Week 6 - Operational Plan

An operational plan forms part of the business's strategic plan and i's important fbr effective:

business leadership. lt aescribes howlhe work vrill be dr:ne, the work{iow from input to end

results, including the resources that will be used eLlong the way, all of w'hich are requiled for

SUcCjeSS.

Streamlined business s.ystems zLlso deFrrres how you will deal with risks, ancl how you will i:nsure

sustainabi lity of' the prcrj ect' s achievements.

An ,cperational plan also explains how, or what portion of , a strategic plan will be put intc

operation during a given opera[ional pe riod'

What is an OPerational Plan?

While strategic planning provides the vision, direction ancl goals for the bu.siness, operational

planning translates thatlnto the everyday work11,ow of the business that will hopefull'y produce

the outcomes deflned b1'the strategy.

Simply put, operational planning is the conversion of straLtegic goals into managed execul.ir:rn' It

deals ipecificallv with thc internal operations and resources necesliarl'to produce your

conlpany's product or service.

Oplerational Plan: 4 Steps to Success

An operational plan acldresses four questions:

. Where are we now?

. Where do we rvant to tre?

. I{ow do we get there?

. How do we measure our Progrcss?

The key components o1'a complete operational plan iLnclurde:

1. lluman capitali.'fhe staff and skills required to irnplement your pro.iect. as well as current and potential siources of these resources'

2. FinancieLl requirements. 'fhe funding required to implement your proiect, ;rour current and potential sources ofthese funds.

3. Risk assessment. What risks exist and h'rw thel' can be addressecl' 4. Estimate of pro.iect lifespan, sustainability and r:xit strategy. Hovr long your project will

last, when una iio* you will exit your p,,i,;."t, and how you will ensure suLstzLinability of your project's achievements.

Operational Plans should contain:

. Clear objectil'es

. Activities to tre delivered

. Quality standards

. Desired outcom{ls

. Staffing and resrlurce requirements

. Implementationtimetables

., A process for monitoring progress.

Why have an operational Plan?

An operational plan is inrportant because it helps your tearn to:

,, Be clear about rruhcre you will get the necessary I'rssources ,, Use those resources efficientlY . clearly define the most critical resource requirenlcnts.

o Reduce risks where possible, and prepare contingency plans where neoessary' o 'fhink about the long-term future of the project, including 1ts sustainabitity'

Who should prepare an operational plan?

Operational plans shotrlj be prepared by the people u'ho lvill be invoh'ed in the impl-mentation'

There is often a need fr0,: cross-departmental dialogue a-s plans creetted by one part of the

organisation inevitabll' have implications for other partsi'

. A project administrator or flnance manager shotul<l be involved in delining financial requirements

. Fluman resources should be involved in assessirlll IIR and capacilv necds

. I-lR, l'['or operations staf l'should be engaged in rJiscussions of pr'rccsscs, procedures and sYstems.

Efljcient operational prlanning and implementation r:allS {br ongoing open communicatiotr

between the project team and these other stafl'

Related: How To Implcment Systems for Success

p6t you think your business should be putting more s1)stems in place?