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Ayesha is the operations project manager at a radiology informatics organization that intends to open three more imaging centers in different cities. The strategic plan goals for the company involve diversifying the practice, but Ayesha is aware that the details of how such goals will be accomplished won’t be in the strategic plan; they’ll have to be in the operational plan.
Ayesha and her team set about creating a tactical, detail-oriented operational plan to meet the goals outlined in the strategic plan. They chalk out targets for outreach, IT, development, research and staffing.
- Arjun has to create the overall outreach strategy
- Mehek’s tasks include deploying the radiology report search engine and upgrading the voice dictation system
- Mohit is responsible for getting the website and staff credentials database up and running
- Shruti has to design the online research form for data entry requests
- Zayed is told to oversee the filling of informatics vacancies at the firm
Every team member’s progress and goal-fulfillment are recorded for each quarter of the fiscal year.
With Ayesha’s leadership and her team’s focused approach, the operational plan put together helps the firm reach important goals in the strategic plan, with the practice even being able to bring on board a new consultant to aid in identifying fresh business opportunities. Theirs is a successful operational plan example.
What Is An Operational Plan?
Before going into the types of operational plans and their importance, it’s imperative to form a clear understanding of the meaning of an operational plan. Simply put, an operational plan lays out the tasks a business must carry out to reach the desired outcome. More accurately, it’s a blueprint created by a department or a team within an organization that clearly defines the actions that must be taken to fulfill strategic objectives and meet the expectations of senior management. It also adheres to daily or weekly timelines for goal fulfillment.
Let’s consider an operational plan example where an organization is strategically trying to increase its production volume by 50% by the end of the fiscal year. Important considerations in such a strategic plan will be marketing, sales and operations. The manufacturing, financial and logistic components of an operational plan in this scenario will be crucial for boosting production.
It must be remembered that an operational plan and a business plan aren’t the same. This distinction is important to further understand the meaning of an operational plan. Business plans have operations segments, so an operational plan in a business plan is but one component of the entire structure. In other words, having an operational plan in a business plan is likely, not the other way round. Within a business plan, the operational plan section focuses on every step necessary to achieve the business’s objectives.
Having covered the meaning of an operational plan and highlighted its differences from a business plan or a strategic plan, it’s a good idea to consider the different types of operational plans and the steps of operational planning.
Types Of Operational Plans
There are two types of operational plans: single-use plans and ongoing plans. How are they different? Let’s take a look.
Single-Use Plans
These operational plans are only devised when a particular problem or a time-specific challenge needs to be tackled. For instance, cost-saving measures for a new fiscal year would need a single-use plan. (www.stocktargetadvisor.com)
Ongoing Plans
Such plans are designed with the long-term in mind. They can be applied to future timelines and adapted whenever required. An ongoing plan would be used for strategizing on how to retain a workforce rather than resort to workforce rationalization measures.
Operational Planning Steps
Regardless of the type, it’s important to be clear on the steps that lead to an effective operational plan. Let’s examine what these components of an operational plan are.
Put The Strategic Plan In Place
Operational goals are dependent on strategic goals. The importance of the operational plan is indisputable, but the strategic plan must come first, as the operating plan is ultimately a tool for reaching strategic goals.
Pick The Goals That Matter Most
An operating plan example that works will invariably prioritize the most important goals. It’s tough to follow through on complicated plans with too many vague objectives.
Use Performance Metrics
Predictive indicators are crucial in gauging how a project or a team is faring. To this end, it’s always wiser to opt for leading indicators (like excellent customer feedback) rather than lagging indicators (such as the attendee headcount at an event), as leading indicators help identify potential problem areas from beforehand.
Pick KPIs Wisely And Communicate
This should be a team exercise. Outlining the most suitable KPIs for a business is imperative, and so is discussing them with the entire team.
Keeping all of these factors in mind, it’s clear that the importance of operational plans can’t be emphasized enough. There are several reasons why they’re a prominent part of goal-oriented organizations – they enhance productivity, profit margins and give businesses a competitive edge.
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