Operational Plan

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Some of the Details Outlined in an Operational Plan

Human and Other Capacity Requirements

The human capacity and skills required to implement your plan, and your current and potential sources of these resources. Also, other capacity needs required to implement your plan (such as internal systems, management structures and engaged partners)

Financial Requirements
The funding required to implement your plan, your current and potential sources of these funds, and your most critical resource and funding gaps.

Risk Assessment and Mitigation Strategy
What risks exist and how they can be addressed.

Estimate of Project Lifespan, Sustainability, and Exit Strategy How long your plan will last, when and how you will exit your plan (if feasible to do so), and how you will ensure sustainability of your plan’s achievements.

The following is an example of what headings could be included in an operational plan. Introduction
Objective
Mission Statement
SWOT analysis
Recommendations from SWOT analysis
Action plans
Budget
Conclusion

Consultation

Consultation is designed to promote self-awareness and to teach communication skills that allow the group to welcome the talents of its members, and more effectively express and carry out the organizational vision. Business may benefit from consulting employees on a regular basis and making staff aware of ways they can contribute ideas and raise concerns.

Consultations should be systematically and regular. In another words, for consultation in order to be effective it should be an ongoing process. The expected outcomes from a successful consultation system should as follows:

It should promote transparency and accountability
It should improve awareness and understanding of the decision making process It should encourage stakeholders ownership and commitment to new developments It should enable us to gather information from stakeholders; this can bring new ideas, extra context and a broader view It should encourage careful consideration of all available options It should highlight potential problems early on, enabling us to put them right before decisions are finalised

Importance of Budging to Operational Planning

Budgeting is focusing on where the money is expected to come in, and how it is going to be spent. Budgeting helps give the business targets to aim for. Budgets make an operational plan happen and keep it going.

Planning the finances of the business is critical at the early stages, when loans may be needed to support the set up of the business. Ongoing budgeting is equally important, as any business always needs to keep a handle on its finances, and that means knowing where they are going in the coming months and years.

To perform effectively it is recommended to:
identify and record actual revenue and costs on a timely basis compare actual figures with budget and identify and explain any differences ensure that forecasts are reviewed regularly to provide accurate management information summarise and report to management on the analysis of budgets

A frequent review and adjustment is essential in order to be in control of operational plan financial activities. Budgets must be monitored and controlled on a regular bases; this will include monitoring and control of revenue, costs, cash, working capital and capital assets. You will detect and analyse variations between budgets and actual figures and communicate your findings clearly to the appropriate people. Every operational plan has either; a budget committee or it is controlled by budget officer.

Budget committee
This may consist of senior members of the organisation, e.g. departmental heads and executives (with the managing director as chairman). Every part of the organisation should be represented on the committee, so there should be a representative from sales, production, marketing and so on. Functions of the budget committee include:...
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