Planning in Management: Strategic, Tactical and Operational Plans

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Planning is the part of management that deals with the creation of procedures, rules and guidelines to achieve an established objective. Planning is carried out at the macro and micro level. Managers need to create broad objectives and mission statements as well as take care of the day-to-day running of the company.

Next, In maintenance planning training, we will take a look at the three types of management plans and how they are used within the framework of an organization:

I. The Strategic Plan

A strategic plan is a high-level overview of the entire business, its vision, objectives and values. This plan is the fundamental basis of the organization and will dictate long-term decisions.

The managers of each level will be based on the strategic plan to guide their decisions. It will also influence the culture within the organization and how to interact with customers and the media. Therefore, the strategic plan for business must look forward, be robust but flexible, and be focused on accommodating future growth.

The key components of a strategic plan are:

1. Vision

How do you want to influence the world? These are some of the questions you should ask yourself when shaping the vision of your organization. It’s fine if this vision is great and idealistic. If there is a place to add some romanticism to a plan, it is here. Clinging to ambitions such as “leaving a mark on the Universe” (Apple / Steve Jobs) is acceptable, as is the more realistic version of creating “the most customer-focused company on Earth” (Amazon).

2. Mission

The mission statement is a more realistic view of the purpose and ambitions of the company. Why does the company exist? What are you trying to achieve during your existence? A clothing company may want to “bring high urban fashion to the masses,” while a nonprofit company may want to “eradicate polio.”

3. Values

“Inspire. Get higher and further. Innovate. Ooze passion Stay humble Have fun. “These are not fragments of a motivational speech, but the values ​​of Fab.com. As Fab, each organization has its own values. These values ​​will guide the managers and influence the type of employees they hire. There is no template to lean on when you list your values. You can write a 1000 page essay, or something as simple as Google’s “Do not Be Evil” – it’s all up to you.

As you can see, there really are no rules to write the perfect strategic plan. It is an open and living document that grows with the organization. You can write whatever you want in it, while dictating the future of your organization.

II. The Tactical Plan

The tactical plan describes the tactics that the organization plans to use to achieve the ambitions described in the strategic plan. It is a short-term document (ie with a scope of less than one year), low level that breaks down the broad mission statements into smaller and executable pieces.

The creation of tactical plans is usually carried out by middle level managers.

The tactical plan is a very flexible document; It can contain anything and everything necessary to achieve the goals of the organization.

1. Specific Goals with Deadlines

Suppose the purpose of your organization is to become the largest shoe distributor in the city. The tactical plan will start this great ambition in smaller and processable goals. The goals should be very specific and set deadlines to encourage action – expand to two stores within three months, grow to 25% per quarter, or increase revenues to $ 1mn within six months, and so on.

2. Budgets

The tactical plan must list the budget requirements to achieve the goals specified in the strategic plan. This must include the budget to hire personnel, marketing, supplies, manufacturing, and execute day-to-day operations of the company. Listing the output and input flows is also a recommended practice.

3. Resources

The tactical plan should list all the resources available to achieve the objectives of the organization. It must include human resources, IP, cash resources, etc. Again, it is advised to be highly specific.

4. Marketing, Financing, etc.

Finally, the tactical plan should list the immediate strategy of marketing, supplies, financing, manufacturing, distribution, and PR. Its scope must be aligned with the goals described above.

III. The Operational Plan

The operating plan describes the day-to-day running of the company. The operational plan draws a roadmap to achieve tactical objectives within a realistic time frame. This plan is very detailed and emphasizes short-term objectives.

Creating the operational plan is the responsibility of the low level managers and supervisors.

The operational plans can be single-use, or continuous use, as described below:

1. Single Use Plans

These plans are created for events / activities that will only happen once. This can be a sales program, a marketing campaign, a selection process, etc. unique and exceptional. Single Use plans are usually very specific.

2. Permanent Plans

These plans can be used in multiple configurations permanently. The permanent plans can be of several types, namely:

Policies: A policy is a general document that dictates how managers should address a problem. It influences decision-making at the micro level. Specific plans on hiring workers, finalizing the relationship with suppliers, etc. they are examples of policies.

Rules: The rules are specific regulations according to which the company works. The rules have a rigid character and must be strictly complied with. “Do not smoke inside the facilities” or “Employees must show up at 9 am” are two examples of rules.

Procedures: A procedure describes a step-by-step process to achieve a certain objective. For example: most organizations have detailed guidelines for hiring or training workers, or for the supply of raw materials. These guidelines can be called procedures.

Permanent plans are created with an ad-hoc character but can be repeated and changed as necessary.

The operational plans align the strategic plan of the company with the day to day of the company. This is where the macro meets the micro.

Directing a successful company requires paying equal attention to both the general objectives and the objectives that must be met daily, hence the need for complex planning. And the various maintenance planning courses are there to learn.