Introduction
A
“plan” is, according to the Oxford English Dictionary (1989), a “formulated or
organized method according to which something is to be done; a scheme of
action.” With this, “planning” is defined as the “the forming of plans; the
making or delineation of a plan.” By extension, “to plan” (the verb) is to
project and decide what should be done (goals, objectives), when it should be
done (timeline), the means and resources required to meet objectives and,
finally, who should do it (sharing of responsibilities). All in all, planning
is a function of management that was given prominence by the classic authors
(Fayol, 1916; Gulick and Urwick, 1937) and that, notwithstanding the criticisms
that this process has encountered over the years, continues today to be omnipresent
in the literature and practice of organizational management. A distinction can
be made between at least two types of planning on the basis of either the
object of the planning process or the timeline – namely, strategic planning and
operational planning (i.e., action plans). “Strategic planning” concerns the
general directions of an organization as well as its mission, target
objectives, values and management philosophy, the products and services it will
be offering, and the means it intends to use to achieve its objectives in the
coming years (i.e., three to five years). In certain types of organizations,
including armies and businesses operating in a competitive environment, this
type of planning and the ensuing action plans are, on account of the strategic
dimension, generally shrouded in secrecy, with only the main decision-makers
having a part in it. In contrast, in the public sector, strategic plans
oftentimes are public documents. Thus, for example, under the provisions of
Quebec's Public Administration Act, the provincial ministries and agencies must
produce three-year plans that are easily accessible for citizens, particularly
via official government Websites. Mintzberg, Ahlstrand and Lampel (1998) are
among those authors who have suggested that while a strategic plan1 1 Bryson
(1988) can be developed according to a formal process, it is also possible to
base planning on other processes that are rooted in, for example, design,
analysis, vision, cognition, learning, etc. Furthermore, while a strategy may
take the form of a plan (i.e., a series of deliberate measures to deal with a
situation), it can, in certain cases, be viewed in terms of a ploy or maneuver
(to outwit an opponent or competitor), a pattern (a series of actions –
deliberate or emergent – that nevertheless constitute a coherent whole), a
position (in a given environment or market, in relation to competitors) or a
perspective (the particular way an organization perceives itself or conceives
of its environment). Mintzberg is also recognized as having shed light on the
notions of deliberate strategies (which contain a formal plan), emergent
strategies (which are unplanned or unintended and which arise in response to
circumstances) and realized strategies (which are often the result of a
combination of deliberate and emergent strategies). (p. 21) Operational
planning, as its name suggests, covers the operations or actions that should
lead to the accomplishment of a short-term objective (i.e., within one year's
time). The rationale behind using operational planning is to ensure respect for
deadlines as well as to coordinate and communicate administrative and technical
measures in order to meet objectives (Villemain, 1991, p. 2). Tools to support
this type of planning are numerous. They started with the chart proposed by
Henry Laurence Gantt (1861-1919) (Wren, 1987, pp. 136-137) and benefited since
from the power of the computer. Several authors have pointed out differences
between the private sector (“for profit” and nonprofit entities alike) and the
public sector. Depending on the sector involved, strategic planning and
operational planning are not implemented the same way, particularly on account
of the legal framework (which is stricter in the public sector), the extent of
competition (which is less present in the public sector), the pressures exerted
by citizens and the government in power, and the systems of management and
organization in effect in the public sector (Bernier, 1998; Charih and Paquin,
1993).
|
Strategic planning |
Operational Planning |
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Is the planning for achieving the vision
of organization |
Is process of deciding in advance of what
is to be done to achieve objective of business |
|
Long term planning |
Short term planning |
|
Extroverted approach |
Introverted approach |
|
Generally plan last longer |
Plan change every year |
|
Top level management |
Middle level management perform |
|
Wide |
Narrow |
|
Planning of vision mission objective |
Planning routine activities of company |
|
Participatory Planning |
|
Taking part in something. Being actively involved in something. Being part of a larger whole. Having ownership of processes that concern me. Involving the whole community in strategic and operational
planning. Shared decision-making. Supporting target groups in carrying out their own studies and
preparing their own actions. |
Participatory planning means to involve the entire
community in the process of urban or rural planning in order to foster
community development. It harmonizes views in a constructive way and deals with
conflict between opposing parties with the aim to foster ownership by all
participants. Unlike other planning processes, participatory planning makes
sure that marginalized groups have a seat at the table and can participate in
the process on an equal footing with other actors.
