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How To Write the Operations Plan Section of the Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Stage of Development Section

Production process section, the bottom line, frequently asked questions (faqs).

The operations plan is the section of your business plan that gives an overview of your workflow, supply chains, and similar aspects of your business. Any key details of how your business physically produces goods or services will be included in this section.

You need an operations plan to help others understand how you'll deliver on your promise to turn a profit. Keep reading to learn what to include in your operations plan.

Key Takeaways

• The operations plan section should include general operational details that help investors understand the physical details of your vision.
• Details in the operations plan include information about any physical plants, equipment, assets, and more.
• The operations plan can also serve as a checklist for startups; it includes a list of everything that must be done to start turning a profit.

In your business plan , the operations plan section describes the physical necessities of your business's operation, such as your physical location, facilities, and equipment. Depending on what kind of business you'll be operating, it may also include information about inventory requirements, suppliers, and a description of the manufacturing process.

Keeping focused on the bottom line will help you organize this part of the business plan.

Think of the operating plan as an outline of the capital and expense requirements your business will need to operate from day to day.

You need to do two things for the reader of your business plan in the operations section: show what you've done so far to get your business off the ground and demonstrate that you understand the manufacturing or delivery process of producing your product or service.

When you're writing this section of the operations plan, start by explaining what you've done to date to get the business operational, then follow up with an explanation of what still needs to be done. The following should be included:

Production Workflow

A high-level, step-by-step description of how your product or service will be made, identifying the problems that may occur in the production process. Follow this with a subsection titled "Risks," which outlines the potential problems that may interfere with the production process and what you're going to do to negate these risks. If any part of the production process can expose employees to hazards, describe how employees will be trained in dealing with safety issues. If hazardous materials will be used, describe how these will be safely stored, handled, and disposed.

Industry Association Memberships

Show your awareness of your industry's local, regional, or national standards and regulations by telling which industry organizations you are already a member of and which ones you plan to join. This is also an opportunity to outline what steps you've taken to comply with the laws and regulations that apply to your industry. 

Supply Chains

An explanation of who your suppliers are and their prices, terms, and conditions. Describe what alternative arrangements you have made or will make if these suppliers let you down.

Quality Control

An explanation of the quality control measures that you've set up or are going to establish. For example, if you intend to pursue some form of quality control certification such as ISO 9000, describe how you will accomplish this.

While you can think of the stage of the development part of the operations plan as an overview, the production process section lays out the details of your business's day-to-day operations. Remember, your goal for writing this business plan section is to demonstrate your understanding of your product or service's manufacturing or delivery process.

When writing this section, you can use the headings below as subheadings and then provide the details in paragraph format. Leave out any topic that does not apply to your particular business.

Do an outline of your business's day-to-day operations, including your hours of operation and the days the business will be open. If the business is seasonal, be sure to say so.

The Physical Plant

Describe the type, site, and location of premises for your business. If applicable, include drawings of the building, copies of lease agreements, and recent real estate appraisals. You need to show how much the land or buildings required for your business operations are worth and tell why they're important to your proposed business.

The same goes for equipment. Besides describing the equipment necessary and how much of it you need, you also need to include its worth and cost and explain any financing arrangements.

Make a list of your assets , such as land, buildings, inventory, furniture, equipment, and vehicles. Include legal descriptions and the worth of each asset.

Special Requirements

If your business has any special requirements, such as water or power needs, ventilation, drainage, etc., provide the details in your operating plan, as well as what you've done to secure the necessary permissions.

State where you're going to get the materials you need to produce your product or service and explain what terms you've negotiated with suppliers.

Explain how long it takes to produce a unit and when you'll be able to start producing your product or service. Include factors that may affect the time frame of production and describe how you'll deal with potential challenges such as rush orders.

Explain how you'll keep  track of inventory .

Feasibility

Describe any product testing, price testing, or prototype testing that you've done on your product or service.

Give details of product cost estimates.

Once you've worked through this business plan section, you'll not only have a detailed operations plan to show your readers, but you'll also have a convenient list of what needs to be done next to make your business a reality. Writing this document gives you a chance to crystalize your business ideas into a clear checklist that you can reference. As you check items off the list, use it to explain your vision to investors, partners, and others within your organization.

What is an operations plan?

An operations plan is one section of a company's business plan. This section conveys the physical requirements for your business's operations, including supply chains, workflow , and quality control processes.

What is the main difference between the operations plan and the financial plan?

The operations plan and financial plan tackle similar issues, in that they seek to explain how the business will turn a profit. The operations plan approaches this issue from a physical perspective, such as property, routes, and locations. The financial plan explains how revenue and expenses will ultimately lead to the business's success.

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Business Plan Operational Plan - Everything You Need to Know

Welcome to our comprehensive guide on the business plan operational plan. A fundamental component of any effective business plan and a key component of growth  As a business owner, executive, or manager, you understand that a well-articulated strategy is crucial for the success and growth of your venture. But have you ever stopped to ponder how this strategy is executed on a day-to-day basis? How do we transform those lofty goals into tangible, everyday actions? This is where an operational plan comes into play. An operational plan outlines the practical details of how your business will operate and deliver on its strategic goals. It describes the inner workings of your business, detailing everything from your daily operations and production processes to your team's roles and responsibilities.  In this guide we will delve into the purpose and scope of an operational plan, its essential elements, and how to develop one effectively. We'll also share valuable tips, best practices, and common pitfalls to avoid. 

Table of Contents

• Operational Plan - The Purpose
• The Essential Elements
• Description of Operations
• Steps for Creating Operational Plan
• Tips & Best Practices

Real-Life Case Study

• Common Pitfalls
• Final Thoughts

Business Plan Operational Plan - The Purpose

The role of an operational plan in a business cannot be overstated. This fundamental document is a strategic guide that outlines the direction, timelines, and resources necessary to achieve specific objectives within an organisation. An operational plan is the driving force behind the execution of your business strategy. It allows you to map out clear and attainable operational goals that align with your overall strategic objectives, breaking them down into manageable, actionable steps.  Whilst acting as a map for your business you can also use to track performance via measurable objectives.

Scope of an Operational Plan in Day-to-Day Operations

The business plan operational plan should detail key elements such as the operational processes, resource allocation, tasks, and timelines. From personnel and location to inventory, suppliers, and operating hours - the operational plan touches every aspect of your business. It's a living document, evolving and changing as your business grows and adapts to market dynamics and industry trends.

Remember, the opening of your Executive Summary sets the tone for the entire document. Make it memorable and compelling to encourage the reader to continue exploring.

Business Plan Operational Plan - The Essential Elements

Creating an operational plan requires thoughtful consideration of several vital components that collectively represent the full breadth of your company's operations. Each one plays a crucial role in defining the day-to-day activities that will lead to the fulfilment of your strategic objectives.

