CHAPTER EIGHT

Setting Goals and Making Plans

INTRODUCTION
You may have heard the saying that “failing to plan is planning to fail.” While managers may disagree
on the best type of plans and the way to develop those plans, most would probably agree that some sort
of planning is important for any organization. This chapter outlines the four steps of the planning
process: setting a mission/vision, setting strategic goals/plans, setting operational goals/plans, and
implementation.

HOW TO PRESENT THE ROADMAP

Ask students to develop a life-plan. What is their mission/vision for their life? What are their long-term
strategic goals? What are their more specific short-term goals for accomplishing the strategic goals?
How will they implement the goals and monitor their success?
Now ask students to envision this same planning process generalized to an organizational setting in
which their plans and decisions include a greater number of stakeholders, including employees, owners,
the community, customers, etc. How would their thought processes and behaviors differ if they were
planning for an entire organization rather than for their own lives?
Discuss the four main steps in the planning process. Now that students are familiar with the distinction
between Mainstream and Multistream approaches, ask them to speculate about how Mainstream and
Multistream managers might differ in the planning process.

DETAILED LECTURE OUTLINE

I. Introduction to goals and plans
A. Setting goals and making plans are the two basic components of the planning function of
management
1. Goals = the desired results or objectives that members in an organization are pursuing
2. Plans = the steps and actions that are required to achieve goals
Discussion Question
Is it possible to manage a business without articulating goals. Why or why not?
Why are goals necessary?
How can goals motivate employees?
B. Four steps of the planning process
1. Set mission/vision
a) Top management primarily responsible
b) Very long-term time frame (5 or more years)
2. Set strategic goals/plans
a) Top and middle management involvement
b) Three- to five-year time frame
3. Set operations goals/plans
a) Middle and lower management involvement
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Chapter 8: Setting Goals and Making Plans 103
b) Annual or quarterly time frame
4. Implementation
a) Involves every organizational level
b) Ongoing/daily time frame
Discussion Question
Besides the time frame and management levels, what are other distinctive features of goals and plans at
the different levels?
What is the relationship between career goals for employees at the different levels and the
organizational goals and plans at the different levels?
When you start working, or if you are in a position now, how do your career goals relate to the goals of
your units?
C. Two basic types of organizational goals and plans
1. Ongoing goals and plans: guide the continuing activities that are consistent with the
basic purpose of the organization and are reflected in its mission statement, standing
plans, and standard operating procedures
2. Change-oriented goals and plans: new initiatives and changes to be made in an
organization’s practices as reflected in the organizational vision
Discussion Question
How do ongoing goals and plans differ from change-oriented goals and plans in a business?
What are the key challenges of making change-oriented goals and plans?
II. Mainstream approach to goals and plans
A. Step 1: Develop overarching mission and vision
1. Mission statement = statement of the fundamental purpose of an organization, often
describing what an organization does, whom it serves, and how it differs from similar
organizations
a) Common issues mentioned in mission statements include products/services,
customers, organizational self-concept, survival/growth/profitability, employees,
markets, philosophy, technology, and public image
b) Industry differences in the specific issues mentioned in the mission statement
2. Vision statement = a change-oriented statement of what an organization is striving to
become (typically five or more years in the future)
a) Mainstream visions focus on future competitiveness and financial success
b) Good vision statements are future-orientated, inspiring, challenging, brief, clear,
and stable
c) Industry differences in emphases of vision statements and financial success of an
organization.
Discussion Questions
What different management practices can be used to diffuse the vision and mission throughout
business?
What are some examples of mission and vision statements from companies you are familiar with?
B. Step 2: Develop strategic goals and plans
1. The specific goals and plans are directed at gaining advantages over competitors
2. Influenced by the organization’s strengths, weaknesses, opportunities, and threats

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104 Chapter 8: Setting Goals and Making Plans

