Operational planning is the process of implementing strategic plans and objectives to reach specific goals. It is a future-oriented process that maps out department goals, capabilities, and budgets to promote the success of team-based activities designed to support the strategic plan. An operational plan describes the specific steps in any given strategic planning model and explains how and what portion of resources will be put into operation during a given operational period. Operational plans are generally prepared by the people who will be involved in implementation, and there is often a need for cross-departmental dialogue as plans created by one part of the organization inevitably have implications for other parts.
Key components of an operational plan include identifying clear objectives to be achieved, details that are specific to each objective, and how progress will be measured. An operational plan should be laser-focused on a team or initiative and should span a quarter, six months, or a fiscal year, depending on how fast the organization moves. An operational plan helps managers and department heads define their daily tasks, responsibilities, and activities in detail, and it illustrates how individual team members contribute to the overall company or department goals.
Operational planning is complementary to strategic planning, as strategic plans define the business strategy and the long-term goals for an organization, while operational plans define the steps required to achieve them. An operational plan is the basis for and justification of an annual operating budget needed to achieve an overall strategic plan. The operations plan is both the first and the last step in preparing an operating budget request, as it provides a plan for resource allocation and may be modified to reflect policy decisions or financial changes made during the budget development process.
In summary, operational planning is a detailed process that involves breaking down high-level strategic goals and activities into smaller, actionable steps. It is a crucial component of achieving an organizations overall strategic plan and involves defining goals, timelines, action items, and key milestones. An operational plan is a document that outlines the key objectives and goals of an organization and how to reach them, and it is the basis for an annual operating budget needed to achieve an overall strategic plan.