Description of the Business Operations

Every operational plan starts with a comprehensive description of the business operations. This includes outlining your production process, operations workflow, and supply chain management. Defining these processes in clear terms provides a concrete vision of how products or services will be created and delivered, identifying the necessary resources and potential bottlenecks along the way.

People are the lifeblood of your business, and it's essential to define their roles and responsibilities within the operational plan. This involves outlining the team's structure, detailing who is responsible for what, and defining key performance indicators (KPIs) for each role. By assigning clear responsibilities, you ensure the efficient use of human resources and promote accountability.

Your business location and the physical resources at your disposal play a crucial role in your operational plan. Detail the premises your business will operate from, the equipment required, and any associated costs. Whether you're operating from a single office, managing multiple retail outlets, or running a home-based online business, defining your operational space is crucial.

Effective inventory management is crucial for maintaining smooth operations, particularly for businesses dealing with physical products. Your operational plan should outline how you will manage your supplies, including how often you'll restock, which vendors you'll use, and how you'll handle storage and distribution. Remember, balancing supply with demand is key to avoiding unnecessary costs or stockouts.

Your operational plan needs to address your suppliers - who they are, what terms and agreements you have with them, and how you will manage these relationships. The reliability and quality of your suppliers can greatly affect your operations, making this a critical consideration in your planning process.

When constructed effectively, these elements come together to form an operational plan that is clear, comprehensive, and actionable. In the next section, we'll explore the steps to develop such a plan, and later, we'll offer some tips and best practices for bringing your operational plan to life. Stay tuned! Looking an industry specific guide to business plans, then check out our business plan guides homepage .

Steps for Developing an Operational Plan

Creating a comprehensive and effective operational plan involves careful planning, clear communication, and continuous monitoring and evaluation. Let's explore these steps in detail:

• 1. Setting Clear Operational Goals and Objectives: The first step towards developing an operational plan is defining what you want to achieve operationally within a given period. These goals should align with your strategic business objectives and be specific, measurable, attainable, relevant, and time-bound (SMART).For instance, if your strategic goal is to increase market share, your operational objective might be to ramp up production by a certain percentage within the next quarter. Or, if you aim to improve customer satisfaction, you might focus on improving the quality and durability of the product.
• Regular Monitoring and Evaluation: With your operational goals in place, the next step is to monitor progress and evaluate performance regularly. Key Performance Indicators (KPIs) and metrics should be set for each operational goal. These could range from production volumes and delivery times to quality measures and cost efficiency.Consistently monitoring these metrics allows you to measure progress, identify any potential issues or bottlenecks early on, and adjust your operational plan as necessary.
• Communication: This is a crucial when implementing your operational plan. Ensure all stakeholders, including team members, suppliers, and partners, are aware of the plan and understand their roles within it.Hold regular meetings to update everyone on progress and address any challenges or changes in the plan. Remember, your operational plan should be a living document, flexible enough to adapt to changes and updates as required.

Business Plan Operational Plan - Tips and Best Practices

Creating an operational plan that works requires more than just defining goals and setting performance metrics. There are nuances and best practices that can significantly enhance the effectiveness of your operational plan. Here are a few tips to guide you:

• Involve Your Team : The people responsible for executing the operational plan should also contribute to its creation. Encourage your team to share their ideas, challenges, and insights. Their first-hand experience can lead to more practical, achievable operational plans. Besides, team involvement promotes ownership and commitment to the plan's execution.
• Keep It Flexible : Operational plans need to be adaptable to accommodate changes in the business environment, such as market dynamics, customer preferences, or new regulations. Regularly review and update your plan to ensure it remains relevant and effective. Remember, the operational plan is a guide, not a set-in-stone document.
• Be Specific : Avoid ambiguity in your operational plan. Use clear, concise language and provide detailed action plans, including what needs to be done, by whom, when, and with what resources. This clarity reduces misunderstanding and keeps everyone on the same page.
• Use Technology : Leverage the power of technology to enhance your operational efficiency. There are numerous tools and software available that can help with project management, process automation, data analysis, and more. Use these tools to streamline your operations, track performance, and improve communication.
• Consistency with the Business Plan : Ensure your operational plan aligns with your broader business strategy. This alignment ensures that your day-to-day operations contribute effectively to achieving your long-term business objectives.

By applying these tips and best practices, you can create an operational plan that's not only effective but also fosters a culture of continuous improvement and strategic alignment in your organisation.

To further illustrate the importance of a well-executed operational plan, let's look at a real-life case study - the global tech giant, Apple Inc. Apple's operational plan is a testament to the company's relentless focus on precision, quality, and groundbreaking innovation. One key operational strategy that Apple uses is its tight control over its supply chain.

• Description of Business Operations: Apple's business operations are highly integrated and efficient. They manufacture and market a variety of products, including iPhones, iPads, Macs, and services like iCloud and Apple Music. Their production process is complex, involving design, prototyping, manufacturing, and distribution, often happening across different continents.
• Personnel: Apple's workforce is highly specialised. Each team and department has clearly defined roles and responsibilities, whether it's designing new products, managing supplier relationships, or ensuring quality control. Employees at Apple are encouraged to think differently, fostering a culture of innovation.
•  Location: Apple operates in multiple locations worldwide, including its iconic headquarters, Apple Park, in Cupertino, California. The company also has a network of retail stores across the globe and contracts with manufacturing facilities, primarily in Asia.
•  Inventory: Apple's inventory management is legendary for its efficiency. Through just-in-time inventory practices, Apple reduces storage costs and minimises the risk of stock obsolescence, contributing to its streamlined operations and impressive profit margins.
• Suppliers: Apple has a vast network of suppliers from around the world. It maintains strong relationships with these suppliers and holds them to strict standards of quality and ethical business practices, ensuring the integrity and excellence of its products.

Apple's operational plan aligns seamlessly with its business strategy, focusing on innovation, quality, and customer experience. This has allowed the company to maintain its status as a market leader and pioneer in the tech industry. This case study illustrates how an effective operational plan can turn a strategic vision into a successful reality. In the next section, we'll delve into common pitfalls to avoid when creating your operational plan.

Common Pitfalls to Avoid

As you embark on developing an operational plan for your business, it's crucial to be aware of some common pitfalls that can hinder your plan's effectiveness. Here, we outline these potential obstacles and provide advice on how to avoid them.