Discussion Questions
How can managers use strengths, weaknesses, opportunities, and threats to develop goals and plans?
What are different ways that competitors may influence an organization’s goals and plans?
C. Step 3: Develop organizational goals and plans
1. Goals and plans help develop standardization
a) Standardization = the process of developing uniform practices for organizational
members to follow in doing their jobs
2. Operational goals = outcomes to be achieved by an organizational department, work
group, or individual member.
a) Typically set by mid- and lower-level management
b) The time horizon of operational goals is typically less than one year
c) People usually can focus on three to seven operational goals at a time
d) “SMART” goals: Mainstream research shows that certain goals maximize
performance
(1) S-Specific: should be detailed and precise on what is to be accomplished
(2) M-Measurable: able to be assessed objectively
(3) A-Achievable: within reach yet challenging
(a) Stretch goals = very difficult goals that go beyond normal incremental
changes to dramatically improve productivity, efficiency, and
profitability
(4) R-Results-based: have clear, demonstrable outcomes (not just activities)
(5) T-Time-specific: specify clear deadline for accomplishment
Discussion Questions
What are the implications if one of the SMART elements is missing from the goals?
e) Performance standards: similar to goals in that they set expectations for the
outcomes employees are expected to achieve
3. Operational plans = steps and actions that will help to meet short-term goals
a) Plans follow from SMART goals
b) Time frame is usually around a year
c) Two overarching issues in making plans
(1) What activities and resources are necessary?
(a) What steps and actions are needed to achieve goals?
(b) In what order and when does each action need to be performed?
(c) What resources are needed?
(d) How can resources be acquired?
(2) What are the constraints and contingencies?
(a) Contingencies = scenarios that suggest how managers will respond to
possible future events that could disrupt existing plans, such as a
natural disaster or a major recession
(b) Crises = events that have a major effect on the ability of an
organization’s members to carry on their daily tasks. Impact of crises
can be limited through prevention, preparing, and responding in a
timely fashion

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Chapter 8: Setting Goals and Making Plans 105
Discussion Questions
What are some potential foreseeable scenarios and crises that managers should think about ways of
preventing, preparing for, and responding to?
How and where would managers find more information about these potential future possibilities?
4.
Standing plans = plans that provide guidance for activities that are performed
repeatedly
a) Standard operating procedures = specific steps that must be taken when
performing certain tasks
b) Policies = guidelines for making decisions and taking action in various situations
c) Rules and regulations = prescribed patterns of behavior that guide everyday work
tasks
D. Implement and monitor goals and plans
1. Two possible outcomes
a) Goals are met
(1) Often followed by a reward
b) Goals are not met, so there is need to develop new goals and/or plans
(1) Stakeholders might not believe in the value of the goals
(2) Overemphasizing change-oriented goals rather than ongoing goals can
interfere with current day-to-day operations
III. Multistream approach to goals and plans
A. Similar to Mainstream four-step approach, but two key differences
1. Includes more stakeholders throughout the process, rather than simply relying on
management to develop goals and plans
2. Focuses more on sustenance economics and varied goals, rather than Mainstream focus
on acquisitive economics and profit maximization
Discussion Questions
Which stakeholders are not normally included in goal setting and planning for a business?
How can these stakeholders be included?
B. Step 1: Develop overarching mission and vision
1. Involve a variety of stakeholders (e.g., community, suppliers, employees, customers)
a) Advantages of including multiple stakeholders
(1) Variety of perspectives improves the quality of the mission and vision
(2) Increases buy-in and support for the mission and vision
2. Multistream mission and vision statements may look radically different from
Mainstream or may look similar but be enacted differently because of different values
a) Organizations may have unwritten or tacit goals that are ongoing and well known
in the organization even if they are not explicitly expressed in the formal mission
or vision statement
C. Step 2: Develop strategic goals and plans
1. Multistream managers identify economic and noneconomic opportunities such as
improving the natural environment or social well-being
Discussion Questions
How do unwritten or tacit goals form in an organization?
What are examples of economic versus noneconomic opportunities for businesses in our local
community?

