Operational Planning

Obtaining Operational Plan from Strategic Plan

Definition:
An operational plan breaks down the long-term goals outlined in the strategic plan into
actionable and measurable tasks to be performed in a specific period.

Steps to obtain an operational plan from a strategic plan

1. Define goals: Identify the long-term goals of the strategic plan

2. Set KPIs: Establish key performance indicators (KPIs) to measure progress
3. Assign roles: Allocate roles and responsibilities to meet the goals
4. Create tasks: Break down the goals into daily tasks
5. Create a timeline: Set a timeline for completing the tasks
6. Track progress: Regularly monitor progress and adjust plans as needed

 Importance:

1. Clarity and Direction

 Purpose: Operational planning provides clear guidance on what needs to be done, by whom,
and by when.
 Benefit: Teams and individuals know exactly what their priorities are, minimizing confusion
and aligning everyone toward common objectives.

2. Efficient Resource Utilization

 Purpose: Operational plans help identify the resources (financial, human, technological, etc.)
required to achieve specific objectives.
 Benefit: Ensures resources are allocated effectively, avoiding waste and ensuring that all
resources are used optimally to meet the organization’s goals.

3. Improved Focus

 Purpose: Operational plans break down strategic goals into smaller, manageable tasks.
 Benefit: Employees and teams can concentrate on specific, measurable activities, leading to
greater productivity and a clear sense of purpose.

4. Better Coordination and Communication

 Purpose: Operational planning requires collaboration across departments and teams to

identify needs and define roles.
 Benefit: Promotes communication and coordination, ensuring that everyone understands
how their actions fit into the larger organizational strategy, improving teamwork and
reducing duplication of effort.

5. Enhanced Decision-Making
  Purpose: Clear operational plans outline what is required for success, including timelines,
budget, and staffing needs.
 Benefit: Management can make informed decisions about resource allocation, risk
management, and any necessary adjustments, leading to more confident and effective
decisions.

6. Increased Accountability and Responsibility

 Purpose: Tasks and objectives are clearly assigned to specific individuals or teams in an
operational plan.
 Benefit: Encourages accountability as everyone knows their responsibilities and what is
expected of them, leading to better performance and ownership of outcomes.

7. Measurement and Tracking of Performance

 Purpose: Operational plans include key performance indicators (KPIs) and milestones to
track progress.
 Benefit: Allows management to monitor performance against set goals, identify potential
issues early, and take corrective actions before problems escalate.

8. Risk Management and Contingency Planning

 Purpose: An operational plan often includes a risk management framework that identifies
potential challenges or risks.
 Benefit: Helps anticipate potential roadblocks and prepares alternative strategies or
contingencies, ensuring the organization can navigate obstacles smoothly.

9. Alignment with Strategic Goals

 Purpose: Operational planning ensures that daily activities align with the organization’s long-
term strategic goals.
 Benefit: Maintains consistency between the strategic vision and operational activities,
ensuring all tasks contribute toward achieving the broader organizational objectives.

10. Improved Financial Management

 Purpose: Financial resources are planned and allocated according to operational needs.
 Benefit: Provides a clear picture of the organization’s budget and spending, helping prevent
overspending, ensuring funds are used efficiently, and helping maintain financial control.

11. Facilitates Performance Reviews

 Purpose: With clear objectives and measurable outcomes, operational plans provide a basis
for evaluating employee and team performance.
 Benefit: Helps in conducting effective performance reviews and providing feedback,
motivating teams, and identifying areas for improvement.

12. Continuous Improvement

  Purpose: Operational plans require regular reviews and updates to adapt to changing
circumstances or feedback.
 Benefit: Promotes a culture of continuous improvement, where the organization can learn
from past performance, refine strategies, and enhance operational efficiency over time.

2. Identifying Required Resources

Here are well-organized notes for Business Management Level 5, focusing on Human
Resource Functions under the topic Undertake Operational Planning:

Topic: Undertake Operational Planning

1. Obtaining Operational Plan from Strategic Plan

 Definition:
An operational plan breaks down the long-term goals outlined in the strategic plan into
actionable and measurable tasks to be performed in a specific period.
 Key Steps:
1. Review the organization's strategic plan to identify its goals and priorities.
2. Analyze how these align with departmental or unit-specific objectives.
3. Determine specific operational activities that contribute to achieving strategic goals.
4. Assign roles and responsibilities to relevant personnel.
 Importance:

o Ensures alignment between day-to-day operations and the organization’s vision.

o Facilitates efficient resource utilization.

