describe operational business planning techniques

Painless operational planning

Turning strategy into an operational plan isn't about doing more things right – it's about doing more of the right things. In contrast to strategic planning, the goal of an operational plan is to see how you'll execute on your strategy month by month, week by week. And since you work in a vacuum, this means you'll need to coordinate people, time, and budgets across teams (and maybe across departments, too).

An actionable operational plan answers questions like: 

• What milestones do we need to hit?
• Who will work on what?
• Where might we run into bottlenecks and how can we avoid them?
• How will we define success?
• What early indicators will tell us we're on the right track? 

Once you have an actionable plan drafted, be sure to gather and incorporate feedback from the core team involved, as well as stakeholders. Don't get discouraged if you go through a few iterations before landing on a plan everyone can get on board with. (They don't call operational planning a "process" for nothing!)

Ready to dig in? Let's do this. 

Top 6 plays for better operational planning

Whether you're planning for the quarter or for the fiscal year, operational planning is a team sport. This collection of plays is designed to help you collaborate and agree on goals, priorities, roles, and risks. 

Goals, Signals, and Measures

Starting with your high-level objective in mind, you'll define a specific goal. Then you'll brainstorm signals you can listen for in the short-term that'll let you know you're making progress (think KPIs) and agree on how you'll measure success. Run this play at the beginning of the planning process. 

Roles and Responsibilities

Gather your core team to establish who is responsible for what on a day-to-day basis. This play is very effective for uncovering skill gaps or redundancies. (Efficient resourcing for the win!)

Prioritization Matrix

Real talk: you can't just implement your operational plan. You'll also need to support requests coming in from across the organization. Run this play with leads from adjacent teams to determine the right balance. 

Capacity Planning

Resource management is tricky. Does your plan require more time than you have? Will the right people be available when you need them? Use this play to take the guesswork out of estimating and prioritizing. 

Dependency Mapping

Use our handy template to visualize the web of dependencies lurking within your plan and develop your approach to managing them. You'll think through the various systems your plan will affect, risks, and how to create a feedback loop with stakeholders.

Trade-off Sliders

Take the frustration out of decision-making by agreeing on what you need to optimize for at all costs, and where you can be flexible. This sets your team up to make every-day decisions autonomously and keep implementation chuggin' right along. 

also recommeded

Leadership team health monitor.

Delivering a great operational plan requires a healthy team of planners. Use the Health Monitor to self-assess against eight attributes common amongst high-performing teams, then track your progress over time. 

Gather your operational planning team for an honest discussion about how you're working together.

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Overview: Operational Planning

A company needs a strategy plan, but that’s not enough. To ensure that your organization’s larger goals are achievable, you need an operational plan to manage the day-to-day tasks.

Operational plans do not have to be reserved for large companies. Individuals and small  businesses  can also benefit with operational planning.

This article will explain, what is operational planning is and how to make one without feeling overwhelmed.

What is an Operational Plan?

The operational plan guides and helps the teams to stay on the required project timeline and to make crucial decisions about the company’s long-term goals.

Who should develop an Operational Plan?

An operational plan is necessary to capture who is doing what and when. An operational plan should be smaller than your  strategic plan  in terms of scope and timeline. 

Instead of creating an operational plan for the entire company, you can create one for each department or team. You could create an operational plan for one initiative in a larger company. This is similar to a detailed plan.

To illustrate, you might create an operational plan that outlines the daily tasks your IT department must perform to support the company. 

The operational plan for your IT department might include details such as how often IT team members will check the IT request project inbox and budget details. It also may detail how IT team members will onboard new employees and how they will equip them.

An operational plan should be created at three levels:

• Scope:- Your operational plan will detail the who, what, and when for each activity. This plan should be focused on one team or initiative.
• Timeline:-  Depending on the speed of your organization’s movements, your operational plan should be spread over a quarter, six months, or a full fiscal year.
• The stakeholder:-  Make sure that the people involved with operational planning are near the work so they can accurately project the work and predict the work to be included in it.

Types of Operational Planning

There are basically two types of operational plans: Standing or single-use.

• A single-use plan  is operational planning that relates to one project. It is discarded after the project is completed. This is useful if the project doesn’t align with another project or won’t be used again in the future. It can be customized to suit each project.
• A standing program  is operational planning that’s repeated. This plan is used by a department for tasks or projects that arise frequently. These plans will save you the hassle of having to reinvent the wheel every time. However, you will lose some flexibility.

5 Steps For Operational Planning

You are not expected to create new plans or set new goals during the operational planning process. To create an operational plan, you should assess the work of your team and what you need to do daily or weekly to reach your strategic goals.  Here’s how:

1. Get started with a strategy plan

Create a strategic plan if you don’t have one. Before you can begin to break down the details, you need a long-term vision.

A strategic plan can be created in four steps:

• Identify your position
• Develop your strategy
• Your strategic plan should be created
• Manage, share, and monitor your strategic plan

2. Reduce your scope

To create an operational plan that is detailed-oriented, it is important to limit the scope of your project to a specific team, department, or focus area. Your company’s size will determine the scope of your operational plans.

Imagine, for example , that you are breaking down your strategic plans into action plans for different company departments. 

Marketing teams can include design, product marketing, and social media. You should develop an operational plan for each of the smaller teams to capture daily functions.

3. Identify key stakeholders

Before you create an operational plan, determine who will be involved in it. The members of the team responsible for creating the operational plan should have a good understanding of the actions described in the plan.

Depending on the size of your team, the head of the design group and the team leaders should create the operational plan for the design team. After creating their operational plan, they should share it with the head of marketing to finalize approval.

Your operational plan describes the actions that your team will take to reach your goals within a given timeframe. 

You can outline an operational plan here:

• The goals of your team
• The deliverables will be realized by the operational plan
• Any desired outcome or quality standards
• Your operating budget, as well as your staffing and resource needs
• How to monitor progress and make reports

These are the questions to ask yourself if you have difficulty figuring out the details of your operational plan.

• What are we supposed to do? This information should be derived from your strategic plan or yearly goals.
• What are the daily tasks we must complete to reach our goals? These could be your daily tasks or new work you need to do.
• Who is responsible for these tasks? Each task should have a single owner to ensure that there is no confusion as to who to contact for updates or questions.
• What are the metrics that will help us achieve our goals? If you don’t have SMART, create it.

5. Update and share your operational plan

Once you have created your plan, share it with  key stakeholders  to make sure they know the team’s main goals and the daily tasks required to achieve them. You can manage your plan and update it on a shared platform that tracks real-time progress.

Things will change, just like any other element of project planning. You must monitor the progress of your operational plan, and provide updates to key stakeholders and team members about how you are tracking towards your goals. Written status updates provide a monthly progress report.

What are the things should be included in Operational Planning?

The things should be included in Operational planning are:

Operational Budget: An operational budget is a forecast of projected running expenditures and income for a specific time period. The operational budget, like other types of budgets, outlines the amount of money available to buy raw materials, equipment, or anything else required for corporate operations. It is critical to keep your expenditure under your operating budget; otherwise, your firm will run out of resources to carry out its routine operations.

Operational Objectives: It is critical to link your operational goals with your strategic goals. For example, if one of your strategic goals is to boost sales by 25% over the next three years, one alternative operational goal is to hire more salespeople. Always take your strategic plan objectives and transform them into one or more action items.

Operational Timeline:  It is critical to create a timetable for your operating plan. Most of the time, your operational plan will be the same length as your strategic plan, but in other circumstances, you may need to produce numerous operational plans for different goals. Because not all operational plans are created equal, the length of your operational timetable will be determined by the length of your projects, workflows, and procedures.

Quality Assurance and Control:  Most businesses have quality assurance and control methods in place for a number of reasons, including consumer safety and regulatory compliance. Furthermore, quality assurance concerns may cost your company millions of dollars, thus creating quality management practices is an important stage in operational planning.

Executive Summary:  An executive summary is a short document that highlights the content of longer papers such as business plans, strategic plans, or operational plans. Their primary goal is to offer a short summary for time-pressed stakeholders.

Key Performance Indicators:  Establishing key performance indicators (KPIs) to monitor the productivity of your business operations is critical. You may create as many KPIs as you need for each of your business operations. You may, for example, set KPIs for marketing, sales, product development, and other critical departments in your organization. Product launch dates, the number of manufactured items, the number of customer care cases closed, the number of 5-star reviews received, the number of clients acquired, revenue increased by a specific percentage, and so on are examples of this.

Advantages of Operational Planning

Clarifies your organizational goals

Managers and department heads can use an operational plan to define their daily tasks, activities, and responsibilities.

This also shows how each team member contributes to the overall goals of the company or department. Managers and employees cannot measure the success of their daily tasks against predetermined outcomes if they don’t have a plan.

Team productivity is increased

Businesses are always on the lookout for ways to improve productivity. This in turn leads to higher profits. An operational plan is one of the most influential and simple ways to increase efficiency.

Employees who know their daily responsibilities and objectives are more productive. If they aren’t clear on what is expected of them, their productivity could suffer.

This vital information is provided to employees across the company and in every department by an operational plan.

Boost your organization’s profitability

A plan can help keep teams and projects on track.  Teams can increase their revenue and create new products when they are well managed.  Innovation pays off. According to a BCG survey, 60% of innovation-focused companies report steady increases in revenues year after year. Teams can innovate faster and better when they have an operating plan.

Increases Competitive Advantage Components and multiple levels are combined to get competitive advantages.

Your workflows will run more smoothly if you coordinate the various parts using an operational plan. This will allow you to deliver high-quality deliverables on time, providing a great customer experience and helping you stay ahead of your competitors.

Operational Planning Disadvantages

Human error possible

Human error is a problem in manufacturing. It can happen when a product goes from production to sales.

Operations management teams must coordinate with cross-functional teams like finance, engineering, and  Human Resources . Each team will be able to clearly understand the department’s end goals.

Interdependency amongst parts

Implementing an operations planning process can be a problem because it depends on the coordination between parts.

One component failing can cause a plan to fail, which can have a negative impact on the next. One process disruption can lead to a breakdown in the whole process and render the operational plan useless.

Operational planning vs. Strategic planning

Although they are related, these planning strategies have a different focus.

Operational planning refers to the daily work involved in executing your strategy. This ensures that you have the right resources and people to do your work efficiently.

Strategic planning, on the other hand, is about planning for the future and identifying the pipelines that will be needed.

The U.S. Bureau of Labor estimates that nearly 7 million Americans are self-employed, while another 10 million are employed by small businesses.

Chances are that your company has a form of strategic planning if you work for a large corporation. If you are one of the millions working remotely, however, success will depend on your operational planning.

Read More:   Operational planning vs. Strategic planning

An operational plan isn’t rocket science. But you have to do the work. An operational plan that is well-designed will include detailed information about manpower, resources, and the steps to be taken.

Although it may seem like a lot of work, the result will be worth it when your department completes a highly-rated project on schedule and within budget.

However, to get the help in managing/creating your operation plan, we are OnDemand International , here we are to help you out in each & every step of yours.

Once the company’s goal is established, the team will create a strategic plan that includes three components: sales, marketing, and operations.

A solid plan is essential for any operation. There are five main components that you should focus on: Preparation (marketing), logistics, human resources (HR), financial limits, and preparation.

The most common difference between the two types are ongoing and single-use plans

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Operational Planning

Operational planning definition.

What does operational planning mean? Operational planning creates a detailed roadmap based on a strategic plan. The operational plan aligns timelines, action items and key milestones that finance or the business needs to complete to execute on the strategic plan. In this way, an operational plan outlines the organization’s key objectives and goals and clarifies how the organization will achieve them.

During the operational planning process, finance or the business responsibilities are described in detail based on the timeline for the operational plan. The timeframe should depend on typical organizational velocity; creating an annual operational plan is a fluid, changing process, so keeping clarity and collaboration is vital for success.

A well-conceived business operational plan keeps team members collaborating smoothly, ensures everyone knows what needs to be done and what their part in it is, and guides critical decisions about long-term strategy.

Key steps of operational planning

• Define the goal or vision for the operational plan clearly
• Analyze and identify key business stakeholders, resources and budgets team members, budgets, and resources
• Consistently track and inform team members and stakeholders on progress
• Adapt the operational plan to wider company goals as needed

What Is Operational Planning?

Operational planning faqs.

What is operational planning for finance or the business? Operational planning is the result of a team or department working to execute a strategic plan. 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.

Operational business plans are most effective when there is buy-in from the entire team or department, ensuring issues are reported, goals identified and timelines get delivered,, and business collaboration is more effective. When communication across finance and the business exists, operational plans work even more efficiently to ensure that the entire organization reaches its goals.

An example of operational planning would be a manufacturer creating a plan to increase revenue by 30%. Finance partners with sales, the marketing team, operations and other key business areas to align on the strategies needed to support revenue growth and achieve business goals together. Another operational planning example might be a brand looking to introduce a new product. It would need to leverage and expand existing capabilities, harness new tools, and create a roadmap for doing so.

Other operational planning examples in management include mapping business or production output to meet other new goals, planning for new or expanded solutions, sales and operational planning, providing a roadmap or increased clarity surrounding business goals, or creating a strategy for increased business partnership.

Strategic Planning vs Operational Planning

There is a difference between strategic planning, tactical planning, and operational planning. However, strategic, tactical, and operational planning need to be considered together and build upon one another.

What is a strategic plan?

A strategic plan describes the high-level goals, long-term vision, and organizational mission, usually over the next three to five years. It also details the major projects or initiatives that will happen to meet them, and how the organization will measure the goals, broadly. This is a big picture view of goals, but it can’t really show a team how to achieve those goals step-by-step.

What is an operational plan ?

An operational plan (also known as an operations plan, work plan, or operation plan) is a detailed outline of what a team or department will focus on in the immediate future—typically within the upcoming year. The operational plan answers questions about things like weekly goals and tasks, such as what they are generally, what they will achieve, who will do them, and how often.

What is a tactical plan?

Tactical planning is a step organizations or teams sometimes take after they create strategic and operational plans. The idea is to break the plans into smaller goals and objectives, to define them and determine which steps and actions will be most effective in achieving them. In other words, the operational plan may just have set a goal or task for person A about goal 1, but a tactical plan might set forth the detailed steps person A will need to execute every week.

Tactical planning and operational planning differ in the kinds of questions they ask. Operational plans ask how the team should do something so they can both adhere more broadly to the organizational mission and specific strategic goals. Tactical plans ask specific questions about how to accomplish strategic and operational goals. They are the most microscopic version of planning.

In summary, a strategic plan is a business-level, long-term strategy plan over the next three to five years. It is a visionary plan, the big picture. Its focus is not on implementation. An operational plan is smaller in timeline and both scope, and the goal of operational planning is both to describe a more granular view of how to achieve strategic goals and to focus on implementation in the form of weekly actions, specific Key Performance Indicators (KPIs), etc. A tactical plan is the narrowest view that is focused on implementation only, and things like daily tasks for one person or a small team and smaller goals.

Strategic and operational planning work together; operational planning is an important part of a whole strategy. Tactical planning helps teams achieve their strategic and operational planning goals.

The goal of an operational plan is to give particular tasks to specific departments, not the company as a whole, whereas it is strategic vs operational planning that sets forth long-term goals for the next three to five years.

What is the Operational Planning Process?

Going through the operational planning cycle, keep these best practices and operational planning techniques in mind.

Research and Identify Goals

The goal of an operational plan and its creation process should be to address some foundational questions:

• Start with the strategic plan: how will it shape the actions we take?
• What is the budget? How will it compare to previous years?
• What is the current status, considering budget, resources, and team members? What is the goal status in one, two, three years, etc.?
• How can the team practically achieve the goal? What operational planning methodology informs the approach? What are the operational planning tools we will use?
• What benchmarks should be used to assess our progress? They might include 5-star reviews, customer service cases closed, launch deadlines met, number of goods manufactured, new customers acquired, revenue increases, etc.

Ask team members the questions, and prioritize responses based on how difficult they are to execute, and how critical.

Visualize the Operational Plan

Make sure the vision for the plan is clearly articulated. Clearly defined goals, charts and visualizations, and project management software can help offer a high-level view of tasks and progress for all stakeholders. Identify which operational business planning techniques and tools will work best for achieving the organization’s goals.

