Leadership Skill - Planning Planning as a Leadership Skill

There are many leadership skills that are important, and one of the most significant is planning. Additionally, there are many different models for planning. The one chosen here is vision-based or goal-based. This is a good type of planning for an individual or a company that has not done much strategic planning previously, because it allows that company (or individual) to do something that is relatively basic but that is still highly effective and that works well (Garth, 2000; Nag, Hambrick, & Chen, 2007). Two other models, Issues-Based planning and Scenario Planning, were considered but deemed more complicated and unnecessary. In vision-based planning, it is necessary to first identify the purpose. Usually, a company does this through the creation of a mission statement (Drucker, 2000). From the mission statement and the kinds of things that the company would like to see occur in the future, a vision statement will then be created. With mission and vision statements firmly settled, it is then time to consider what goals have to be worked toward and accomplished if the company is going to complete its mission and reach its vision (Drucker, 2000). Specific strategies or approaches will be necessary so that each goal and be reached, and implementing those strategies is very important. For each strategy, the company needs an action plan.

The strategies, action plan, mission, and vision all need to be compiled into a Strategic Planning Document that the company...

Some of the information would need to be kept private, but mission and vision statements are often made public so that consumers and others who might want to do business with the company can look at those documents and see if the values the company holds matches their own values. The implementation of the plan will have to be monitored, because plans do need to be changed. As goals get met, or as it is understood that a particular goal cannot be met (or should be changed for a specific reason), the document and the entire plan will need to be updated and adjusted so as to help the company stay on track and keep moving forward toward its mission and vision (Parsatharthy & Booke, 2006).
Scenario

Because planning is such a valuable leadership skill, it is necessary to show vision-based or goal-based planning at work in a real-world scenario. For this example, a brand-new, small business will be considered. The business consists of five people, all of whom have been friends for more than 10 years. Because they get along so well and spend so much time together, they decide that it is a good idea for them to go into business.

They have big dreams of working very few hours and making a lot of money, but those dreams are not going to be realized if they cannot agree on what kind of business they will start, how it will be operated, and what kinds of plans have to…