Difference between strategic plan business plan and operational plan

Planning of vision, mission and objectives.

Difference between strategic plan business plan and operational plan

Operational and strategic planning We need to keep operational and strategic planning clearly distinct in our thinking and discussion of planning in organizations.

Operational and strategic planning are linked decision processes, which should be designed to inform and support one another for effective management of strategies to improve overall performance of the organization, whether business or non profit.

At Simply Strategic Planning strategic planning refers to a systematic, formally documented process for deciding the handful of key decisions that an organization, viewed as a corporate whole, must get right in order to thrive over the next few years.

In contrast, operational planning or tactical planning is a short-term, highly detailed plan formulated by management to achieve tactical objectives.

Operational or tactical planning involves a systematic determination and scheduling of the immediate or short-term activities required in achieving the objectives of strategic planning.

Clearly the time horizon of the decisions involved is a key difference between operational and strategic planning.

However, the difference between operational and strategic planning is more than a matter of short or long term planning horizon. Operational and strategic planning differ according to the decisions involved In my view the number, scope and time span of the decisions involved are at the heart of the definition of strategic planning.

Operational and strategic planning are distinguished primarily by the number, kind and time span of the decisions involved, as summarized in this table. If you see something that purports to be a strategic plan, and it has a list of 40 objectives for only one year with no overall corporate performance indicator to guide evaluation of the overall implementation of the plan you are not looking at a corporate strategic plan, and it is probably some kind of operational plan.


You can think of a strategic plan as a written long-range plan, which is founded on an enduring corporate purpose, and including a small set of corporate strategic objectives. A corporate strategic plan includes brief statements of a handful of strategies indicating how to achieve the corporate strategic priorities.

Strategic planning also provides the indicators for assessing and controlling performance of the organization as a corporate whole. We define operational planning, on the other hand, as the setting of short-term objectives for specific functional areas such as finance, marketing, and human resources.

This latter is a tool unique in the Argenti Strategic Planning Process. Strategic plans tend to be more general, and have longer time horizons than do operational plans. Strategic plans normally cover a three-to-five-year and longer planning horizons, while most operational plans usually cover periods of something less than a year.

Content: Strategic Planning Vs Operational Planning

Operational and tactical plans are more concrete and expressed in practical day-to-day terms. Operational plans might include written manufacturing capacity plans, inventory, and sales forecasts; and financial, human resource, and advertising budgets, for monthly or quarterly periods.

Operational and strategic planning are linked Despite the clear distinctions we are making it is also important to understand that operational and strategic planning are interrelated and complementary decision processes, which must link to each other, inform and support one another for effective management of strategies.

Operational planning is the day-by-day, week-by-week, and month-by-month planning for a myriad of local and functional activities; strategic planning sets the overall direction of your organisation as a whole, its destiny if you will.

The decisions that constitute the strategic plan include what the enterprise is not currently doing, but should be doing. The choices of what to do imply other things that the organization deliberately chooses not do.

The strategic plan embodies very big decisions with major consequences for the overall performance.

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Strategic and tactical planning are different in kind. The two forms of planning must be linked, and integrated, and must not be confused. Avoid confusion between operational and strategic planning Summarizing - strategic planning is not a lot of things it is often confused with: It is not marketing, product planning, market research, marketing strategy, business model designing, IT strategy, or planning for any other particular part or function.

It is not long-range planning, business planning or budgeting. It is not forecasting. It is not finance planning, cash flow planning, human resources planning, production planning, project planning It is neither co-coordinating nor operational planning.

It is neither sophisticated nor advanced. It is essentially simple. However, that does not mean is it easy!

difference between strategic plan business plan and operational plan

Our problem is that, correctly defined and properly practiced, corporate strategic planning is an embarrassingly small subject area.Aug 08,  · The business plan is a key component of the loan process and serves as a foundation for your organization. However, it only tells half the story.

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Let's define Strategic, Tactical and Operational planning. - Riskope