Key Takeaways

  • Successful managers decide where they want the organization to go and then determine how to get there.
  • Planning for a business starts at the top and works its way down.
  • It begins with strategic planning – the process of establishing an overall course of action.
  • Step one is identifying the purpose of the organization.
  • Then, management is ready to take the remaining steps in the strategic planning process:

    1. Prepare a mission statement that describes the purpose of the organization and tells customers, employees, and others what it’s committed to doing.
    2. Select the core values that will guide the behavior of members of the organization by letting them know what is and isn’t appropriate and important in conducting company activities.
    3. Use SWOT analysis to assess the company’s strengths and weaknesses and its fit with the external environment.
    4. Set goals and objectives, or performance targets, to direct all the activities needed to achieve the organization’s mission.
    5. Develop tactical plans and operational plans to implement objectives.