Assign People and Budget

The budgeting process in operational planning consists of assigning tasks and allocating resources and budget for team members to complete them. Each piece of the budget should map out to a financial goal in the operational plan with corresponding timetables and deliverables.

Tracking and Informing Progress

Build out a reporting process that corresponds to the clear objectives with goals, targets, deliverables, resource allocation, and timetables in the operational plan. This way the stakeholders can report progress as the plan moves forward.

Adjust the Operational Plan as Needed

A well-conceived operational plan should allow you to understand precisely which activities and aspects of the plan failed to perform. This in turn allows the team to pivot, involve new team members as needed, and continue to the next benchmark with a refined operational plan.

Consider the Right Indicators

Use key performance metrics or indicators that are predictive, not just lagging indicators. You need some lagging indicators such as past sales or attendance figures, but leading indicators such as market trends should also contribute to both reporting progress and adjusting the operational plan.

What Should Operational Planning Include?

Approaches to operational planning vary, but each team has as its main objective producing a functional operational plan that reflects a practical approach to the organization’s mission and strategic plan.

What should an operational plan include? This strategic document should plan all of the daily processes and operations that a business and its teams or departments including marketing, recruitment, and finance need to do to achieve company goals.

A well-defined operational plan should ensure that each manager and employee understands what their specific responsibilities are, and how and when to execute them.

The operation plan itself should have several components:

• A title page. This summarizes the operational plan.
• An executive summary. This provides a few sentences with a rough idea of the overall plan and its basic sections.
• Mission and objectives. This section defines the organization’s broader mission and objectives. It also describes goals and milestones for the coming year that relate to the operational plan.
• KPIs. Evaluate metrics and KPIs that will measure results.
• Financial summary. This offers an overview and a financial breakdown of all projects included in the operational plan to demonstrate there is sufficient capital to execute the plan.
• Hiring plan. Determine how many monthly/quarterly team members to hire across different departments.
• Key assumptions and risks. Provide this risk analysis so mitigation can be performed.
• Next steps. Suggest next steps, if any.

What are the Steps in Operational Planning?

The purpose of the operational planning process is not to generate new goals or plans, but to create an operational plan in support of existing strategic goals:

Start with a strategic plan

Create the strategic plan first. Before considering immediate tasks and day-to-day details, it’s important to see the long-term vision and goals. As the leadership team creates the strategic plan, they determine the position of the organization and develop its strategy. They should also monitor the strategic plan, and adjust it as needed.

Sharpen the scope

Narrow the scope of the operational plan to a department, team, or focus area to ensure it is detail-oriented and targeted. The size of the organization determines the scope of your operational plan. In other words, you start big with the strategic plan, and then narrow down to the operational plan and the focus area of the team who will execute it—and then create various supporting action plans for execution.

Identify key stakeholders

Identify stakeholders in the operational planning process before creating an operational plan. The team members who create the operational plan should lead and inform others around the operational plan, so you’ll need to know who they are before execution.

Create the operational plan

Your operational plan sets forth the timeframe, the goals to achieve, and explains the actions the team will take to achieve those goals on time. It must include objectives, deliverables, quality standards (if any), desired outcomes, operating budget, staffing and resource requirements, and progress and monitoring information.

For example:

An organization’s strategic plan sets forth the goal of the marketing team increasing brand awareness by at least 10% in the next year. This will mean increased engagement with potential customers and more eyes on new marketing materials.

This will require support from the design team, who will have new goals: update the website and create new promotional materials. To achieve those goals, they will collaborate with the development team on the update and hire social media engagement team members. The team will use software and management tools to report and track their progress.

Share the operational plan

Share the operational plan with key stakeholders so they understand mission critical goals and the daily tasks that support them. Track progress in real-time for best results. This also allows you to update the operational plan and report on progress as needed to team members and stakeholders. Like project planning, operational planning is never a one-and-done task, but remains a continuous process.

Why is Operational Planning Important?

At the organizational level, project success demands a strong operational plan. Chaos and confusion often reign without an operational plan, as budgets rise and team members lose sight of tasks and deadlines.

The importance of operational planning is in the creation of a single source of truth that enables comprehensive understanding of mission, strategic goals, and how to achieve them. An operational plan helps teams identify areas that cause lack of clarity, missed revenue generation opportunities, inefficient strategies, or areas of reduced business partnership.

What are the Benefits of Operational Planning?

The advantages of operational planning can impact organizations of any size. An operational plan helps teams reach strategic goals by connecting teams and their individual tasks to company goals. A detail-oriented operational plan has many benefits.

It clarifies organizational goals. Operational planning helps leadership define responsibilities, daily tasks, and activities in detail. It also sets out how individual team members support overall department and organizational goals and defines outcomes for them to measure daily tasks against.

It also boosts team productivity. Operational planning enhances efficiency, productivity, and profits by ensuring employees in each department and across the company know their daily responsibilities and objectives.

Operational planning disadvantages include creating an operational plan based on human error, or whose success is overly dependent upon effective coordination of diverse cross-functional teams. Singular focus only on coordination and not connecting the business is a primary disadvantage of implementing an operations planning process.

Who is Responsible for Operational Planning?

Create an operational plan at the department or team level to best precisely capture the roles and tasks. At a larger organization, an operational plan might even be specific to a particular initiative—much like a detailed tactical or work plan.

There several considerations that determine who creates operational plans:

• Scope. For every activity, the operational plan includes the who, what, and when and must be laser-focused on the initiative itself and the team. Watch to ensure scope is not too broad.
• Timeline. An operational plan should cover a quarter, six months, or a fiscal year, depending on organizational speed and velocity.
• Stakeholders. To accurately predict what work to include in the plan, ensure operational planning stakeholders stay close to the work. Finance must unit the business from tactical details to strategic execution.

Typically, the operational plan is the realm of middle-management, in contrast to the top-down execution style from the C-suite the strategic plan receives. Its scope is also narrower and as routine tasks are mapped out, which continuously evolves Changes to the strategic plan will be less frequent.

Given the focus on day-to-day activities, allocation of resources, and tasks, middle-managers are often best-suited to map out and implement the operational plan.

Does Planful Help With Operational Planning?

Yes. Planful’s financial performance platform unites the demand for structured planning originating in finance with the business need for dynamic planning. Planful empowers organizations to make smarter decisions more confidently, rapidly, and strategically and ensures the data collection process for operational planning isn’t a time-consuming, manual process.

Use Planful to build collaborative financial plans that align resources with strategic objectives. Adjust and pivot as business conditions change, model hundreds of different scenarios reliably, and turn annual plans into quarterly or monthly rolling forecasts, all based on what the organization needs now.

Find out more about Planful’s Operational Planning solution here.

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Operational Planning: How to Make an Operational Plan

June 6, 2022 - 10 min read

Having a strategic plan is essential to any company, but it’s not enough. To ensure that the broader organizational goals are within reach, you need an operational plan for day-to-day work. 

Using templates to manage your operation plan can help simplify your complex processes and save you time. You know how a shopping list helps you remember what to buy at the store? Templates are like that for your work. And Wrike has many templates ready to go for different kinds of jobs. 

For example, you can use the retail trade template to see what step comes next when adding something new for customers to buy. Then there’s the business operations template , which helps you and your team keep track of your business plan without getting wires crossed. And when you need to manage bills, you can use the invoice tracking template . All these templates are great tools for keeping an operational plan ticking over.

In this blog post, we’ll explain what an operational plan is, show you how to create one without feeling overwhelmed, and provide you with an example of an operational plan. We’ll also share our prebuilt templates to get you up and running quickly.

What is an operational plan?

An operational plan is a document that outlines the key objectives and goals of an organization and how to reach them.

The document includes short-term or long-term goals in a clear way so that team members know their responsibilities and have a clear understanding of what needs to be done.

Crafting an operational plan keeps teams on track while guiding them in making crucial decisions about the company's long-term strategy.

Operational planning vs strategic planning

Though related to each other, these two planning strategies differ in their focus.

Operational planning is the process of the day-to-day work to execute your strategy. It ensures you have all the resources and staff necessary to get work done efficiently.

On the other hand, strategic planning is about looking ahead into the future, identifying the upcoming pipeline, and figuring out how you can prepare for it.

According to the U.S. Bureau of Labor, nearly 7 million Americans are self-employed, with an additional 10 million employed by small businesses. 

If you're working at a large corporation, chances are your company will have some form of strategic goals in place. However, if you're one of the millions who work remotely and independently, your success will rely on operational planning instead.

What are the key elements of an operational plan?

The success of operational planning largely depends on setting realistic expectations for all teams.

Here are the key elements of a functional operational plan:

• Clearly define the ultimate vision or objective for the plan
• Review and break down the smaller goals for the operating budget, team, and resources required to put the plan into action
• Assign budgets, team members, key stakeholders, and resources
• Monitor progress with consistent reports
• Refine the operational plan and be ready to pivot if needed

Ensure all teams understand the parameters of success. Doing this shows how their work contributes to wider company goals and ensures better decision-making for the business operation.

How to create an operational planning process

Think of an operational plan as a key component in a team puzzle. It provides employees with a manual on how to operate the company.

It should be created in tandem with other foundational documents like an organizational mission statement, vision document, or business strategy. Daily, it can help answer questions such as:

• Who should be working on what?
• How can we mitigate those risks?
• How will resources be assigned for different tasks?
• Are there any internal and external risks facing the business?

To create a successful operational plan, it's important to define goals clearly. Here are several steps that will help you develop a functional operating plan:

Start with the strategic plan

Before defining an operational goal, make sure your strategic objectives are in place and relevant.

Prioritize the most critical activities first

Once these goals have been decided on, prioritize the most critical activities required to achieve these aims.

Stop diluting team efforts and let them focus on the most important goals first. Doing this means everyone works on a smaller set of tasks, instead of spreading themselves thin in multiple areas. It also helps in optimizing available resources.

Use predictive indicators

For a robust operational plan, consider using key performance metrics or indicators that can help you determine project progress and lend visibility to team activities. 

While lagging indicators look backward, leading indicators look to the future. Think of the plan as a car — the rear-view mirror would be a lagging indicator, while the windshield would be the leading indicator.

A leading indicator could be a new product, higher customer satisfaction levels, or new markets. Examples of lagging indicators include the number of people who attended an event or the monthly operating expenses for specific departments. 

Instead of lagging indicators, use leading indicators. Lagging metrics will show that your efforts are falling short only after you execute the operations.

Leading KPIs include predictive measures that allow early identification of problems before they become critical and impact business performance negatively.

Get team buy-in

The key to defining appropriate KPIs is involving the whole team in the process. Meet to discuss the business goals and figure out what measurements are right for the team instead of working independently or outsourcing them.

Ensure consistent communication

Communication is key. By understanding your company's metrics and what they mean, you'll be able to work together more effectively with colleagues to reach common goals.

Operational plan example

Let’s say that a company plans to increase production volume by 50% at the end of a fiscal year.

When the company goal is clear, the team will make a strategic plan with three main components: marketing, sales, and operations.

This can be further broken down into an operational plan, which will assign resources, teams, budgets, and timelines for different departments such as manufacturing, sourcing, accounts, finance, and logistics to achieve the increase in production. Such a plan should include a financial summary and financial projections as well.

Operational plan template

Think about the example above. The goals and parties involved are clear as part of the operational plan. At the same time, to remain on track, the plan requires continuous analysis and reviews. An operational plan template can be extremely helpful to achieve that.

An operational template can be a simple document that is reused for different plans by the same organization. However, it is also possible and extremely helpful to make use of project management software tools to create one.

For instance, Gantt charts can serve exactly that purpose. Using a Gantt chart as an operational plan template, it is possible to create and manage plans, track changes and edit project-related activities in real time. The chart allows clear visibility for timelines, tasks, responsibilities, and team members.

Operational planning advantages and disadvantages

Most businesses utilize an operational plan to keep track of their daily tasks. 

The plan outlines the day-to-day activities for running the organization — teams, managers, and employees are then able to visualize their contribution, which is crucial for reaching company goals.

But every process has two sides. Let’s review the operational planning advantages and disadvantages in more detail.

Operational planning advantages

Clarifies organizational goals.

An operational plan helps managers and department heads define their daily tasks, responsibilities, and activities in detail.

It also illustrates how individual team members contribute to the overall company or department goals. Without a clearly defined plan, managers and employees have no way to measure their daily tasks against predefined outcomes.

Boosts team productivity

Business owners are always looking for ways to increase productivity, which in turn translates into higher profits. One of the best and easiest ways to boost efficiency is through an operational plan.

Employees are more productive when they know their daily objectives and responsibilities. Conversely, if they're unsure of what is required of them, chances are their productivity will suffer. 

An operational plan provides this vital information to employees in each department and across the company as a whole.

Enhance organizational profitability

Having a plan helps in keeping projects and teams on track.

When operations are managed properly, teams are able to consistently increase revenue and develop new products.

Innovation pays off. A BCG survey points out that 60% of companies that are committed to innovation report steadily increasing revenues year after year. With an operational plan in place, teams are able to innovate better and faster.

Improves competitive advantages

Competitive advantages are made up of multiple levels and components.

Coordinating the different parts with an operational plan will make your workflows run more smoothly. This allows you to deliver high-quality deliverables on time, creating an outstanding customer experience and keeping you ahead of the competition.

Operational planning disadvantages

Possibility of human error.

Human error is a common problem in manufacturing that can often occur when transitioning from production to sale.

Operations management teams will need to coordinate effectively with diverse cross-functional teams such as finance, accounting, engineering, and human resources. In doing so, each team will have a clear understanding of the end goals of each department.

Interdependency amongst parts

One of the main disadvantages of implementing an operations planning process is that its success depends on coordination across parts.

Plans end up failing due to one part not working, which can have an adverse impact on the subsequent process. Disruptions in one process can end up affecting the entire process, making the entire operational plan useless.

Using Wrike for operational planning

Boost your organization’s efficiency by ensuring every project starts off on the right foot. Wrike’s award-winning project management tools can help you create and execute operational plans with various prebuilt templates . 

Establish your plan, monitor progress, and be prepared to pivot if necessary. With Wrike, you can share real-time data, making all milestones crystal clear for your team and helping them stay updated and on track.

These templates keep processes running smoothly so you can focus on doing your work well. Want to try them out? They’re just a click away.  

Choose the most suitable template and start a free two-week trial of Wrike today!

Yuvika Iyer

Yuvika is a freelance writer who specializes in recruitment and resume writing.

