When running a business or organization you will need a strategic plan, business plan or an annual operating plan. Whatever kind of organization you choose to operate it is very important to have one or all of these plans. Each plan serves a purpose in the organization and in my opinion they are all needed. Plans cannot be discarded in an organization. If your organization does not have a plan it will fail. The most important things to remember are to use the plans; evaluate and make changes if necessary.
A strategic plan is a long-term look at an organization: what it is, what it does and how it should change over the coming years. Business plans are fairly standard documents organizations use to secure funding. The last plan is the annual operating plan; a blueprint of your organizations immediate future.
All plans contain data plus assumption and equals projections. All three plans can be observed the same way. Through discussion your plan tells the story of the organization; financials allow you to review present and future earnings; economics allows you to review and project economic numbers behind your plan; and business indicators tell the story behind the story. Business indicators tell how the business is succeeding.
The difference in strategic plan versus business and annual operating plan is a strategic plan gets your organization going in a new direction. A strategic plan also displays the goals and what the future holds for organizations. Strategic plans are created by top level management. When organizing a team to create a strategic plan you should limit the number to two. Within a strategic plan it is important to include the vision and mission of the organization. A strategic plan covers five years and you can create as many as needed.
Unlike the strategic plan and the annual operating plan; the business plan gives you potential to secure other people’s money. Business plans are more detailed than...