Principles of Business
Management
Week 2b Lecture
During
this lecture, we will discuss the various types of managerial planning:
strategic, tactical, and operational.
The
importance of planning is that once it is written down on paper, it
figuratively commits the organization to the plan.
There
are three main types of plans that can help managers achieve their
organization's goals which are strategic plans, tactical plans, and operational
plans, and we will briefly discuss each one below.
Simply
stated, a strategic plan is the blueprint of the steps to achieve the goals
designed for the organization as a whole rather than the goals of an individual
division or department. Leaders usually base their strategic plan around the
organization's mission and vision. These plans look two, five, or even ten
years into the future and are what will help take the organization from where
it is today to where it wants to be. Successful strategic plans need total buy
in from every level of management within the organization. Usually the leaders
of the organization establish the direction and objectives of the plan for the
entire organization, while managers establish similar directions and objectives
for their individual departments.
An
organization’s tactical plan usually focuses on what lower level departments
within the organization need to do, how they need to do it, and who is managing
it. Tactics are what is needed to take a strategy and make it work. In most
cases, tactical plans revolve around shorter time periods and have a narrower
focus than do strategic plans. Tactical plans normally are devised for a year
or less as they are thought of as short-term goals as opposed to longer term
strategic goals.
Simply
stated, operational goals are the particular outcomes expected from all
departments and individuals within the organization and are exact and
quantifiable. In other words, a manager will use an operational plan to attain
their job responsibilities. There are two main types of operational plans which
are single-use plans and ongoing plans. Single-use plans focus on activities or
events which do not repeat such as budget. Ongoing plans preserve their value
over time while undergoing occasional modifications and updates. Policies,
rules, and procedures are all examples of ongoing plans.