• Lack of Alignment with Strategic Goals: One of the most common mistakes is a disconnect between the operational plan and the company's strategic goals. Your operational plan should directly support and drive towards achieving these objectives. Ensure all operational goals, processes, and tasks align with your overarching business vision.
• Overly Complex or Unrealistic Plans: While an operational plan needs to be comprehensive, it also needs to be practical and achievable. Avoid creating overly complex plans that your team cannot implement or that require resources beyond your means. Strike a balance between thoroughness and simplicity for a more manageable plan.
• Neglecting to Involve the Team: Your team members are the ones who will execute the operational plan, and neglecting to involve them in its creation can lead to resistance or confusion. Make sure your team is part of the planning process, understands the plan, and is committed to its implementation.
• Ignoring Market Changes: A business doesn't operate in a vacuum. Failing to consider external factors such as market trends, customer behaviour, and economic conditions can derail your operational plan. Ensure your plan is flexible and adaptable to respond to changing circumstances.
• Insufficient Monitoring and Evaluation: An operational plan is not a set-and-forget document. Regular monitoring and evaluation are critical to assess progress, identify bottlenecks, and make necessary adjustments. Make sure you set measurable KPIs and allocate resources to track and review them.Avoiding these common pitfalls will significantly enhance the effectiveness of your business plan operational plan. With a solid operational plan in place, your business is well-positioned to achieve its strategic objectives, driving growth, and success.

Wrapping It All Up

Operational planning plays a vital role in any business, acting as a roadmap to direct daily operations and align them with the strategic goals of the company. As we have seen in this blog post, creating an operational plan involves several important components and steps, from defining clear goals to continuous monitoring and evaluation. Remember, the key to an effective operational plan is to keep it flexible, involve your team and maintain alignment with your business plan. If you implement those principles and regularly review and update you will have set a solid foundation for future business growth. We wish you all the best on your operational planning journey, and remember - every step you take towards detailed and thoughtful planning is a step towards long-term success and growth for your business. If you require any further help on other sections of your business plan, visit our Learning Zone for several in-depth guides.

Business Plan Operational Plan - Frequently Asked Questions (FAQs)

To wrap up this guide, let's address some frequently asked questions about operational plans in business.

• What is the difference between a strategic plan and an operational plan? A strategic plan outlines a company's long-term vision, objectives, and strategies for achieving those objectives. It's a high-level roadmap for the direction the company intends to go. On the other hand, an operational plan details the day-to-day activities and resources necessary to achieve the strategic goals. It's the 'action plan' that brings the strategic plan to life.
• How often should an operational plan be reviewed? The frequency of review may vary depending on your business size, type, and industry, but generally, it is a good idea to review your operational plan at least quarterly. The regular review ensures that the plan is still relevant and effective, allowing for adjustments as business conditions change.
• How long should an operational plan be? There is no set length for an operational plan, as it will depend on the complexity of the operations. It needs to be comprehensive enough to cover all operational aspects of the business but concise enough to be understandable and manageable.
• Who is responsible for creating an operational plan? While the business owner or top management usually leads the creation of an operational plan, it should involve input from all levels of the organisation. Each department or team can provide valuable insights into their operations, challenges, and opportunities, leading to a more realistic and effective plan.
• How can I measure the success of my operational plan? The success of an operational plan is measured by how effectively it helps achieve the strategic objectives. Regular monitoring of Key Performance Indicators (KPIs) related to your operational goals will provide a clear indication of your plan's success. If these KPIs are consistently met, your operational plan is likely successful. If not, adjustments may be needed.

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Blog Business 10+ Operational Planning Examples to Fulfill your Strategic Goals

10+ Operational Planning Examples to Fulfill your Strategic Goals

Written by: Danesh Ramuthi Oct 25, 2023

An operational plan is a comprehensive, action-driven document that maps out how daily activities within an organization fuel the journey towards achieving strategic objectives.

Essentially acting as the nexus between high-level strategy and practical execution, this plan ensures that every department, from human resources to specific departments, operates in synchrony, aligning their day-to-day activities with the broader strategic goals.

By streamlining processes, it fosters cohesive efforts amongst diverse cross-functional teams, ensuring that both individual team members and entire departments work together harmoniously towards the company goals.

Ready to sculpt your organization’s future? Start your journey with venngage business plan maker and leverage their expertly crafted operational plan templates . 

Click to jump ahead: 

Why is an operational plan important?

10 operational plan examples, what should an operational plan include, how to write an operational plan.

• Strategic plan vs operational plan: What is the difference? 

In summary 

An operational plan is crucial because it serves as a bridge between a company’s high-level strategic planning and its day-to-day activities, ensuring that the business operations align with the strategic goals. 

While a strategic plan provides a long-term vision, outlining the company’s objectives and goals to gain competitive advantages in the business environment, the operational plan outlines the specific actions, key elements and resource allocation required to achieve those objectives. 

For example, while the strategic plan might set a goal for revenue growth over the fiscal year, the operational plan provides a detailed roadmap, breaking down major projects, assigning responsibilities to individual team members or specific departments and setting key performance indicators to monitor progress and ensure the entire organization works together effectively.

Operational planning, in essence, transforms the strategic objectives into actionable plans, ensuring that the entire team, from department heads to diverse cross-functional teams, is aligned and works in tandem to support revenue growth, increase productivity, and achieve the desired outcomes. 

Operational plans, through a well-structured operational planning process, also provide a clear understanding of the day-to-day activities, allowing team members to know their roles, leading to better collaboration and synergy. 

Moreover, by having clear operational plan examples or templates, businesses can ensure realistic expectations, manage their operating budget effectively and track progress through key performance metrics, thus ensuring that the company stays on course to realize its long-term vision.

Operational plans play a pivotal role in the business landscape, bridging the gap between strategic vision and tangible actions. They translate the overarching goals of an organization into detailed procedures, ensuring that daily operations are in line with the desired strategic outcomes. 

In the section below, I will explore a few operational plan examples, shedding light on their structure and importance.

Business operational plan example

A business operational plan is a comprehensive document that elucidates the specific day-to-day activities of a company. It presents a detailed overview of the company’s organizational structure, management team, products or services and the underlying marketing and sales strategies. 

For businesses, irrespective of their size, an operational plan can prove invaluable. By laying down the business goals and objectives, it acts as a blueprint, guiding entrepreneurs through the creation and implementation of strategies and action plans. The planning process also incorporates mechanisms to track progress and performance. 

Additionally, for startups or companies looking to scale, a meticulously crafted operational plan can be pivotal in securing funds from potential investors and lenders.

Layered on this are details about the company’s organizational structure, its products or services and its marketing and sales strategies. 

The document also delineates the roles and responsibilities of each team member, especially the management and key personnel. Given the dynamic nature of the business environment, it is imperative to revisit and update the operational plan regularly.

Related: 15+ Business Plan Templates for Strategic Planning

Simple operational plan example

A simple operational plan, often used by startups or smaller enterprises, emphasizes the basics, ensuring that the fundamental aspects of the business operations are captured succinctly. While it might not delve into the intricacies of every operation, it provides an overview of day-to-day activities, highlighting the goals and objectives the business aims to achieve in the short term.