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106 Chapter 8: Setting Goals and Making Plans
2. Multistream managers are sensitive to strategies that emerge from practice in addition
to those that are formally planned beforehand
D. Step 3: Develop operational goals and plans
1. Operational goals: Multistream managers rely on a process parallel to Mainstream
SMART goals
2. Multistream “SMART2” goals
a) S-Significant: challenging and engaging
(1) Use stretch goals to help individuals grow and development
b) M-Meaningful: has meaning beyond simply maximizing productivity
c) A-Agreed-upon: members participate in developing their own goals
(1) Seek input from all stakeholders, even if doing so involves monetary costs
d) R-Relevant: linked to important issues for a variety of stakeholders
e) T-Timely: appropriate for the times and situations
Discussion Questions
What are the implications if one of the SMART2 elements is missing from Multistream goals?
Given structural conflicts built into for-profit businesses between significant groups of stakeholders,
how would you reconcile the contradictions from a Multistream approach. For example, higher prices
are required for greater employee benefits, which in turn diminish profits. How would a Multistream
manager respond to the inherent conflict structured into the relationships?
3. Operational plans
a) Two overarching issues in making plans
(1) What activities and resources are necessary?
(a) Multistream managers seek advice and participation of multiple
stakeholders
(b) Multistream managers consider wider range of nonfinancial issues
than Mainstream managers
(2) What are the constraints and contingencies?
(a) Consider the effects of actions on the environment and other
stakeholders
4. Implement and monitor goals and plans
a) Ongoing feedback is sought from various stakeholders
b) Goals and action plans are evaluated and revised as appropriate
c) Members are reinforced for their efforts as appropriate
Discussion Questions
What specific action steps can managers take to increase the participation of different stakeholders?
What specific action steps can managers take to obtain ongoing feedback from different stakeholders?

SUGGESTED ANSWERS TO CLOSING CASE QUESTIONS

MANAGING A CITY
1. Would you want your future mayor to be a graduate from your current program of study? Why or
why not? What are some of the differences in managing a city versus managing a business or a
nonprofit organization? What are some of the similarities?
Answers will vary. Mayors are elected officials, so they must keep the voters and community
happy in the same way that managers and CEOs must keep owners happy. However, keeping
voters happy can be more difficult as the interests of voters are likely more varied than the

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Chapter 8: Setting Goals and Making Plans 107
interests of owners. Mayors must coordinate and supervise a variety of different city departments
and might have less direct control (e.g., monetary allocation, direct control over personnel
decisions) over certain departments than a top executive would have in a corporation. Like
managers, mayors must be skillful in short-term and long-term planning and decision making.
Both managers and mayors can act rather independently or can choose to include various
stakeholders in planning, decision making, and implementation.
2. What are the most important lessons for managers to learn from Mayor Lerner?
Have a good “master plan” that focuses on the most critical factors. Consider nonfinancial forms
of effectiveness. Seek and welcome input for various stakeholders to generate more ideas and gain
support for plans.
3. Describe how the four steps of the model described in this chapter are evident in the Curitiba
case. Which step do you think Lerner would point to as the most important?
Step 1: Set mission and values. Lerner’s mission and values centered on improving overall well-
being in the community. He “had a vision of a city where getting around was easy and
environmentally friendly, where people treated each other and the environment with dignity, and
where many stakeholders participated in and contributed to its ongoing improvement.” Step 2: Set
strategic goals and plans. Lerner’s primary goal was to develop a public transportation system so
that people could get to work and leisure activities in a quick and cheap way that would not lead
to excessive pollution and traffic congestion. Step 3: Set operational goals and plans. Lerner
sought input from various stakeholders, including traffic engineers, experts in land use, local
businesses, health and education, etc. As a result of the recommendation of these experts, new
building permits centered on improving access to public transportation and reducing needs for
travel for shopping. Step 4: Implement and monitor goals. The community transformed a part of
the city into the world’s first pedestrian shopping mall. The green space per citizen grew even as
the population increased. The goals have been supported and welcomed by citizens of Curitiba.
Lerner probably viewed each step as important. If any one step in the process had broken down,
the success of Curitiba would have been jeopardized. Without a mission in mind, the city would
have had no direction. But without strategic and operational goals, this mission could not have
materialized. And without successful implementation, the goals would not have been met.
4. Is the Mainstream or Multistream model more helpful for understanding Curitiba’s success?
Much of the Curitiba story reflects Multistream values. The vision and mission of Lerner
encompassed many forms of well-being (many nonfinancial) of a variety of stakeholders. Lerner
was interested in community, health, and the environment, as opposed to generating the maximum
amount of money for certain powerful members of the city. Moreover, Lerner sought input from
the various stakeholders to draw on a variety of opinions and expertise and to gain support for the
plans.
5. How does the approach to goal setting and planning practiced in Curitiba compare to that of the
Wiens Family Shared Farm?
Both examples show a very inclusive process involving many stakeholders. Satisfaction with the
farm and satisfaction with the city were both very high, and the contributors took pride and
ownership in their organizations. Money was not the primary incentive in either case. Rather,
people gained intrinsic rewards from participating in the community of the farm and the city.

