knowledge of good

leadership and organizing skills stir the organization towards success. A critical challenge at

this stage is balancing out the entrepreneurial mindset with the professional management of

the organization. Some entrepreneurs believe that professional management brings about

bureaucracy, but as the organization expands there is need to have well defined structures that

can help the organization to survive past stage III;

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Conclusion

In conclusion for an organization to successfully transition from one developmental

stage to another they should be evaluation and assessment of each task in the developmental

phases, which leads to planning for the next phase and coming up with the most effective

ways of ensuring the success of the organization. Clearly setting out the organizational goals

and objectives which need to be fulfilled.

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In-Text Citations

 During the entrepreneurial phase the organization is being operated with a

considerable degree of informality (Eric G. Flamholtz, 2015)

 ……. accounting, billing collection, advertising, personnel recruiting and training,

sales, production, delivery and related systems. (Marc J. Epstein, 2016). According to

Jones (1998),

References

Books

Eric G. Flamholtz, Y. R. (2015). Growing Pains: Building Sustainably Successful

Organizations. John Wiley & Sons.
Marc J. Epstein, M. M. (2016). Advances in Management Accounting. Emerald Group
Publishing.