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Work Skills You Need on Your Resume in 2021

Navigating the highly competitive job market can be brutal. In a recent Jobvite survey, nearly three in four respondents said they believe finding a job has become much harder following the pandemic.  It’s clearer now more than ever how important it is for your resume to stand out. In fact, nearly 24% of hiring managers spend 30 seconds or less reviewing a resume to determine whether a candidate is qualified for a position or not. You quite literally have seconds to catch their attention before your resume ends up in the recycling bin with the rest of the candidates that didn’t make the cut. So, how exactly do you set yourself apart and stand out from the crowd? Highlighting your work skills on your resume is the best place to start. We did some digging and pulled together some work skills examples in various categories to inspire you to revitalize your resume.  Important social work skills for the workplace What are social work skills? Social skills, otherwise known as interpersonal skills, are essential in helping us communicate with one another in the workplace. These skills allow us to build relationships, interact, and communicate with those around us in a meaningful and effective way. This includes verbal and nonverbal cues.  Social work skills are essential in every job. Whether you work on a team, are in a client-facing role, or are an individual contributor reporting to a direct manager, solid social skills will help you succeed in your position.  Let’s take a look at some of the most important social work skills for the workplace:  1. Empathy One of the best ways to interact well with others is to put yourself in their shoes and understand how they feel. Empathetic people can understand how others are feeling and can identify with those feelings in some way.  Having empathy is a vital trait, especially for those who hold leadership positions. Being empathetic isn’t something you can force, and it doesn’t happen overnight if it doesn’t come naturally to you. This skill takes a conscious effort to build and will help you forge and maintain stronger workplace relationships. 2. Active listening Have you ever been in the middle of a conversation with a colleague and felt like they weren’t paying attention to a single word you were saying? Or have you ever been chatting with a coworker and felt like they heard you and gave you their utmost attention? The latter is known as active listening.  Active listening involves giving someone your full, undivided attention and it allows you to build trust and strong relationships with your colleagues and clients. Active listening requires practice, but it is a skill that can be acquired with proper training and effort. 3. Emotional intelligence At a high level, emotional intelligence refers to recognizing and being aware of the emotions of both yourself and other people. Those with high emotional intelligence are known for being self-aware and can practice self-regulation, particularly in stressful and potentially overwhelming situations at work. Emotional intelligence is critical in the workplace because it contributes to strong, long-term relationships and can help you manage and appropriately tailor your reactions.  4. Conflict resolution According to recent research, 65% of workers experienced conflict with another coworker. Conflict is inevitable in the workplace, which means developing a solid set of conflict resolution skills can help you manage and navigate these situations efficiently.  Conflict resolution is the ability to address the root cause of disagreements and devise a solution that works for all parties involved. You can use various techniques to help resolve conflicts, so it’s essential to learn and understand how to address different disputes. 5. Written communication Social skills refer to how we communicate with one another, which means written skills are a must. Some forms of written communication include emails, instant messages, documents, reports, slide decks, and your resume. Using appropriate grammar, proper spelling, and following formatting guidelines will allow you to communicate effectively with others. 6. Nonverbal communication When it comes to communication, it’s easy to think about what we are saying, but we don’t always focus on how we are saying it. Nonverbal skills can dramatically impact the way your message is received.  Your body language, eye contact, facial expressions, and tone can completely change the message you are trying to deliver to your coworkers. It’s important to be aware of these subtle cues so that you can make sure your message isn’t misconstrued or misinterpreted.  Work-related skills for virtual environments You might not be working with your colleagues side-by-side in the same office. In addition to the skills we discussed above, remote work requires some different skills and disciplines.  Below are a few competencies that you’ll definitely want to have when collaborating in virtual work environments:  Self-motivation: There’s a big difference between in-person office environments and virtual workplace settings. At the office, your manager can simply stop by your desk or quickly check in to see how things are going. While your supervisor can technically do the same via email or instant message, you ultimately don’t have anyone looking over your shoulder 24/7 at your home office (unless you have pets, children, or spouses nearby!). That means self-motivation and knowing how to hold yourself accountable to get your work done are vital to helping you thrive in a virtual role. Adaptability: Adaptability is beneficial in any setting, but it’s a particularly beneficial skill in virtual environments. Whether you’re working with a distributed team and constantly trying to navigate time zones or your presentation gets interrupted due to an unreliable internet connection, adaptability is an important skill to help you navigate the unexpected and ever-changing conditions you may find yourself running up against. Digital and technical knowledge: In virtual environments, employees work remotely and generally rely on several tools to collaborate and tackle their to-do lists. Between project management software, instant messaging, video conferencing, document sharing, and email, there are many different technologies to navigate daily. If you’re working in a virtual environment, it’s essential to feel comfortable using these platforms if you want to keep up with the pace of your work. It’s also worth mentioning that, while you still may be able to reach the IT help desk, you may not receive assistance as quickly as you would in an office setting. That means you might have to do some troubleshooting and problem-solving on your own. What teamwork skills are important for 2021? Teamwork makes the dream work, right?  Teamwork skills are a subset of skills that enable us to work well with groups of people (meaning, our teams) to achieve a shared goal or outcome. In 2021 and beyond, as we see a shift toward hybrid work models, honing in on your teamwork skills can help you land your dream gig. Here are the teamwork skills that are important to develop for 2021 and beyond: 1. Reliability Being reliable is arguably the most crucial teamwork skill. Those who are reliable can be depended on and trusted to do their part time and time again. They show a certain level of commitment to their work and colleagues, meet deadlines (or even get work in early), and follow through on any action or task they say they will do.  You want to be a reliable teammate so your colleagues and your employer will have faith in you. And the more trustworthy you are, the more responsibility you will be trusted with over time, which may boost your career growth in the long run. It’s even more important to showcase your reliability in a virtual workplace environment through clear and frequent communication. 2. Accountability Accountability goes hand-in-hand with reliability. But beyond being reliable, accountability is all about taking responsibility for one’s work — even when that includes mistakes or failures.  There’s no room for the blame game or pointing fingers on teams that work well with one another, which means you have to hold yourself accountable and take fault when necessary. Your teammates will likely think more of you if you’re willing to admit you’re wrong, as opposed to constantly shifting blame or pointing fingers when issues arise. 3. Respectfulness A little bit of respect goes a long way, especially at work. According to Indeed, respectfulness in the workplace reduces stress, increases productivity and collaboration, improves employee satisfaction, and creates a fair environment. You need to respect your team members, manager, and clients to do your best work together.  Acts of respect include acknowledging others and calling them by name, encouraging and exchanging opinions and ideas without judgment, giving credit where it’s due, and listening to and understanding your teammates. 4. Collaboration There is no successful teamwork without collaboration. Collaboration is working together with one or more people on a project or toward a shared goal.  When employees can work together and collaborate successfully, they can share ideas and come up with practical solutions to complex problems. Brainstorming, open discussions, workshops, and knowledge sharing sessions are all examples of collaboration that lead to great teamwork.  5. Persuasion Have you ever worked with a teammate who insists on working their way, even if the rest of the team agrees to pursue another route? How do you keep making progress on your project or goal if one team member isn’t on the same page? That’s where your skills of persuasion come in handy.  Sometimes you might have to persuade a team member to see another point of view and change their mind to benefit the rest of the group. But persuasive skills are more than just getting someone to change their mind and see your perspective — it’s about doing so in an empathetic and respectful way in order to maintain a healthy working relationship. 6. Constructive feedback for improvement You should be able to offer your teammate constructive feedback to help them improve and vice versa. Exchanging feedback not only benefits individuals and the team as a whole but also adds value to your organization by creating an opportunity for constant growth.  Giving feedback requires offering suggestions for improvement in a positive way, while receiving feedback requires listening with an open mind and a willingness to change.  Work skills that work on any resume Sure, there are specialized skills for different roles and industries. Engineers add their programming skills to their resume, project managers add project management certifications and relevant skills, and HR professionals add the performance management and HRIS systems they’ve previously used. While there are specialized skills you’ll want to emphasize on your resume based on your industry and role (and trust us, those are important), there are also some work skills that are relevant on any resume. These include:  Creativity: Creativity is an essential component of innovation and complex problem-solving. In its most basic form, creativity requires thinking about a problem or task differently and using your imagination to form and test new ideas. Problem-solving: All employers value problem-solving abilities because they want to hire people who can break down problems and develop effective solutions. To showcase your problem-solving skills, you might possess a range of qualities such as analysis, evaluation, decision-making, and communication. Time management: No employer wants to hire someone who doesn’t make good use of their time and will have a hard time getting their work done. Your future employer wants to know that you’ll be able to meet deadlines, effectively use your workday to get tasks accomplished, and handle your workload without a lot of babysitting. Examples of specific time management responsibilities include goal setting, prioritizing tasks, meeting deadlines, and minimizing or eliminating distractions for optimal focus. Leadership: Showcasing how you’ve demonstrated leadership in your previous roles can demonstrate to your future potential employer what type of employee you are. Being an effective leader can increase your advancement opportunities within your organization. Use specific examples of successful leadership on your resume for the most significant impact.  So how do you showcase these skills on your resume? Now that you know what work skills for resumes employers want to see, you’re bound to have this question: Where do you put them? Keep in mind that the goal of your resume is to prove that you’re a qualified, no-brainer fit for the role you’re applying for. That’s why your smartest move is to tailor your resume to a specific job. Take a fine-tooth comb to the job description and identify words or skills that are repeated or emphasized. Those are traits that you should be incorporating in your own resume (provided you honestly possess them, of course). The most important skills should go as close to the top of your document as possible, because remember, hiring managers are only skimming for a few seconds. As for where you can work these skills in, you have a number of options, including:  Your professional summary at the top of your document A dedicated key skills section where you can bullet out your most relevant abilities Your past positions, where you can demonstrate how you applied your skills in previous jobs Finally, remember that many of your work skills and social work skills — from communication and time management to problem-solving and active listening — will be on display throughout the hiring process and your interviews.  So, it should go without saying, but show up on time, respond to messages promptly and respectfully, and treat everybody respectfully. After all, when it comes to your work skills, employers want you to show — and not just tell.

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Operational Plan: Everything You Need To Know (2024 Guide)

The old way of planning no longer works in complex and unpredictable business environments, and companies are struggling to find their feet on shaky ground. As we’ve seen with many of our customers and strategies in Cascade, organizations can no longer count on executing three or even five-year strategic plans.

The new reality forces companies and their operations teams to adapt their operational plans more frequently and within shorter time frames if they want to reap benefits faster than their competitors. Organizations need to work on their strategic instinct and fast adaptability to enhance their operational efficiency .  

And that requires big changes—including building a flexible operational plan, supported by the right tools and systems that help you achieve real-time centralized observability and empower a strategic response to external disruptions.

Read this article to build a bulletproof operational plan that includes all the key elements necessary to overcome unpredictable business chaos. You’ll also get free templates that will help you rapidly adapt and align your teams.

✨Bonus: We’ve included pro tips from business leaders in our network to help you identify gaps in your strategy execution and build resilient business operations.

What Is An Operational Plan?

An operational plan is action and detail-oriented; it needs to focus on short-term strategy execution and outline an organization's day-to-day operations. If your operations strategy is a promise, your operational plan is the action plan for how you will deliver on it every day, week, and month.

Put simply, an operational plan helps you bridge the gap between business strategy and on-the-ground execution and ensures that the organization is on track to achieve its long-term goals.

Benefits of operational planning

• Clear definition of relationships between cross-functional teams in different departments and responsibilities for each to eliminate duplicated efforts.
• Tighter alignment between corporate or business unit strategic plans and on-the-ground execution, helping the organization meet its business targets.
• Strong operating system that enables the company to quickly adapt, deliver operations goals, and monitor performance.

Operational planning vs. strategic planning

Operational planning deals with the day-to-day details and short-term goals, while strategic planning focuses on the big picture and long-term direction of an organization.

To put it in simpler terms, operational planning is about the "how" of daily tasks, while strategic planning defines the "what" and "why" for future success.

📚Recommended reading: Strategic vs. Operational Planning

Kickstart Your Operational Planning Process: Lay The Foundation

The quality of your operational plan will depend on your input. A successful operational planning initiative will consider these aspects:

• Who will be involved? Identify and include employees, customers, and the management team in the planning process to gain valuable insights from the front lines, ensuring better strategy and execution buy-in.
• What are your internal capabilities? Assess internal capabilities by conducting an internal analysis , including resource requirements, operating budget, and talent skills. Talent management and employee engagement are just a few of the many challenges that COOs will have on their operations agenda.
• What environment are you operating in? Conduct an external analysis (e.g., PESTLE or Porter’s 5 Forces ) to inform your approach and identify optimization opportunities and risks, keeping you agile in a changing market.
• Is it aligned with your organization’s strategy? Ensure alignment of your operational plan with your organization’s strategic plan to actively support the company's long-term vision and contribute to key business metrics.

👉🏻 Once you’ve gathered this information, you can develop an operational plan to help you execute business strategies.

Key Elements Of Your Operational Plan

Enough chit-chat; it’s time to put your operational plan together. We've built this based on our proven and tested approach, used by over +45,000 Cascade users.

See how Cascade Strategy Execution Platform enhances operational efficiency by reducing duplication and aligning teams toward common goals. It effectively eliminates waste resulting from misalignment, fostering smoother operations and improved performance.

Here’s a recap of the five key elements your plan must consider:

Choose key metrics aligned with the company goals

Selecting your operational plan's key metrics isn't a mere exercise in tracking numbers; it's about laser-focused alignment with your business needs and objectives. These metrics are the tangible indicators of your organization's efficiency and performance. They serve as the compass, guiding your daily decisions and actions toward achieving concrete results.

By precisely aligning these metrics with your company's core objectives, you ensure that every initiative and action within your operational plan directly contributes to achieving tangible results.

An aligned operational plan makes it easier to:

• Communicate roles and responsibilities to all employees so they know how their efforts contribute to overall business success.
• Identify and address operational bottlenecks and inefficiencies that could derail strategy execution.
• Motivate and engage employees to work toward strategic objectives and deliver on business outcomes.

Remember that the role of operations is to close the gap between your organization's strategic goals and what is being done on a daily basis to make them happen.

👉🏻 How Cascade can help:

With Cascade’s Metrics Library , you can bring your operating and financial business-level goals together with your strategy under one single roof. This makes reporting & governance easy, accurate, and less time-consuming by connecting your business data to your key business initiatives.

Through Cascade’s integrations , you can consolidate your metrics in one place, importing your data directly from business systems, data lakes, BI tools, or even spreadsheets.

Define the focus areas of your operational plan

The focus areas of your operational plan are the key areas of the business that the plan will address.

This will depend on your business plan. Think about how the business operates and how it succeeds. Do you need to pursue short-term cost reductions while simultaneously pursuing longer-term growth and transformation initiatives? Your operational plans must be built on these strategic priorities.

For example, you can prioritize your focus areas based on the most relevant business strategies or by specific departments. Some examples of focus areas could be:

• Administration
• Human Resources

💡Tips to help define the focus areas of your operational plan:

• Identify the business's key challenges and opportunities.
• Consider the business's overall long-term strategy and key metrics and how the operational plan's focus areas can support these objectives.
• Bring other people on board to help you identify what needs to be addressed by the operations plan.

Create strategic objectives for your operational plan

Strategic objectives are specific goals aligned with the operation’s strategy and focus areas. They represent what you want to achieve in each focus area and will serve as the building blocks of your plan, ensuring that it’s focused and actionable.

Some examples of strategic objectives:

• Reduce costs by 10% within the next year by implementing more efficient processes and streamlining the supply chain over the next year.
• Launch three new products in the next fiscal year to expand your product lines and increase revenue.
• Increase customer satisfaction scores by 5% within the next six months.

💡Tips for defining strategic objectives include:

• Ensure your objectives are specific, measurable, achievable, relevant, and time-bound (SMART).
• Consistently align objectives with your operational plan's focus areas and the company's goals.
• Don’t be afraid to get input from other people about your objectives.

Identify and prioritize projects

It’s time to identify and prioritize the projects that need to be executed. Remember, projects are action plans to help you achieve your strategic objectives.

Project planning should include thinking about time frames, task assignments, and deliverables (and prioritizing).

Here are some examples of project ideas:

• Localize sourcing for critical semi-finished materials.
• Streamline the supply chain to reduce costs and improve efficiency.
• Find and develop an alternative logistics channel.
• Implement a new customer service training program to improve customer satisfaction scores.
• Implement a new technology that will enable end-to-end supply chain visibility.

💡Tips for defining and prioritizing projects:

• Identify the specific actions and activities needed to achieve each strategic objective.
• Prioritize the projects based on their importance, feasibility, and potential impact on the business.
• Involve stakeholders in defining and prioritizing the projects to ensure their needs and concerns are heard.

Identify and track key performance indicators (KPIs)

Finally, you’ll need to know if your operational plan and day-to-day activities result in outcomes.

Set KPIs for key initiatives and strategic objectives to measure success, ensure alignment, and identify performance gaps in your operational plan.

Some examples of operations KPIs are:

• Inventory costs
• Costs of goods sold
• Revenue growth
• Employee retention rate
• Customer satisfaction score

💡Tips for defining and tracking KPIs:

• Align KPIs with your strategic objectives and focus areas so that you can track the plan's progress against these specific goals.
• Add both lagging and leading indicators .
• Instead of using multiple disconnected spreadsheets and project management tools, consider live dashboards or reporting systems to track the KPIs and monitor progress over time.

👉🏻 How Cascade can help build your plan:

Cascade’s planner feature enables you to build your operational plan with structure and ease by breaking down the complexity from high-level initiatives to executable outcomes. Define your key elements (focus areas, objectives, projects, and KPIs), and share the plan with your teams. You’ll get full visibility of the plan’s progress in real-time, allowing you to identify gaps, quickly update the plan, and communicate the change with your team with a single click.

👉🏻 If you don’t want to start building the plan from scratch, use our free Operational Plan Template pre-filled with examples of focus areas, objectives, projects, and KPIs that you can customize to meet your organization’s needs.

