Components of an operational plan and template

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Introduction to Operational Planning

Five Step Approach

Posted: 14 April 2020

Revised: 14 July 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

Operational Plan Template

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

The [Department] oversees administrative functions related to [list primary functions]. It consists of [a number of] sections which collectively are responsible for providing [type of services/products] to the company. These sections and their primary responsibilities are outlined below:

Section 1: Primary Responsibilities
Section 2: Primary Responsibilities
Section 3: Primary Responsibilities
Section 4: Primary Responsibilities

Business plans have been created for each of the Departments listed above. Each business plan is organized as follows:

Department Mission and Contribution to the Company Mission, Vision, and Strategic Goals.
Structure, Roles and Key Processes
Operating Expectation: Metrics, Targets and Results
Budget and Actual Expenditures
Analysis of Risks and Opportunities
Initiatives to Change and Improve the Department’s Performance

1. Department Mission and Contribution to the Company Mission, Vision, and Strategic Goals.

Department Mission

1 – 3 sentences explaining:

Why the department exists
Who its primary customers are?
The key services / processes for which it is responsible

Contribution to the Company Mission, Vision, and Strategic Goals

1 – 3 sentences explaining how the department contributes to the company’s:

Mission
Vision
Strategic Goals

2. Structure, Roles and Key Processes

The [Department] is led by [Title of Manager/Director], who reports to [Title of Direct Report]. The [Department] structure is:

Insert Department Organization Chart

The [Department] consists of [a number of] sections. Each of the Department’s sections have key processes for which Standard Operating Procedures (SOPs) exist or will be developed. These are listed below:

[Name of Section]
- List the Section’s key processes for which SOPs exist or will be developed.

3. Operating Expectation: Metrics, Targets and Results

For each section list the following:

Section
Metric
Target
Rating

4. Budget and Actual Expenditures

Business Activities: Included core business activities for each section.

Exhibit 2

Sample Budget and Actual Expenditures Table

5. Analysis of Risks and Opportunities

The [Name of Department] has identified the following risks and opportunities based on an analysis of the above operating metrics targets, budget results, and findings expressed in the Department’s Quarterly Performance Report.

Exhibit 3

Analysis of Risks and Opportunities Table

These initiatives are described in further detail in section 6 below. The Rough Order Magnitude (ROM) budget for these initiatives is already captured in the planned 20XX budget table in section 4 above.

6. Initiatives to Change and Improve the Department’s Performance

This section presents a summary of all the initiatives undertaken by the [Name of Department] in order to improve performance and/or implement requirements established by the Strategic Plan. It is presented in four sections:

Total Number of Initiatives
20XX: Open Initiatives
20XX: Closed Initiatives
Proposed 20XX Initiatives and Details

1. Number of [Name of Department] Initiatives by Start Date

Exhibit 4

Number of Initiatives Table