A plan is a specific action proposed to help the organization achieve its objectives.
It is a
document that outlines how goals are going to be met. The importance of developing plans is
evident from the fact that there may be more than one means of reaching a particular goal. So
with the help of logical plans, objectives of an organization could be achieved easily.
WHY PLAN?
“Planning is about managing resources and priorities in an organized way,” Berry says.
“Management is related too leadership, and it’s related to productivity.”
“he who fails to plan, is planning to fail” -Sir Winston Churchill
Have you ever heard the saying 'Those who fail to plan, plan to fail'? While I can't speak to all
facets of life, this is certainly true in business. Managers find themselves planning for all sorts of
things. So much so, that planning is one of the four major functions of management. In doing so,
a manager can be certain that he or she is working toward some organization goal.
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Three major types of plans can help managers achieve their organization's goals: strategic,
tactical, and operational. Operational plans lead to the achievement of tactical plans, which in
turn lead to the attainment of strategic plans. In addition to these three types of plans, managers
should also develop a contingency plan in case their original plans fail.
TYPES OF PLANS
● STRATEGIC PLAN
● TACTICAL PLAN
● OPERATIONAL PLAN
● CONTINGENCY PLAN
Compare and Contrast:
Strategic plan:
Strategic plans are designed with the entire organization in mind and begin with an
organization's mission. Top-level managers, such as CEOs or presidents, will design and
execute strategic plans to paint a picture of the desired future and long-term goals of the
organization. Essentially, strategic plans look ahead to where the organization wants to be in
three, five, even ten years. Strategic plans, provided by top-level managers, serve as the
framework for lower-level planning.
is an outline of steps designed with the goals of the entire organization as a whole in
mind, rather than with the goals of specific divisions or departments. Strategic planning
begins with an organization's mission.
Strategic plans look ahead over the next two, three, five, or even more years to move
the organization from where it currently is to where it wants to be. Requiring multilevel
involvement, these plans demand harmony among all levels of management within the
organization. Top‐level management develops the directional objectives for the entire
organization, while lower levels of management develop compatible objectives and
plans to achieve them. Top management's strategic plan for the entire organization
becomes the framework and sets dimensions for the lower level planning.
“Strategic plans are all about why things need to happen,” Story said. “It’s big picture,
long-term thinking. It starts at the highest level with defining a mission and casting a
vision.”
Who are we? Where are we?
Who do want to be? Where do we want to go?
How do we get there? When do we want to be there?
Strategic planning includes a high-level overview of the entire business. It’s the
foundational basis of the organization and will dictate long-term decisions. The scope of
strategic planning can be anywhere from the next two years to the next 10 years.
Important components of a strategic plan are vision, mission and values.
Tactical plan:
Tactical plans support strategic plans by translating them into specific plans relevant to a
distinct area of the organization. Tactical plans are concerned with the responsibility and
functionality of lower-level departments to fulfill their parts of the strategic plan.
A tactical plan is concerned with what the lower level units within each division must
do, how they must do it, and who is in charge at each level. Tactics are the means
needed to activate a strategy and make it work.
Tactical plans are concerned with shorter time frames and narrower scopes than are
strategic plans. These plans usually span one year or less because they are considered
short‐term goals. Long‐term goals, on the other hand, can take several years or more to
accomplish. Normally, it is the middle manager's responsibility to take the broad
strategic plan and identify specific tactical actions.
“Tactical plans are about what is going to happen,” Story said. “Basically at the tactical
level, there are many focused, specific, and short-term plans, where the actual work is
being done, that support the high-level strategic plans.”
What needs to happen at each level, each day, to support the strategic plan or X
Matrix?
What needs to happen in each department, each day, to support the strategic plan or X
Matrix?
What does each team member need to do, each day, to support the strategic plan or X
Matrix?
Tactical planning supports strategic planning. It includes tactics that the organization
plans to use to achieve what’s outlined in the strategic plan. Often, the scope is less
than one year and breaks down the strategic plan into actionable chunks. Tactical
planning is different from operational planning in that tactical plans ask specific
questions about what needs to happen to accomplish a strategic goal; operational plans
ask how the organization will generally do something to accomplish the company’s
mission.