Operational Plan Examples & Templates

Here are five operational plan examples to help you create plans for your teams. You can use one master operational plan or set up an operational plan for each department.

Master Operational Plan Example

This Operational Plan Template will help you close the gap between business goals and day-to-day operations. You'll be able to set goals and KPIs for your top priorities and work with the operations team to deliver operational excellence and business results.

HR Plan Example

This HR Operational Plan Template can be used to meet staffing requirements, manage human capital and align human resources activities with your strategy. HR managers in any industry can create a clear operational plan that can be constantly monitored, adapted, and improved.

IT Plan Example

If you’re in the IT team, try out this IT Plan Template to get your IT operational planning up and running fast. It comes prefilled with focus areas and KPIs relevant to IT operations; you can easily customize workflows and deliverables to your needs.

Marketing Plan Example

This Marketing Plan Template can help you efficiently understand and plan your digital marketing operations using best practices. Use it to quickly set up priorities and get your social media and marketing teams moving on tasks that will make an impact.

Finance Plan Example

This finance-focused template is ideal if you want to get on top of your finance operations plan. Use it to allocate and distribute financial resources across your organization and get real-time updates through your dashboard and reports—which are great tools to create a visually compelling financial summary that clearly shows your key metrics.

💡Pro Tip: To ensure successful execution, it's crucial to align not just your master operational plan with your overarching strategic plan, but also all the operational department plans.

With the Alignment Maps feature, you’ll be able to visualize how your top-level business strategy breaks down into functional and operational plans. This empowers COOs and CFOs to consolidate their operational plans in one place, creating tighter alignment between the finance and operations teams and improving cross-collaboration to build more resilient operations.

Want to dig deeper? Use the Relationships feature to see the relationships between connected objectives from your plans and understand how your different department goals contribute to the core business metrics and goals. This view will allow you to clearly map dependencies, blockers, and risks that may lie along your journey.

5 Tips For An Effective Operational Plan And Its Execution

1. don’t underestimate the power of transparent communication.

Regularly communicate the operational plan and progress to all relevant stakeholders to build the necessary buy-in and support. Your employees must know your goals and the roadmap, and team members should understand their role in its execution. This business transparency will help everyone row in the same direction.

“Clarity regarding strategy is one of the key drivers of autonomous execution. If people understand what you’re working toward and have guardrails in place, they can be empowered to make their own decisions and don’t need everything to be ‘run up the chain’ to get approved. This allows you to move fast and at scale.” — Sam Sterling , Chief Strategy Officer, Akqa

2. Keep moving forward and adopt a growth mindset

Keep the momentum going and ensure that the plan is executed effectively. Regular monitoring and reviews can help identify and address any challenges or obstacles that may arise.

Schedule regular reviews and check-ins and provide the necessary support to ensure projects are on track and moving forward.

“I think adopting a growth mindset is super important. This means having the confidence to fail fast, try something new and empower people to do that.” — Ken Miller , General Manager, Azure Intelligent Cloud at Microsoft

With the Team Updates functionality, every team member can post updates on key measures, actions, and objectives. This will give you real-time visibility into performance and help you identify possible risks before it’s too late—without having to schedule extra meetings or nag your team members for updates.

3. Make strategic moves and change fast when you need to

Your operational plan should be flexible, adaptable, and open to adjustments. This means keeping an eye on progress, making corrections if needed, and being willing to adapt the plan to changing circumstances or new opportunities. As McKinsey suggests, you can consider creating a team that will be able to collect data, link analysis with action, and offer quick responses to rapid changes.

“Traditionally, companies would have taken that piece of paper and gone out and said: we're going to execute it, start to finish. Then get into the formulation of the strategy, what we need to hit, and what the end product result will be like. But what we do know is that’s never the case. Along the way, you're going to have bumps, and inevitably, you’ll need to change from that original picture.” — Annie Lucchitti , Marketing Manager, Unilever

4. Empower your operations team and boost efficiency

Effective operational planning requires the engagement and empowerment of your team. Involve stakeholders in the planning process and provide them with the necessary resources. Give them context and an opportunity to set goals and prioritize initiatives. This will help you boost engagement and hold them accountable for progress.

“I think it just works at every single level. Are people allowed to be themselves at work? Personally, are they at peace? Are they happy? Productivity happens when people have the right skills, but also when they are engaged and happy. If one of those fails a bit, productivity will start decreasing.” — Joan Torrents , Global Sourcing Manager, TESCO.

5. If it isn’t measured, it isn’t managed

Don’t underestimate the importance of tracking and measuring progress against the operational plan's goals and objectives. Set milestones, enforce KPIs, and stay on top of progress. Doing this will help you stay on course, empower you to act quickly, and provide valuable insights into what is going wrong.

“Data is a foundational element in the strategy definition phase as well as in the strategy execution phase as it helps create a baseline, identify key priorities, set goals, and measure progress.” — Erica Santoni , Principal, Diversity Equity & Inclusion, Intuit

Use Cascade’s Dashboards to monitor your day-to-day progress on key metrics and critical business and strategic information in real-time.

Compile the information in powerful reports and executive summaries in seconds with pre-built templates. Share them with your key stakeholders —internal and external— and invite them to collaborate on your strategy together.

Execute Your Operational Plan With Cascade 🚀

What good is an operational plan if no one executes it? If your organization wants to operate at a higher level, static tools like Excel spreadsheets, PowerPoints, Google Docs, and/or project management tools aren’t the solution.

❌They aren’t designed for adaptive strategy and planning.

❌They often lead to siloing and hinder effective cross-collaboration.

❌They make it challenging to measure progress and slow down decision-making.

With Cascade as your central operating system, you can stop running business operations blindfolded and embrace rapid, coordinated, and data-driven decision-making.

Get your Operational Plan Template to get started with a dynamic plan that will lead to actual outcomes for your business and see faster results from your strategy.

Or take Cascade for a spin! Start today for free or book a 1:1 product tour with Cascade’s in-house strategy expert.

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Create an Operational Plan that Makes an Impact

Companies often confuse strategic, tactical, and operational planning. Strategic planning sets your organization’s long-term vision and goals. Tactical planning is the process of figuring out how to achieve your strategic plan. And operational planning links the two, outlining the procedural steps you’ll take to meet your goals. A sound operational plan is critical for achieving success in your organization.

What Is Operational Planning?

Operational planning is the process of creating actionable steps that your team can take to meet the goals in your strategic plan. An operational plan outlines daily, weekly, and monthly tasks for each department or employee. During operational planning, you’ll also create milestones that help you achieve your strategic plan. For example, if your strategic plan aims to grow your customer base by 20%, your operational plan will include incremental steps to gain new leads and customers.

What Are the Benefits of an Operational Plan?

A well-constructed operational plan makes everyone’s jobs easier. The benefits include:

• Clear guidance: With actionable steps for each department, operational plans help teams understand if they are performing well or need to improve.
• Better workflow : Each team knows what they’ll be working on over the month or quarter, and they can adjust their workflow as needed.
• Improves morale : All employees can see how their day-to-day work connects to the company’s broader goals.

Creating an Effective Operational Plan

Operational plans help you hit strategic goals, so start by reviewing your strategic plan. Your operational plan should be specific to a department or team, so your organization will likely have more than one operational plan. Identify the key stakeholders for a particular team: they’ll be best suited to develop the plan, which should include:

• Departmental objectives
• Key performance indicators
• Staffing and budget needs
• Process for tracking and reporting on progress

Once the plan is complete, you can replicate this process for each department. Plans should be shared department-wide for feedback and questions.

Operational Goals

Also referred to as departmental goals or objectives, operational goals are the short-term targets that your organization wants to hit. An operational plan includes operational goals and the steps to achieve them. Typically, organizational goals are:

• Tied to a specific department or team
• Tied to a budget line or item
• Tied to a specific short time frame, such as a month or a quarter

Operational Goals Examples

All operational goals should be measurable and actionable. Actionable means your team can achieve them – so the goal cannot be dependent on an outside factor. For example, your IT team may be tasked with training 10 new employees on security best practices each quarter. But if 10 employees aren’t hired in a particular quarter, that operational goal is not actionable.

To be measurable, there must be a clear way to tell if you met your operational goal or not. For example, one operational goal for an accounting team might be to process invoices more quickly. Their accounting software should be able to collect data on how quickly invoices are processed and paid, so the team can measure their performance over time and see if they are working more efficiently.

Share Your Operational Plan

An operational plan shouldn’t be static – it’s a living document. As time goes on, you may need to adjust your operational goals. That isn’t a sign of failure – it means you’re doing a better job of understanding how each team functions and setting your targets accordingly. You should keep your plan up to date and revisit it regularly, whether once a year or at the end of each fiscal quarter. Include key stakeholders in this process so that the plan works for everyone.

Start Your Operational Plan with Spider Impact

Creating an operational plan might seem challenging at first – but once you get started, it can help all your teams run more smoothly. See how Spider Impact helps you define, measure, manage and report on your operational goals. Click for a free test drive or demo .

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Operational Planning: a Practical Guide for Businesses

Learn about operational planning, its best practices and how to execute it flawlessly in your business.

Every business owner dreams of success. But without a clear roadmap, even the hardest workers can get lost in the shuffle of daily tasks, losing sight of their grand ambitions.

Operational planning is that roadmap, breaking down lofty goals into actionable steps. It’s not just about working hard — it’s about working smart.

Dive into this guide as we dissect operational planning and show how it can propel your business toward its next significant milestone.

What is operational planning?

Operational planning is about making detailed plans for achieving short-term goals, usually within a year. It turns big strategies into specific tasks and steps that teams can follow.

For example, a store might have an operational plan for the holiday season that includes sales targets and staffing schedules.

This kind of planning helps everyone know what they need to do and ensures that resources are used effectively.

It’s like creating a detailed map for a journey, making sure the ship stays on course and reaches its destination smoothly.

Operational planning is essential because it directly helps an organization reach its bigger goals, even though it might seem like a small part of the process.

What’s the difference between an operational plan and a strategic plan?

An operational plan is a short-term, detailed guide for day-to-day work, aiming to reach goals within a year. It's like a specific recipe you follow to cook a meal.

On the other hand, a strategic plan sets long-term company goals for the next three to five years, giving the big picture of what you want to achieve, similar to planning a menu for a week.

The operational plan shows the steps ( how and when ), while the strategic plan shows the overall goals ( what and why ).

Understanding the difference between operational and strategic planning helps you (and your team) use time and resources wisely , keeps everyone on the same page, and ensures that every small task inches you closer to your bigger goals.

Why operational planning is so important for your business

Enhances team productivity.

Operational planning helps everyone know what to do, stay excited about their work, and focus on important tasks, making the whole team work better.

Operational planning helps achieve this by:

• Establishing clear roles: Everyone knows exactly what their job is, what their key performance indicators are, and what results they’re expected to deliver
• Motivating through clarity: Having clear goals helps everyone feel more ready and eager to work.
• Identifying levers: Everyone works on what’s most important — the “levers” that make big impacts — rather than “ putting their time in” on bootless tasks.

This way, operational planning guides every team member in contributing effectively, enhancing overall productivity .

Provides clarity and direction

A good operational plan shows the best way to use time and money and lays a clear path for the team.

It does this through:

• Smart use of resources: A solid operational plan makes sure that time and money are spent on the most important things.
• Knowing what’s important: Prioritization helps teams focus on the big tasks first.
• Removing the guesswork: Make sure everyone knows the plan and follows it.

These elements work together to guide the team towards achieving their goals efficiently.

‎Secures alignment with strategic objectives and goals

Operational planning connects everyday tasks to the company’s big organizational goals, helps check progress, and keeps everyone working together towards the same aim.

It accomplishes this by:

• Connecting daily activities to big ideas: 41% of US workers aren’t sure what their organizational purpose is. So, establishing this connection shows how every task helps achieve the main goals.
• Regular check-ins: These let the team check if they’re on the right path and make changes if needed.
• One shared goal: A unified front keeps everyone working towards the company’s primary aim.

This alignment keeps everyone moving in the same direction, ensuring all the work contributes to the business’s success.

Boosts business flexibility

A strong operational plan prepares your business for sudden changes, helps plan for possible challenges, and lets leaders make quick decisions.

Operational planning shapes this adaptability through the following:

• Preparing for surprises: “Expecting the unexpected” helps the business adjust quickly when these unexpected things happen.
• Nurturing a problem-solving mindset: By thinking about what problems threaten the business, teams nurture problem-solving skills , leading to better decision-making.
• Quick decisions: Operational planning helps leaders make fast and informed choices. Being flexible like this is key to staying strong and ready for anything in business.

Each of these elements helps your business survive in the face of uncertainty and become more resilient to unexpected threats.

Streamlines decision-making

Operational planning makes decision-making easier by using facts, clear steps, and setting priorities to guide choices.

Operational planning supports this by:

• Helping you make choices based on facts: Operational planning ensures that decisions are based on real information, not just feelings.
• Establishing clear procedures: A clear plan defines steps for various processes so that you’re not shooting from the hip, hoping you’ll do things right.
• Fewer arguments: With clear priorities, there's less disagreement on what to do next, saving time, money, and the sanity of everyone on the team.

The bottom line is that by streamlining decision-making in this way, operational planning helps the business navigate challenges and seize opportunities effectively.

Challenges of operational planning

Operational planning is essential for a business’s success, but it’s not without challenges. Let’s break these down to understand them better.

Balancing today's work with tomorrow's goals

It’s tough to manage daily tasks while also thinking about the future. Imagine a juggler trying to keep several balls in the air at once. If they focus too much on one ball, the others might drop.

In business, concentrating only on today's work can cause us to lose sight of our long-term goals.

And deciding whether to spend our time and money now or save it for later can be tricky. It’s like being at a crossroads and needing to choose the right path that leads to growth and success.

Gathering reliable information

Today, we have more information at our fingertips than ever before. But this can be overwhelming. It’s like trying to drink water from a fire hose – too much too fast.

It's challenging to know what information is important and what isn't. For example, a business might have a lot of customer feedback, but figuring out which comments will help improve the product can be hard.

And because the business world moves so quickly, using old information can lead to mistakes. It’s like trying to hit a moving target using an outdated map.

Keeping your team aligned

Making sure everyone on a team understands and follows the plan can be like herding cats. Even with clear instructions, people might need clarification. And some might not want to change the way they work, even if it’s for the better.

It’s essential to keep everyone on the same page and moving in the same direction. Think of it as a boat crew rowing together; if everyone is in sync, the boat moves smoothly. But if not, it can be a bumpy ride.

The bottom line is that operational planning is key to a business’s growth, but it has its hurdles.

Balancing daily work with future plans, finding the correct information, and aligning the team are all “mission critical.”

Tackling these challenges head-on can lead to a smoother journey and a brighter future for the business.

How to create an operational plan

Creating your operational plan requires a systematic approach so that you cover all the bases to set your business on a path to achieve its goals.

Here’s a step-by-step guide to help you through the process.

Step 1: Review your big picture

Start by taking a step back and looking at the overarching goals of your business. What are the main objectives you want to achieve in the next year or even five years? These could range from increasing revenue and expanding market share to improving customer satisfaction.

Step 2: Identify current strengths and weaknesses

Once you have a clear understanding of your long-term goals, it’s time to assess your current situation. Conducting a SWOT analysis can be a helpful tool here. This involves identifying your business’s strengths, weaknesses, opportunities, and threats. It’s about understanding what you’re doing well, where you could improve, and what external factors might impact your business.

Step 3: Set clear, actionable objectives

With your SWOT analysis in hand, you can now set specific short-term targets that will help you achieve your long-term goals. Make sure these targets are SMART – Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of setting a vague goal like "increase sales," a SMART goa l would be "increase sales by 10% in the next quarter."

‎Step 4: Determine resources needed

Next, list out all the resources you will need to achieve your objectives. This could include money, staff, equipment, and more. Also, plan how you will secure these resources. It might involve hiring new staff, purchasing equipment, or reallocating existing resources.

Step 5: Assign roles and tasks

Clearly define who in your team is responsible for what. Make sure every member knows their specific duties and the deadlines associated with them. This helps in ensuring accountability and that everyone is on the same page.

