Planning

All too often in the business world managers are spending a majority of time fighting fires in their departments or areas of responsibility. The approach of many of these managers is reactive instead of proactive, and for many stepping back from a situation and planning an attack instead of jumping in immediately is difficult. The difference between these managers and more experienced and successful managers is the ability to see a bigger picture and more detailed perspective to an issue. This type of planning is something that everyone can develop through continual usage and learning but must be done with a firm belief in a strong ethical system. This is exactly the type of behavior Johnson & Johnson demands company-wide. It begins with a basic understanding of planning, continues through effective ethical standards and finishes with learning and further planning for the future.

The first step of any project is to decide to attack it but doing so without a plan can only lead to disaster. When starting to plan for any undertaking, it is best to remember the following: 1) The largest benefit of planning comes from the process itself. A manager needs to learn how to work with and listen to the team around him or her; 2) The truest fact a manager will obtain is that there is no perfect plan. Learning from the process and growing with the results is the best path to future success; 3) The planning process is a small-step process that builds on itself and may include everyone from the CEO to the person hired that day; 4) Things are never as bad as they seem or as good as one would like. Learn from what happens and grow accordingly; 5) Start simple, but start! The only true way to start on a path to success is to take the first step, no matter how scary it may seem. (McNamara n.d.).

The second biggest factor a manager needs to consider when undertaking a planning initiative, especially when he or she is just beginning to learn the ropes, is how the endeavor being undertaken will be viewed ethically. Ethics is simply learning what is right or wrong then doing the right thing for the company, society, and those within both. The problem lies in the fact that ethical situations are not the cut and dry type and need to be analyzed from many angles. One of the best examples of handling a touchy situation with superb ethical standards comes from Bob Kniffin, Vice President of External Affairs, at Johnson & Johnson Company. In 1982, seven people in Chicago died after taking extra-strength Tylenol, a leading pain-killer medicine, that had been laced with cyanide by an unknown offender. The tampering had occurred after the product had reached shelves. Tylenol took a major hit in market share after the incident, losing almost 30% of its market share. Johnson and Johnson responded by ensuring public safety first. They recalled all their capsules (about 31 million bottles for a loss of more than $100 million daollars) from market, even though they knew they were not responsible for the incidents. They also made public announcements warning people about the consumption of the product and took front-line initiatives to protect consumers. (Susi 2002). The reason for their quick and positive response was from their belief in the company's credo:

We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers' orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit. We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family and responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical. We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens - support foor works and charities and bear our fair share of taxes. We must encourage civiv improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources. Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities procided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return. (Johnson 1943).

The belief in this credo and Johnson and Johnson's demand to act responsibly to the public first is the key to the brand's survival. It was only after Johnson and Johnson was sure that the public safety was secured that it moved to restore comfidence back to the consumer and re-introduce its product.

Not only was Tylenol a pillar of ethical responsibility, they also showed excellent planning strategy in their re-introduction of their product.