In essence, this plan revolves around core elements like the company’s main objectives for the fiscal year, key responsibilities assigned to individual team members and basic resource allocation. A straightforward market analysis might also be included, offering insights into customer needs and competitive advantages the business hopes to leverage.

Though simple, this operational plan example remains pivotal for the organization. It provides a roadmap, guiding team members through their daily responsibilities while ensuring that everyone is working together towards shared goals. It becomes especially essential for diverse cross-functional teams, where clarity of roles can lead to increased productivity.

Modern operational plan example

In today’s fast-paced business environment, the emphasis on efficiency and innovative processes is paramount. The modern operational plan example caters precisely to this demand. Ideal for organizations aiming to streamline processes and highlight workflow, this type of operational plan emphasizes a more dynamic approach to planning. 

It not only reflects the evolving nature of business operations but also provides a modern backdrop for content, ensuring that the presentation resonates with the current trends and technological advancements. The use of modern tools and platforms within this plan enables diverse cross-functional teams to work together seamlessly, ensuring that day-to-day activities are synchronized with the company’s long-term vision.

Furthermore, such an operational plan helps the entire organization stay agile, adapting rapidly to changes in the business environment and ensuring alignment with strategic goals.

Minimalist operational plan example

The minimalist operational plan example champions simplicity and clarity. By focusing on clear and concise business strategies, it eliminates any potential ambiguity, ensuring that team members and stakeholders have an unclouded understanding of the company’s objectives and goals. 

The minimalist design not only promotes easy comprehension but also aligns with the modern trend of decluttering, ensuring that only the most vital components of the operational planning process are highlighted. 

This approach leaves no room for confusion, streamlining the planning process and making sure that individual team members and departments are aligned with the business’s key objectives. 

Moreover, the flexibility offered by a minimalist design allows businesses to craft an operational plan template that is not only functional but also accurately reflects their brand image and core values, ensuring cohesion across all aspects of the business strategy.

Clean operational plan example

The clean operational plan example stands as a testament to this principle. Ideal for businesses that prioritize clarity and directness, this format seeks to convey goals and strategies without overwhelming stakeholders. 

While maintaining a neat and organized layout, it ensures that tasks are managed effectively, helping team members grasp their roles and responsibilities without getting lost in excessive details.

One of the primary advantages of a clean operational plan is its ability to eliminate distractions and focus solely on the critical aspects of operational planning. 

Such a design aids in making sure that diverse cross-functional teams can work together harmoniously ensuring that day-to-day activities align seamlessly with the company’s long-term vision. 

The simplicity of the clean operational plan not only supports revenue growth by ensuring efficiency but also reinforces the company’s strategic goals, making it an excellent tool in the arsenal of businesses that believe in clear communication and precise execution.  

An effective operational plan acts as a roadmap, directing how resources should be allocated and tasks should be performed to meet the company’s objectives. Here’s what a comprehensive operational plan should encompass:

• Goals and objectives : Whether short-term or long-term, the operational plan should define clear goals and objectives that align with the company’s strategic plan. This gives direction to the entire organization, ensuring everyone is working towards a common aim.
• Clear responsibilities for team members : It’s essential that team members understand their roles within the operational plan. By outlining who is responsible for what, the plan ensures that there are no overlaps or gaps in duties and that everyone has clarity on their day-to-day activities.
• Assigned tasks: Alongside responsibilities, specific tasks need to be allocated to individual team members or specific departments. This granularity in assignment ensures that every aspect of the operational plan is covered.
• Timeline: This provides a clear schedule for when each task or objective should start and finish. A well-defined timeline assists in monitoring progress and ensures that the plan stays on track.
• Budget and resources : Every operational plan needs to factor in the budget and resources available. This includes everything from the operating budget to human resources, ensuring that the business has everything it needs to execute the plan effectively.

Read Also: 6 Steps to Create a Strategic HR Plan [With Templates]

As businesses evolve, it’s essential to have a comprehensive and adaptive operational plan in place to navigate the complexities of the business environment. Here’s a step-by-step guide to help you craft an effective operational plan:

Step 1: Define your goals and objectives

Begin with a clear understanding of your strategic goals and objectives. This will act as a foundation for your operational plan. Ensure that these goals are in alignment with your company’s strategic plan and provide both short-term and long-term visions for the business.

Step 2: Determine roles and responsibilities

Identify the key stakeholders, department heads and team members who will play pivotal roles in executing the plan. Assign responsibilities to ensure that everyone knows their part in the planning process and day-to-day activities.

Step 3: Develop a timeline and milestones

Establish a clear timeline that breaks down the operational planning process. Include key milestones to track progress and ensure the plan remains on target.

Step 4: Allocate budget and resources

Determine the resources required to achieve your goals and objectives. This includes estimating the operating budget, identifying human resources needs and other resource allocations, ensuring you have everything in place to support revenue growth and other business needs.

Step 5: Outline day-to-day operations

Detail the day activities that are integral to the business operations. This will provide clarity on how different tasks and functions work together, ensuring efficiency across diverse cross-functional teams.

Step 6: Monitor and measure performance

Integrate key performance metrics and indicators to regularly monitor progress. Using both leading and lagging indicators will provide a comprehensive view of how well the operational plan is being executed and where improvements can be made.

Step 7: Review and adjust regularly

The business environment is dynamic and as such, your operational plan should be adaptable. Regularly review the plan, comparing actual outcomes with desired outcomes and adjust as necessary to account for changes in the business environment or company goals.

Step 8: Document and communicate

Create an operational plan document, potentially using operational plan examples or an operational plan template for guidance. Ensure that the entire team, from individual team members to the entire organization, is informed and aligned with the plan.

Related: 7 Best Business Plan Software for 2023

Strategic plan vs operational plan: What is the difference?

When running an organization, both strategic and operational planning play pivotal roles in ensuring success. However, each has a distinct purpose, time horizon and scope. Here’s a breakdown of the differences between these two essential business plans:

• Strategic plan : This plan sets the course for the organization’s future. It embodies the long-term vision and mission, detailing the objectives necessary to achieve it. The essence is how everyone, from C-suite executives to individual team members, collaborates towards realizing this vision.
• Operational plan : This is the roadmap for the day-to-day activities of the organization. While the strategic plan looks at the bigger picture, the operational plan hones in on the tactics and execution. It is crafted to support organizational goals with a focus on short-term activities specific to departments or functions.

Time horizon :

• Strategic plan : Long-term in nature, usually spanning three to five years.
• Operational plan : Concentrates on the short-term, with plans laid out yearly, quarterly, or even monthly.

Modification and updates :

• Strategic plan : This evolves over longer intervals, typically three to five years. There might be minor adjustments year over year based on changing business needs and the external business environment.
• Operational plan : Due to its short-term focus, it requires frequent assessments. Plans might be adjusted yearly, quarterly or even monthly to ensure alignment with the strategic objectives and current business environment.