Step 6: Monitor progress regularly

Set up regular check-ins, whether weekly, monthly, or quarterly, to track the progress of your operational plan. Use these sessions to identify issues, address problems, and make necessary adjustments to stay on track.

Step 7: Be ready to adjust the plan

Finally, understand that no plan is perfect from the get-go. Be flexible and open to making changes based on the feedback you receive and the results you observe. The business environment is always changing, and your operational plan should be adaptable enough to change with it.

By following these steps, you create a solid foundation for your business to achieve its strategic initiatives , ensuring you are prepared for the journey ahead.

Examples of operational plans

Next, we'll go through practical examples to show you how operational plans work in real-life situations.

You'll see the steps involved and understand how these plans help businesses achieve their goals.

By looking at these examples, you'll get a clearer idea of how to apply operational planning to different scenarios.

Example 1: A gym aiming to boost membership rates

Suppose we have a local gym aiming to boost membership by introducing new fitness classes.

• Goal: Increase gym memberships by 15% by launching three new fitness classes within the next six months.
• Strength: Loyal member base and knowledge of their fitness preferences.
• Weakness: Limited space in the gym and lack of instructors for specialized classes.
• Objective: Research popular fitness trends, hire or train instructors, and set up class schedules in 5 months. Dedicate one month for promotion to attract new members.

Step 4: Determine resources needed

• Need: Equipment for the new classes, trained instructors, and promotional materials to entice new sign-ups.
• Manager to research and decide on the new classes.
• HR to recruit or train instructors.
• Marketing team (or person) to create a campaign that highlights the new classes and appeals to potential members.
• Bi-weekly meetings to check on class setup progress and track membership sign-up rates.
• If the classes aren't drawing in the expected number of new members, consider offering promotions, adjusting class times, or exploring different class types.

Example 2: A local bookstore aiming to increase sales

Suppose there’s a local bookstore that wants to increase book sales by hosting monthly themed events.

• Goal: Boost monthly sales by 20% by hosting themed events over the next six months.
• Strength: Well-curated book selection and a cozy venue that's popular for gatherings.
• Weakness : Limited marketing experience and budget constraints for organizing larger events.
• Objective: Identify and organize one themed event per month that resonates with the community, driving both event attendance and book sales.
• Need: Event materials, possible guest speakers or performers, promotional flyers, and online ads.
• Store owner to select monthly themes and potential books to highlight.
• Staff members to handle event logistics like setting up, decorating, and coordinating with guest speakers.
• A dedicated person (or outsourced help) to manage promotion, both in-store and online.
• Post-event reviews to measure attendance, book sales during the event, and gather attendee feedback for future improvements.
• If an event theme doesn't mesh with customers or fails to boost sales as expected, brainstorm new themes, adjust marketing strategies, or consider partnerships with local businesses for joint events.

How Motion helps your operational planning

Efficient operational planning is key in the fast-paced business world, and Motion is here to streamline that process.

AI-powered scheduling adapts to changes, keeping your business on track

Motion’s AI-powered scheduling plans your day, ensuring nothing is missed by rescheduling uncompleted tasks. This feature helps you focus on priority tasks adapting to real-time changes.

Project oversight keeps the team together and in the know

Motion provides a clear overview of all team tasks, reducing the need for constant check-ins and enhancing communication. Tasks are sorted by priority, deadlines, and dependencies, aligning the team towards common goals.

Unified work management keeps tasks organized in one spot, making work smoother.

Motion consolidates to-dos, calendars, and tasks in one place, streamlining your workflow. It ranks tasks by importance and alerts you to deadlines, helping you manage your time effectively.

By integrating Motion into your operational planning, your business gains a tool that promotes efficiency, clarity, and focus, transforming operational planning into a strategic advantage.

Master operational planning with Motion

Planning is key, but with Motion, it's a breeze.

Want smoother workflows and better results?

Give Motion a try.

See how it can refine your operational planning and execution, making tasks simpler and your business stronger.

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Operational Planning Creation, Key Elements and its Benefits

• Published on Jun 15 2023

Table of Contents

Introduction to operational planning, what is operational planning, importance of an operations plan, impacts of an operations plan:, operational planning vs strategic planning, process of creating an operational planning, seven steps to create an operational planning process, bottom line, frequently asked questions.

Out of the main 12 principles of project management , planning is the most important principle of all. An essential tool that can help you achieve your goals is effective Operations Plan. The importance of a well-defined operations plan in today's active business environment cannot be overstated.

Adding up to a strategic plan alone is not enough, which is why an operation plan in the daily work activities of any organization is essential. This is the reason why companies likely fail and lose good employees when they have a wonderful strategy but without rich planning.

An Operational Planning outlines how your organization will achieve its objectives efficiently and smoothly, acting as a guide for your organization towards achieving its objectives with efficiency and finesse. You may make your project objectives drive your company's success and give it the structure and direction needed for sustained growth with the help of well-crafted operational planning.

Most of the outcome expected from the resources with their work is known, so it's apt to prevent the  cost of poor quality  in your business with the applicable operating planning process. How do you start, though? How do you make an operational plan for your firm that is effective and covers every important component? What are the applications?

This blog post will guide you through the steps of creating an extensive operations plan that positions your company for success. We shall also discuss what is operational planning, its importance, tips to create one, and related FAQs.

An operational plan is a process of executing your strategic planning into a map that describes detailed level work processes for specific outcomes. It is a document that outlines and aligns task activities, key events, and timelines that accounts for the finish to execute the strategic plan. Operational planning focuses on day-to-day running, and execution by teams and managers with short or long-term goals, capabilities, and budgets of the company. 

There are three levels of planning i.e., strategic plan, tactical plan, and operational plan. To properly understand how operational plans work and run the first step is to focus on the whole planning process within a business. 

Creating an operational plan not only keeps the teams and their tasks on track but aids in decision-making and in alignment with a long-term strategy.

An Operations Plan plays a pivotal role in ensuring that your business operations are aligned with your overall strategic goals. It helps in establishing a clear direction, defining responsibilities, and coordinating activities across different departments.

By detailing the important aspects of your tasks, starting with resources and schedules, operational planning offers a foundation for efficient decision-making, allocation of resources, and managing risks. All stakeholders can use this framework as a reference, which guarantees that everyone working on the project stays on a similar path and pursue the same objective.

Now that we have understood the importance of an Operational Planning process, let's now discuss and understand how Operational Planning is going to benefit the organization and the project management team.

Advantages:

Improved Efficiency-

You may find inefficiencies, simplify procedures, and better allocate resources with the aid of an operations plan. You can increase productivity and lower operating expenses by getting rid of bottlenecks and redundant processes.

Strategic Alignment-

If your operations follow your overall business strategy, your efforts will be focused on achieving your long-term objectives. Making decisions that are consistent with your strategic aim is made possible by having an operations plan, which helps you stay on track.

Resource Optimization-

With an Operations Plan, you can effectively allocate and manage your resources, including human capital, equipment, and finances. This optimization leads to improved productivity and cost-effectiveness.

Disadvantages:

An overly rigid Operations Plan may hinder adaptability and responsiveness to unforeseen circumstances or market changes. It is essential to strike a balance between structure and flexibility in your plan.

Resource Constraints-

The creation and implementation of an operations plan may need additional time and financial resources. It is crucial to ascertain whether allocating these resources is viable before committing to a full plan.

Clear Direction and Focus-

An operations plan provides a clear direction and focus for your organization. It aligns everyone towards common goals, ensuring that efforts and resources are directed towards achieving desired outcomes.

Improved Efficiency and Effectiveness-

By analyzing and optimizing processes, an operations plan improves efficiency and effectiveness. It helps identify bottlenecks, streamline workflows, and eliminate unnecessary steps, ultimately leading to cost savings and improved performance.

Risk Mitigation-

An operations plan enables proactive risk management. By conducting a thorough analysis of potential risks and incorporating contingency plans, you can minimize the impact of unforeseen events and maintain operational stability.

Enhanced Decision-Making-

Decision-making is improved by having an operations plan in place since it is more organized and informed. It offers a framework for weighing trade-offs, assessing possibilities, and coming to data-driven decisions that are in line with the overarching corporate strategy.

Though the two plans are interconnected, the planning strategies vary.

  Operational Planning:

Operational planning (work planning) is the process of outlining work to execute a strategy that focuses on the immediate future or in the next fiscal year. It verifies that all the action items, activities, and timelines are on track to complete the work proficiently.

Strategic Planning:

Whereas, strategic planning describes the high-level goals, identifies the pipeline, features how to work, and develops a plan to achieve the long-term goals for the next 2 to 5 years.

For creating an effective operational plan, project managers follow a few steps that help them clearly understand the requirements and objectives of the project. This helps create an effective plan and ensures that the team is ahead of the deadlines. This allows every project team and its members to have a clear idea of the project and its deliverables.

1. Define Objectives

Begin by clearly defining your operational objectives using the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) framework. To ensure alignment with your overall business goals, these objectives should be precise and quantifiable. In order to boost customer satisfaction, for instance, you can set a target to cut the time it takes to respond to client enquiries by 20% within the next six months.

2. Identify Key Activities

Identify the key activities necessary to achieve your defined objectives. Break them down into smaller, manageable tasks. Prioritize these activities based on their importance and impact on the overall operations. This step helps you establish a clear roadmap and focus your efforts on the most critical tasks.

3. Allocate Resources

Determine the resources required for each activity. This includes human resources, equipment, technology, and finances. Assess the availability of resources and allocate them effectively to ensure smooth execution. Optimize resource allocation to maximize efficiency and minimize waste.

4. Establish Timelines

Set realistic timelines and milestones for each activity. Consider the dependencies between tasks and the availability of resources. Establishing clear timelines helps you track progress and ensures that activities are completed within the desired timeframes. Regularly monitor and adjust timelines as needed to stay on track.

5. Assess Risks and Develop Mitigation Strategies

Identify potential risks that may impact your operations. Evaluate the likelihood and potential impact of each risk and develop mitigation strategies to address them proactively. This could involve creating contingency plans, implementing backup systems, or establishing alternative suppliers. By anticipating and managing risks, you can minimize disruptions and ensure continuity in your operations.

6. Monitor and Evaluate

Continuously monitor and evaluate the progress of your operations against the defined objectives. Regularly review performance metrics and key performance indicators (KPIs) to assess the effectiveness of your operations plan. This enables you to identify areas for improvement, make necessary adjustments, and optimize efficiency. Gather input from key stakeholders and utilize it to continuously improve your operations plan.

You may construct a thorough and efficient Operations Plan that ties your operations to your business goals by following this step-by-step procedure. This makes it possible for you to optimize resource use, streamline operations, reduce risks, and promote success.

Below are the seven core steps on how to craft an operational plan and keep your teams on track with your strategic approach.

Step 1: Begin with a strategic plan

To start with any tasks to process, you definitely need a strategy! Come up with a strategic plan on the first note. It is very important to look at the overall goals, determine position, and risk factors, and monitor the plan and other factors of your business before outlining the tasks in detail.

Step 2: Categorize activities as per the relevancy order

What makes work focusable is figuring out the weights of important tasks to complete within the given deadlines. 

Given that, the goals set up can align with the priority tasks for the subject areas to achieve them. It is a fantastic way to sort resources, tasks, and team efforts in the right manner.

Step 3: Define your Mission, Scope, and Objectives

Keep the question in your mind - Each enterprise, organization, or individual needs to set up a proper vision, mission, goals, objectives, and strategies to achieve and profit their business.

To start and analyze, here is a set of questions to ask;

- What are the goals and vision of the company for the next few years and approaches that might brace for the operation plan?

- What are the changes and progress been done in the previous years?

- What is the round of capital?

- What are the strategic approaches taken over the last few years and KPIs?

- Are the resources enough to reach the number of goals set?

In this way, it’ll be helpful to have a mapping view of your company's performance with the objectives, missions, and business strategies to achieve or meet those set goals.

Step 4: Know your key stakeholders

It’s important to decide who and what will be considered in the operational planning process before making the operation plan. On creating the operation plan, the team must share, discuss and review it with the head of marketing for approval or further changes. Once they’ve created their operational plan, the team should share the plan with the head of marketing for final approval.

By identifying your stakeholders, you will include team members who are interested and engaged in your business. According to it, the teams making the operation plan will take on the plan map. Moreover, the key stakeholders assist in decision-making, reduce risks and boost business growth.

Step 5: Make an effective operation plan

Now that you have all the core areas ready, the next step would be to create an operational plan for your immediate future. 

These will include:

- Goals to achieve from the plan

- Sets of tasks to reach the SMART goals

- Distribution roles and responsibilities with a solid hiring plan

- Provide a budget summary

- Stipulate performance indicators

- Approaches to monitoring and reporting on progress

- Evaluate, optimize, and improve for success

Step 6: Discuss, Share & Update

It’s advantageous to share, present, and update your operational plan with your team members and key stakeholders. A good operational plan not only helps to concentrate on the precise steps to make business ideas obtainable but assists directly and indirectly with short-term goals or long-term goals.

This way, it will help you to add up ideas or measure of missing out on the competitive view into your business and execute properly.

Step 7: Consistent communication

Make certain to keep clear communication with your team members as they take the center on to complete the goals set, strengthen the business, and increase the profits for an organization.

In a nutshell, any silos in between the work processes and confusions will likely get solved and drive to more approachable ideas or solutions.

Operational planning comes in handy for day to day running of the organization. This plan is very useful for individuals and remote workers apart from enterprises.  It documents and gives control through daily/weekly/monthly reports. Thus, learning how to create and implement the operational plan requires key factors of regular meetings, assigning activities, reviewing and revising position descriptions, conducting training, mentoring, tracking, monitoring, and measuring the expected outcomes and systems.

Knowing how to define responsibilities, day-to-day tasks, and activities to support the whole team or goals and outcomes to measure to achieve the plan is remarkable for any industry.

Therefore, it is worth it to gain knowledge and hone skills with career opportunities, especially in the management of projects and quality measures.

In this article, you’ve learned how to create an effective operations plan to drive your business towards success.

To conclude, an operations plan provides a roadmap, but consistent evaluation and adaptation are vital for sustained growth. For companies of all sizes, developing an operations plan is essential to streamlining operations, increasing efficiency, and achieving strategic goals.

You may optimize your operations and produce outstanding results by properly aligning your resources, objectives, and plans. The essential steps and strategies will help you build your operations plan. Adaptability and consistent evaluation are the keys to sustained growth.

Ready to streamline your business operations and achieve success? Enroll in our Project Management Professional (PMP) Certification Training to discover the top techniques and methods for formulating and putting into action a successful Operations Plan. Take your business to new heights.

Sprintzeal also offers courses in quality management that can level your career and get a certification. To get full details or queries for  all courses , reach us by email or  chat with our course expert .

You will be given the knowledge and skills necessary to succeed in this important sector through this in-depth course's comprehensive insights regarding operations management procedures. So why do you still wait? Start building your operations plan today and let your business thrive!

Visit Sprintzeal today and enroll in your desired course to unlock your full potential. Take charge of your business's success and embrace the power of a well-crafted operations plan.

What is the purpose of operational planning?

The purpose of an operation plan can be multiple but the common one can be;

- New product

- Upgrade facilities

- Improvisation of working procedures 

- Expansion of business

- New project goals

- The impact of marketing campaigns

- Describes short-term business strategies

- Progress toward the accomplishment of business goals

What are the four steps in operational planning?

Below are the four steps in operational planning

- Determine your company position

- Establish your business strategy

- Create a strategic plan

- Present, track, and control your strategic plan.

What are the 3 operational plans?

The three operational plans are strategic, tactical, and operational.

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Nchumbeni Yanthan

Nchumbeni is a content writer who creates easy-to-read educational blogs, articles, varying client request, and social media content helping millions of learners meet their career goals.

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10+ Operational Planning Examples to Fulfill your Strategic Goals

By Danesh Ramuthi , Oct 25, 2023

An operational plan is a comprehensive, action-driven document that maps out how daily activities within an organization fuel the journey towards achieving strategic objectives.

Essentially acting as the nexus between high-level strategy and practical execution, this plan ensures that every department, from human resources to specific departments, operates in synchrony, aligning their day-to-day activities with the broader strategic goals.

By streamlining processes, it fosters cohesive efforts amongst diverse cross-functional teams, ensuring that both individual team members and entire departments work together harmoniously towards the company goals.