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108 Chapter 8: Setting Goals and Making Plans
SUGGESTED ANSWERS TO QUESTIONS FOR DISCUSSION AND
REFLECTION
1. Identify the four steps in the process of setting goals and plans. What are key differences in the
content of the steps from a Mainstream versus a Multistream perspective?
Step 1: Develop overarching mission and vision statements. Multistream mission and vision
statements may differ explicitly in their focus on nonfinancial outcomes as well as (or instead of)
financial outcomes. Even when Multistream mission and vision statements look similar to
Mainstream statements, they often differ in how they are enacted and in the values behind them.
Multistream missions and visions are more likely to be developed by a wide range of stakeholders
rather than solely by upper management.
Step 2: Set strategic goals and plans. Mainstream strategic goals and plans seek to achieve
competitive advantage and maximize profits. Multistream strategic goals seek to achieve mutual
gains for a variety of stakeholders (for example, being financially viable while paying employees
a living wage, treating them with dignity, and providing meaningful jobs.
Step 3: Set operational goals and plans. Mainstream goals are “SMART” goals that focus on
maximizing performance and productivity. Such goals are Specific, Measurable, Achievable,
Results-based, and Time-specific. Multistream goals are “SMART2” goals that are more varied in
focusing on multiple types of well-being and multiple stakeholders. Such goals are Significant,
Meaningful, Agreed-upon, Relevant, and Timely.
Step 4: Implementation. Both Mainstream and Multistream implementation involve monitoring
goal progress and considering new and ongoing goals. Multistream managers, however, are more
likely to be flexible in their revision of goals and to continually learn from various stakeholders.
2. Choose any one of the four steps, and describe how the four-step decision-making process
described in Chapter 7 can be used to explain how that step is accomplished.
Example answer for Step 1: Developing mission and vision statement. First, the need for a
decision must be identified. Managers might believe a decision about the mission and/or vision
statement is necessary in a new or rapidly changing organization. Alternatively, some
organizations might revisit their mission and vision statements at regular, predetermined times.
Second, alternative responses should be developed, which include doing nothing, changing the
current mission and vision statements if they already exist, or creating entirely new mission and
vision statements. Multistream managers are more likely than Mainstream managers to seek input
from stakeholder at this stage and also are more likely to generate response alternatives that are
not driven solely by financial gain. Third, a response alternative must be selected; again,
Multistream managers are often more inclusive than Mainstream managers and also are more
comfortable with different viewpoints. Finally, a choice must be made and implemented, meaning
that a mission and vision will be formally written and communicated to all stakeholders. Because
the Multistream process includes various stakeholders, the implementation phase potentially will
be easier than in Mainstream processes.
3. Which management approach for setting goals and plans—Mainstream or Multistream—do you
think would be the most effective? Explain your answer. Be explicit in how you define
effectiveness.
Mainstream approach: Compared to the Multistream approach, the Mainstream approach is likely
to be more effective in maximizing financial profits, especially in the short term. The Mainstream
approach also is probably more efficient in the goal-setting and planning stage because it involves
fewer people (typically managers only).

