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By Mansour Baker, SHRM-CP
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Posted: 14 April 2020
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Revised: 14 July 2020
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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
Purpose of Operational Planning
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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
Activities
Outputs
Step 2: Identify Each Department’s Initiatives
Next, each Working Group member will engage staff to articulate the unit’s initiatives.
Objectives
Activities
Outputs
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
Activities
Outputs
Step 4: Develop Performance Measures and Targets
Each member will develop performance measures and targets for all of the unit’s initiatives.
Activities
Outputs
Step 5: Align Operational Plans to Budgets
Finally, the operational plans will be aligned to the Department’s budget.
Objectives
Activities
Outputs
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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:
Business plans have been created for each of the Departments listed above. Each business plan is organized as follows:
1. Department Mission and Contribution to the Company Mission, Vision, and Strategic Goals.
Department Mission
1 – 3 sentences explaining:
Contribution to the Company Mission, Vision, and Strategic Goals
1 – 3 sentences explaining how the department contributes to the company’s:
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:
3. Operating Expectation: Metrics, Targets and Results
For each section list the following:
4. Budget and Actual Expenditures
Business Activities: Included core business activities for each section.
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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.
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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:
1. Number of [Name of Department] Initiatives by Start Date
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2. 20XX [Name of Department] Open Initiatives
3. 20XX [Name of Department] Closed Initiatives
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4. Proposed 20XX [Name of Department] Initiatives and Details
Description
Benefits
Cost Drivers
Contributing Organizational Sections
Performance Measures & Targets
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