Created by :

• Strategic plan : Crafted by the upper echelons of management – think CEO, CFO and other C-suite members.
• Operational plan : These plans come to life through mid-level management and department heads, ensuring alignment with the broader strategic vision while catering to specific departmental needs.
• Strategic plan : Broad in its outlook, it takes into account external factors like market trends, competition, customer needs and technological innovations.
• Operational plan : This narrows down the focus to the internal workings of the organization. It revolves around technology in use, key performance indicators, budgeting, projects, tasks and the allocation of responsibilities among team members.

As we’ve traversed through the importance of operational planning to various operational plan examples, it becomes evident that having a detailed and efficient operational plan is pivotal. 

From the business-centric to the minimalist approach, every operational plan serves as the backbone, guiding team members and ensuring that day-to-day activities align with the long-term vision and strategic goals.

By knowing what should be included in these plans and how to craft them, businesses can navigate the complexities of their operational environment with greater confidence.

For those looking to refine their planning process or start from scratch, the world of digital tools has made it significantly easier. Venngage offers business plan maker and operational plan templates designed to simplify the process. 

Whether you need to create an operational plan or draft a business strategy, their intuitive platform can guide you every step of the way.

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How to Write an Operations Plan Section of your Business Plan

Free Operations Plan Template

Ayush Jalan

• December 14, 2023

Your business plan is an elaborate set of instructions stating how to run your business to achieve objectives and goals. Each section describes a part of the process of reaching your desired goal. Similarly, the operations plan section of your business plan explains the production and supply of your product.

An operations plan is formed to turn plans into actions. It uses the information you gathered from the analysis of the market , customers, and competitors mentioned in the previous parts of your business plan and allows for the execution of relevant strategies to achieve desired results.

What Is an Operations Plan?

An operations plan is an in-depth description of your daily business activities centered on achieving the goals and objectives described in the previous sections of your business plan. It outlines the processes, activities, responsibilities of various departments and the timeframe of the execution.

The operations section of your business plan explains in detail the role of a team or department in the collective accomplishment of your goals. In other words, it’s a strategic allocation of physical, financial, and human resources toward reaching milestones within a specific timeframe.

A well-defined operational plan section of your business plan should be able to answer the following questions:

• Who is responsible for a specific task or department?
• What are the tasks that need to be completed?
• Where will these operations take place?
• When should the tasks be completed? What are the deadlines?
• How will the tasks be performed? Is there a standard procedure?
• How much is it going to cost to complete these tasks?

How to Write an Operations Plan Section?

Creating an operational plan has two major stages, both addressing different aspects of your company. The first stage includes the work that has been done so far, whereas the second stage describes it in detail.

1. Development Phase

In this stage, you mention what you’ve done to get your business operations up and running. Explain what you aim to change and improvise in the processes. These are the elements your development section will contain:

Production workflow

: Explain all the steps involved in creating your product. This should be a highly informative, elaborate description of the steps. Here, you also mention any inefficiencies that exist and talk about the actions that need to be taken to tackle them.

Supply chains

Quality control, 2. manufacturing phase.

The development stage acquaints the reader with the functioning of your business, while the manufacturing stage describes the day-to-day operation.

This includes the following elements:

Outline of daily activities:

Tools and equipment:, special requirements:, raw materials:, productions:, feasibility:, why do you need an operations plan.

An operations plan is essentially an instruction manual about the workings of your business. It offers insight into your business operations. It helps investors assess your credibility and understand the structure of your operations and predict your financial requirements.

An operations plan reflects the real-time application of a business plan.

Internally, an operations plan works as a guide, which helps your employees and managers to know their responsibilities. It also helps them understand how to execute their tasks in the desired manner—all whilst keeping account of deadlines.

The operations plan helps identify and cut the variances between planned and actual performance and makes necessary changes. It helps you visualize how your operations affect revenue and gives you an idea of how and when you need to implement new strategies to maximize profits.

Advantages of Preparing an Operations Plan:

• Offers Clarity: Operational planning, among other things, makes sure that everyone in the audience and team are aware of the daily, weekly, and monthly work. It improves concentration and productivity.
• Contains A Roadmap: Operational planning makes it much easier to reach long-term objectives. When members have a clear strategy to follow: productivity rises, and accountability is maintained.
• Sets A Benchmark: It sets a clear goal for everyone about what is the destination of the company and how to reach there.

Operations Plan Essentials

Now that you have understood the contents of an operations plan and how it should be written, you can continue drafting one for your business plan. But before doing so, take a look at these key components you need to remember while creating your operational plan.

• Your operations plan is fundamentally a medium for implementing your strategic plan. Hence, it’s crucial to have a solid strategic plan to write an effective operations plan.
• Focus on setting SMART goals and prioritizing the most important ones. This helps you create a clear and crisp operations plan. Focusing on multiple goals will make your plan complicated and hard to implement.
• To measure your goals, use leading indicators instead of lagging indicators. Leading indicators is a metric that helps you track your progress and predict when you will reach a goal. On the other hand, lagging indicators can only confirm a trend by taking the past as input but cannot predict the accomplishment of a goal.
• It is essential to choose the right Key Performance Indicators (KPIs) . It is a good practice to involve all your teams while you decide your KPIs.
• An operations plan should effectively communicate your goals, metrics, deadlines, and all the processes.

Now you’re all set to write an operations plan section for your business plan. To give you a headstart, we have created an operations plan example.

Operations Plan Example

Operations plan by a book publishing house

Track and Accomplish Goals With an Operations Plan

Drafting the operations plan section of your business plan can be tricky due to the uncertainties of the business environment and the risks associated with it. Depending on variables like your market analysis, product development, supply chain, etc., the complexity of writing an operations plan will vary.

The core purpose here is to put all the pieces together to create a synergy effect and get the engine of your business running. Create an effective operations plan to convey competence to investors and clarity to employees.

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Frequently Asked Questions

What role does the operations plan play in securing funding for a business.

The operations plan defines the clear goals of your business and what actions will be taken on a daily basis to reach them. So, investors need to know where your business stands, and it will prove the viability of the goals helping you in getting funded.

What are the factors affecting the operations plan?

• The mission of the company
• Goals to be achieved
• Finance and resources your company will need

Can an operations plan be created for both start-up and established businesses?

Yes, both a startup and a small business needs an operations plan to get a better idea of the roadmap they want for their business.

About the Author

Ayush is a writer with an academic background in business and marketing. Being a tech-enthusiast, he likes to keep a sharp eye on the latest tech gadgets and innovations. When he's not working, you can find him writing poetry, gaming, playing the ukulele, catching up with friends, and indulging in creative philosophies.

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What Is The Scope Of Operations Management?