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Chapter 8: Setting Goals and Making Plans 109
Multistream approach: Compared to Mainstream, the Multistream approach is probably more
effective in terms of improving the well-being of multiple stakeholders. This approach also is
likely to be more effective in terms of long-term sustainability than the Mainstream approach.
Finally, the Multistream approach is more effective in gaining acceptance from multiple
stakeholders, because such groups have been included in the entire process of planning and goal
setting.
4. From a Mainstream perspective, which of the four steps in the goal-setting and planning process
do you think is the most challenging to do properly? From the Multistream perspective?
Implementation might be the most difficult for Mainstream managers because they have
conducted the entire process without the input of the people who will be impacted by the goals
and plans that the managers have set. In contrast, selecting a response might be the most
challenging for Multistream managers because of the number and variety of response alternatives
developed by multiple stakeholders.
5. What are the similarities and differences between SMART goals and SMART2 goals?
SMART and SMART2 goals are similar in that both emphasize the importance of goal setting to
achieving desired results. The nature of those desired results often differs, however, with SMART
goals focused primarily on improving the financial bottom line and SMART2 goals being more
diverse in their focus, encompassing a wide range of improvements to well-being for different
stakeholders.
6. What are the most important components to include in a mission statement? Which of the mission
statements in the text have the most of these components? Which have the least? Why might there
be differences?
The most important components of a mission statement are the fundamental purpose of the
organization and what the organization does. Mission statements also frequently include 1) how
the organization differs from similar organizations; 2) survival/growth/profitability statement; 3)
customers; 4) employees; 5) markets; 6) philosophy; 7) technology; and 8) public image.
Mainstream missions might be more streamlined in that the focus is primarily on the customers’
role in maximizing profits for the owners, while Multistream missions also are concerned with the
treatment and well-being of employees, the environment, and the community. For example, the
mission of the International Committee of the Red Cross does not mention money or profits at all.
Rather, they define effectiveness in terms of protecting “the lives and dignity of victims of war
and internal violence … .” (p. 5).
7. Choose an organization you are familiar with and analyze its mission and vision statements in
light of the material covered in this chapter. Based on the material in this chapter, identify the
strengths and weaknesses of these vision and mission statements.
Answers will vary. Some examples are listed below.
Aveda is a company that manufactures natural flower- and plant-based beauty products. “Our
mission at Aveda is to care for the world we live in, from the products we make to the ways in
which we give back to society. At Aveda, we strive to set an example for environmental
leadership and responsibility – not just in the world of beauty, but around the world.”
The mission statement of Aveda reflects Multistream values in that the stated goals involve
nonfinancial outcomes and values. In fact, financial profits are not even mentioned. Aveda
focuses on long-term sustenance economics. Although Aveda makes high-quality products, their
mission statement arguably is lacking in that it does not discuss the quality and usefulness of the
products it produces or the benefits to the customers.

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110 Chapter 8: Setting Goals and Making Plans
Exxon oil company: “We must continuously achieve superior financial and operating results while
simultaneously adhering to high ethical standards.”
The mission of Exxon reflects Mainstream values. The primary concern is financial profits;
although the company indicates a commitment to ethics, the commitment might be limited to
adherence to minimum standards of the laws. The company does not indicate a desire to give back
to the community or protect the environment and does not articulate the meaning of “high ethical
standards.”

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Chapter 8: Setting Goals and Making Plans 111