2. Identifying Required Resources

 Definition:
Resources are inputs required to execute operational tasks, such as human resources,
physical assets, financial resources, and technology.
 Types of Resources:
1. Human Resources: Staff, specialists, or contractors needed to perform tasks.
2. Physical Resources: Equipment, tools, office space, or raw materials.
3. Financial Resources: Budgetary allocations for operations.
4. Technological Resources: Software, hardware, and other tools.
 Process:
1. List all tasks in the operational plan.
2. Match resources required for each task.
3. Evaluate existing resources and identify gaps.
4. Create a resource acquisition plan.

3. Preparing and Approving Operational Plans

 Steps in Preparing Operational Plans:

1. Define Objectives: Specify what the plan aims to achieve within a set timeframe.
2. Break Down Activities: Divide work into manageable tasks.
 3. Set Timelines: Establish deadlines for each activity.
4. Allocate Resources: Assign required resources to each task.
5. Risk Management: Identify potential risks and develop mitigation strategies.
6. Performance Indicators: Establish measurable benchmarks to monitor progress.
 Approval Process:
1. Present the draft plan to stakeholders or management.
2. Revise the plan based on feedback.
3. Secure formal approval from relevant authorities.

4. Obtaining Funds

 Definition:
Securing financial resources to implement the operational plan.
 Steps to Obtain Funds:
1. Budget Preparation: Outline the cost estimates for all operational activities.
2. Funding Sources:
 Internal sources (e.g., retained earnings, operational surplus).
 External sources (e.g., bank loans, grants, investors).
3. Proposal Submission: Submit funding proposals with justifications for resource
needs.
4. Approval Process: Obtain approval from financial committees or external funding
bodies.
5. Monitoring Funds: Ensure that allocated funds are used effectively for their
intended purpose.

Obtaining Operational Plan from Strategic Plan

Objective:
The goal of obtaining an operational plan from a strategic plan is to break down long-term
goals into actionable, short-term activities that can be executed at an operational level. This
ensures that all day-to-day actions are aligned with the overall vision and mission of the
organization.

Steps to Obtain Operational Plan from Strategic Plan

1. Understand the Strategic Plan

 Key Elements of a Strategic Plan:

o Vision and Mission: What the organization aims to achieve in the long term and its
purpose.
o Strategic Goals and Objectives: These are broad, long-term goals that guide the
overall direction of the organization.
o Values and Culture: Defines how the organization intends to operate and the
culture it promotes.
o Key Performance Indicators (KPIs): Metrics to assess the achievement of strategic
objectives.
  Action: Thoroughly read and analyze the strategic plan to identify its core elements and
determine how they impact operational activities.

2. Break Down Strategic Goals into Operational Objectives

 Operational Objectives:
These are specific, measurable, and time-bound actions that contribute to achieving broader
strategic goals.
 Action:
o Review each strategic goal and identify the operational activities required to support
it.
o These activities must be concrete and specific to departments, teams, or individuals
within the organization.
o Example: If a strategic goal is to improve customer satisfaction, an operational
objective could be to train customer service staff on new protocols within the next
quarter.

3. Align Operational Activities with Strategic Intent

 Alignment Process:
o Ensure that each operational activity supports the broader vision, mission, and
strategic objectives of the organization.
o Operational activities should be designed to make tangible progress towards long-
term goals.
o Example: A strategic goal to increase market share may translate into operational
tasks like expanding into new regions or launching new marketing campaigns.
 Action: Cross-reference each operational task with the strategic goals to ensure alignment.

4. Set Timeframes and Milestones for Operational Tasks

 Timeframes:
Establish clear deadlines for each operational task to ensure that the strategic goals are met
on time.
 Milestones:
Break down tasks into smaller, achievable milestones to monitor progress.
 Action: Identify key performance milestones to assess the completion of each task.

