Strategic Planning and Management Systems for Organizational Success

Organizational System Structure and Purpose

The system's main role, in relation to other organizational systems, is setting direction and goals to pursue the fulfillment of the mission. To achieve this, we set specific goals that enable us to meet our objectives. In turn, meeting these goals requires a series of activities:

Core Components for Mission Fulfillment

The foundational elements guiding the organization include:

• Vision: The future expectations held by the leader regarding the company.
• Mission: It is the realization of what we do and who we are.
• Aims (or Objectives): These mark targets in a specific space and time and must be related to our mission and vision.
• Sub-goals: These are the set of actions we must complete to ensure compliance with the main objectives.
• Action: Each specific task performed to meet objectives.

The Seven P's of Management Process

The management process is conducted using the 7 P's of Management:

1. Prediction (Forecast)
2. Plan
3. Policy
4. Program
5. Procedure
6. Budget
7. Management Plan (Verification)

The first step is Prediction, or forecasting the future, to set our targets and determine the necessary strategy for implementation. This strategy is typically divided into several Policies: price, product, distribution, and promotion.

After prediction, we set a Plan for achieving the targets. This involves developing Program actions, Budgeting the cost of each, and setting the criteria and values required when making decisions (Procedure). Finally, we create a Management Plan for verifying or comparing the results achieved against the initial targets.

Results Comparison and Corrective Action

All these actions yield results that we compare with our predictions. This comparison reveals whether a deviation exists. If the objectives are not met, we must create and perform corrective replanning to address those mistakes.

Management by Objectives (MBO) Principles

Management by Objectives (MBO) is a systematic process that allows the organization to operate efficiently and effectively, fulfilling its objectives. It is based on the following points:

• Establishment of preliminary goals by senior management.
• Preparation of necessary details for objective fulfillment by managers and subordinate intermediaries.
• Joint discussion and agreement between senior management and subordinates.
• Assignment of an incentive system to improve performance.
• Process control established between senior and middle management to take action in case of deviation.