TALKING POINTS FOR “HANDS-ON” ACTIVITIES

TO BE AN EFFECTIVE MANAGER, I SHOULD . . .
Mainstream-Multistream continuum (N = 110)
Mainstream Multistream
Set an organization’s mission and vision based Set an organization’s mission and vision based
on an underpinning philosophy that seeks to on an underpinning philosophy that seeks to
maximize the financial return for owners. contribute to a variety of forms of well-being
and stakeholders.
1 2 3 4 5 6 7
0.0 4.5 13.6 23.6 28.2 22.7 7.3
Set organizational strategic goals and plans to Set organizational strategic goals and plans to
optimize the organization’s competitive optimize the benefits to many different
advantage. stakeholders, including shareholders.
1 2 3 4 5 6 7
1.8 7.3 16.4 19.1 34.5 15.5 5.5
Implement operational goals that are SMART Implement operational goals that are SMART2
(specific, measurable, achievable, results- (significant, meaningful, agreed upon, relevant,
based, and time-specific. and timely).
1 2 3 4 5 6 7
3.6 7.3 14.5 25.5 26.4 20.0 2.7
Check that goals are properly implemented and Continually learn from and improve upon goals
that members who meet goals are rewarded. and plans as they are being implemented.
1 2 3 4 5 6 7
0.9 5.5 18.2 17.3 32.7 19.1 6.4

TO BE AN EFFECTIVE MANAGER, I SHOULD . . .

(N = 109) percent of respondents at different points along the scale.
To be an effective manager, I should . . . Strongly Disagree to Strongly
Agree
1 2 3 4 5
Set organizational goals to maximize the 3.7 13.8 33.0 48.6 0.9
financial return for owners/shareholders

Set organizational goals to reflect a variety of 0.0 5.5 30.3 52.3 11.9
stakeholders

Set organizational goals to reflect a variety of

forms of well-being (e.g., environmental, 1.8 5.5 23.9 47.7 21.1
social, financial, intellectual well-being)

Set organizational goals that focus on

owners/shareholders above all other 10.1 21.1 35.8 30.3 2.8
stakeholders

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112 Chapter 8: Setting Goals and Making Plans
CORRELATION MATRIX AND MEANS FOR HANDS-ON ACTIVITIES
MII 2 3 4 5 6 7 8 9 10 11 12 13 14
15
Mean
1. MII 7.1 1
2. Task 4.7 -.50*
3. Macro 5.0 -.45* .64*
4. Natur 3.7 -.04 -.20 -.20
5. Entr 3.9 .25* -.06 .03 -.00
6. MM6 3.7 -.31* .38* .34* -.11 .17
7. MM7 4.5 -.48* .44* .46* -.16 -.00 .42*
8. MM8a 4.7 -.55* .51* .50* -.06 .00 .59* .74*
9. MM8b 2.6 -.608 -.44* -.46* -.04 .19 -.27* -.56* -.51*
10 MM9 3.2 .44* -.31* -.32* .21 .19 -.25* -.48* -.34* .56*
11 MM10 4.5 -.40* .55* .49* -.13 .06 .54* .45* .45* -.36* -.37*
12 MM13 5.0 -.54* .50* .54* -.18 -.12 .38* .71* .58* -.60* -.44* .54*
13 MM15 4.6 -.50* .51* .51* -.17 .10 .57* .55* .59* -.42* -.30* .56* .52
14MM18a 4.6 -.89* .57* .62* -.19 -.06 .52* .56* .62* -.48* -.37* .60* .69* .53*
15 MSI 3.3 -.66* .58* .55* -.08 -.12 .48* .59* .69* -.59* -.42* .57* .71* .57*
Key
1. MainMultiIndex = Materialism scale * Individualism scale (from Hands-On Exercise in Chapter
18 -- same questions as in Hands-On Exercise in Chapter 1)
2. Task = Task Environment scale (from Hands-On exercise in ch 3)
3. Macro = Macro Environment scale (from Hands-On exercise in ch 3)
4. Natur = Natural environment scale (from Hands-On exercise in ch 4)
5. Entr = Entrepreneurship scale (from Hands-On exercise in ch 6)
6. MM6 = Entrepreneurship Mainstream-Multistream continuum (from Hands-On exercise in ch 6)
7. MM7 = Decision-making Mainstream-Multistream continuum (from Hands-On exercise in ch 7)
8. MM8a = Goal-setting Mainstream-Multistream continuum (from Hands-On exercise in ch
8)
9. MM8b = Goal-setting scale(from Hands-On exercise in ch 8)
10. MM9 = Strategy Mainstream-Multistream continuum (from Hands-On exercise in ch 9)
11. MM10 = Organizing Mainstream-Multistream continuum (from Hands-On exercise in ch 10)
12. MM13 = Change Mainstream-Multistream continuum (from Hands-On exercise in ch 13)
13. MM15 = Leadership Mainstream-Multistream continuum (from Hands-On exercise in ch 15)
14. MM8a = Controlling Mainstream-Multistream continuum (from Hands-On exercise in ch 18)
15. MSI = Management Style Index (from Hands-On exercise in ch 18)

