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Introduction to Operational Planning

Five Steps Approach

​By Mansour Baker, SHRM-CP

Posted:  14 April 2020

​Operational planning is a key component of the annual strategic planning process that provides a link between the department’s strategy and the day-to-day efforts of its people.

Definition of Operational Planning

• Outlines the actions necessary to accomplish the goals and objectives in the Strategic Plan
• Creates a set of annual plans for governance, adjudication and administration entities
• Establishes performance measures to track progress against actions
• Aligns actions to budget

Purpose of Operational Planning

• Helps managers identify organizational priorities and capabilities
• Establishes tasks, performance expectations, schedules, milestones, and resource needs
• Focuses departments to organize resources against performance targets

Exhibit 1

Annual Strategic Planning Process

Operational Planning Approach

​A standardized operational planning template should be utilized to ensure consistency across the company.

Step 1: Review Strategic Plan

Creating the operational plans begins with reviewing the strategic plan and its mission, vision, goals and objectives.

Objectives

• To create an understanding of the Strategic Plan in preparation for identifying current department initiatives that align to its goals and objectives

Activities

• Planners carefully review the Strategic Plan and educate their unit on the mission, vision, goals, and objectives

Outputs

• A more comprehensive understanding of Strategic Plan

Step 2: Identify Each Department’s Initiatives

​Next, each Working Group member will engage staff to articulate the unit’s initiatives.

Objectives

• To create a streamlined list of each department’s current activities

Activities

• Each planner will engage his or her employees in listing the department’s current initiatives
• The planner will then meet with the facilitator to review and refine the list

Outputs

• List of department’s current initiatives

Step 3: Align Initiatives to Strategic Plan Objectives

Working Group members will align the initiatives to strategic plan objectives and draft the operational plan.

Objectives

• To create a link between the department’s current daily activities (and initiatives) and the Strategic Plan objectives

Activities

• The planner will work with department staff to determine which Strategic Plan objective is related to each initiative
• The Implementation Team will then compile the information from each unit to create draft Operational Plans

Outputs

• Initiatives aligned to company’s objectives and goals
• Draft Operational Plans

Step 4: Develop Performance Measures and Targets

Each member will develop performance measures and targets for all of the unit’s initiatives.

​Activities

• The planner will review draft operational plans and work with the implementation team to develop performance measures and targets for each of his unit’s initiatives

Outputs

• Performance measures and targets (added to draft operational plans)

Step 5: Align Operational Plans to Budgets

Finally, the operational plans will be aligned to the Department’s budget.

Objectives

• To create a link between company’s budget and the department’s initiatives that support Strategic Plan objectives

Activities

• Estimate and identify available resources for implementing operational plan initiatives
• Communicate budget adjustments to Finance and update budget accordingly

Outputs

• Budget estimates for each initiative (added to draft operational plans)
• Financial performance targets

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