In this article, we will discuss 3 types of plans (strategic, tactical, operational) for an organization.
Strategic Plan
A strategic plan is a high-level blueprint for the entire business, that formulates the vision, Mission, and value of the business.
- A strategic plan serves as the compass guiding an entire business. It will dictate decisions in the long term.
- The scope of such plans can span two, three, five, or even ten years, depending on the organization’s vision and industry dynamics.
- Strategic plans are meticulously crafted at the topmost levels of the organization, involving key stakeholders and leaders.
- The Strategic Plan is a response to “What?”
- The crucial components (or outputs) of a strategic plan are Vision, Mission, and Values.
The Strategic Plan’s Core Components:
Vision: A vision is an idealized picture of the future of the organization. Imagine a vivid, aspirational picture of the organization’s future. The vision encapsulates where the company aims to be five years from now. It’s more than a mere destination—it’s about influence and impact on the world.
Mission: The mission identifies the firm’s purpose and where it fits into the world. The mission statement defines the purpose of the company’s existence. It answers the fundamental question: Why do we exist? Whether it’s solving a societal problem, delivering exceptional products, or transforming an industry, the mission provides clarity.
Values: The values are related to the beliefs followed by the business. These are the bedrock beliefs that guide behavior within the organization. Values like inspiration, innovation, passion, humility, and fun shape the company’s culture and interactions.
Examples of Vision, Mission, and Values Statements:
Vision:
“In five years, we envision our organization as a global leader in sustainable technology, revolutionizing energy consumption patterns and leaving a lasting positive impact on the environment.”
Mission:
“Our purpose is to enhance lives through cutting-edge healthcare solutions. We strive to improve patient outcomes, empower healthcare professionals, and contribute to healthier communities.”
Values:
- Inspire: Igniting creativity and motivation.
- Go Above & Beyond: Exceeding expectations.
- Innovate: Pioneering breakthroughs.
- Exude Passion: Infusing enthusiasm into every endeavor.
- Stay Humble: Recognizing collective achievements.
- Make It Fun: Fostering an enjoyable work environment.
Tactical Plan
The tactical plan describes the practical execution tactics the organization plans to use to achieve the ambitions and aspirations outlined in the strategic plan.
- Tactical planning is concerned with the implementation of strategic plans.
- While the strategic plan answers the question “What do we want to achieve?”, the tactical plan dives into the nitty-gritty of how to achieve it.
Key Characteristics of Tactical Planning:
- Scope and Duration: Tactical plans operate on a short-range basis, typically covering less than one year. They focus on immediate and near-term objectives.
- Granularity: These plans break down the broader mission statements and strategic objectives into smaller, actionable chunks. Think of them as the building blocks of progress.
- Implementation Focus: Tactical planning is all about implementation. It’s where the rubber meets the road—the practical steps needed to turn strategy into reality.
Roles and Responsibility for Tactical Planning:
- Mid-level managers play a pivotal role in creating tactical plans. They translate high-level directives into specific tasks, allocate resources, and coordinate efforts.
- These managers ensure that the organization’s day-to-day operations align with the strategic vision.
Operational Plan (or Operating Plans)
An operational plan serves as the compass for day-to-day activities within the organization.
Key Characteristics of Operational Planning:
- Specificity: Operational plans are highly specific. They break down tactical goals into actionable steps that can be executed immediately.
- Short-Term Objectives: Think of operational plans as the short-term roadmap. They address questions like:
- “How do we increase sales to 1500 units per day?”
- “What’s the process for hiring 10 new employees?”
- Operational plans can be either single-use or ongoing.
Roles and Responsibility for Operational Planning:
- Operational planning primarily falls within the purview of low-level managers and supervisors. They’re the boots on the ground, ensuring that the organization’s daily machinery hums along efficiently.
- These managers translate strategic and tactical directives into practical actions, allocate resources, and keep the gears turning.
Know more about operational plans here.
