Benjamin Franklin once said “If you fail to plan, you are planning to fail” and he turned out to be absolutely right. As all of us know, if one intends to succeed, he should set a goal and then do everything possible to achieve it. The whole process to goal achieving needs planning, in order to move steadily at the required speed, without any shutdown and leeway to the aimed success. No doubt, planning is necessary in all the life spheres, and is especially important in business.
Planning usually requires defining actions (what to do), personalities (who will perform it) and time (how long will it take to cope with the task). However, one needs constant control and approval. In doing so, a manager can be certain that he or she is working toward a distinct organizational goal.
Organizational planning is subdivided into three types: operational, tactical and strategic. In general, tactical plans depend much on the operational plans and strategic plans cannot do without tactical plans. In other words, all the plans depend on each other, and the bigger aims consist of achieving smaller ones. Besides, it can so happen that some plans fail, in that case they should be replaced by other ones to fill in the whole planning structure.
Top-level managers should keep in mind that strategic plans compose the leading aim of the whole organization. Company overview can help managers follow an organization's mission, which is a fundamental basis of the whole company. They are to think what their company should be in 3-10 years. This will give the low down on the company future by enlightening its long-term goals. Now when everybody knows already where to move, one should choose ways how to get there. This transfers into a structure of low-level planning. The strategic plan usually gives an answer to a question “What needs to be done?”.
A strategic plan guides managers in their decisions at each level; all their decisions should be connected with the plan and should approach its long-run objective. Moreover, plans must make sense, be flexible and improved with time. However, sometimes it is useful to make the plans a bit beyond one's compass and to get the most possible out of it.
Here is an example of how strategic planning can be worked out. A top manager works out a list of three to six priorities for a company to achieve in some period of time. Then other managers discuss the implications of the priorities for their areas, summarize the results, and distribute them throughout the company (Dye&Sibony, 2007). Now it can be the basis for detailed strategic planning.
As far as the next stepping stone in planning is concerned, it is called tactical. Middle-level managers make tactical plans supporting separate company areas, so that they could fulfill strategic plans of the company. The scope of tactical plans is not more than a year. Moreover, this document cuts the big company mission into smaller pieces, possible and definite for performing. All of them will answer the question “How to do it?”.
The document may contain specific goals with fixed deadlines. For instance, Stork Tourist Agency’s strategic plan is to become the biggest in the country. In such a way tactical plans may become opening offices in five big cities within 9 months, income growth should become 30% per quarter and they should enlarge revenues to $6mn within half a year, etc.
Besides, budgetary requirements should also be listed there as well. But for the day-to-day expenses, this may include personnel training and hiring, manufacturing and sourcing. It will help managers evaluate the possible use of the planning measures.
Strategic plans usually require a number of resources to muster. Mid-level managers should also indicate them, while compiling tactical plans. Among them are human resources and finance, intellectual property, etc. No doubt, it is better to indicate a peculiar number, scope and aim of all the resources in the plan.
Meanwhile, managers also work out requirements as far as marketing, manufacturing and PR technologies are concerned. The tactical plan document should contain possible details of all that could be done.
Operational plans are worked out by low-level managers; they describe day-to-day procedures and tasks, which will lead to performing first tactical and then strategic plans of a company. One must admit all of them should be extremely detailed as aimed at the lowest level of management. These plans are also characterized by short scope.
Operational plans are subdivided into single-use and ongoing plans. Single-use plans are applied only once. Their activities do not repeated and often have an expiration date. This can be a one-time sales program, a marketing campaign, a recruitment drive, etc (Mikoluk, 2013). An advertisement promoting a definite tour type is usually a single use plan. In general, it will come to an end after the aim of production increase will be fulfilled.
Ongoing plans usually resist the test of time, as they are applied several times and can be improved if it is necessary. Ongoing plans are typically a policy, procedure or rule. They help both managers and employees understand their performance goals, everyday responsibilities and their definite role in the company.
This document can be considered as a detailed instruction on how to perform certain tasks or procedures. Both low-level managers and employees receive guidelines to their behavior as proper or non-proper (Gottfredson&Schaubert, 2008). The instruction may also include definite speech clichés and dress code, if necessary. The rules may drift from year to year and form a number of traditions, under the condition it has become a company brand. However, it sometimes happens so: the rules become out of date and need change. Then they are replaced by new ones with definite improvements. It should be taken for granted that the plans aime to work for the main company goald, which is indicated in the strategic plans.
Operational plans can be of several types: policy, rule and procedure. Policy is a general document for managers to deal with different issues (Drucker, 2009). It influences decision making at the micro level. Personnel hiring and training, resources assessing and updating, employees’ performance appraisals and disciplining are examples of policies performed by low-level managers.
Each company exists according to its rules, which include specific regulations according to which an organization functions. All the company employees strictly obey them to show mutual respect and ability to improve according to company demands. There are some examples of company rules: “Each employee must maintain proper decorum”, “Report of the work done must be sent to the head office”, “No smoking within premises”.
A procedure gives a step-by-step description in fulfilling a particular task. For example, a guideline on food serving is described in details in a restaurant. Different organizations have procedures on working with their clients, while others describe their wood processing, for instance.
Operational plans in general make the company’s strategic plan true to life, while they compose everyday activities to achieve the main company goal. To put it differently, these plans consist of a list of actions, which lead to, or are stepping stones of, the company strategic plan. Only the exact performance of the actions can result in climbing to the top of the success ladder.
In conclusion, it is to be noted that planning is necessary in all the life spheres, and is especially important in business. Managers usually speak of three types of planning: strategic, tactical and operational. Each of them is connected with each other, perform different functions and achieve their own goals. Operational plans are worked out by low-level managers and consist of everyday activities aimed to fulfill the tactical plans. Mid-level managers make tactical plans to divide the main company goal into separate areas. Top managers or CEOs think of the leading strategic company plan possible to achieve in 3-10 years.
References
Drucker, P. (2009).Managing in a Time of Great Change. Harvard Business Press.
Dye, R. & Sibony, O. (August 2007). How to improve strategic planning. McKinsey&Company. Retrieved from http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-to-improve-strategic-planning
Gottfredson, M.&Schaubert, St. (2008) Breakthrough Imperative: How the Best Managers Get Outstanding Results. Collins Business.
Mikoluk, K. (June 25, 2013). Planning in Management: Strategic, Tactical, and Operational Plans. UdemiBlog. Retrieved from https://blog.udemy.com/planning-in-management/
