The Purpose Of The Operational Plan And Its Relationship To The Strategic Plan.
A strategic plan is used to outline business objectives and identify the methods in order to achieve those goals. An operational plan is the comprehensive way in which each department or division will use its resources to achieve company goals. Essentially the steps that each unit would need to take to achieve the organizations goals. Strong links between the strategic plan and the operational plan are needed to allow the company to operate efficiently. For example:
Performance Management: Operational plans base their needs on performance management numbers. Those performance management numbers are set by the projections in the company strategic plans.
Budgets: The primary financial link between a strategic plan and an operational plan is the establishment of a departmental budget. The strategic plan gives a budget estimate that is based on projected revenue. The operational plan gives a more accurate number that can be used to gauge the success of a strategic plan.
Resource Allocation: An operational plan is used to determine job duties and the proper use of company resources, such as equipment and facilities. A strategic plan outlines what kind of resource allocation is needed to achieve the goals of the plan.
Consultation is an active process in which business managers/leaders open formal or informal communication channels between all employees and stakeholders. Those channels include:
Open meetings – Stakeholders are invited to come to an open meeting or a series of meetings.
Surveys – Stakeholders are invited to complete a survey (paper or online type).
Focus groups – A select cross-section of stakeholders, small in number, are invited tp attend a meeting or series of meetings.
Invitation to send a written form of communication – Stakeholders are invited to submit comments in writing on a proposal or plan.
Informal meetings – Organization management might mingle with shareholders or other parties at an event that reveals certain plans to gauge responses.
Why Key Performance Indicators (KPIs) Are An Important Part Of The Operational Planning Process.
A key performance indicator is a quantifiable measure a company uses to determine how well it meets set operational and strategic goals. The KPI’s set in operation plans are a good way to ensure the business measures the progress of tasks required to achieve operational goals.
Impact Assessments And Contingency Plans
An impact assessment is a developmental tool to assist in creating the structure and content of a contingency plan. By conducting an impact assessment, it aids in providing a accurate diagnosis relating to the definition of risk as outlined by operation plans. The impact of the risk on the operational plan and its projected outcomes, what is the rating of the risk, how will it manifest itself and how damaging will it be to the plan if it occurs. Incorporated with a series of alternatives, recognitions and responses to the risks; the information is fed back into the process and creates the contingency plan. This information can be displayed on a matrix then, the information can then be measured for weight, possibility of outcome, severity and presented with recommendations for alternatives.