Chapter 2
Leaders Facilitate
the Planning Process
Hospitality and Restaurant
Management
Learning Objectives
After completing this chapter, you should be able to:
• Explain basic principles of planning, with an emphasis on
how employees can assist, and procedures useful in
managing planning information.
• Describe how a value statement, vision statement, and
mission statement are developed and implemented.
• State the importance of SMART goals in the planning
process.
• Review procedures for conducting a SWOT analysis.
Learning Objectives continued:
After completing this chapter, you should be able to:
• Identify how restaurant and foodservice managers use
long-range, business, and marketing plans and operating
budgets, and explain the relationship among these
planning tools.
• Explain the need to consider employees’ abilities and to
use an organized process in implementing effective plans.
Chapter 2 Leaders Facilitate the Planning Process
INTRODUCTION
Chapter 2 Leaders Facilitate the Planning Process
A CLOSE LOOK AT THE PLANNING PROCESS
Planning Basics
Employees Can Help with Planning
Managing Planning Information
Chapter 2 Leaders Facilitate the Planning Process
SET THE COURSE OF THE OPERATION
Value Statements
Vision Statement
Mission Statement
Chapter 2 Leaders Facilitate the Planning Process
Creating the Vision and Mission Statements
Chapter 2 Leaders Facilitate the Planning Process
Implementing the Vision and Mission Statements
Chapter 2 Leaders Facilitate the Planning Process
GOALS DRIVE OPERATING PLANS
Importance of Goals
Chapter 2 Leaders Facilitate the Planning Process
Types of Goals
Chapter 2 Leaders Facilitate the Planning Process
SMART Goals
Chapter 2 Leaders Facilitate the Planning Process
IDENTIFY GOALS WITH SWOT ANALYSIS
Chapter 2 Leaders Facilitate the Planning Process
Chapter 2 Leaders Facilitate the Planning Process
DEVELOP OPERATIONAL GOALS AND PLANS
Long-Range Plan
Chapter 2 Leaders Facilitate the Planning Process
Business Plan
Chapter 2 Leaders Facilitate the Planning Process
Marketing Plan
Chapter 2 Leaders Facilitate the Planning Process
Operating Budget
Putting the Plans Together
Chapter 2 Leaders Facilitate the Planning Process
LEADERS IMPLEMENT EFFECTIVE PLANS
Consider Employees’ Abilities
Use an Organized Process
Chapter 2 Leaders Facilitate the Planning Process
Chapter 2 Leaders Facilitate the Planning Process
Step 1: Develop the Plan
Step 2: Implement the Plan
Step 3: Evaluate the Plan
Step 4: Apply the Results
Chapter 2 Leaders Facilitate the Planning Process - Summary
1. Explain basic principles of planning, with an emphasis on how
employees can assist, and procedures useful in managing
planning information.
•
Restaurant and foodservice operations benefit from several types of
plans.
•
Employees can help develop and implement plans and can make
them better.
•
A wide range of information is important in planning decisions, and
this information must be effectively managed.
Chapter 2 Leaders Facilitate the Planning Process - Summary
2. Describe how a value statement, vision statement, and mission
statement are developed and implemented.
• Several broad planning tools set the foundation for an operation’s
more detailed planning.
• These include value statements (standards that guide operations), a
vision based on the value statements that describes why an
establishment exists and what it wants to become, and a mission
statement that states the operation’s purpose.
• Once developed, these planning tools can be used to construct
plans that drive day-to-day operations.
Chapter 2 Leaders Facilitate the Planning Process - Summary
3. State the importance of SMART goals in the planning process.
• Goals state the desired results that help an operation measure how
well it is doing.
• Goals are an important first step in developing plans.
• Goals should be SMART: specific, measurable, achievable, relevant,
and timebound.
Chapter 2 Leaders Facilitate the Planning Process - Summary
4. Review procedures for conducting a SWOT analysis.
• SWOT analysis helps managers identify an operation’s strengths and
weaknesses and examine its opportunities and threats.
• Then managers can set goals using this information.
Chapter 2 Leaders Facilitate the Planning Process - Summary
5. Identify how restaurant and foodservice managers use long
range, business, and marketing plans and operating budgets,
and explain the relationship among these planning tools.
• The vision and mission statements drive four basic types of operating
plans.
• The long-range plan indicates what an operation would like to
accomplish over the next three to five years, and the business plan
identifies goals for the next 12 months.
• Marketing relates to activities that attract, retain, and expand the
number of customers for an establishment.
• Marketing plans describe activities to help the operation increase its
revenue, and operating budgets estimate revenue, expenses, and
profit expected for a specific time period.
Chapter 2 Leaders Facilitate the Planning Process - Summary
6. Explain the need to consider employees’ abilities and use an
organized process in implementing effective plans.
• Plans benefit from considering employees’ abilities and using an
organized implementation process.
• Managers must develop, implement, and evaluate the plan and
ensure that the results are applied to improve operations.
Chapter 2 Leaders Facilitate the Planning Process
Key Terms:
Benchmark A standard by which something can be measured or
judged.
Business plan A statement of goals and activities to be addressed within
the next 12 months to move the operation toward its mission.
Core value A key element of an operation that indicates the most basic
reasons the business exists.
Departmental (team) goal A goal that is set at the second highest level
in the operation.
Employee turnover rate The percentage of the total number of
employees who must be replaced during a specific time period such as
a month or a year.
Income statement A summary of the establishment’s profitability during
a certain time period.
Chapter 2 Leaders Facilitate the Planning Process
Key Terms continued:
Individual performance goal A goal that focuses on each employee’s
personal efforts.
Long-range plan A statement of goals and the activities necessary to
reach them that can be used over the next three to five years to move
the operation toward its mission.
Marketing plan A calendar of specific activities designed to meet the
operation’s revenue goals.
Operating budget A financial plan that estimates the revenue to be
generated, the expenses to be incurred, and the profit, if any, for a
specified time period.
Organizational goal A goal at the highest level, focusing on broad
statements of what the entire operation wants to achieve.
SMART goal A goal that is SMART is specific, measurable, achievable,
relevant, and timebound.
Chapter 2 Leaders Facilitate the Planning Process
Key Terms continued:
Stakeholder The persons who affect or are affected by the
establishment. Stakeholders include owners, managers, supervisors,
employees, and customers.
Strategic priority An operation’s highest-level concern for employees to
address.
Strategy A plan of action to reach a goal.
SWOT analysis An analysis that identifies an operation’s strengths and
weaknesses and examines its opportunities and threats.
Value The relationship between what is paid for something and the
quality of the product or service that is received.
Value statement A set of standards that guides restaurant and
foodservice operations, which is the foundation for developing the vision
statement and mission statement.
Chapter 2 Leaders Facilitate the Planning Process
Chapter Images
Chapter 2 Leaders Facilitate the Planning Process
Chapter Images continued