Ready to sculpt your organization’s future? Start your journey with venngage business plan maker and leverage their expertly crafted operational plan templates . 

Click to jump ahead: 

Why is an operational plan important?

10 operational plan examples, what should an operational plan include, how to write an operational plan.

• Strategic plan vs operational plan: What is the difference? 

In summary 

An operational plan is crucial because it serves as a bridge between a company’s high-level strategic planning and its day-to-day activities, ensuring that the business operations align with the strategic goals. 

While a strategic plan provides a long-term vision, outlining the company’s objectives and goals to gain competitive advantages in the business environment, the operational plan outlines the specific actions, key elements and resource allocation required to achieve those objectives. 

For example, while the strategic plan might set a goal for revenue growth over the fiscal year, the operational plan provides a detailed roadmap, breaking down major projects, assigning responsibilities to individual team members or specific departments and setting key performance indicators to monitor progress and ensure the entire organization works together effectively.

Operational planning, in essence, transforms the strategic objectives into actionable plans, ensuring that the entire team, from department heads to diverse cross-functional teams, is aligned and works in tandem to support revenue growth, increase productivity, and achieve the desired outcomes. 

Operational plans, through a well-structured operational planning process, also provide a clear understanding of the day-to-day activities, allowing team members to know their roles, leading to better collaboration and synergy. 

Moreover, by having clear operational plan examples or templates, businesses can ensure realistic expectations, manage their operating budget effectively and track progress through key performance metrics, thus ensuring that the company stays on course to realize its long-term vision.

Operational plans play a pivotal role in the business landscape, bridging the gap between strategic vision and tangible actions. They translate the overarching goals of an organization into detailed procedures, ensuring that daily operations are in line with the desired strategic outcomes. 

In the section below, I will explore a few operational plan examples, shedding light on their structure and importance.

Business operational plan example

A business operational plan is a comprehensive document that elucidates the specific day-to-day activities of a company. It presents a detailed overview of the company’s organizational structure, management team, products or services and the underlying marketing and sales strategies. 

For businesses, irrespective of their size, an operational plan can prove invaluable. By laying down the business goals and objectives, it acts as a blueprint, guiding entrepreneurs through the creation and implementation of strategies and action plans. The planning process also incorporates mechanisms to track progress and performance. 

Additionally, for startups or companies looking to scale, a meticulously crafted operational plan can be pivotal in securing funds from potential investors and lenders.

Layered on this are details about the company’s organizational structure, its products or services and its marketing and sales strategies. 

The document also delineates the roles and responsibilities of each team member, especially the management and key personnel. Given the dynamic nature of the business environment, it is imperative to revisit and update the operational plan regularly.

Related: 15+ Business Plan Templates for Strategic Planning

Simple operational plan example

A simple operational plan, often used by startups or smaller enterprises, emphasizes the basics, ensuring that the fundamental aspects of the business operations are captured succinctly. While it might not delve into the intricacies of every operation, it provides an overview of day-to-day activities, highlighting the goals and objectives the business aims to achieve in the short term.

In essence, this plan revolves around core elements like the company’s main objectives for the fiscal year, key responsibilities assigned to individual team members and basic resource allocation. A straightforward market analysis might also be included, offering insights into customer needs and competitive advantages the business hopes to leverage.

Though simple, this operational plan example remains pivotal for the organization. It provides a roadmap, guiding team members through their daily responsibilities while ensuring that everyone is working together towards shared goals. It becomes especially essential for diverse cross-functional teams, where clarity of roles can lead to increased productivity.

Modern operational plan example

In today’s fast-paced business environment, the emphasis on efficiency and innovative processes is paramount. The modern operational plan example caters precisely to this demand. Ideal for organizations aiming to streamline processes and highlight workflow, this type of operational plan emphasizes a more dynamic approach to planning. 

It not only reflects the evolving nature of business operations but also provides a modern backdrop for content, ensuring that the presentation resonates with the current trends and technological advancements. The use of modern tools and platforms within this plan enables diverse cross-functional teams to work together seamlessly, ensuring that day-to-day activities are synchronized with the company’s long-term vision.

Furthermore, such an operational plan helps the entire organization stay agile, adapting rapidly to changes in the business environment and ensuring alignment with strategic goals.

Minimalist operational plan example

The minimalist operational plan example champions simplicity and clarity. By focusing on clear and concise business strategies, it eliminates any potential ambiguity, ensuring that team members and stakeholders have an unclouded understanding of the company’s objectives and goals. 

The minimalist design not only promotes easy comprehension but also aligns with the modern trend of decluttering, ensuring that only the most vital components of the operational planning process are highlighted. 

This approach leaves no room for confusion, streamlining the planning process and making sure that individual team members and departments are aligned with the business’s key objectives. 

Moreover, the flexibility offered by a minimalist design allows businesses to craft an operational plan template that is not only functional but also accurately reflects their brand image and core values, ensuring cohesion across all aspects of the business strategy.

Clean operational plan example

The clean operational plan example stands as a testament to this principle. Ideal for businesses that prioritize clarity and directness, this format seeks to convey goals and strategies without overwhelming stakeholders. 

While maintaining a neat and organized layout, it ensures that tasks are managed effectively, helping team members grasp their roles and responsibilities without getting lost in excessive details.

One of the primary advantages of a clean operational plan is its ability to eliminate distractions and focus solely on the critical aspects of operational planning. 

Such a design aids in making sure that diverse cross-functional teams can work together harmoniously ensuring that day-to-day activities align seamlessly with the company’s long-term vision. 

The simplicity of the clean operational plan not only supports revenue growth by ensuring efficiency but also reinforces the company’s strategic goals, making it an excellent tool in the arsenal of businesses that believe in clear communication and precise execution.  

An effective operational plan acts as a roadmap, directing how resources should be allocated and tasks should be performed to meet the company’s objectives. Here’s what a comprehensive operational plan should encompass:

• Goals and objectives : Whether short-term or long-term, the operational plan should define clear goals and objectives that align with the company’s strategic plan. This gives direction to the entire organization, ensuring everyone is working towards a common aim.
• Clear responsibilities for team members : It’s essential that team members understand their roles within the operational plan. By outlining who is responsible for what, the plan ensures that there are no overlaps or gaps in duties and that everyone has clarity on their day-to-day activities.
• Assigned tasks: Alongside responsibilities, specific tasks need to be allocated to individual team members or specific departments. This granularity in assignment ensures that every aspect of the operational plan is covered.
• Timeline: This provides a clear schedule for when each task or objective should start and finish. A well-defined timeline assists in monitoring progress and ensures that the plan stays on track.
• Budget and resources : Every operational plan needs to factor in the budget and resources available. This includes everything from the operating budget to human resources, ensuring that the business has everything it needs to execute the plan effectively.

Read Also: 6 Steps to Create a Strategic HR Plan [With Templates]

As businesses evolve, it’s essential to have a comprehensive and adaptive operational plan in place to navigate the complexities of the business environment. Here’s a step-by-step guide to help you craft an effective operational plan:

Step 1: Define your goals and objectives

Begin with a clear understanding of your strategic goals and objectives. This will act as a foundation for your operational plan. Ensure that these goals are in alignment with your company’s strategic plan and provide both short-term and long-term visions for the business.

Step 2: Determine roles and responsibilities

Identify the key stakeholders, department heads and team members who will play pivotal roles in executing the plan. Assign responsibilities to ensure that everyone knows their part in the planning process and day-to-day activities.

Step 3: Develop a timeline and milestones

Establish a clear timeline that breaks down the operational planning process. Include key milestones to track progress and ensure the plan remains on target.

Step 4: Allocate budget and resources

Determine the resources required to achieve your goals and objectives. This includes estimating the operating budget, identifying human resources needs and other resource allocations, ensuring you have everything in place to support revenue growth and other business needs.

Step 5: Outline day-to-day operations

Detail the day activities that are integral to the business operations. This will provide clarity on how different tasks and functions work together, ensuring efficiency across diverse cross-functional teams.

Step 6: Monitor and measure performance

Integrate key performance metrics and indicators to regularly monitor progress. Using both leading and lagging indicators will provide a comprehensive view of how well the operational plan is being executed and where improvements can be made.

Step 7: Review and adjust regularly

The business environment is dynamic and as such, your operational plan should be adaptable. Regularly review the plan, comparing actual outcomes with desired outcomes and adjust as necessary to account for changes in the business environment or company goals.

Step 8: Document and communicate

Create an operational plan document, potentially using operational plan examples or an operational plan template for guidance. Ensure that the entire team, from individual team members to the entire organization, is informed and aligned with the plan.

Related: 7 Best Business Plan Software for 2023

Strategic plan vs operational plan: What is the difference?

When running an organization, both strategic and operational planning play pivotal roles in ensuring success. However, each has a distinct purpose, time horizon and scope. Here’s a breakdown of the differences between these two essential business plans:

• Strategic plan : This plan sets the course for the organization’s future. It embodies the long-term vision and mission, detailing the objectives necessary to achieve it. The essence is how everyone, from C-suite executives to individual team members, collaborates towards realizing this vision.
• Operational plan : This is the roadmap for the day-to-day activities of the organization. While the strategic plan looks at the bigger picture, the operational plan hones in on the tactics and execution. It is crafted to support organizational goals with a focus on short-term activities specific to departments or functions.

Time horizon :

• Strategic plan : Long-term in nature, usually spanning three to five years.
• Operational plan : Concentrates on the short-term, with plans laid out yearly, quarterly, or even monthly.

Modification and updates :

• Strategic plan : This evolves over longer intervals, typically three to five years. There might be minor adjustments year over year based on changing business needs and the external business environment.
• Operational plan : Due to its short-term focus, it requires frequent assessments. Plans might be adjusted yearly, quarterly or even monthly to ensure alignment with the strategic objectives and current business environment.

Created by :

• Strategic plan : Crafted by the upper echelons of management – think CEO, CFO and other C-suite members.
• Operational plan : These plans come to life through mid-level management and department heads, ensuring alignment with the broader strategic vision while catering to specific departmental needs.
• Strategic plan : Broad in its outlook, it takes into account external factors like market trends, competition, customer needs and technological innovations.
• Operational plan : This narrows down the focus to the internal workings of the organization. It revolves around technology in use, key performance indicators, budgeting, projects, tasks and the allocation of responsibilities among team members.

As we’ve traversed through the importance of operational planning to various operational plan examples, it becomes evident that having a detailed and efficient operational plan is pivotal. 

From the business-centric to the minimalist approach, every operational plan serves as the backbone, guiding team members and ensuring that day-to-day activities align with the long-term vision and strategic goals.

By knowing what should be included in these plans and how to craft them, businesses can navigate the complexities of their operational environment with greater confidence.

For those looking to refine their planning process or start from scratch, the world of digital tools has made it significantly easier. Venngage offers business plan maker and operational plan templates designed to simplify the process. 

Whether you need to create an operational plan or draft a business strategy, their intuitive platform can guide you every step of the way.

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Every organization, regardless of its size, industry, or location, operates on a series of processes. These processes, often referred to as operational business processes, are the lifeblood of any business, driving its day-to-day operations and ensuring the smooth functioning of various essential business activities. This blog post aims to delve into the nuances of operational business processes, their importance in an organization, their types, and the challenges faced in implementing and improving these processes.

Table of Contents

Unveiling Operational Business Processes

Decoding operational business processes.

At their basest level, operational business processes represent the specific set of steps or tasks that an organization undertakes to create a product or provide a service. These processes encompass everything from the first process mapping the initial conception of a product or service idea to its delivery to the end consumer. In essence, they serve as the blueprint that guides all the functional areas of a business , enabling them to work together seamlessly towards achieving the organization’s goals.

The Significance Of Operational Business Processes

The importance of operational business processes cannot be understated. They form the backbone of an organization, ensuring that all activities are carried out efficiently and effectively. They allow businesses to streamline their business operations, identify bottlenecks, and improve overall productivity. More importantly, these processes help businesses provide consistent quality to their customers, thereby enhancing customer satisfaction and loyalty.

According to a report by McKinsey & Company , businesses can achieve efficiency improvements of up to 50% by optimizing their operational processes.

Digging Deeper Into Operational Business Processes

Traits of operational business processes.

While the specifics of operational business processes vary from one organization to another, there are certain characteristics that are common to all the business process automation. Firstly, they are repetitive and regular, taking place on a daily basis to meet the ongoing needs of the business. Secondly, they are critical for the generation of revenue, directly influencing the profitability of the organization. Lastly, these processes are customer-centric, designed with the primary aim of delivering value to the customer.

Operational Business Processes In Action

To illustrate the concept of operational business processes, let’s consider the example of a manufacturing company. Here, the core operational processes might include sourcing raw materials, production, quality control , distribution, and customer service. Each of these core business processes involves a series of steps that must be performed in a specific sequence to ensure the successful creation and delivery of the company’s products.

The World Economic Forum estimates that digitizing operational processes across industries could contribute up to $17 trillion to global economic value by 2030.

Business Process Software: Streamlining Operations For Improved Efficiency

In today’s rapidly evolving business landscape, staying competitive requires organizations to constantly look for ways to enhance their operational processes. This is where business process software comes into play. By utilizing this software, businesses can analyze, model, and improve their existing processes, resulting in increased efficiency and productivity.

One of the key benefits of using business process software is its ability to conduct thorough business process analysis. This involves examining the current state of operations, identifying bottlenecks, and pinpointing areas for improvement. By understanding the strengths and weaknesses of their processes, organizations can implement targeted changes that will streamline operations and eliminate inefficiencies.

Once the analysis phase is complete, businesses can move on to business process modeling. This involves creating a visual representation of the ideal or improved process flow. By mapping out each step and interaction, organizations gain a comprehensive overview of how their operations should ideally function. Business process modeling helps stakeholders visualize the process, identify any potential gaps or redundancies, and ensure that everyone is on the same page regarding the desired outcome.

The use of business process software also enables businesses to automate various aspects of their operations. This automation can significantly reduce manual intervention, which not only saves time but also minimizes the risk of errors. For instance, routine tasks such as data entry, report generation, and invoice processing can be automated , freeing up employees to focus on more strategic initiatives. Automation also ensures consistency and accuracy in executing operational processes, leading to better overall outcomes.

Moreover, business process software facilitates collaboration among different departments or teams within an organization. It provides a centralized platform where employees can access and update information related to ongoing projects or tasks. This real-time collaboration eliminates silos and encourages cross-functional communication, fostering a culture of teamwork and cooperation. By bringing together diverse perspectives, organizations can identify innovative solutions and implement changes that benefit the entire business.

Furthermore, business process software enables businesses to monitor and measure the performance of their operational processes. Key performance indicators (KPIs) can be set to track various metrics, such as cycle time, resource utilization, or customer satisfaction. By regularly analyzing these KPIs, organizations can identify areas that require further improvement and make data-driven decisions to enhance overall performance.

A study by the Boston Consulting Group (BCG) found that 80% of business leaders believe that operational excellence is crucial for gaining a competitive advantage.

Overall, the use of business process software offers numerous advantages for organizations striving to optimize their operations. From conducting comprehensive business process analysis to automating routine tasks and fostering collaboration, this software streamlines processes and drives efficiency. By continuously improving their operational processes, businesses can stay ahead of the competition, meet evolving customer demands, and achieve sustainable growth.

In conclusion, business process software has become an essential tool for organizations looking to enhance their operational efficiency. By leveraging this software, businesses can analyze their existing processes, model improved workflows, automate routine tasks, foster collaboration, and monitor performance. With the ability to streamline operations and drive efficiency, business process software is a must-have for any organization aiming to stay competitive in today’s dynamic business environment.

Business Process Simulation

Business process simulation is becoming increasingly important in today’s fast-paced and dynamic business environment. It allows companies to analyze and optimize their operational processes, leading to improved efficiency and productivity.

Operational processes are the backbone of any company. They encompass all the activities that take place within an organization to deliver products or services to customers. These processes can range from manufacturing and supply chain management to customer service and sales. It is essential for companies to have a clear understanding of their operational processes in order to identify bottlenecks, inefficiencies, and areas for improvement.