Operations management is a vast and complex field encompassing many aspects of a business. From planning and organizing to staffing and controlling, operations managers are responsible for ensuring that everything runs smoothly within their organization. But what exactly is the scope of operations management? 

In this blog post, we will explore the various responsibilities that fall under the umbrella of operations management and discuss how it impacts businesses of all sizes.

Understanding Scope of Operations Management

Operations managers ensure that an organization’s operations run smoothly and efficiently. It is a field of business involving the management and production of goods and services. It includes overseeing facility design, planning, construction, maintenance, and control.

The scope of operations management can be quite broad, as it covers all aspects of an organisation’s operations. For example, operations managers may be responsible for managing the supply chain , designing and supervising manufacturing processes, overseeing quality control, or managing customer service.

No doubt, operations management is a critical function in any organisation, as it is vital in ensuring that its operations are efficient and effective. In today’s competitive business environment, organisations must be able to operate efficiently and effectively to survive and thrive. Thus, operations managers play a pivotal role in ensuring that an organisation’s operations are up to par.

There is a wide range of techniques and tools that operations managers use to improve an organisation’s operations. These tools and techniques include process improvement, quality control, Six Sigma, and lean manufacturing. Using these tools and techniques, operations managers can help organisations save time, money, and resources while improving quality and productivity.

Operations management (OM) is indeed a challenging and complex vertical, but it is also significant. Organisations cannot survive and thrive without effective operations management. Thus, those who enter this field can expect to find plenty of opportunities for career growth and advancement.

If you want to learn about operations management, check out our certificate course: Advanced Certificate in Ops, SCM, and PM .

Types of Scope in Operations Management

OM is critical to business growth concerned with the production of goods and services and involves the management of resources, processes, and people.

Scopes in operations management can be divided into three broad categories:

• Strategic Scope: This type of scope deals with long-term goals and objectives. It includes decisions about what products or services to offer, what markets to operate in, and how to allocate resources.
• Tactical Scope: This type of scope deals with short-term decisions that are necessary to achieve the organization’s strategic objectives. It includes decisions about production plans, schedules, and inventory levels.
• Operational Scope: This type of scope deals with the day-to-day decisions that are necessary to keep the organization’s operations running smoothly. It includes decisions about resources, processes, and people.

The scope of operations management is constantly evolving as the field adapts to changes in technology, markets, and customer demands. As a result, operations managers must be able to adjust their strategies and tactics to meet the needs of their organisations.

Let’s discuss different scopes of operations management responsible for a business’s growth.

Increasing Revenue

Operations management is the business area concerned with producing goods and services. It includes ensuring efficient business operations with the required resources meeting the customer requirements. 

It is all about managing the process that transforms inputs (labour, capital, land, and raw materials) into outputs (goods and services). Revenue is the lifeblood of any business. There is no doubt in asserting that one of the primary goals of operations management is to increase revenue. This can be done by increasing the efficiency of production processes and by increasing the effectiveness of marketing and sales efforts.

Benefits of increasing revenue

• More money to reinvest in the business: This can be used to fund expansion, research and development, or to improve working conditions and employee benefits.
• Greater financial security: This can help to weather tough times and provide a buffer against unexpected setbacks.
• Improved shareholder value can make the business more attractive to potential investors.

Reducing Need For Investment

Another goal of operations management is to reduce the need for investment. This can be done by improving the efficiency of production processes and/or by reducing the amount of inventory that is kept on hand. When operations management is placed in the right place, it will reduce the need for investment, which can free up funds to be used in other business areas.

In other words, the scope of operations management is quite vast and covers many different aspects of a business. By understanding the goals and objectives of operations management, businesses can ensure that they are making the most of their resources and improving their overall efficiency.

Benefits of reducing the need for investment

• Reduced overhead costs: Less need to spend on inventory, production processes, etc.
• Increased  cash flow: More funds available to invest in other areas of the business
• Improved efficiency and productivity: Less requirement for investment can lead to improved operations management and, as a result, improved efficiency and productivity.

Improving Customer Service

Operations management ensures that an organisation’s products or services are delivered efficiently and effectively. This includes managing the resources needed to produce and provide the products or services and planning and controlling the operations process.

Operations management plays a vital role in improving customer service. By streamlining processes and improving efficiency, operations managers can help to ensure that customers are satisfied with the products or services they receive. In addition, by constantly monitoring the operations process, operations managers can identify potential problems and take steps to prevent them.

As you can see, the scope of operations management is quite broad. By taking responsibility for the efficient and effective delivery of an organisation’s products or services, operations managers can have a significant impact on the overall success of the organisation.

Benefits of improved customer satisfaction

• Repeat customers: Customers who are satisfied with their experience are more likely to come back.
• Improved reputation: A business with a good reputation is more likely to attract new customers.
• Lower costs: Satisfied customers are less likely to demand refunds or file complaints, which can save the business money in the long run.

Enhance Goodwill

Operations management has a direct impact on an organization’s goodwill. Goodwill is the intangible value customers assign to a company based on their experiences and perceptions. Goodwill can lead to repeat business and referrals. When customers have positive experiences with a company, they are more likely to come back and recommend the company to others. 

Goodwill is also crucial because it can help company weather tough times. If customers have positive experiences and perceptions of a company, they may be more likely to continue doing business with it even during difficult economic periods. Therefore, improving goodwill should be a key goal of operations management.

There are several ways that operations management can improve goodwill. One is by improving customer service, which is done by ensuring that customers have a positive experience every when they interact with the company, either in person, online or over the phone. Another way to improve goodwill is by providing high-quality products and services.

Benefits of Improved Goodwill:

• Increased loyalty: When customers have positive experiences with a company, they are more likely to be loyal to the company. They may continue doing business with the company even during tough economic periods.
• Recommendations: Customers who have positive experiences with a company are more likely to recommend the company to others. This can lead to increased business for the company. 
• Better reputation: A company with a good reputation is more likely to attract new customers and retain existing ones. 

Increase Innovation

Organisations must innovate regularly to steer clear of the competition. This means that operations managers must be proactive in identifying new ways to improve the efficiency of their operations. Additionally, they must effectively communicate these ideas to other members of the organisation.

One of the most critical aspects of operations management is the ability to utilise resources effectively. This includes both human and financial resources. Operations managers must be able to identify ways to save the organisation money while maintaining high quality and productivity levels.

Innovation will bring about new opportunities for the organisation. However, it is essential to remember that not all innovations will be successful. It is the responsibility of operations managers to carefully evaluate new ideas and determine which ones have the potential to be beneficial for the organisation. They must also be prepared to implement these ideas to minimise any negative impact on the organisation.

Benefits of Increased innovation

• Helps the organisation stay ahead of the competition: By continually innovating, operations managers can help the organization stay ahead of the competition.
• Can lead to cost savings: Operations managers can identify ways to save the organization money through innovation.
• Creates new opportunities for the organization: Innovation can bring about new opportunities for the organization. 
• Allows the organization to be more flexible: By being innovative, operations managers can help the organization be more flexible and adapt to change.

