Strategic Planning and Goal Setting: Overview

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Strategic Planning and Goal Setting Overview

• In this lesson youll learn about the
• Importance of Strategic Planning and Goal Setting
• Factors that influence goal setting process
• Personal vs. business goals
• Role of employing an integrated process in
  strategic planning
• Strategic planning process
• Integrated Management Planning
• SMART goals
• Goal selection and tactical objectives

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Strategic Planning and Goal Setting
Strategic Planning and Goal Setting

• Strategic goals should be openly identified,
  discussed and prioritized before management
  decisions are made

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Strategic Planning and Goal Setting
External Factors and Internal
Factors

• Goals are influenced by
• External factors
• Global economics
• Government policies
• Environmental factors
• Internal factors
• Resources
• Management philosophy
• Risk attitude

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Strategic Planning and Goal Setting
Changing Your Attitude

• Insanity has been defined as doing thing the same
  way and expecting a different result
• Carrolls advice still applies in business and
  life today asking the questions
• Where are you going in business?
• What do you want to achieve?
• What are your goals?
• Be specific about where youre going- choose your
  goals make a map or plan, and follow through on
  that plan
• Which road are YOU choosing?

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Strategic Planning and Goal Setting

• Change is the Norm
• In todays business world, change is becoming the
  norm while stability is becoming the exception
• Focus on integrating processes and life-long
  learning to make your goals into realities

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Strategic Planning and Goal Setting

• Organizational Structure of Management
• An integrated process is needed to manage
  resources
• Changes and variations in resource quality and
  quantity must be accounted for
• The goals of the manager and/or owners must be
  kept in mind

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Strategic Planning and Goal Setting
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Strategic Planning and Goal Setting
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Strategic Planning and Goal Setting Risk
Management

• Manage your risk by
• Identifying the potential risks and areas
  affected
• Understanding the potential size of the risk
• Determining the probability of the risk occurring
• Formulating an action plan to handle the risk

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Strategic Planning and Goal Setting Strategic
planning

• Tells you where you are heading and what it might
  look like once you arrive
• Keeps the operation focused to the established
  goals
• Allows for proactive management

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Strategic Planning and Goal Setting Strategic
thinking

• Ties your mission statement to your resource
  inventory

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Strategic Planning and Goal Setting Integrated
Management Planning

• In the Integrated Management Planning
• The overall operation is like the tree top
• Strategic goals are like the branches and leaves
• Mission statement is like the root and trunk of
  the tree

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Strategic Planning and Goal Setting Strategic
Goals

• Why do I need to use strategic goals?
• They clarify whats important to my operation
• They provide a basis for evaluating my progress
• They provide direction and focus for my plans
• They are a proactive strategy

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Strategic Planning and Goal Setting Teams and
Goals

• Use a management team concept
• Identify the key people and their roles in the
  management team
• spouse, parents, children, siblings
• partners, employees, technical or financial
  advisors
• you
• Determine accountability for each aspect of the
  operation
• Seek input and consensus from the team members

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Strategic Planning and Goal Setting

• Your Strategic Goals To-Do List
• Write concise goal statements
• Project realistic levels of achievement and
  establish time-lines for accomplishment of goals
• Prioritize your goals
• Estimate the goal costs
• Avoid preoccupation with tactics and tools until
  your strategic goals are well-defined

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Strategic Planning and Goal Setting SMART Goals

• Specific- Clearly defined and stated goals
• Measurable- Meet objective standards
• Attainable- Realistic goals with appropriate
  effort
• Related- Goals that are not in conflict with
  other goals or your values
• Tractable- Progress that can be monitored over
  time

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Strategic Planning and Goal Setting SMART Goals

• S- M-
• Specific goal example- to generate enough income
  to allow us to maintain ownership of the
  operation
• Measurable goal example- to generate 10,500/year
  for a mortgage payment, allowing us to maintain
  ownership of the operation

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Strategic Planning and Goal Setting SMART Goals

• A- R-
• Attainable goal example- to generate 10,500/year
  for a mortgage payment, allowing us to maintain
  ownership of the operation
• Realistic goal example- Realistic only if the
  operation usually returns more than 10,500 over
  direct expenses each year

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Strategic Planning and Goal Setting SMART Goals

• R- T
• Related goal example- Related to other goals that
  move the operation toward higher returns and
  long-term ownership
• To generate 10,500/year for a mortgage payment,
  allowing us to maintain ownership of the
  operation
• Tractable goal example- To generate 10,500/year
  for a mortgage payment, allowing us to maintain
  ownership of the operation while not requiring
  more time or new skills from management

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Strategic Planning and Goal Setting
Strategic Goals - An Example

• Warm Springs Ranch Strategic Goals
• Pay off 5,000 of non-current liabilities a year
  and be debt free in 20 years
• Develop a livestock enterprise that will generate
  income for two families
• Increase the tonnage of alfalfa produced on the
  farm to 2,000 tons per year by increasing the
  amount of ground under tillage and increasing
  yields
• Invest 250 a month into a college education fund
  and 250 a month into a retirement fund
• Develop a range management plan that will
  increase forage availability by 10 and also
  promote the sustainability of the range resource

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Strategic Planning and Goal Setting Goal
Directed Management

• A strategic planning process in which
  high-priority goals provide focus and direction
  is goal-directed management
• In goal-directed management, several facts are
  recognized

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Strategic Planning and Goal Setting Goal
Directed Management (Cont.)

• In goal-directed management
• The farm or ranch business unit and the family
  unit are closely linked and interact with each
  other
• Business operations and family life put competing
  demands on physical, financial and human
  resources
• Goal conflicts and resource limitations can best
  be dealt with through prioritization and tactical
  planning

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Strategic Planning and Goal Setting
Organizational Changes

• Changes in the organization demand changes in
  priorities
• Goals are not final or unchanging
• Resources will change over time
• New interests and goals will emerge
• Priorities will change
• Management will change priorities and goals

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Strategic Planning and Goal Setting

• Why Strategic Goals?
• Do you remember what the Cheshire Cat said to
  Alice?
• Select goals that will get you to where you want
  to go.
• Concentrate on six to eight goals that have the
  highest impact
• Review long-term strategies
• Prioritize your goals
• Identify goals that support your mission
• Select goals that are likely to be accepted by
  the team
• Make the goals visible to the organization

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Strategic Planning and Goal Setting

• Strategic Goals - Benefits
• With your goals prioritized on paper, assigning
  costs to them makes them seem real
• Estimating the costs of each goal helps you
  measure each step of the process
• Goal accomplishment leads to greater satisfaction
  

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Strategic Planning and Goal Setting Tactical
Objectives - TO

• Tactical objectives relate to strategic goals and
  the mission statement
• Try to start each objective with to and then
  add your action
• For example
• To reduce
• To increase
• To replace
• To grow

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Strategic Planning and Goal Setting Operational
Plans

• Operational plans should answer these questions
• What information exists about each action?
• What resources must be included in the action
  steps?
• What are the interrelationships among the various
  resources?
• What is the ordering and timing of the various
  steps?
• Who should be accountable for completion of each
  of the action steps?

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Strategic Planning and Goal Setting Goal
Setting Format

• Decide the goal setting format that best suits
  your needs, but make sure it includes
• Each strategic goal
• Costs associated with each goal
• Tactical objectives
• Operational plans

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Strategic Planning and Goal Setting Summary

• In this lesson, you have learned
• Some of the basics for setting goals for your
  operation
• That written goals are like a road map for your
  mission statement
• How to write objectives
• That your goals must be SMART