All About Strategic Planning
Strategic
planning is an organization's
process of defining its strategy, or direction, and making decisions on allocating
its resources to pursue this strategy, including its capital and people.
In order to
determine where it is going, the organization needs to know exactly where it
stands, then determine where it wants to go and how it will get there. The
resulting document is called the "strategic plan."
While strategic
planning may be used to effectively plot a company's longer-term direction, one
cannot use it to reliably forecast how the market will evolve and what issues
will surface in the immediate future. Therefore, strategic innovation and
tinkering with the "strategic plan" have to be a cornerstone strategy
for an organization to survive the turbulent business climate.
Simply
put, strategic planning determines where an organization is going over the next
year or more, how it's going to get there and how it'll know if it got there or
not. The focus of a strategic plan is usually on the entire organization, while
the focus of a business plan is usually on a particular product, service or
program. There are a variety of perspectives, models and approaches used in
strategic planning. The way that a strategic plan is developed depends on the
nature of the organization's leadership, culture of the organization,
complexity of the organization's environment, size of the organization and
expertise of planners.
Operational Planning
What is operational planning?
Well-implemented strategic
planning provides the vision, direction and goals for the
organization, but operational planning translates that strategy into the
everyday execution tactics of the business that will ultimately produce the
outcomes defined by the strategy. Simply stated, operational planning is the
conversion of strategic goals into managed execution.
An operational
planning is a subset of strategic work plan. It describes short-term ways
of achieving milestones and explains how, or what portion of, a strategic plan
will be put into operation during a given operational period, in the case of
commercial application, a fiscal year or another given budgetary term. An
operational plan is the basis for, and justification of an annual operating
budget request. Therefore, a five-year strategic plan would need five(5)
operational plans funded by five operating budgets.
Operational plans
should establish the activities and budgets for each part of the organization
for the next 1 – 3 years. They link the strategic plan with the activities the
organization will deliver and the resources required to deliver them.
An operational
plan draws directly from agency and program strategic plans to describe agency
and program missions and goals, program objectives, and program activities.
The critical role operational planning plays in strategy execution
Corporate strategy
can be thought of as a message packet that must be passed through the
organization, understood by all and acted upon in orchestration. If the
message is garbled, ambiguous or not communicated well, the intent will be lost
in translation and operational execution will become misaligned with the
corporate strategic goals.
Superior
operational planning requires proactive and innovative thinking to enact
strategy within the operational layer of the business. Operational planning
must produce the plan outcomes while managing constraints on time, money and
resources.