Augment Productivity

This scope mainly concerns efficiently using resources to produce goods and services. The objective is to find ways to make the best use of people, machines, materials, information, and energy to bring more value to the customer. The focus is on achieving economies of scale and scope through process improvement, technology innovation, and better management of people and resources.

Operations managers are responsible for running an organisation and ensuring that all activities are carried out efficiently and effectively. They work in various industries, including manufacturing, healthcare, retail, and logistics.

Benefits of augmented productivity

• Improved quality of products and services: When resources are used more efficiently, it results in improved quality of products and services.
• Increased competitiveness: More efficient operations lead to increased competitiveness as businesses can produce goods and services at lower costs.
• Improved customer satisfaction: When products and services are of better quality and delivered faster, it leads to improved customer satisfaction.
• Increased shareholder value: All of the above benefits lead to increased shareholder value as businesses become more profitable.

How Can You Become A Good Operations Manager?

Operations managers are in high demand due to the business’s ever-changing and complex nature. In order to become a good operations manager, you need to have a clear understanding of the scope of operations management as they are the strengthening pillars of business.

The scope of operations management includes:

• Understanding the business process and how it works
• Identifying inefficiencies and areas of improvement
• Planning and designing new strategies or improvements to current processes
• Implementation of new or improved processes
• Monitoring of process performance
• Process optimisation
• Resource management

Operations managers need to have a broad skill set to be successful. They must be not only able to understand the business process but also be able to identify inefficiencies and areas of improvement. In addition, they must be able to plan and design new or improve current processes. Finally, they must be able to monitor process performance and optimise resources.

Becoming a successful operations manager requires a dedication to continuous learning. Operations managers must stay up-to-date on the latest industry trends and best practices. They must also be able to communicate effectively with other members of the organisation and external stakeholders.

If you intend to become an operations manager, many resources are available to help you get started. Online courses, books, and articles can provide you with the necessary information and skills. In addition, there are professional organisations that offer certification programs. These programs can give you the credentials you need to demonstrate your knowledge and expertise in the field of operations management.

The scope of operations management is broad, and an operations manager’s role is critical to any organisation’s success. If you have the skills and knowledge and the dedication to continuous learning, you can be a successful operations manager.

Do you possess everything that it takes to become a successful operations manager? We have a certificate course for you. Advanced Certificate in Ops, SCM, and PM gives a detailed insight into operations management and more.

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What Is the Operational Plan Section of the Business Plan?

Learning what an operation plan is and learning how to make it is something critical to any business. 3 min read updated on February 01, 2023

An operation plan section of the business plan is an essential part of any business. Learning what an operation plan is and learning how to make it is something critical to any business. Here are the main things you need to know about an operation plan.

Definition of an Operation Plan

An operation plan is a guiding path for the business to follow in order to achieve all of its goals and objectives described in the general business plan.

The operation plan mainly includes details about the people responsible for completing the required actions, and all the costs and KPIs (key performance indicators) for these actions to be accomplished.

In order for any business to be stable in the long run, the operation plan must be updated regularly in order to ensure the stability of the business.

What Is the Operations Plan Section and How to Properly Make It

The section of the operations plan which is included in the business plan mainly specifies all the physical requirements for the operation of the business. These physical requirements mainly include equipment, facilities, and location.

In order to make a complete business plan , three things need to be clarified to the reader:

• Everything was done for the business from the start to reach its current position
• Acknowledgment that you know exactly what should be done for any business to get off the ground
• Full awareness and understanding of the delivering and manufacturing processes of the service or the product you offer.

Operating Section of the Business Plan: Stage of Development Section

While you're developing the stage of development section, you should begin with the previous procedures that have been taken so far, along with mentioning what is best to be done in the future, it should be as follows:

• Production workflow : In this, you will describe in detail the exact steps of how your service or your product will be made, along with the acknowledgment of any possible problem that could be faced during the process.
• In addition, you will include details about how to train the employees to solve any upcoming problem and avoid any risks as much as possible. Along with mentioning any dangerous equipment that will be used, and the proper ways of using and storing these pieces of equipment.
• Supply chains: In this section you clarify the identity of the suppliers, the prices they offer, and their terms and conditions, In addition to providing the possible alternatives in case it doesn't work out with the current suppliers
• As an example, in case you are willing to have a specific quality control certificate, like the ISO 9000, you should identify and explain the required procedures.

What Are the Key Components to Include in an Operational Plan Regarding the Business Organization?

Here are the main components to be included in the operational plan:

• Most of the tasks in the operation plan are carried out by the company's managers and the employees under them, so it is essential that to clarify their identity, describe their qualifications, and describe the jobs and tasks which they will be responsible for.
• Providing an organizational chart to describe the structural hierarchy of the business.
• The philosophy and tactics of the company, and the role they play in the development and stability of the business.
• A statistical measurement of the performance of the employees and managers, and the ways of reward and punishment.
• Explain the methods that you will use to find the right employees, putting into consideration the required qualifications needed, the job description of each one, and the compensation rates that you will offer.
• In case the business will need any outside consultants it should be noted, along with the specific functions required from any outsider consultant or employee.

In the end, one could conclude that the success or a failure of a business depends heavily on the quality of the business and operation plan put forward.

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Learn how to do operational planning the right way

Some of this planning will be developed yearly—things like your yearly objectives and key results, for example, will naturally grow as time goes on. But to make sure you’re staying on track and executing against your long-term goals, you need an operational plan. 

What is operational planning?

Operational planning is the process of turning your strategic plan into a detailed map that outlines exactly what action your team will take on a weekly, or sometimes even daily, basis. An operational plan will include action items and milestones that each team or department needs to complete in order to execute your strategic plan. 

During the operational planning process, outline each team or person’s responsibilities for the next quarter, six months, or fiscal year. The level of detail and timeline you select for your operational plan should depend on how quickly your organization typically moves—if you’re a fast-paced team with an accelerated roadmap, consider creating an operational plan for the next quarter or half year. But if your organization tends to think more long-term, create an operational plan for the entire fiscal year.

Operational planning vs. strategic planning

A strategic plan is a business-level plan of your long-term strategy for the next three to five years. An operational plan is smaller in both scope and timeline. The goal of operational planning is to outline the daily actions you need to take to hit your strategic goals. 

Unlike a strategic plan, an operational plan should also focus on implementation . What daily and weekly actions does your team need to take in order to accomplish your longer-term strategic plan? What specific Key Performance Indicators (KPIs) do you need to track on a regular basis in order to ensure that your team is progressing towards your objectives? These details should be captured in your operational plan.

Who should create an operational plan?