5. Assign Responsibilities for Operational Activities

 Delegation:
Assign specific operational tasks to relevant departments or individuals responsible for their
completion.
 Action: Ensure that each task has an accountable person or team to monitor and execute
the activity.

6. Create the Operational Plan Document

 Operational Plan Format:

o Goals and Objectives: List the specific, actionable tasks.
o Resources Required: Identify the resources (human, financial, physical) needed to
complete the tasks.
 o Timeline and Milestones: Specify deadlines and progress indicators.
o Roles and Responsibilities: Define who is responsible for each task.
 Action: Compile all this information into a structured operational plan document that aligns
with the strategic goals.

7. Review and Finalize the Plan

 Feedback and Revisions:

Before finalizing, seek input from stakeholders (e.g., department heads, senior
management) to ensure that the operational plan is realistic and aligns with the
organization's capabilities and priorities.
 Action: Revise the plan based on feedback and finalize the document.

8. Implement and Monitor the Operational Plan

 Execution:
Begin implementing the operational activities as per the plan.
 Monitoring:
Regularly review the progress of operational tasks to ensure they align with the strategic
plan and are on track to meet goals.
 Action: Use performance metrics and KPIs to track the success of operational tasks and
make adjustments as needed.

Importance of Obtaining an Operational Plan from a Strategic Plan

 Alignment: Helps ensure that day-to-day operations are aligned with long-term strategic
goals.
 Focus: Focuses efforts and resources on the most critical tasks that contribute to achieving
the organization’s vision.
 Measurable Results: Establishes clear objectives and metrics to track progress, ensuring the
effectiveness of operational activities.
 Resource Allocation: Guides the effective allocation of resources (financial, human,
technological) to tasks that directly impact the achievement of strategic goals.

Benefits of Operational Planning

1. Clarity and Direction

 Purpose: Operational planning provides clear guidance on what needs to be done, by whom,
and by when.
 Benefit: Teams and individuals know exactly what their priorities are, minimizing confusion
and aligning everyone toward common objectives.

2. Efficient Resource Utilization

 Purpose: Operational plans help identify the resources (financial, human, technological, etc.)
required to achieve specific objectives.
  Benefit: Ensures resources are allocated effectively, avoiding waste and ensuring that all
resources are used optimally to meet the organization’s goals.

3. Improved Focus

 Purpose: Operational plans break down strategic goals into smaller, manageable tasks.
 Benefit: Employees and teams can concentrate on specific, measurable activities, leading to
greater productivity and a clear sense of purpose.

4. Better Coordination and Communication

 Purpose: Operational planning requires collaboration across departments and teams to

identify needs and define roles.
 Benefit: Promotes communication and coordination, ensuring that everyone understands
how their actions fit into the larger organizational strategy, improving teamwork and
reducing duplication of effort.

5. Enhanced Decision-Making

 Purpose: Clear operational plans outline what is required for success, including timelines,
budget, and staffing needs.
 Benefit: Management can make informed decisions about resource allocation, risk
management, and any necessary adjustments, leading to more confident and effective
decisions.

6. Increased Accountability and Responsibility

 Purpose: Tasks and objectives are clearly assigned to specific individuals or teams in an
operational plan.
 Benefit: Encourages accountability as everyone knows their responsibilities and what is
expected of them, leading to better performance and ownership of outcomes.

7. Measurement and Tracking of Performance

 Purpose: Operational plans include key performance indicators (KPIs) and milestones to
track progress.
 Benefit: Allows management to monitor performance against set goals, identify potential
issues early, and take corrective actions before problems escalate.

8. Risk Management and Contingency Planning

 Purpose: An operational plan often includes a risk management framework that identifies
potential challenges or risks.
 Benefit: Helps anticipate potential roadblocks and prepares alternative strategies or
contingencies, ensuring the organization can navigate obstacles smoothly.

9. Alignment with Strategic Goals

 Purpose: Operational planning ensures that daily activities align with the organization’s long-
term strategic goals.
  Benefit: Maintains consistency between the strategic vision and operational activities,
ensuring all tasks contribute toward achieving the broader organizational objectives.