Operational plan:
Operational plans sit at the bottom of the totem pole; they are the plans that are made
by frontline, or low-level, managers. All operational plans are focused on the specific
procedures and processes that occur within the lowest levels of the organization.
Managers must plan the routine tasks of the department using a high level of detail.
The specific results expected from departments, work groups, and individuals are
the operational goals. These goals are precise and measurable. “Process 150 sales
applications each week” or “Publish 20 books this quarter” are examples of operational goals.
An operational plan is one that a manager uses to accomplish his or her job responsibilities.
Supervisors, team leaders, and facilitators develop operational plans to support tactical plans
(see the next section). Operational plans can be a single‐use plan or an ongoing plan.
Single‐use plans apply to activities that do not recur or repeat. A one‐time occurrence,
such as a special sales program, is a single‐use plan because it deals with the who,
what, where, how, and how much of an activity. A budget is also a single‐use plan
because it predicts sources and amounts of income and how much they are used for a
specific project.
Continuing or ongoing plans are usually made once and retain their value over a
period of years while undergoing periodic revisions and updates. The following are
examples of ongoing plans:
A policy provides a broad guideline for managers to follow when dealing with important
areas of decision making. Policies are general statements that explain how a manager
should attempt to handle routine management responsibilities. Typical human resources
policies, for example, address such matters as employee hiring, terminations,
performance appraisals, pay increases, and discipline.
A procedure is a set of step‐by‐step directions that explains how activities or tasks are
to be carried out. Most organizations have procedures for purchasing supplies and
equipment, for example. This procedure usually begins with a supervisor completing a
purchasing requisition. The requisition is then sent to the next level of management for
approval. The approved requisition is forwarded to the purchasing department.
Depending on the amount of the request, the purchasing department may place an
order, or they may need to secure quotations and/or bids for several vendors before
placing the order. By defining the steps to be taken and the order in which they are to be
done, procedures provide a standardized way of responding to a repetitive problem.
A rule is an explicit statement that tells an employee what he or she can and cannot do.
Rules are “do” and “don't” statements put into place to promote the safety of employees
and the uniform treatment and behavior of employees. For example, rules about
tardiness and absenteeism permit supervisors to make discipline decisions rapidly and
with a high degree of fairness
“Operational plans are about how things need to happen,” motivational leadership speaker
Mack Story said at LinkedIn. “Guidelines of how to accomplish the mission are set.”
How (generally) we will do it.
How (generally) we will not do it.
How (generally) to handle exceptions.
How (generally) to handle unexpected situations.
This type of planning typically describes the day-to-day running of the company. Operational
plans are often described as single use plans or ongoing plans. Single use plans are created for
events and activities with a single occurrence (such as a single marketing campaign). Ongoing
plans include policies for approaching problems, rules for specific regulations and procedures
for a step-by-step process for accomplishing particular objectives.
Contingency plan:
Then, in true planning fashion, there are also plans to backup plans that fail. These are
known as contingency plans.
Contingency planning involves identifying alternative courses of action that can be
implemented if and when the original plan proves inadequate because of changing
circumstances.
Keep in mind that events beyond a manager's control may cause even the most carefully
prepared alternative future scenarios to go awry. Unexpected problems and events frequently
occur. When they do, managers may need to change their plans. Anticipating change during the
planning process is best in case things don't go as expected. Management can then develop
alternatives to the existing plan and ready them for use when and if circumstances make these
alternatives appropriate.
Contingency plans are made when something unexpected happens or when something needs
to be changed. Business experts sometimes refer to these plans as a special type of planning.
Contingency planning can be helpful in circumstances that call for a change. Although
managers should anticipate changes when engaged in any of the primary types of planning,
contingency planning is essential in moments when changes can’t be foreseen. As the business
world becomes more complicated, contingency planning becomes more important to engage in
and understand.
SUMMARY
There are three main types of plans that a manager will use in his or her pursuit of
company goals, which include operational, tactical and strategic. If you think about
these three types of plans as stepping stones, you can see how their relationship to one
another aids in the achievement of organizational goals. Operational plans are
necessary to attain tactical plans and tactical plans lead to the achievement of strategic
plans. Then, in true planning fashion, there are also plans to backup plans that fail.
These are known as contingency plans.
