Operational Planning in Business

Overview

• An operational plan is a key component of a business's strategic plan.
• It outlines the workflow from input to end results, including resources used.
• Bridges strategic planning with everyday business operations.

Purpose of Operational Planning

• Translates strategic vision, direction, and goals into daily business activities.
• Aims to produce outcomes as defined by the strategic plan.

Who Should Prepare an Operational Plan?

• Ideally prepared by someone involved in implementation.
• Often requires cross-departmental collaboration, especially in finance, HR, and IT.

Key Questions Addressed by an Operational Plan

1. Where are we now?
2. Where do we want to be?
3. How do we get there?
4. How do we measure our progress?

Key Components of an Operational Plan

• Staff and Skills: Identify necessary personnel and skill sets.
• Funding: Determine required funding and source of funds.
• Risk Management: Identify project risks and mitigation strategies.
• Project Lifespan: Estimate duration and develop an exit plan.

Importance of an Operational Plan

• Ensures clarity on resource acquisition and use.
• Defines critical resource requirements clearly.
• Focus on risk reduction and preparation of contingency plans.
• Considers long-term sustainability and future of the project.

Essential Elements of a Clear and Efficient Operational Plan

• Clear Objectives: Define what needs to be achieved.
• Activities: Outline activities to be delivered.
• Quality Standards: Establish desired quality outcomes.
• Staffing and Resources: Determine staffing needs and resource allocation.
• Implementation Timetable: Set timelines for activities.
• Monitoring Process: Develop procedures for tracking progress.