This is where business process simulation comes into play. It involves creating a virtual model of a company’s operational processes and running various scenarios to analyze their performance. By simulating different scenarios, companies can identify potential issues and evaluate the impact of proposed changes before implementing them in the real world.

There are several reasons why business processes are important. First and foremost, they enable companies to deliver value to their customers. By streamlining and optimizing these processes, companies can improve customer satisfaction and loyalty. For example, by reducing the time it takes to process orders or resolve customer complaints, companies can enhance the overall customer experience.

Moreover, important business processes are also crucial for maintaining a competitive edge in the market. Companies must constantly innovate and adapt to changing customer needs and preferences in today’s highly competitive business landscape. By continuously analyzing and improving their operational processes, companies can stay ahead of the competition and ensure long-term success.

Implementing new business processes can be a challenging task. It requires careful planning, coordination, and collaboration across different departments and functions within an organization. This is where business process simulation can be extremely helpful. It provides a platform for companies to test and refine new processes in a controlled and risk-free environment.

By using business process simulation, companies can assess the potential impact of new processes on key performance indicators such as cost, quality, and time. This allows them to identify potential risks and make informed decisions before implementing changes in the real world. For example, a company can simulate the introduction of a new production line or the implementation of a new software system to evaluate their impact on productivity and efficiency.

In addition to improving operational efficiency, business process simulation can also help companies reduce costs. By identifying bottlenecks and inefficiencies in existing processes, companies can eliminate waste and optimize resource allocation. This can result in significant cost savings and improved profitability.

The Institute of Management Accountants (IMA) reports that two-thirds (about 66%) of organizations consider automation and digitalization as essential for their operational strategies.

In conclusion, business process simulation is an invaluable tool for companies looking to optimize their operational processes. By creating virtual models and running various scenarios, companies can identify potential issues, evaluate the impact of proposed changes, and optimize their processes for improved efficiency and productivity. In today’s fast-paced and competitive business environment, it is essential for companies to continuously analyze and improve their operational processes to stay ahead of the competition and ensure long-term success.

Operational Business Processes: The Pillars Of An Organization

Fueling efficiency and productivity.

One of the key roles of operational business processes is enhancing efficiency and productivity within an organization. By establishing a clear roadmap for various business activities, these processes help eliminate wastage of resources and capital costs and ensure that all efforts are directed towards achieving the organization’s objectives. Moreover, they enable businesses to identify areas of improvement and implement necessary changes to boost productivity.

Driving Customer Satisfaction

A well-designed operational business process is crucial for ensuring customer satisfaction. These processes define how a business interacts with its customers, right from the business process mapping the initial point of contact to after-sales service. By providing a consistent and high-quality experience throughout this journey, businesses can significantly enhance customer satisfaction and foster long-term relationships.

Boosting Profitability

Ultimately, operational business processes have a direct impact on a company’s bottom line. Efficient processes lead to cost savings by minimizing resource wastage. Additionally, by enhancing customer satisfaction, they also contribute to increased sales and revenue. Thus, effective operational and business process management and processes are pivotal to the financial success of an organization.

According to a survey by Deloitte , 45% of executives stated that operational processes are the top areas they focus on when implementing digital transformation initiatives.

Categorizing Operational Business Processes

Core processes.

Core processes are those that directly contribute to the creation and delivery of a company’s products or services. They comprise the main activities that a business engages in to generate revenue. Examples of primary processes include production in a manufacturing company or sales in a retail business.

Support Processes

Support processes, as the name suggests, assist the core processes in achieving their objectives. While they do not directly generate revenue, their role in facilitating the smooth functioning of core processes is vital. Examples of supporting processes include Human Resources , Information Technology, and Finance.

Management Processes

Management processes involve the planning, organization, and monitoring of other operational business processes. They provide strategic direction to the organization and ensure that all processes are aligned with the business’s overall goals. Examples good business process include strategic planning and corporate governance.

A report by the American Productivity & Quality Center (APQC) suggests that organizations with well-defined operational processes experience a 35% reduction in errors and defects across entire process.

Executing Operational Business Processes

Implementing operational business processes requires careful planning and coordination. It involves defining the process steps, assigning responsibilities, setting performance metrics, and establishing control mechanisms to monitor the process. Effective implementation also entails continuous review process analysis and improvement of the processes to ensure they remain relevant and efficient in the changing business environment.

Optimizing Operational Business Processes

Analyzing and improving operational business processes is a necessary activity for any organization seeking to maintain a competitive edge. This involves regularly reviewing the existing processes to identify inefficiencies, brainstorming solutions for improvement, and implementing these changes. Such continuous improvement not only enhances process performance but also fosters a culture of innovation and learning in the organization.

Navigating Challenges In Operational Business Processes

Despite their importance, operational business processes are not without their challenges. These range from resistance to change within the organization, lack of clear process documentation, to issues with process integration and automation. However, with strong leadership, effective communication, and a culture of continuous process improvement, these challenges can be successfully overcome.

A survey by Gartner indicates that over 90% of organizations plan to prioritize operational resilience in their business process monitoring the coming years, highlighting its importance in a volatile business environment.

Operational business processes are integral to the functioning of any business. They drive efficiency, fuel productivity, and enhance customer satisfaction, ultimately impacting the bottom line. Understanding these essential processes, therefore, is crucial for any business leader seeking to steer their organization towards success. Hence, investing time and resources in improving these processes can yield substantial returns, making it a worthwhile endeavor for any organization.

Last Updated on October 11, 2023 by Priyanshi Sharma

Parina Parmar is a full-time dog mom with a knack for content, editing & advertising. She has years of experience in the communication industry, and her dedication to maintaining the integrity of the author's voice while ensuring clarity and coherence in the text sets her apart in her field. She is dedicated to immersing her love for culture, music, and the advertising industry in her works.

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The Business Planning Process: 6 Steps To Creating a New Plan

In this article, we will define and explain the basic business planning process to help your business move in the right direction.

What is Business Planning?

Business planning is the process whereby an organization’s leaders figure out the best roadmap for growth and document their plan for success.

The business planning process includes diagnosing the company’s internal strengths and weaknesses, improving its efficiency, working out how it will compete against rival firms in the future, and setting milestones for progress so they can be measured.

The process includes writing a new business plan. What is a business plan? It is a written document that provides an outline and resources needed to achieve success. Whether you are writing your plan from scratch, from a simple business plan template , or working with an experienced business plan consultant or writer, business planning for startups, small businesses, and existing companies is the same.

Finish Your Business Plan Today!

The best business planning process is to use our business plan template to streamline the creation of your plan: Download Growthink’s Ultimate Business Plan Template and finish your business plan & financial model in hours.

The Better Business Planning Process

The business plan process includes 6 steps as follows:

• Do Your Research
• Calculate Your Financial Forecast
• Draft Your Plan
• Revise & Proofread
• Nail the Business Plan Presentation

We’ve provided more detail for each of these key business plan steps below.

1. Do Your Research

Conduct detailed research into the industry, target market, existing customer base,  competitors, and costs of the business begins the process. Consider each new step a new project that requires project planning and execution. You may ask yourself the following questions:

• What are your business goals?
• What is the current state of your business?
• What are the current industry trends?
• What is your competition doing?

There are a variety of resources needed, ranging from databases and articles to direct interviews with other entrepreneurs, potential customers, or industry experts. The information gathered during this process should be documented and organized carefully, including the source as there is a need to cite sources within your business plan.

You may also want to complete a SWOT Analysis for your own business to identify your strengths, weaknesses, opportunities, and potential risks as this will help you develop your strategies to highlight your competitive advantage.

2. Strategize

Now, you will use the research to determine the best strategy for your business. You may choose to develop new strategies or refine existing strategies that have demonstrated success in the industry. Pulling the best practices of the industry provides a foundation, but then you should expand on the different activities that focus on your competitive advantage.

This step of the planning process may include formulating a vision for the company’s future, which can be done by conducting intensive customer interviews and understanding their motivations for purchasing goods and services of interest. Dig deeper into decisions on an appropriate marketing plan, operational processes to execute your plan, and human resources required for the first five years of the company’s life.

3. Calculate Your Financial Forecast

All of the activities you choose for your strategy come at some cost and, hopefully, lead to some revenues. Sketch out the financial situation by looking at whether you can expect revenues to cover all costs and leave room for profit in the long run.

Begin to insert your financial assumptions and startup costs into a financial model which can produce a first-year cash flow statement for you, giving you the best sense of the cash you will need on hand to fund your early operations.

A full set of financial statements provides the details about the company’s operations and performance, including its expenses and profits by accounting period (quarterly or year-to-date). Financial statements also provide a snapshot of the company’s current financial position, including its assets and liabilities.

This is one of the most valued aspects of any business plan as it provides a straightforward summary of what a company does with its money, or how it grows from initial investment to become profitable.

4. Draft Your Plan

With financials more or less settled and a strategy decided, it is time to draft through the narrative of each component of your business plan . With the background work you have completed, the drafting itself should be a relatively painless process.

If you have trouble writing convincing prose, this is a time to seek the help of an experienced business plan writer who can put together the plan from this point.

5. Revise & Proofread

Revisit the entire plan to look for any ideas or wording that may be confusing, redundant, or irrelevant to the points you are making within the plan. You may want to work with other management team members in your business who are familiar with the company’s operations or marketing plan in order to fine-tune the plan.

Finally, proofread thoroughly for spelling, grammar, and formatting, enlisting the help of others to act as additional sets of eyes. You may begin to experience burnout from working on the plan for so long and have a need to set it aside for a bit to look at it again with fresh eyes.

6. Nail the Business Plan Presentation

The presentation of the business plan should succinctly highlight the key points outlined above and include additional material that would be helpful to potential investors such as financial information, resumes of key employees, or samples of marketing materials. It can also be beneficial to provide a report on past sales or financial performance and what the business has done to bring it back into positive territory.

Business Planning Process Conclusion

Every entrepreneur dreams of the day their business becomes wildly successful.

But what does that really mean? How do you know whether your idea is worth pursuing?

And how do you stay motivated when things are not going as planned? The answers to these questions can be found in your business plan. This document helps entrepreneurs make better decisions and avoid common pitfalls along the way. ​

Business plans are dynamic documents that can be revised and presented to different audiences throughout the course of a company’s life. For example, a business may have one plan for its initial investment proposal, another which focuses more on milestones and objectives for the first several years in existence, and yet one more which is used specifically when raising funds.

Business plans are a critical first step for any company looking to attract investors or receive grant money, as they allow a new organization to better convey its potential and business goals to those able to provide financial resources.

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7 Proven Planning Techniques for Better Projects

A project without a plan is like a car without a driver. The project plan is the guide that gets a project manager from concept through execution, and a finished product at its destination. There’s an argument that a project plan supersedes everything else in a project.

While that’s a bit of an overstatement, it does prove the rhetorical point that planning for a project is crucial. Therefore, whether you’re new to project management or a journeyman with years of experience under your belt, there’s always more planning tools and techniques to learn.

There are possibly as many planning methods as there are projects, so we boiled down the potential pot of planning techniques to seven essential ingredients that will make your next project plan a feast for your team and stakeholders.

1. Critical Path Analysis

Planning a simple project has its hurdles to clear: but when that project is complex, then planning can feel almost insurmountable. That’s where a planning technique such as critical path analysis comes in handy. It is a planning method designed to address projects with many tasks, especially when there are those that are done at the same time and are dependent on one another.

Critical path analysis will help you determine if some tasks can run parallel, what the sequence of tasks should be, as well as prioritize them. This takes a complicated project and finds the most efficient path through it. That’s because critical path analysis follows a timeline that shows where tasks are in the schedule and what must be done when.

There are three steps to critical path analysis:

• Write out all the tasks on a project timeline
• Identify which of those tasks must occur at the same time
• Note the task dependencies

This timeline will now expose the spots in the project that need more resources and those that are most important to keep the project on track.

2. Brainstorming

Brainstorming can be looked at as the plan before the plan. A plan for anything is a way to organize an approach. But before that can be done well, the project must be clearly understood and the various techniques to manage it examined. Brainstorming is a tool that uses the collective experience and skills of the project team in order to give project managers the full picture before they attempt to frame it in a plan.

Therefore, brainstorming should be the first step in any planning technique. It is a creative and lateral way of thinking that can help identify project risk and other concerns that are not immediately apparent. There will be time to formalize a plan and add the needed structure that every project rests on to reach a successful end. The creative nature of a brainstorming session, and the fact that it’s contrary to typical project management methodology, make it a highly revealing planning technique.

The only trouble is that people who excel in project management are often the types who work best within a template. Getting them to think “outside the box” can prove a challenge. But it will help your project and your team expand their own resources. Don’t forget to get stakeholders and other experts in on the brainstorming, too.

Related: How to Create a Project Plan

3. Work Breakdown Structure

Another great project planning method is the work breakdown structure (WBS), which is a way to rank tasks in the project. Again, when a project is great in scope it helps to get a handle on it, which is where the WBS comes in. As the name implies, the WBS breaks down the larger project into manageable tasks. It’s like putting something in a crucible and breaking it down to its primary elements.

Begin with the project, then start breaking it down: first into phases and then from those milestones, into tasks. In a sense, you’re starting at the end of the project and working backwards. The breakdown is considering the size of the task, how long it will take and who will be responsible for that task. You can use our free work breakdown structure template to get started.

Think of the WBS as a framework for planning. It provides a picture of all the pieces of the project puzzle. With this knowledge, a project manager has the big picture and the smaller parts that make it up, so they can now act to control the project over the course of its life cycle. From the WBS, a statement of work will develop, as well as scheduling, budget and other resources.

4. Gantt Chart

The old standby for project planning is the Gantt chart. For decades, the Gantt chart has been included in the feature set of a slew of project management software platforms, which has given it a flexibility that emphasizes its many positive attributes.

ProjectManager.com has an online Gantt chart that allows you to upload your task list from any Excel or CSV spreadsheet or even an MS Project file. Once that task list is uploaded, and you set the column names, the tasks populate the left-hand side of the Gantt chart, which is an outline for the entire project. Adding start and end dates create a line across that timeline illustrating the task’s duration.

If a task is dependent on another, it can be linked, so that team members are aware of the task dependency and aren’t blocked. This also avoids bottlenecks in the schedule, as email notifications can be set to automatically alert team members of coming deadlines. That keeps the project on track.

Once the project has been planned, the Gantt chart keeps on giving. With ProjectManager.com, our online Gantt chart gives the project manager the ability to assign the tasks. It is also a collaboration platform, allowing those assigned team members to freely communicate in comments, where they can attach files and images. They are notified of these comments in real-time, so the team can communicate no matter where or at what time. Try this planning technique today with a free trial of ProjectManager.com.

5. Cause and Effect Diagram

This planning technique was created by Kaoru Ishikawa, a Japanese organizational theorist, to show the causes of an event. It is also called an Ishikawa or fishbone diagram.

It gathers and identifies issues that can develop over the course of a project. By doing so, this planning method helps project managers figure out solutions to those problems. There is risk inherent in every project, and planning against those risks is another way to make sure the project proceeds as planned, without costly interruptions.

The cause and effect diagram has a central backbone from which bones are drawn that represent any major factor that might impact the final outcome of the project. It can be used to take those issues that came up during a brainstorming session and organize them.

The factors that could impact the project (or the bones that come from the backbone) could be equipment or other resources, a legal problem, new technology, training, etc. Each of these bones is then divided into even smaller bones to get a full view of the cause and effect they might have on a project and its plan.

Program evaluation and review technique or PERT is a tool to help project managers estimate the amount of time a project will likely take. Scheduling is one of the pillars of planning techniques, so you can see the importance of having a planning method like PERT to make your schedule more accurate.

The more variables you can control, the better your outcome when estimating. But there are so many unknowns when dealing with a project that it can feel impossible to hit your target. But that’s just what PERT does: it manages the complex probability of a project with simple statistical methods.

With PERT, tasks are broken down like with the WBS, but adding these activities to a Gantt chart to link the task dependencies. This creates a map of the project’s interdependencies. Each of the task are then given a time-to-complete estimation: optimistic (O), being the quickest it will take to complete the task; mostly likely (M), the required deadline; or pessimistic (P), being the most time it will take.

E, being the expected time for each task, is derived by the equation: E = (O + 4M + P)/6. The variance is found by solving this equation: V= [(P – O)/ 6] ^2. When the E and V for every task is calculated, the total Es is an accurate time estimation for the project. The added Vs show the expected variance.

