Welcome to Part 9 of our series on The Power of Strategic Planning.
Introduction
A well-crafted strategic plan is a roadmap that guides an organization toward its long-term goals and objectives. While the strategic plan provides the big picture, an operational plan serves as the practical blueprint for achieving those strategic objectives. Think of your strategic plan as the destination, and the operational plan as the step-by-step directions to get there. In this blog, we’ll delve into the importance of creating an operational plan as an integral part of your strategic planning process and outline the steps to create an effective one.
Aligning with Your Strategic Goals
The first step in creating an operational plan is to ensure it aligns perfectly with your strategic goals. Your strategic plan outlines the overarching objectives your organization wants to achieve over a specified period, typically three to five years. The operational plan should break down these objectives into specific, actionable tasks and initiatives that can be executed on a day-to-day, quarterly, and annual basis. This alignment is crucial to ensure that every action taken at the operational level contributes to the realization of the strategic goals.
Establishing Clear Objectives and Key Results (OKRs)
Objectives and Key Results (OKRs) are a valuable tool for setting clear and measurable goals within your operational plan. Each objective should be specific, measurable, achievable, relevant, and time-bound (SMART). The accompanying key results should provide quantifiable metrics that allow you to track progress. For instance, if a strategic goal is to increase customer satisfaction, an operational objective could be to improve response time to customer inquiries by 20% within the next six months. The associated key result would be a measurable metric, such as reducing response time from 24 to 19 hours on average. Key Performance Indicators (KPIs) can be associated with each step in the response process. For example, if there are several steps in the response process each of those steps might have time frames associated that will indicate if the response to the customer is on track. When the KPI is exceeded, an escalation might occur to ensure things stay on track. There are many on-line tools like Smartsheet and Monday.com that can help keep your team on target.
Identifying Responsible Parties
For an operational plan to succeed, it’s crucial to assign responsibilities to individuals or teams. Each objective and its associated tasks should have a clear owner who is accountable for its execution. This accountability ensures that everyone understands their role in achieving strategic goals and prevents tasks from falling through the cracks. The entire team needs to be aligned with the overall strategic goals and understand how they play a role in achieving that goal. All too often plans are drawn up at the senior levels within the organization and never clearly communicated to the team or teams that are responsible for their execution.
Resource Allocation and Budgeting
An operational plan should outline the resources required to execute the tasks and initiatives. This includes budgetary considerations, personnel allocation, technology needs, and any other resources essential for implementation. Accurate budgeting ensures that you can secure the necessary funding and allocate resources efficiently to meet your operational goals. The technology needed to execute the plan should be addressed before launch to ensure the tools needed by the operational team have been implemented and tested.
Timeframe and Milestones
Set realistic timeframes for achieving the objectives outlined in your operational plan. Establish milestones and checkpoints to monitor progress regularly. By breaking down the strategic goals into smaller, time-bound targets, you can easily track your organization’s performance and adjust as needed. Establish meeting agendas that address and establish report cards that address the targets directly. Anything that is off target should be made an issue to be resolved and implemented before the next meeting.
Risk Assessment and Mitigation
Every operational plan should include a risk assessment to identify potential challenges and obstacles that could hinder the achievement of objectives. Once identified, develop strategies to mitigate these risks or, if necessary, create contingency plans to address unforeseen issues.
Communication and Feedback Loops
Effective communication is key to ensuring that everyone within your organization is aware of the operational plan and their respective roles in its execution. Create feedback mechanisms that allow for regular updates, progress reports, and the opportunity to address any challenges or roadblocks.
Performance Measurement and Continuous Improvement
Regularly measure and evaluate the performance of your operational plan. Are you achieving the set objectives and key results? Are there areas where you are falling short, and do you need to make adjustments? Continuous improvement is crucial in ensuring that your operational plan remains flexible and adaptable to changing circumstances. Establishing a set of strong KPIs can be helpful in this regard.
Staff Training and Development
A critical step in the operational plan is carefully outlining the training and development your staff will require to adequately address the action items in the plan itself. You need to ensure your team has the skills necessary to accomplish the tasks assigned to them. Do they understand how to solve the issues your customers might have and what to do if they don’t have the answers? Are they aligned with the objectives of the plan and ready to execute? The team needs to believe they can do it if the plan is to be successful. Spend the time and money necessary to get everyone on board with the plan and give them the training they need to feel confident and comfortable.
Conclusion
An operational plan is a bridge that connects your strategic goals to the day-to-day activities of your organization. It provides the actionable steps and accountability needed to bring your strategic vision to life. By aligning your operational plan with your strategic goals, setting clear objectives and key results, training the team on their assigned responsibilities, and regularly monitoring progress, you can ensure that your organization is on the path to success. Remember that creating an operational plan is not a one-time event; it’s an ongoing process that requires regular review and adjustment to stay aligned with your strategic vision. For help with your business roadmap reach out any time at the TEC Resource Center or build your roadmap with our newly launched Business Roadmap software. Until next time we wish you much success in whatever path you choose.