Elements of Planning  Answer the questions of: Mission

II. Setting the VMG Philosophy and Statement: "Who we are?" "What
the Objectives we Value?'
 The plans at the top influencing
all the plans that follow
Mission Vision
Philosophy Goal
Objectives
Policies
Procedures Rules
 Planning components at the top
of the hierarchy are more general
 Mission and vision both relate to
and the lower components are
an organization's purpose &
more specific.
aspirations, and are typically
 The hierarchy broadens at lower
communicated in some form of
levels, representing an increase
brief written statements.
in the number of planning
components.
 Components of Effective
Mission Statement
The Planning Hierarchy 1)Customers Who are the
Mission statement organizations
 May be short as a single clause customers?
or sentence 2) Products or What are the
 Identifies the group or services organizations
(constituency) to whom the major products or
services are directed services?
 Indicate its purpose & guides the 3) Markets Geographically,
planning where does the
 Is of highest priority in the organization
planning hierarchy because it compete?
4) Technology Is the
influences the development of an
organization
organizational philosophy, goals
technologically
objectives and policies/ current?
procedures/ rules. 5) Concern for Is the
 Mission survival, growth, organization
 A mission statement profitability committed to
communicates the organization's growth and
reason for being and how it financial
aspires to serve its key 6) Philosophy What are the
stakeholders. basic beliefs,
 Are longer than vision values,
statements, because they convey aspirations, and
the organizations core values. ethical priorities of
 the organization? What notable and emotionally
7) Self- concept What is the firm's connecting future direction do you want
distinctive to keep reaching and pushing toward?
competence or 4. Purpose-driven
major competitive •What is the larger sense of purpose
advantage?
you are striving to obtain?
8)Concern for Is the
5. Unique
public image organization
responsive to Can you substitute your strategic vision
social, statement for others inside or outside
community, and your industry?
environmental
concerns? Criteria of an Effective Vision
9) Concern for Are employees a Statement
employees valuable asset of 1.Short Enough?
the organization? • You don't want a long vision statement,
because no one will truly remember or
embrace it.
Vision
2. Believable Enough?
• The vision statement is a narrower,
People must believe in where you are
future-oriented declaration of the
headed.
organization's purpose and aspirations.
3. Achievable Enough?
Answer the question "Where is this
• While the vision should be a stretch, it
organization going?"
must be perceived to be possible over
Increasingly, organizations also add a
time for it to be a viable strategic driver.
values statement which either reaffirms
4. Relevant Enough?
or states outright the organization's
• The vision itself has to matter to all key
values that might not be evident in the
stakeholders for it to take root.
mission or vision statements.
Vision Statement "What we want to
Importance of Mission, Vision, and
become?"
Values
• Providing means to create and weigh
Components of an Effective
various strategic plans and alternatives.
Statement 1.Future Oriented
• Laying down the fundamentals of an
• What will the organization look like,
organization's identity and defining its
feel like, think and say in the future?
purpose for existence.
• Where is the organization headed?
• Providing an understanding business
2. Inspiring and Challenging
directions.
• What vivid and energizing image do
you want to create for people about your
The Organization Philosophy
desired outcomes and goals?
Statements
• What is your dream?
• Philosophy flows from the "purpose of
3. Motivating and Memorable
the mission" statement and provides a
statement of beliefs and set of values
that are basic to the operation of the terms of quality, exceptional customer
organization, service or unit. service, etc.
• It is the basic foundation that directs all
further planning toward that mission. Goals and Objectives:
•also include a listing of goals or • GOAL- may be defined as the desired
objectives is the basic foundation that result toward which effort is directed is
directs all further planning toward that the aim of the philosophy.
mission. • "are ends towards which the
•also include a listing of goals or organization is working."
objectives • Describes a future end-state - desired
•is the basic foundation that directs all outcome that is supportive of the
further planning towards that mission. mission and vision.
• Shapes the way ahead in actionable
Philosophy- it is the basic foundation terms.
that directs all further planning toward • Best applied where there are clear
that mission. Also include a listing of choices about the future.
goals or objectives. • Puts strategic focus into the
organization - specific ownership of the
Values goal should be assigned to someone
Core Values within the organization.
• Core values reflect the core behaviors • May not work well where things are
or guiding principles that guide the changing fast- goals tend to be long-
actions of term for environments that have limited
employees as they execute plans to choices about the future.
achieve the mission and vision. Goals: CON Goal Example
• Core values reflect what is important to GOALS : • The college aims to form
the organization and its members. students into nurses who are
• Core values are intrinsic - they come compassionate, competent, committed,
from leaders inside of the company. confident, caring, conscientious, and a
critical-thinking generalist.