Advantages of
Participatory planning
Involving the people who will be affected by planning
means making sure that it suits their needs and avoids wasting resources. Participation
also bridges the gap between those who plan and those who someone else is
planning for. Joint planning creates a shared sense of responsibility and
ownership. Conflicts that will inevitably arise due to different interests of
participants can be dealt with in a constructive manner and hurdles can be
overcome by working together.
·
Empowers communities
·
Creates ownership and motivation
·
Promotes positive change
·
Appreciates and respects people:
everyone is different but equally important
·
Recognizes the diversity of knowledge
and perspectives
·
Promotes a common understanding
·
Minimizes the risk of excluding
certain groups
·
Is context specific
·
Recognizes power relations
·
Contributes to our activities being
relevant for the target groups
·
Builds a relationship and mutual
respect between you and the target group
·
Leads to a more accurate and holistic
understanding
·
Leads to more sustainable processes
·
Is more of an attitude than a
methodology
Participate
in the planning Process
First and foremost it is important to find out how
willing individual people or groups are to get involved. Sometimes the wish for
participation is very strong, but it can also be difficult to motivate people
to take part. Anyone who intends to introduce a participatory planning process
needs others to be prepared and ready to engage. People tend to get involved in
things when they feel appreciated, when they can contribute with their
knowledge and skills, and when they can see the results and/or receive the
recognition of others for their work. When planning a participatory process,
you should pay attention to these aspects to make sure you are creating the
best conditions possible for people to get involved in your planning process.
The
Strategic Planning Process
Strategic planning is one of the most
important responsibilities of the senior management of an organisation. It is
the vehicle that senior management should use to set the organisational vision,
determine the strategies required to achieve that vision, make the resource
deployment decisions to achieve the selected strategies, and build alignment to
the vision and strategic direction throughout all levels of the organisation.
Unfortunately, strategic planning is also one of the most misunderstood and poorly
used tools in many organizations. Strategic plans are often large documents
with detailed plans created arduously over months at great effort...only to
gather dust and languish after they have been duly acknowledged and then filed
away. There are several reasons why strategic plans are not developed properly,
or not implemented properly. Among the most common are: Senior management does not follow a defined
process to accomplish this task. As a consequence, months of effort are wasted
in creating reams of paper that do not have strategic import.
The process is delegated to a planning
group, or assigned to the various functional leaders to complete for their
respective areas. If completed in individual functional areas, the plan may
work for individual departments, but is likely to sub-optimize the whole
organization. If assigned to a planning group, the result is often not truly
embraced and endorsed by senior leadership.
Senior management does not set aside the time to develop the strategic
plan as a collective team work product.
The organization does not understand what a strategic plan is actually
designed to provide. Therefore, the
strategic plan is a tactical business plan with multiple year extrapolations.
There is very little about it that addresses actual strategic direction. Senior management does to follow a defined
process or methodology that will result in a strategic plan in a timely and
efficient yet comprehensive manner. The
plan is developed but there is no process to communicate it throughout the
organization and build organization-wide alignment to its implementation. The plan is developed with no implementation
guidelines at all. At best, it is implemented in pieces. At worst, it is
unfunded and ignored. This does not have to become the reality. Strategic plans
can be developed in an efficient and timely manner as long as the senior
management team of an organization is committed to meeting and working together
over a period of several months to develop it. The general scope of work is a
series of dedicated sessions for one day each conducted with the senior
management team once a month for 3-5 months. The number of work sessions may
vary, depending on the complexity of the organisation and the shifts in the
business environment. The process can also be conducted in a series of half day
sessions once every two weeks. In either case, once the process has begun it
must be applied with consistency and dedication by the senior team...as a team.
