Business

Difference between Strategic Planning and Operational Planning

Main difference

Planning is an important activity since it allows clarifying the steps to follow to achieve success. In other words, we can say that planning is the progress that sets ideas and thoughts in motion, indicating what is going to be done in the future. Different organizations and corporations also have blueprints, which they execute to get the desired results. There are mainly two types of planning established in the business world. One is Strategic Planning and the other is Operational Planning. The plan set out to achieve the long-term goals is known as strategic planning, while the plan made to achieve the short-term goal is known as operations planning. Strategic planning has a wide influence on business activities,

Comparison chart

Strategic planning Operational planning
Definition The plan set out to achieve long-term goals is known as strategic planning. The plan drawn up to achieve the short-term objective is known as operations planning.
Influence wide influence narrow influence
management involved Top level management Mid-level management
to be followed by The entire company, including each of the departments and units. It can be only for specific departments and units.
Period In the longer term, the modification takes place in him after the top management meeting. Short term, can be modified monthly or weekly.

what is the strategic planification?

Strategic planning is long-term planning established by the superiors of the organization. In this type of planning, they decide the main objective and focus of the company. This plan remains unchanged for the specific mandate, and changes after the senior management meeting. It is an analytical process that thoroughly analyzes the model of the company as a whole with respect to the micro and macro environment. The other task of strategic planning is the development of policies and rules and regulations. In this type of planning, the top priorities, ambitions of the company are also defined along with the ultimate goal, which the corporation hopes to achieve in the long term. Since we know that a company is made up of different units or departments, which have their individual managers and supervisors, the plan decided through strategic planning will be followed by each and every one of the departments and units since it is the plan designed for the entire company. Resource allocation is also done in this planning along with strategy planning. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) and PEST Analysis (Political, Economic, Social, Technological Environment) are some of the most prominent statistical tools used in strategic planning.

What is operational planning?

The operational plan is the detailed plan that is made under the umbrella of strategic planning. In other words, it is the clear picture or plan that must be executed to achieve the company’s strategic goals. However, it is short-term in nature as it is in accordance with the daily task policy. In this type of planning, specific activities and events are planned periodically to achieve the objectives desired by the company’s top management. Each one of the departments or units of the company formulates its plan in the operational planning; middle-level management has authority in this type of planning process. The operating plan is the short-term plan that lasts for one year or six months, although the policy in this type of plan can be changed immediately;

Strategic Planning vs. Operational Planning

  • The plan set out to achieve the long-term goals is known as strategic planning, while the plan made to achieve the short-term goal is known as operations planning.
  • Strategic planning has a wide influence on the business activities while operations planning has a limited influence on the business activities of the company.
  • The top management of the company participates in strategic planning, while the middle management participates in operational planning.
  • The strategic plan must be followed by each and every one of the firm’s departments and units. On the other hand, operational planning is for the specific unit or department.
  • Strategic planning remains unchanged for the longest term. Contrary to this, operational planning is a kind of day-to-day planning that can be modified.

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