7. SMART Goals

Another acronym that can help with your planning methods is SMART, which stands for specific, measurable, attainable, relevant and time bound. What SMART does when in the planning process of a project is making sure, before you start, that your goals fit within the SMART criteria.

That means that they should be specific, as in clear and concise. They must also be measurable, so you can quantify your project. Attainable is obvious, in that if the project is a pie-in-the-sky impossibility then the odds are it’s going to fail.

The last two initials are for relevant, which speaks to the project’s goals being aligned with the overall business strategy of the organization, and time bound, as in having a deadline. If your project meets all these points, then you can start planning.

ProjectManager.com is a cloud-based project management software that makes planning a snap. It not only uploads spreadsheets and MS Project files, but once in the software, they’re easily shared and updated instantly, for a more collaborative platform. The real-time dashboard keeps project managers and teams updated and makes reporting to stakeholders easy. See for yourself by taking this free 30-day trial.

Deliver your projects on time and under budget

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Business Planning

Written by True Tamplin, BSc, CEPF®

Reviewed by subject matter experts.

Updated on June 08, 2023

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Table of contents, what is business planning.

Business planning is a crucial process that involves creating a roadmap for an organization to achieve its long-term objectives. It is the foundation of every successful business and provides a framework for decision-making, resource allocation, and measuring progress towards goals.

Business planning involves identifying the current state of the organization, determining where it wants to go, and developing a strategy to get there.

It includes analyzing the market, identifying target customers, determining a competitive advantage, setting financial goals, and establishing operational plans.

The business plan serves as a reference point for all stakeholders , including investors, employees, and partners, and helps to ensure that everyone is aligned and working towards the same objectives.

Importance of Business Planning

Business planning plays a critical role in the success of any organization, as it helps to establish a clear direction and purpose for the business. It allows the organization to identify its goals and objectives, develop strategies and tactics to achieve them, and establish a framework of necessary resources and operational procedures to ensure success.

Additionally, a well-crafted business plan can serve as a reference point for decision-making, ensuring that all actions taken by the organization are aligned with its long-term objectives.

It can also facilitate communication and collaboration among team members, ensuring that everyone is working towards a common goal.

Furthermore, a business plan is often required when seeking funding or investment from external sources, as it demonstrates the organization's potential for growth and profitability. Overall, business planning is essential for any organization looking to succeed and thrive in a competitive market.

Business Planning Process

Step 1: defining your business purpose and goals.

Begin by clarifying your business's purpose, mission, and long-term goals. These elements should align with the organization's core values and guide every aspect of the planning process.

Step 2: Conducting Market Research and Analysis

Thorough market research and analysis are crucial to understanding the industry landscape, identifying target customers, and gauging the competition. This information will inform your business strategy and help you find your niche in the market.

Step 3: Creating a Business Model and Strategy

Based on the insights from your market research, develop a business model that outlines how your organization will create, deliver, and capture value. This will inform the overall business strategy, including identifying target markets, value propositions, and competitive advantages.

Step 4: Developing a Marketing Plan

A marketing plan details how your organization will promote its products or services to target customers. This includes defining marketing objectives, tactics, channels, budgets, and performance metrics to measure success.

Step 5: Establishing Operational and Financial Plans

The operational plan outlines the day-to-day activities, resources, and processes required to run your business. The financial plan projects revenue, expenses, and cash flow, providing a basis for assessing the organization's financial health and long-term viability.

Step 6: Reviewing and Revising the Business Plan

Regularly review and update your business plan to ensure it remains relevant and reflects the organization's current situation and goals. This iterative process enables proactive adjustments to strategies and tactics in response to changing market conditions and business realities.

Components of a Business Plan

Executive summary.

The executive summary provides a high-level overview of your business plan, touching on the company's mission, objectives, strategies, and key financial projections.

It is critical to make this section concise and engaging, as it is often the first section that potential investors or partners will read.

Company Description

The company description offers a detailed overview of your organization, including its history, mission, values, and legal structure. It also outlines the company's goals and objectives and explains how the business addresses a market need or problem.

Products or Services

Describe the products or services your company offers, emphasizing their unique features, benefits, and competitive advantages. Detail the development process, lifecycle, and intellectual property rights, if applicable.

Market Analysis

The market analysis section delves into the industry, target market, and competition. It should demonstrate a thorough understanding of market trends, growth potential, customer demographics, and competitive landscape.

Marketing and Sales Strategy

Outline your organization's approach to promoting and selling its products or services. This includes marketing channels, sales tactics, pricing strategies, and customer relationship management .

Management and Organization

This section provides an overview of your company's management team, including their backgrounds, roles, and responsibilities. It also outlines the organizational structure and any advisory or support services employed by the company.

Operational Plan

The operational plan describes the day-to-day operations of your business, including facilities, equipment, technology, and personnel requirements. It also covers supply chain management, production processes, and quality control measures.

Financial Plan

The financial plan is a crucial component of your business plan, providing a comprehensive view of your organization's financial health and projections.

This section should include income statements , balance sheets , cash flow statements , and break-even analysis for at least three to five years. Be sure to provide clear assumptions and justifications for your projections.

Appendices and Supporting Documents

The appendices and supporting documents section contains any additional materials that support or complement the information provided in the main body of the business plan. This may include resumes of key team members, patents , licenses, contracts, or market research data.

Benefits of Business Planning

Helps secure funding and investment.

A well-crafted business plan demonstrates to potential investors and lenders that your organization is well-organized, has a clear vision, and is financially viable. It increases your chances of securing the funding needed for growth and expansion.

Provides a Roadmap for Growth and Success

A business plan serves as a roadmap that guides your organization's growth and development. It helps you set realistic goals, identify opportunities, and anticipate challenges, enabling you to make informed decisions and allocate resources effectively.

Enables Effective Decision-Making

Having a comprehensive business plan enables you and your management team to make well-informed decisions, based on a clear understanding of the organization's goals, strategies, and financial situation.

Facilitates Communication and Collaboration

A business plan serves as a communication tool that fosters collaboration and alignment among team members, ensuring that everyone is working towards the same objectives and understands the organization's strategic direction.

Business planning should not be a one-time activity; instead, it should be an ongoing process that is continually reviewed and updated to reflect changing market conditions, business realities, and organizational goals.

This dynamic approach to planning ensures that your organization remains agile, responsive, and primed for success.

As the business landscape continues to evolve, organizations must embrace new technologies, methodologies, and tools to stay competitive.

The future of business planning will involve leveraging data-driven insights, artificial intelligence, and predictive analytics to create more accurate and adaptive plans that can quickly respond to a rapidly changing environment.

By staying ahead of the curve, businesses can not only survive but thrive in the coming years.

Business Planning FAQs

What is business planning, and why is it important.

Business planning is the process of setting goals, outlining strategies, and creating a roadmap for your company's future. It's important because it helps you identify opportunities and risks, allocate resources effectively, and stay on track to achieve your goals.

What are the key components of a business plan?

A business plan typically includes an executive summary, company description, market analysis, organization and management structure, product or service line, marketing and sales strategies, and financial projections.

How often should I update my business plan?

It is a good idea to review and update your business plan annually, or whenever there's a significant change in your industry or market conditions.

What are the benefits of business planning?

Effective business planning can help you anticipate challenges, identify opportunities for growth, improve decision-making, secure financing, and stay ahead of competitors.

Do I need a business plan if I am not seeking funding?

Yes, even if you're not seeking funding, a business plan can be a valuable tool for setting goals, developing strategies, and keeping your team aligned and focused on achieving your objectives.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide , a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University , where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon , Nasdaq and Forbes .

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• What is strategic planning? A 5-step gu ...

What is strategic planning? A 5-step guide

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. In this article, we'll guide you through the strategic planning process, including why it's important, the benefits and best practices, and five steps to get you from beginning to end.

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. The strategic planning process informs your organization’s decisions, growth, and goals.

Strategic planning helps you clearly define your company’s long-term objectives—and maps how your short-term goals and work will help you achieve them. This, in turn, gives you a clear sense of where your organization is going and allows you to ensure your teams are working on projects that make the most impact. Think of it this way—if your goals and objectives are your destination on a map, your strategic plan is your navigation system.

In this article, we walk you through the 5-step strategic planning process and show you how to get started developing your own strategic plan.

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What is strategic planning?

Strategic planning is a business process that helps you define and share the direction your company will take in the next three to five years. During the strategic planning process, stakeholders review and define the organization’s mission and goals, conduct competitive assessments, and identify company goals and objectives. The product of the planning cycle is a strategic plan, which is shared throughout the company.

What is a strategic plan?

A strategic plan is the end result of the strategic planning process. At its most basic, it’s a tool used to define your organization’s goals and what actions you’ll take to achieve them.

Typically, your strategic plan should include: 

Your company’s mission statement

Your organizational goals, including your long-term goals and short-term, yearly objectives

Any plan of action, tactics, or approaches you plan to take to meet those goals

What are the benefits of strategic planning?

Strategic planning can help with goal setting and decision-making by allowing you to map out how your company will move toward your organization’s vision and mission statements in the next three to five years. Let’s circle back to our map metaphor. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).

When you create and share a clear strategic plan with your team, you can:

Build a strong organizational culture by clearly defining and aligning on your organization’s mission, vision, and goals.

Align everyone around a shared purpose and ensure all departments and teams are working toward a common objective.

Proactively set objectives to help you get where you want to go and achieve desired outcomes.

Promote a long-term vision for your company rather than focusing primarily on short-term gains.

Ensure resources are allocated around the most high-impact priorities.

Define long-term goals and set shorter-term goals to support them.

Assess your current situation and identify any opportunities—or threats—allowing your organization to mitigate potential risks.

Create a proactive business culture that enables your organization to respond more swiftly to emerging market changes and opportunities.

What are the 5 steps in strategic planning?

The strategic planning process involves a structured methodology that guides the organization from vision to implementation. The strategic planning process starts with assembling a small, dedicated team of key strategic planners—typically five to 10 members—who will form the strategic planning, or management, committee. This team is responsible for gathering crucial information, guiding the development of the plan, and overseeing strategy execution.

Once you’ve established your management committee, you can get to work on the planning process. 

Step 1: Assess your current business strategy and business environment

Before you can define where you’re going, you first need to define where you are. Understanding the external environment, including market trends and competitive landscape, is crucial in the initial assessment phase of strategic planning.

To do this, your management committee should collect a variety of information from additional stakeholders, like employees and customers. In particular, plan to gather:

Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future.

Customer insights to understand what your customers want from your company—like product improvements or additional services.

Employee feedback that needs to be addressed—whether about the product, business practices, or the day-to-day company culture.

Consider different types of strategic planning tools and analytical techniques to gather this information, such as:

A balanced scorecard to help you evaluate four major elements of a business: learning and growth, business processes, customer satisfaction, and financial performance.

A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process). 

To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:

What does your organization currently do well?

What separates you from your competitors?

What are your most valuable internal resources?

What tangible assets do you have?

What is your biggest strength? 

Weaknesses:

What does your organization do poorly?

What do you currently lack (whether that’s a product, resource, or process)?

What do your competitors do better than you?

What, if any, limitations are holding your organization back?

What processes or products need improvement? 

Opportunities:

What opportunities does your organization have?

How can you leverage your unique company strengths?

Are there any trends that you can take advantage of?

How can you capitalize on marketing or press opportunities?

Is there an emerging need for your product or service? 

What emerging competitors should you keep an eye on?

Are there any weaknesses that expose your organization to risk?

Have you or could you experience negative press that could reduce market share?

Is there a chance of changing customer attitudes towards your company? 

Step 2: Identify your company’s goals and objectives

To begin strategy development, take into account your current position, which is where you are now. Then, draw inspiration from your vision, mission, and current position to identify and define your goals—these are your final destination. 

To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” “What’s the ideal future state of this company?” This can help you figure out which path you need to take to get there.

During this phase of the planning process, take inspiration from important company documents, such as:

Your mission statement, to understand how you can continue moving towards your organization’s core purpose.

Your vision statement, to clarify how your strategic plan fits into your long-term vision.

Your company values, to guide you towards what matters most towards your company.

Your competitive advantages, to understand what unique benefit you offer to the market.

Your long-term goals, to track where you want to be in five or 10 years.

Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in.

Step 3: Develop your strategic plan and determine performance metrics

Now that you understand where you are and where you want to go, it’s time to put pen to paper. Take your current business position and strategy into account, as well as your organization’s goals and objectives, and build out a strategic plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your plan should be created or revisited as the quarters and years go on.

As you build your strategic plan, you should define:

Company priorities for the next three to five years, based on your SWOT analysis and strategy.

Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals . 

Related key results and KPIs. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable. These KPIs will help you track progress and ensure you’re moving in the right direction.

Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.

A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.

Step 4: Implement and share your plan

Now it’s time to put your plan into action. Strategy implementation involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success. 

Make sure your team (especially senior leadership) has access to the strategic plan, so they can understand how their work contributes to company priorities and the overall strategy map. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management platform .  

A few tips to make sure your plan will be executed without a hitch: 

Communicate clearly to your entire organization throughout the implementation process, to ensure all team members understand the strategic plan and how to implement it effectively. 

Define what “success” looks like by mapping your strategic plan to key performance indicators.

Ensure that the actions outlined in the strategic plan are integrated into the daily operations of the organization, so that every team member's daily activities are aligned with the broader strategic objectives.

Utilize tools and software—like a work management platform—that can aid in implementing and tracking the progress of your plan.

Regularly monitor and share the progress of the strategic plan with the entire organization, to keep everyone informed and reinforce the importance of the plan.

Establish regular check-ins to monitor the progress of your strategic plan and make adjustments as needed. 

Step 5: Revise and restructure as needed

Once you’ve created and implemented your new strategic framework, the final step of the planning process is to monitor and manage your plan.

Remember, your strategic plan isn’t set in stone. You’ll need to revisit and update the plan if your company changes directions or makes new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan. Make sure to review your plan regularly—meaning quarterly and annually—to ensure it’s still aligned with your organization’s vision and goals.

Keep in mind that your plan won’t last forever, even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.

Build a smarter strategic plan with a work management platform

To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done. 

A work management platform plays a pivotal role in this process. It acts as a central hub for your strategic plan, ensuring that every task and project is directly tied to your broader company goals. This alignment is crucial for visibility and coordination, allowing team members to see how their individual efforts contribute to the company’s success. 

By leveraging such a platform, you not only streamline workflow and enhance team productivity but also align every action with your strategic objectives—allowing teams to drive greater impact and helping your company move toward goals more effectively. 

Strategic planning FAQs

Still have questions about strategic planning? We have answers.

Why do I need a strategic plan?

A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics that will help your company be successful.

When should I create a strategic plan?

You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed.

Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets. 

What is a strategic planning template?

A strategic planning template is a tool organizations can use to map out their strategic plan and track progress. Typically, a strategic planning template houses all the components needed to build out a strategic plan, including your company’s vision and mission statements, information from any competitive analyses or SWOT assessments, and relevant KPIs.

What’s the difference between a strategic plan vs. business plan?

A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.

You should create a business plan when you’re: 

Just starting your business

Significantly restructuring your business

If your business is already established, you should create a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.

What’s the difference between a strategic plan vs. mission and vision statements?

Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.

Simply put: 

A mission statement summarizes your company’s purpose.

A vision statement broadly explains how you’ll reach your company’s purpose.

A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction. 

For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:

Mission statement: “To ensure the safety of the world’s animals.” 

Vision statement: “To create pet safety and tracking products that are effortless to use.” 

Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners. 

What’s the difference between a strategic plan vs. company objectives?

Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time. 

Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.

What’s the difference between a strategic plan vs. a business case?

A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business. 

You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.

What’s the difference between a strategic plan vs. a project plan?

A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan. 

What’s the difference between strategic management vs. strategic planning?

A strategic plan is a tool to define where your organization wants to go and what actions you need to take to achieve those goals. Strategic planning is the process of creating a plan in order to hit your strategic objectives.

Strategic management includes the strategic planning process, but also goes beyond it. In addition to planning how you will achieve your big-picture goals, strategic management also helps you organize your resources and figure out the best action plans for success. 

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