One of the biggest mistakes I see with many strategic plans I encounter is that many aren’t strategic plans at all. All it takes is a little digging to realize that something is not quite right.
When a client signs up with AchieveIt, one of the first things we do is begin to discuss their organization’s vision and strategic plan. We talk about the format, the milestones, the time frame, and a variety of important facts about the initiative itself. When I hear our clients talk about their strategic plan I say to myself, “Yep, that sounds like a pretty standard plan.”
Upon closer examination of the documentation, I often discover that the “strategic plan” turns out to be an operational plan instead.
Strategic planning vs. operational planning: Know the difference
Understanding the distinction between strategic and operational plans is crucial for effective organizational management. Strategic plans outline the long-term vision and goals of an organization, while operational plans focus on the tactical steps required to achieve those goals. Knowing the difference between these two types of plans helps organizations optimize both to drive performance and achieve desired outcomes.
What is a strategic plan?
A strategic plan is a high-level roadmap that outlines an organization’s long-term goals, objectives, and strategies. It is a guide that helps align the organization’s efforts and resources toward a common vision. Strategic plans typically cover a period of 3-5 years and address broad organizational issues such as mission, vision, values, competitive advantage, and key performance indicators (KPIs).
What is an operational plan?
An operational plan is a detailed blueprint outlining the specific actions and resources required to achieve the organization’s strategic objectives. It typically covers a short-term period, such as a year or a quarter. It focuses on tactical plans, resource allocation, and deadlines. Operational plans are essential for translating big-picture, strategic goals into achievable, concrete actions. It also ensures that the organization’s resources are being used effectively.
To be clear: this post is not about choosing between an operating plan or a strategic plan because you need both to be successful. My colleague Jonathan Morgan touched on this topic in one of his recent blog posts. What you don’t want is one huge document that blurs the lines between the two very different plans, which results in mediocre performance for both.
How to tell if your operational plan is playing masquerade
You’re probably thinking about your plan right now and wondering if it’s blurring the lines between being strategic and operational. Here are a couple of ways to spot the items that need to be moved out of your strategic plan and into a more focused operational plan.
Does your strategic plan have hundreds of items in it?
Strategic plans are successful when they are focused on specific areas. It’s nearly impossible to have your organization focus on hundreds of strategic items. If you have too many items, move some of them into an idea parking lot, or if the items are tactical and specific, move them into your operational plan.
Do the items in your plan have a definitive end date, or are they ongoing?
A strategic plan is all about creating new capabilities to help your organization leverage future opportunities. As you decide how to create these capabilities, you’ll usually develop a variety of projects. Projects, by definition, are temporary, with a defined beginning and end. Once a project is done and you’ve created a new capability, hold a graduation ceremony for that item because it needs to move into the operating plan.
Are the items in your strategic plan reoccurring?
Do the items in your strategic plan need to be completed monthly? If so, get them into your operating plan. Once items become routine, moving them into the operating plan is more effective for ongoing management.
Operational and strategic plan examples
A great way to understand the difference between a strategic and an operational plan is to examine examples of each.
Example of a strategic plan
A strategic plan for a healthcare organization might include the following elements:
- Mission: Provide high-quality, affordable healthcare services to our community.
- Vision: Be the leading provider of healthcare services in the region.
- Values: Compassion, innovation, excellence, and community service.
- Goals: Increase market share by 10% over the next three to five years, improve patient satisfaction by 20%, and reduce operating costs by 15%.
- Strategies: Expand services to underserved communities, invest in new technologies, and enhance human resource training and development for improved day-to-day operations.
Example of an operational plan
An operational plan for the same healthcare organization might include:
- Objectives: Open a new clinic in an underserved area, launch a new telemedicine service, and implement a new electronic health record system.
- Tasks: Develop a marketing plan for the new clinic, recruit and train staff, and select and implement the new EHR system.
- Timeline: Establish deadlines for completing each task in the work plan and achieving the overall business goals.
- Budget: Forecast and allocate resources and funding for each operational activity.
- Metrics: Define metrics and key performance indicators (KPIs) to track progress and measure success.
Looking at the two examples, you can see how the strategic plan outlines the organization’s long-term direction, while the operational plan provides the detailed day-to-day activities for achieving those goals.
Accomplish your strategic and operational goals effectively with AchieveIt
Now that you’ve read the article, here’s your homework. Go over your strategic planning documents — if you encounter any of the symptoms I’ve outlined above, get in touch with us, and we’ll be happy to help you fine-tune your strategic planning process.
Our solution is used by organizations and strategy leaders to map out both strategic and operational planning processes. It automates the tracking of operational and strategic plans in real time by streamlining the process of update collection. The data collected is centralized and easily accessible, improving information visibility and driving accountability. This ensures data-driven decision-making and that you reach your organizational goals.