Guiding Principles and Values
• Every organization should be guided Objectives
by a set of values and beliefs  Objectives are similar to goals in
• Provides an underlying framework for that they "motivate people to a
making decisions - part of the specific end and are explicit,
organization's culture measurable, observable, or
• Values are often rooted in ethical retrievable and obtainable
themes, such as honesty, trust, integrity,  Are more specific and
respect, fairness, measurable than goals because
• Values should be applicable across the they identify Objectives how and
entire organization when the goals to be
• Values may be appropriate for certain accomplished.
best management practices - best in
  Objectives can focused either on • Expressed policies - written policies
the desired process or outcome that are available to all and promote
 Objectives are specific and consistency of action.
concrete in terms of results to be Procedures: are plans that establish
achieved. customary or acceptable ways of
 It is the backbone of one's goals accomplishing a specific task and
and philosophy. delineate a sequence of steps of
 Relevant - directly required action.
supports the goal Compels Rules and Regulations
the organization into action •"are plans that define specific actions or
 Specific enough so we can non-actions.”
quantify and measure the • Generally included as part of policy
results and procedures statement
 Simple and easy to Rules- describe situations that allow
understand Realistic and only one choice of action
attainable
 Conveys responsibility and FISCAL PLANNING III. (BUDGETING)
ownership • A forecast of the resources required to
 Acceptable to those who deliver the services offered by the
must execute organization
 May need several • A plan for coordinating the financial
objectives to meet a goal goals of an organization
Goal Objectives • A formal, quantitative expression of
Very short management's plans, intentions,
Longer statement,
statement. expectations & actions to control results
more descriptive
Broad in scope • A budget is a financial plan that
Narrow in scope
includes estimated expenses as well as
Directly relates to Indirectly relates
the Mission income for a period of time.
to the Mission
Statement Statement • Fixed or variable either controllable or
Covers long time Covers shortnon-controllable.
time
period (such as period (such 1 Fixed expenses do not vary with
•
10 years) year budget volume, whereas variable expenses do
cycle)
In Budget, expenses are classified
Policies and Procedures: as:
• Policies are plans reduced to 1. Fixed or variable:
statement or instructions that direct the Fixed expenses do not vary with
organization in their decision making volume, whereas variable
• A designated plan or course of action expenses do. Eg. Fixed
to be taken in a specific situation. expenses: building's mortgage
POLICIES can be: payment; manager's salary
• Implied - neither written or expressed
2. Variable expenses: payroll of • Perpetual budget may be
hourly wage employees and the done on a continual basis each
cost of supplies. month so that 12 months for
3. Controllable expenses: can be future budget data are available.
controlled or varied by the 3. Implementation
manager Eg. Unit manager can • Ongoing monitoring and
control the n umber of personnel analysis occur to avoid
working in a certain shift and the inadequate or excess funds at the
staffing mix end of the fiscal year.
4. Non-Controllable: cannot be • Top management must watch
controlled • Eg. Manager cannot for and correct unrealistic budget
control equipment depreciation; projections before they are
the number and type of supplies implemented
needed by the patients or 4.Evaluation
overtime that may occur in times • Must be reviewed periodically
of emergency. and modified as needed
throughout the fiscal year
BUDGETING METHODS P[IC
Barriers in Budget Planning
Steps in the Budgetary 1. Incompetent Leadership
Process: Skills The leader should be able
• The Nursing Process provides to lead his team amidst stringent
the model for the steps in budget work schedules and environment.
planning: 1. Assess 2. Excess levels of Distractions
• (Historically) Top level; •When the distractions at the
managers develop the budget for workplace become quite
an institution without input from excessive, it results in the
middle or first level managers. Barriers to Planning. For
• (Today) budgeting generally instance, if the leader is
reflects inputs from all levels of delegating too many tasks at one
the organizational hierarchy. given point or is discussing two or
• Unit managers develop goals, more topics that are not related to
objectives and budgetary each other at all, it results in
estimates with inputs from complete chaos doing the
colleagues and subordinates. planning taking a backseat.
2. Develop a PLAN: Budget Plan 3. No Systems in Place
may be developed in many ways: • Even if the team has done a
• Fiscal Year budget- budgeting thorough amount of research and
cycle set for one year or 12 study on the subject manner and
months. (Broken down into the work-related tasks along with
quarters/ monthly or semi- the prim and proper attention to
annually) the aspects of planning, but if the
systems are not in place, there
will be various Barriers to such as low pay packages,
Planning, specifically to its office politics, and lack of
implementation relevant and challenging tasks
4. Limited Manpower to the employees
Resources 9. Complex Working
•Some of the features and Environment
strategies of planning require the •When the environment of the
huge support of manpower to firm is quite complex owing to the
attain the aims and objectives of product and services that are too
planning. technical, there are various
5. Limited Resources and Barriers to Planning And there is
Funding a top-up of the dynamic nature of
• To accomplish the aims and the market as well that makes the
objectives of the firm, having situation even more difficult and
required resources such as confusing.
finances, manpower, office
space, machinery, and others are
a mandate.
6. Impractical Business
Strategies
•for the planning to be goal-
oriented and effective, it is very
much mandatory that the
business strategies that are being
planned and planned out for its
application need to have a
rationale.
7. Opposition to Change
•Some of the outcomes of
strategic planning and
management result in the
changes in the structure of the
organization, the hierarchy of the
management, changes, and
development in the job
responsibilities, and transfer of
employees to other branches or
offices of the firm.
8. Lack of Motivation
•lack of motivation within the
team, it results in the Barriers
to Planning. Motivation can
arise out of various reasons