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Operational plans are concerned with how the different functions of an organization, e.g. HR, marketing, production, contribute to an organization’s overall goals and objectives. Here we look at the necessary ingredients for an effective operational plan, and how to test it.
Operational plans set out the activities and budgets for the different parts of an organization, usually for the next one to three years. They should link the strategic plan to what the organization intends to deliver, and the resources, processes, people and their skills required to do so.
In most businesses, successful strategies depend a great deal on decisions or activities that occur at the operational level. It is very important, therefore, to make sure that operational decisions and strategy are properly integrated. An important part of furniture- maker IKEA’s success, for example, has been its ability to dovetail its design, store and sourcing operations with higher-level decisions about product range and market entry.
Operational Plan Content
An effective operational plan should create a blueprint that managers and teams can follow in order to meet their agreed objectives. Every operational plan should, therefore, include:
- a clear set of objectives
- the outcomes to be delivered
- allocated responsibility for achieving these objectives
- when the objectives will be achieved
- resource requirements, e.g. staffing, budget
- the standard of work to be achieved
- a method for monitoring progress
According to Cook and Slack, most operational plans tend to have objectives in the following categories:
