Management Basics |
Planning in the organization |
A for-profit example – Nexen Inc. (Oil and Gas)
Our mission
Nexen’s mission is to grow value responsibly.
Our vision
In pursuing this mission, our vision is to be the pre-eminent, global, independent energy producer in North America.
We grow our business to be successful and sustainable by engaging resourceful people, capitalizing on superior assets and innovation, and operating in a socially responsible manner.
http://www.nexeninc.com/en/AboutUs/IntegrityAndCompliance/OurCulture.aspx
Another for-profit example – Google (a simple one!)
Google’s mission: to organize the world’s information and make it universally accessible and useful.
http://www.google.com/corporate/
4.9Action/implementation plan
The questions that get asked here are “how are we going to get there?”, “what do we have to do to get there?” and “who is going to do what?” In other words, we start to develop the specific action plan to reach the strategic goals established. Issues such as structure, staffing, monetary needs, funding, timetable, specific responsibilities and measurement tools can be addressed.
4.9.1Example of action plan
Using the example from the previous section, here is a sample of their action plan
What? |
Who? |
How?/When? |
Develop new products. |
Representatives from design, |
Prototype presented to management |
|
manufacturing and sales |
by the end of four months for |
Specific goal – develop one new |
department form a team to |
approval. Production in place at the |
product by the end of six months. |
determine market needs and |
end of six months. |
|
manufacturing capability. |
|
|
|
|
Cross-train present employees. |
HR Administrator |
Training plan presented to |
|
|
management by the end of one |
|
|
month. Training started in six weeks |
|
|
and completed by the end of three |
|
|
months. |
|
|
|
|
Table 4.3 |
|
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Management Basics |
Planning in the organization |
That’s the strategic planning process. The organization has figured out what’s going on in their environment and can now move forward with specific action plans that should give them a competitive advantage in the market. As long as they also fulfill the other management functions well, they will be much better positioned to succeed.
4.10Not-for-profit note
Again, strategic planning for the not-for-profit sector follows exactly the same steps. This sector clearly has additional and different factors that they will consider that are not present in the for-profit organization – searching for and managing volunteers and dealing with multiple and often-changing funding sources come to mind.
An issue that is discussed more commonly today in the not-for-profit sector as it relates to strategic planning centres on the topic of “competitive advantage”. Competitive advantage is a term that has arisen from the forprofit sector and can sometimes be a concept that may not fit the outlook of those in the not-for-profit area.
However, with government funding changing and in many cases decreasing, the not-for-profit sector is now looking at creating strategic alliances with the for-profit sector. This has given rise to many ethical debates that we won’t deal with here. The reality is that the not-for-profit sector is adopting more of the for-profit language and sensibilities.
Many in the not-for-profit sector do not perceive themselves to be in competition with other organizations in the sector that are doing similar work. Specifying what their competitive advantage is, describing how they are “better” than others in the sector, is sometimes a concept that does not come easily. If they are going to partner or create an alliance with the for-profit sector, these are both concepts and language that the not-for-profit sector must adopt. This may be a challenge that the not-for-profit sector must address in their strategic planning process.
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Management Basics |
Organizing – Calm Seas case |
4.11Strategic planning diagram
Figure 4.4
Then the organization specifies how it should follow through on the chosen strategy and develop action plans to get there.
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Management Basics |
Organizing the organization |
4.12Questions for organizational planning section:
1.One of the important factors to examine in planning is demographics. Go to this other online resource to look at demographic factors. How do you see these demographic changes impacting your work environment? http://bookboon.com/int/business/hrm/generational-challenges-in-the-workplace
2.Using the demographic information from the previous question, conduct a strategic planning analysis for Calm Seas. Figure out the SWOT, grand strategy, mission statement and possible action plans. What is their competitive advantage? Who are their stakeholders?
3.Find other examples of mission statements. Are they clear? Do you understand what the company does as a result of reading the mission statement? Would these statements provide guidance to decision-making in the organization?
4.There is a lot of writing and research about the topic of “competitive advantage.” Look up current business articles that deal with this subject. How does it relate to organizational planning?
5.Popular topics today relate to the concepts of “corporate social responsibility” and “business ethics”. Research what these concepts refer to, why they are being discussed and what companies are doing about them.
6.Find a local not-for-profit organization. Conduct a strategic planning analysis for this organization. How is this process different from the analysis of the for-profit organization?
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