10. Improved Financial Management

 Purpose: Financial resources are planned and allocated according to operational needs.
 Benefit: Provides a clear picture of the organization’s budget and spending, helping prevent
overspending, ensuring funds are used efficiently, and helping maintain financial control.

11. Facilitates Performance Reviews

 Purpose: With clear objectives and measurable outcomes, operational plans provide a basis
for evaluating employee and team performance.
 Benefit: Helps in conducting effective performance reviews and providing feedback,
motivating teams, and identifying areas for improvement.

12. Continuous Improvement

 Purpose: Operational plans require regular reviews and updates to adapt to changing
circumstances or feedback.
 Benefit: Promotes a culture of continuous improvement, where the organization can learn
from past performance, refine strategies, and enhance operational efficiency over time.

Identifying Required Resources

Purpose:
Identifying the required resources is a critical step in operational planning. It involves
determining all the inputs necessary to carry out the tasks and activities defined in the
operational plan. This ensures that the organization has the right amount and type of
resources at its disposal to achieve its goals efficiently and effectively.

Types of Resources

Resources can be categorized into several types, depending on the needs of the organization
and the tasks to be performed. These include:

1. Human Resources

 Definition: The personnel required to execute tasks within the operational plan.
 Examples:
o Employees with specific skills (e.g., customer service representatives, project
managers, technical specialists).
o Contractors or consultants (e.g., legal advisors, IT specialists).
o Temporary staff or volunteers (e.g., event staff, seasonal workers).
 Action:
o Assess the skills and expertise required for each task.
 o Determine the number of staff needed and their roles.
o Consider training or recruitment if additional human resources are required.

2. Financial Resources

 Definition: The money required to implement the operational plan.

 Examples:
o Budget allocations for departments or projects.
o Funding for new equipment, marketing campaigns, or salaries.
o Contingency funds to manage unexpected expenses.
 Action:
o Estimate the financial requirements for each task or project.
o Create a budget that allocates resources to specific activities.
o Identify potential funding sources (internal budget, loans, grants).

3. Physical Resources

 Definition: Tangible assets needed to carry out tasks effectively.

 Examples:
o Equipment (e.g., computers, machinery, office supplies).
o Office or workspaces (e.g., physical locations, meeting rooms).
o Vehicles, warehouses, or inventory storage.
 Action:
o List the physical assets needed for each task.
o Assess whether existing resources are sufficient or if new acquisitions are required.
o Plan for the maintenance and storage of physical resources.

4. Technological Resources

 Definition: Tools, software, and systems required to support the execution of tasks.
 Examples:
o Software tools (e.g., project management software, CRM systems, accounting
software).
o Hardware (e.g., servers, computers, mobile devices).
o Communication tools (e.g., email systems, video conferencing software).
 Action:
o Identify the technology required for each operational task.
o Ensure that existing technology is up-to-date and capable of supporting the tasks.
o Plan for software licenses, system upgrades, or new tools if needed.

5. Information Resources

 Definition: Data, knowledge, and intellectual property required to make informed decisions.
 Examples:
o Market research, industry reports, customer data.
o Internal reports, policies, and procedures.
o Knowledge databases or training materials.
 Action:
o Identify what information is needed for decision-making or task execution.
o Ensure access to relevant data and documentation.
 o Plan for the collection and management of new data, if necessary.

6. Time Resources

 Definition: The amount of time allocated for completing tasks and achieving objectives.
 Examples:
o Time allocated for meetings, training sessions, or project deadlines.
o The overall timeline for completing the operational plan.
 Action:
o Define the time requirements for each task or activity.
o Ensure that timelines are realistic and achievable.
o Account for potential delays and adjust timelines accordingly.

7. External Resources

 Definition: Resources that are not directly controlled by the organization but are essential
for execution.
 Examples:
o Suppliers and vendors (e.g., raw materials, outsourced services).
o Partnerships or collaborations with other organizations.
o Government or regulatory bodies for compliance and legal requirements.
 Action:
o Identify external entities required to support operational tasks.
o Establish contracts or agreements with external parties.
o Monitor and manage relationships with suppliers, contractors, and other external
partners.

 Process:
1. List all tasks in the operational plan.
2. Match resources required for each task.
3. Evaluate existing resources and identify gaps.
4. Create a resource acquisition plan.