Strategic vs Operational Business Planning- A comparative evaluation.

Strategic Planning? Operational Planning? The words seem too heavy, don’t they?

This blog is a simple introduction and guide about strategic and operational planning.

Time Frame:

Strategic Planning

Strategic Planning generally relates to a period of 5 or more than five years. The plan is long-term and hence, there are constant changes and improvements made to the plan.

Operational Planning

Operational Planning usually relates to a period of 1 or less than a year. The plan is short-term and prompt. Generally, changes are difficult to execute as the term is very short lived.

Goals:

Strategic Planning

Strategic Planning deals with goals of the organisation as a whole. Since the goals are organisation based, the planning needs to be very precise. Strategic planning shapes the organisation and its resources. It also assesses the impact of environmental or external factors. This ensures protection against external threats. It views the organisation as a whole and develops overall strategies and objectives. Strategic planning is concerned with the long-term benefit of the organisation.

Operational Planning

Operational Planning deals with departments or subunits of the organisation. It deals with the current deployment of the resources. Rather than developing a strategy for the business, it develops tactics which would help in development of strategies. Since it deals with the current whereabouts of the business, it might make modifications to the business functions. These changes though, are not fundamental.

Environment:

Strategic Planning

Strategic planning deals with the external environment and external threats to the business.

Operational Planning 

Operational planning helps in developing a strong core. It deals with the internal factors and helps improvise the weaknesses.

Framed by:

Strategic Plans

Strategic plans are extremely important and can change the course of the business. Due to this reason they are only developed by the higher authority and top-level managers.

Operational Plans

Operational plans are important and they deal with departmental matters of an organisation. They can be improvised with regular checkups; these plans are pretty sure to aid business growth. And are developed by the lower authority and lower-level managers.

In conclusion, Planning in itself is crucial. Doesn’t matter strategic or operational. Planning is essential for your organisation to sustain in the long term.

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