What is Operational Planning
Simply, operational planning is planning in each section of your business in line with your overall long term Business Strategic Plan (Business Plan).
This operational plan for each section is driven by the business strategy and makes up the overall business plan. Operational planning involves detailed financial planning and budgeting and allocation or resources as well as risk management.
- Management and Leadership
- Administration (systems) and Operations
- Team and Human Resources
- Production and Delivery
Depending on your business industry sector and occupation you may also have specific plans for:
- Franchising or Licencing
- Workplace Health and Safety
- Innovation and Sustainability
- Research & Development
Each plan supports the Business Strategic Plan and are all part of the puzzle/plan brought together into a fully costed financial plan with each operational plan supporting each other. Operational Planning also develops relevant KPI for each plan so be monitored and reported on daily, weekly, monthly, quarterly and annually.
Understanding the need for operational planning and going indepth with the functioning of each business division is crucial for long term efficiency and sustainability of any SME business. All to often business owners try to put everything in one business plan and attempt to cover every area in the business. This leads to business plans that don’t work and are rarely looked at. What use is a business plan that is not able to be used and referred to. If you aren’t going to use it do you really think your financiers think you will be using it?
Developing workable, efficient and effective operational plans for each division supported with relevant KPI tracking and reporting to management and owners will greatly enhance the business reputation, reliability and consistency in delivering quality service to its customers.
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