In addition, members of the senor team should be prepared to spend an amount of
time equal to the length of each session for follow-up work from each session.
Members of their individual organizations may be required to provide some staff
input as well.
Operational
Planning
Along with your Action and Monitoring Plans,
the Operational Plan is the third part of your completed Strategic Plan. It
defines how you will operate in practice to implement your action and
monitoring plans – what your capacity needs are, how you will engage resources,
how you will deal with risks, and how you will ensure sustainability of the
project’s achievements. An Operational Plan does not normally exist as one
single standalone plan; rather the key components are integrated with the other
parts of the overall Strategic Plan. The key components of a complete
Operational Plan include analyses or discussions of:
•
Human and Other Capacity Requirements – The human capacity and skills required
to implement your project, and your current and potential sources of these
resources. Also, other capacity needs required to implement your project (such
as internal systems, management structures, engaged partners and Network NOs
and POs, and a supportive legal framework).
•
Financial Requirements – The funding required to implement your project, your
current and potential sources of these funds, and your most critical resource
and funding gaps.
• Risk Assessment and Mitigation Strategy –
What risks exist and how they can be addressed.
• Estimate of Project Lifespan,
Sustainability, and Exit Strategy – How long your project will last, when and
how you will exit your project (if feasible to do so), and how you will ensure
sustainability of your project’s achievements.
Operational planning involves defining and
outlining the actions individuals will take to support the plans and objectives
of the executive management team. An operations plan is extremely detailed, describing the who,
what, where, and when involved in managing the day-to-day tasks and low-level
activities of the business. This type of plan supports the tactical plan, which
is more of a mid-level plan.
To qualify as an operations plan, the plan
itself needs to meet certain criteria. The first criterion is that the plan
exists together with tactical and strategic plans. An operational plan supports
these other two plans and provides more detail about how a business and its
team members will achieve the goals outlined in the high-level plans.
When executive management members create the
tactical and strategic plans, they need to ensure that supporting management team members have a firm grasp on
what they need to do to support achieving the goals outlined. Providing the
details included in an operational plan will give members of supporting
management a clearer sense of their tasks.
An operations plan should only apply to a
specific area or department of an organization. If the plan is too broad, it
typically cannot get into the level of detail needed to emphasize how certain
activities and processes will be completed. For example, if a manufacturing
company created an operational plan, it might outline a strategy for each of
the products it manufactures or for each of the plants it operates.
Operations plans can be further segmented
into two categories. The first is a single-use plan, which is created to
address a specific issue or period. An example of a single-use plan is one that
outlines the process of cutting expenditures during the following year. The
second category is an ongoing plan, which can be altered as needed and will
carry forward into future time periods. An example of an ongoing plan is one
that outlines the process of bringing on new staff members as positions are
created or vacated.
Differences Among Strategic, Tactical,
and Operational Plans
A strategic plan is a business plan created by an executive
management team which has a much wider scope than a tactical or operational
plan. It is a plan that can outline the ambitions, future goals, and mission of
an organization. Strategic plans tend to be broader and vaguer, although they
may focus on the high-level and long-term goals that the company will work to
achieve over the next three to five years. Strategic planning can also include
the way an organization will measure its progress toward the established goals
and any major projects that need to be completed to achieve the goals.
A tactical plan is created by mid-level
management professionals and includes the specific actions that employees must
take to work toward the goals described in the strategic plan. This plan can
also outline how a certain area or department of a business will support the
strategic plan. A tactical plan isn't usually very detailed, but it will
include more specific ideas and actions.
One of the main differences between a
strategic and operational plan is the period of time covered. In a strategic
plan, the goals are typically attainable in several years, while the
operational plan goals are short-term ones and can be achieved during the next
year in most cases.
The focus of the goals and objectives in each plan differs as
well. A strategic plan exists to outline the long-term vision of the company
and how each department will work together to achieve the goals. An operational
plan focuses on specific departments and their roles in achieving short-term
goals. A large department may have multiple plans to maintain a clear and
detailed focus.
