Operational planning

Operational planning is an important aspect of the planning of a business or other organization and its intended functions. Operational planning is part of a strategic plan, which is a statement of the organization's vision and long-term goals. The operational plan helps to explain the day-to-day work intended to fulfill the organization's vision and meet its goals. Operational plans should contain detailed descriptions of the intended progress of the organization or project. They should explain the required employees, funding, and other resources. These plans, which may be written or modified by many members of an organization, can also include secondary plans that may be used should the initial plans prove unsuitable.

Background

Businesses and other organizations can be large, complicated, and endowed with many powers and responsibilities. Careful planning is essential for designing, creating, and running such an organization. Most organizations begin with a set of plans often called a business plan. Business plans may have many different elements, but generally include evaluations of the organization in the present and forecasts about its goals and anticipated results in the future. Business plans may encompass financial plans, organizational plans, marketing plans, and many other important factors. These factors are all very important for the efficient functioning of an organization.

One of the most important features of a business plan is the strategic plan. Strategic planning highlights the goals and vision of the organization and its intended future objectives. This part of the business plan assesses the organization's role in the marketplace, its strengths and weaknesses, and the areas in which it is most likely to grow and succeed. However, while the strategic plan sets out the intended future of the business, it also needs to explain how the organization intends to reach that future. This explanation will be covered in the operational plan.

The operational plan is one of the most important features of the strategic plan. It is essentially a plan for executing all the various tasks and initiatives to most likely bring the organization to its intended strategic goals. The operational plan creates a clear and detailed portrayal of everyday activity at the organization, explaining how each employee, team, or department will work toward their shared strategic purposes. It gives specific information about the time, resources, workers, and operations necessary to reach the purposes. Without the operational plan, the strategic plan could not be efficiently executed, and the organization most likely could not succeed.

An effective operational plan answers several crucial questions about the organization. It asks where the organization is presently, the goals it intends to reach in the future, and how that progress will be made. The plan also shows how the organization will measure its progress toward its goals, and provides a timetable for the organization's intended progress.

Overview

An operational plan is critical to an organization because it describes the everyday tasks and concerns that can bring the organization's strategies or goals from concept to reality. This plan explains the work that needs to be done and how it will be done. It also describes the resources—human, material, and financial—that are necessary to completing a project. A thorough plan will not only list the resources needed but also explain where they will be found and how they will be prepared to operate at peak efficiency, along with potential future sources of additional resources.

The operational plan should show how a goal or project can be started and then sustained until it reaches its successful completion. The plans should include a timetable describing the steps of the project and the anticipated progress at each point, an exit strategy for ending the project, and explanation of how the project's achievements will be managed. Quality standards to judge the value of the project's output are also an important part of the operational plan. Team performance plans, or plans that outline and measure the performance of individual workgroups, may also be added to an operational plan.

Although operational plans are focused on success, they should also honestly and realistically address the risks and possible downsides involved in a project. The more clearly a risk is examined, the more likely it is that operational planners can find a way to avoid or mitigate the risk. In cases where risks cannot be avoided, or problems appear unexpectedly, organizational plans should contain contingency plans. Contingency plans are alternative plans that can be used if circumstances suddenly change or if the original concept proves unattainable.

Like all features of business plans, operational plans may be created or modified by different members of an organization. They are most frequently written, however, by the founders of the organization as part of their defining vision of the group and its intended work. Sometimes operational plans are written or revised later, though, or written specifically to deal with new departments or projects within an organization. In those instances, the people who will be charged with implementing the work discussed in the plan are the ones who are usually best suited to create the plan.

Many operational plans have wide-reaching implications. In those cases, planners may consult members of multiple departments to get the most accurate information and to gain needed support. Additionally, some members of an organization may be especially helpful with certain aspects of the planning process. For instance, human resources personnel would likely be able to help determine the number and qualifications of employees available for an operation. A finance manager may be necessary to allocate and approve the funding needed for the project. Technical requirements may be best handled by internet technology staff. Successful operational plans will generally contain the input of all the most qualified and most involved people and groups in the organization.

Bibliography

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