August 12th, 2017
To start or manage a successful business, leaders would need to come up with a vision that describes how the company would be aiming to become in the future. By having a vision, leaders would know what kind of goals and mission they would need to plan. “Having a clearly articulated mission and vision enables the company to develop a strategic plan that is a literal roadmap for success” (Flores, 2017). There are two major types of planning that leaders utilize, which are strategic planning and operational planning. These two planning methods would enable companies to work towards their vision of the successful business.
Operational and Strategic Planning
Through understanding what to achieve in the future and the purpose of achieving the goal, effective plans can be made to meet higher standard requirements. Planning is one of the core features in management and running a business. Without proper planning, it would limit the ability of an organization to become successful in reaching the final goal and pursuing their vision. Planning can also be very time consuming, costly, and lazy. However it is important to understand conducting correct planning method, so the companies would be able to make a future prediction by tracking and analyzing their plans onwards. Through following those plans made earlier, companies would have a chance to build a reliable fault tolerant measures and procedure, accelerating in their overall performance. “Planning is important to an organization because it gives a steady growth and prepares the organization for the desired future” (Bhasin, 2016) Strategic planning and operational planning work together but are entirely different planning strategies.
Strategic planning is planning that is carried out by the organization as a whole. It functions in businesses for accomplishing goals that are longer to complete. People who commonly decide the strategic plan are usually the higher level managers or leader, such as the head of the organization or president of a community. They would be drafting out a plan to meet the company’s vision, which would become a platform for others to work upon to make sure the strategic plan would come to success. “A strategic plan is a high-level overview of the entire business, its vision, objectives, and value” (Mikoluk, 2013). Strategic plans firmly follow the pathway to a company’s vision. In any business, a strategic plan is a plan that acts as a goal that dictates every other small targets and mission ahead. If a company happens to lose its vision, or a company does not have a strategic plan, even if there were many skilled and hardworking employees, there would not be a target that everyone is moving towards to.
Strategic planning can be used most appropriately in planning in things that are ahead and planned to be accomplished in about three to five years. Improving productivity and profitability, and investing in long term solution can also be another example of strategic planning. Companies with better strategic planning are more focus on their primary goals and allow short term goals to become more efficient in reaching the final destination.
Operational planning is short term plans to achieve a goal. Operational plans are small steps towards the strategic plan, eventually reaching to the company vision. “Operational plans align the company’s strategic plan with the actual day to day running of the company” (Mikoluk, 2013). It includes multiple goals and missions to make sure that the firm is getting step by step closer to their vision.
Many of the operation planning requires day to day base attention, which each plan applied to tasks or events that only occur once and are unique, called single-use plan. This method can include, big give away sales and supporting on unexpected issues. Planning would strongly impact in efficiency and performance in for processing tasks in daily operation. Techniques such as applying policies, rules, and procedures can be an effective method to deal with day-to-day management. For instance, creating a service manual or a company policy to determine the general understanding of the company vision. Already designed rules and policy can allow less attention in management and can achieve improved performance. Rules and policies, which can be applied on numerous occasions are examples of the procedure of operation in an ongoing plan.
Through having multiple goals and different objectives to reach the strategic plan, it is important to know that by planning, the outcome of a plan can be predicted. “The importance of planning is seen when we are aware which factors to observe to evaluate and control the plan” (Bhasin, 2016). Achieving the desired results can be brought closer by having a controlled environment. By having an idea of what is coming next, it can also help managers make better decision making for more flexible options, aside from the standard strategy. Since operational planning is short term, it helps companies to make small adjustments along the way.
Strategic planning and operational planning are the two planning methods organization use to assist the achievement of their goals. The success, or the failure, of a company, would all rely on the kind of goal set every business would have. It is important to have a vision for the companies’ future so the people in lower management can build upon that vision to build the company towards it. With strategic planning, businesses can create a base goal or mission that the whole company follows, which are plans for the longer term. The operational goals are the components that build up the strategic goal, and it is important to know the relationship between the two, to make this useful. By knowing how to plan would effectively increase the chances of success. Companies would be having better control of their situation and would limit the risk of failure within the organization. Without planning, it would be almost impossible to accomplish any goal.
Flores, M. (2017). Why Strategic Planning is Important – The Achieve It Weekly Blog.
Retrieved August 13, 2017, from https://www.achieveit.com/resources/blog/3-reasons-
Mikoluk, K. (2013). Planning in Management: Strategic, Tactical, and Operational
Plans. Retrieved August 07, 2016, from
Bhasin, H. (2016). 7 simple reasons that justify the importance of planning. Retrieved August 13,
2017, from http://www.marketing91.com/7-simple-reasons-justify-importance-planning/