they generally cover a period of more than one year into the future. The length of the period depends on how accurate the forecasting of the future business environment proves to be. Strategic planning is usually most affected by factors in the external business environment, because these are things usually beyond the control of the organization. Operational planning (also known as action planning) comes after Strategic Planning and involves building on them. An, organizational policy or retail sales manager instructs each salesperson to sell at least 12 cell phone plans each day are examples. This is where the detailed plans are made on how to execute the strategic plans. It describes short-term ways of achieving milestones and explains how, or what portion of, a strategic plan will be put into operation during a given operational period, in the case of commercial application, a fiscal year or another given budgetary term. An operational plan is the basis for, and justification of an annual operating budget request. Therefore, a 5-year strategic plan would need 5 operational plans funded by five operating budgets. Operational plans should establish the activities and budgets for each part of the organization for the next 1 – 3 years. They link the strategic plan with the activities the organization will deliver and the resources required to deliver them. An operational plan draws directly from agency and program strategic plans to describe agency and program missions and goals, program objectives, and program activities. Like a strategic plan, an operational plan addresses four questions: 1.Where are we now? 2.Where do we want to be? 3.How do we get there? 4.How do we measure our progress?
The counterpart to planning is spontaneous order.There are two types of plans--standing and single-use. Standing plansinclude rules, procedures, and policies--plans that are always in effect.
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