CLEP Principles of Management 1

Strategic planning is usually most affected by

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Strategic planning is usually most affected by factors in the external business environment, because these are things usually beyond the control of the organization. 92. 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 OP is both the first and the last step in preparing an operating budget request. As the first step, the OP provides a plan for resource allocation; as the last step, the OP
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may be modified to reflect policy decisions or financial changes made during the budget development process. Operational plans should be prepared by the people who will be involved in implementation. There is often a need for significant cross-departmental dialogue as plans created by one part of the organization inevitably have implications for other parts. Operational plans should contain: clear objectives activities to be delivered quality standards desired outcomes staffing and resource requirements implementation timetables a process for monitoring progress. Tactical Plan - a specific short-term work plan that middle-level managers derive from broader strategic plans. Forecasting - what the future will look like, whereas planning predicts what the future should look like. The term is also used for describing the formal procedures used in such an endeavor, such as the creation of documents, diagrams, or meetings to discuss the important issues to be addressed, the objectives to be met, and the strategy to be followed. Beyond this, planning has a different meaning depending on the political or economic context in which it is used.
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