Who creates each plan is another difference.
Members of an organization's executive management team will handle the creation
of a strategic plan, since they are the individuals who are responsible for the
overall vision and goals. A department's leaders may create an operations plan
since they are the individuals who will implement the processes needed to
achieve the goals outlined. When team leaders are involved in creating the
plan, they are often more likely to work together to accomplish the necessary tasks.
An operational plan report is much more
detailed and typically is prepared and reviewed more often. By reviewing the
reporting more frequently, individuals can make sure all team members remain on
track and can handle the necessary tasks and processes to achieve the
short-term goals related to the business operations.
Operational plans may not have specific
measures to quantify results or report on, and these updates may be more
qualitative or anecdotal.
Creating an Operations Plan
When creating an operations plan, you want
to follow some key steps. First, focus on important goals that pertain to the
specific department or division that will follow the plan. After identifying
the goals, determine any key initiatives that will help achieve those goals.
These initiatives will easily enable those following the plan to understand
what they must do to work toward achieving the broader goals.
An effective operational plan should also
include key performance indicators that permit progress monitoring. A key
performance indicator (KPI) is a measurable value that shows how well a company
is achieving the key business objectives it has outlined. The KPIs in an
operational plan will lead the team members involved as long as the KPIs are
communicated effectively.
The operations plan must also clearly define
who, what, where, and when in great detail. It should outline who is
responsible for which tasks, what tasks need to be completed to achieve a goal,
where the individuals involved will work on their assigned tasks, and when they
must be completed to maintain the timeline. You also want to discuss whether
the plan is an ongoing or single-use plan. This information will help to better
define the estimated timeline for completion.
The final step to create an operations plan
is defining the resources needed to achieve the goals. These resources may
include software programs to improve processes, tools to manage new tasks, or
training to bring all team members up to speed on a certain task. Determining
the necessary resources can help divisional leaders know how to proceed and
provide their team members with what they need to succeed.
Operations Plan Examples
Many types of operations plan examples
exist. Below we've provided a simplified version to study.
Manufacturing Plant Operations Plan
Objective: Improve plant workflow
Category: Single-use plan
Required Resources: Training,
efficiency study, and new equipment that operates quickly and more efficiently
Tasks: Learning how to set up new
equipment, identifying ways to reduce production waste, determining how to best
reduce the level of inventory maintained in the plant, and identifying
strategies to improve procedures associated with materials handling
By creating an operations plan, a business
can outline its short-term, divisional, or departmental objectives and describe
the initiatives required to achieve those objectives. Operations plans work
together with other types of business plans to outline the overall goals of an
organization as well as how the business plans to meet these goals.
Reference
Bernier, L. (1998). “La planification
stratégique au gouvernement du Québec : un cadre pour l'entreprenariat public,”
International Management, vol. 3, no. 1, pp. 15-24.
Bryson, J. M. (1988). Strategic Planning for
Profit and Nonprofit Organizations, San Francisco, Jossey-Bass.
Charih, M. and M. Paquin (1993). Strategic
Planning in Government Administration: A Comparison between Ottawa and Quebec,
Ottawa, Canadian Centre for Management Development.
Fayol, H. (1916). Administration
industrielle et générale, Paris, Dunod.
Gulick, L. and L. Urwick (eds.) (1937).
Papers on the Science of Administration, New York, Institute of Public
Administration.
Mintzberg, H., B. Ahlstrand and J. Lampel
(1999). Safari en pays stratégie, Paris, Éditions Village Mondial [originally
published in English as Strategy Safari, New York, Free Press, 1998].
Oxford English Dictionary (1989). 2nd ed.,
New York, Oxford University Press.
Villemain, J. (1991). La planification
opérationnelle :objectifs, méthodes et métiers de la planification de projet,
Paris, Afnor gestion.
Wren, D. A. (1987). The Evolution of
Management Thought, 3rd ed., New York, John Wiley & Sons.
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