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Chapter 8: Setting Goals and Making Plans 113
EXPERIENTIAL EXERCISE 8.1: GO FOR THE SMART/2 GOALS
Purpose: To compare SMART goals with SMART2 goals in different types of organizations
Materials: Handout 8.1: Go for the SMART/2 Goals
Instructions:
1. Distribute Handout 8.1 to each student;
2. For each goal on the handout, ask students to review the goals and revise them to fulfill the
criteria for SMART goals in one column and SMART2 goals in the second column.
3. Have students move into pairs to compare their revised goals and discuss the differences between
SMART goals and SMART2 goals.
4. Debrief:
a. What was hard or easy about revising the goals from the first column into the SMART and
SMART2 goals?
b. What are the implications for planning with SMART goals versus SMART2 goals?
c. What are the challenges in creating SMART goals compared to SMART2 goals?
d. What are important lessons for you in this goal-setting exercise. And how can you apply
these lessons in your future?

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114 Chapter 8: Setting Goals and Making Plans

HANDOUT 8.1: GO FOR THE SMART/2 GOALS

GO FOR THE SMART/2 GOALS

GOALS
SMART GOALS SMART2 GOALS
Our goal is to . . .

increase net profits from 7% to

9%

become our customers’ first

choice for our services

beat our competition with new

products

increase production this year

reduce operating costs with a

reduction in labor costs and
resource inputs for production

This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved.
Chapter 8: Setting Goals and Making Plans 115

EXPERIENTIAL EXERCISE 8.2: VOICES OF MULTISTREAM

STAKEHOLDERS
Purpose: To identify and address stakeholder issues for an organization
Materials: Handout 8.2: Voices of Multistream Stakeholders; masking tape; chalk or whiteboard
marker; university goal statements
Instructions:
(Note: This exercise takes place over two class periods with a brief homework exercise.)
First Class:
1. As a class, brainstorm a list of stakeholders for their college or university.
2. Review the list of stakeholders and group the stakeholders with class discussions.
3. Distribute Handout 8.2: Voices of Multistream Stakeholders.
4. Ask students to fill in the blanks with two different stakeholder groups, and have them select an
individual from each group for a brief interview as a homework exercise.
Homework Exercise:
5. The students should ask the stakeholder, “What should be the goals of the college or university?”
6. Students write out the goals and divide the paper in half with a stakeholder group for each half.
7. Second Class:
8. On a board, write out headings for the different stakeholder groups.
9. Students tape their interview responses from the different stakeholder groups up on the board.
10. Divide up the groups of students evenly based on the number of stakeholder groups.
11. Have each group review the responses from the stakeholder group and integrate the responses.
12. Have each group of students write out goals that meet the SMART or SMART2 criteria and report
their results.
13. Debrief:
a. What did students think of this exercise in goal setting?
b. How does it compare with the way goals are normally set in an organization?
c. Show students a copy of goal statements from the university and ask them to comment on
how their goals compared with those of the university. Which management approach do the
university goals reflect?
d. Is this goal-setting process realistic for a for-profit business. Why or why not?
e. What are other ways you could go about setting SMART2 goals?

This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved.
116 Chapter 8: Setting Goals and Making Plans

HANDOUT 8.2: VOICES OF MULTISTREAM STAKEHOLDERS

Student name: ____________________________________________________

Stakeholder: ______________________________________________________

Interview question:
If you had it your way, what should the goals of the university be?

__________________________________________________

Student name: ____________________________________________________

Stakeholder: ______________________________________________________

Interview question:
If you had it your way, what should the goals of the university be?

This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be
resold, copied, or distributed without the prior consent of the publisher.
Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved.