Here you separate the strategic from the tactical, the global from the specific, and the long term from the short term. This is where most management energy is focused for execution. Yes, it is a term of operational plan. The operational plan defines how you plan to make the trip. Yet getting to a practical application of a business plan seems to always get lost in the planning process. The content for the plan is developed during the initial planning conference. All the information for the operational plan can be extracted from the original planning process. The operational plan sets the direction into motion. It is how you plan to work the next year. The operational plan is cut out of the total ten years.
The operational plan usually extends out one year. It is always the first year of your strategic plan, which automatically makes it the first year of your business plan. Although some companies elect to use two or three years, one year is more practical and best fits accepted business reporting standards. One year fits with the quarterly concepts and the annual budget cycle. This permits you to look at your performance on a frequent basis and make annual adjustments if necessary. One year is also about all the detail you can plan without becoming overwhelmed. Do not spend a lot of time, if any, trying to develop the details and numbers for subsequent years because they will be adjusted as you work with your plan over its life span.