To capture exactly who is doing what by when, an operational plan needs to be very detailed. For this reason, create an operational plan at a smaller scale than your strategic plan—both in terms of timeline and scope. Instead of trying to create an operational plan for your entire company, create one at the department or team level. At a larger company, you could even create an operational plan for a specific initiative—similar to a detailed work plan .

For example, create an operational plan to explain the daily tasks your IT department needs to do in order to support the company. Your IT department’s operational plan might include how frequently IT team members will check the IT requests project inbox , budgeting details for the program, how the IT team will onboard and equip new employees, and how frequently the team will meet. 

There are three levels to who should create an operational plan:

Scope: Your operational plan will capture the who, what, and when of each activity. It should be laser-focused on a team or initiative.

Timeline: Depending on how fast your organization moves, your operational plan should span a quarter, six months, or a fiscal year. 

Stakeholders: Make sure the people involved in operational planning are close to the work, so they can accurately project and predict what work should be included in the plan.

The benefits of operational planning

A strategic plan is a great way to proactively align your team around a shared purpose. By defining long-term goals, you can outline exactly where you want to go.

An operational plan helps you hit your strategic goals. According to our research, only 26% of knowledge workers have a very clear understanding of how their individual work relates to company goals. By creating a detail-oriented operational plan, you can define exactly what short-term goals you need to achieve in order to be on track towards your long-term objectives. It can help you think through the actions you’re currently taking or need to take in order to execute against your goals. 

In particular, an operational plan:

Clarifies exactly what your team will be doing on a weekly and daily basis.

Provides a comprehensive guide of the day-to-day operations your team members need to take in order to accomplish your long-term goals.

Sets a benchmark for daily expectations, so you can avoid getting off track.

5 steps to making an operational plan

During the operational planning process, you're not creating new plans or developing new goals. Rather, to create an operational plan, assess everything your team is currently working on and everything you need to do on a daily or weekly basis to hit your strategic goals. Here’s how:

1. Start with a strategic plan

If you haven’t already, create a strategic plan first. You need a long-term vision and goals before you can break down the day-to-day details. There are four steps to creating a strategic plan:

Determine your position

Develop your strategy

Build your strategic plan

Share, monitor, and manage your strategic plan

To learn more, read our article on strategic planning .

2. Narrow down your scope

In order to create a detail-oriented operational plan, you need to narrow the scope to a team, department, or focus area. The scope of your operational plan will depend on the size of your company.

For example, imagine you’re breaking down your strategic plan into action plans for various company departments. Your marketing team spans multiple functions—for example, design , product marketing, social media, content creation, and web promotion. To capture specific, daily functions within each team, you should create an operational action plan for each smaller team. 

3. Identify key stakeholders

Before creating an operational plan, decide who will be involved in the operational planning process. The team members creating the operational plan should be relatively close to the actions the plan describes. 

To continue our example, the design team’s operational plan should be created by the head of the design team and the team leads (depending on the size of the team). Once they’ve created their operational plan, the team should share the plan with the head of marketing for final approval.

4. Create the plan

Your operational plan explains the actions your team will take to achieve your goals within a set time frame. To create an operational plan, outline:

Your team’s objectives

The deliverables that will be achieved by the operational plan

Any desired outcomes or quality standards

Staffing and resource requirements , including your operating budget

How you will monitor and report on progress

If you’re struggling to figure out all the details that should be included in your operational plan, ask yourself the following questions: 

What do we need to accomplish? This information should come from your strategic plan or yearly goals.

What daily tasks do we need to complete in order to hit our goals? These can be daily tasks you’re currently doing or new work that needs to be kicked off.

Who are the people responsible for those tasks? Make sure each task has one owner so there’s no confusion about who to go to for questions or updates.

What are our metrics for success? If you haven’t already, make sure your goals follow the SMART framework . 

To continue our example, here’s the framework the design team might use to create their operational plan:

Part of the strategic plan for the marketing team is to increase share of voice in the market—which means more eyes on marketing materials and increased engagement with potential customers. To support these goals, the design team will: 

Create additional promotional materials for the social team

Revamp the website home page to attract more potential customers

To accomplish these two goals in the next year, the design team will:

Hire two new team members to focus on social media engagement

Partner with the web development team within the marketing department to create an interactive home page

To track and report on their progress, the design team will use Asana as their central source of truth for key performance metrics, including:

What designs they are creating

The level of engagement they’re getting on social media

The progress of the website update

This is just the framework the design team would use to create their operational plan. Bring this plan to life within a work management tool like Asana to share clarity on all of the work the team needs to do to hit their goals. With work management, every task can be tracked in real-time from inception to completion.

5. Share and update your operational plan

Once you’ve created the plan, share it with key stakeholders so they understand your team’s most important goals and the daily tasks it will take to get there. Manage your plan and updates in a shared tool that captures real-time progress, like Asana .

Like any element of project planning, things will inevitably change. Actively monitor your operational plan and report on progress so key stakeholders and team members can stay updated on how you’re tracking against your goals. Report on progress monthly through written status updates . 

Get started with operational planning

An operational plan can help you ensure you’re making progress on long-term goals. But in order for this plan to be effective, make sure you’re tracking your work in a centrally-accessible tool. Siloed information and goals don’t help anyone—instead, track your action items and goals in a work management tool.

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W hen creating a business plan, it’s important to understand the key types of plans to determine which will most benefit your specific business needs. Some plan types include operations plans, strategic plans, and tactical plans, each of which has a different focus and purpose. All three can fit together as part of the overall management planning process, although your business may need only one or two different plans. Here’s operational planning information and strategies to help you create them.

What Is Operational Planning?

Operational planning involves defining and outlining the actions individuals will take to support the plans and objectives of the executive management team. An operations plan is extremely detailed , describing the who, what, where, and when involved in managing the day-to-day tasks and low-level activities of the business. This type of plan supports the tactical plan, which is more of a mid-level plan.

What are the criteria of an operations plan?

To qualify as an operations plan, the plan itself needs to meet certain criteria. We’ve listed important criteria below:

• The plan needs to exist together with tactical and strategic plans. An operational plan supports these other two plans and provides more detail about how a business and its team members will achieve the goals outlined in the high-level plans.
• Providing the details included in an operational plan will give members of supporting management a clearer sense of their tasks. When executive management members create the tactical and strategic plans, they need to ensure that supporting management team members have a firm grasp on what they need to do to support achieving the goals outlined.
• An operations plan should only apply to a specific area or department of an organization. If the plan is too broad, it typically cannot get into the level of detail needed to emphasize how certain activities and processes will be completed. For example, if a manufacturing company created an operational plan, it might outline a strategy for each of the products it manufactures or for each of the plants it operates.

Operations plans subdivisions

Operations plans can be further segmented into two categories:

• A single-use plan , which is created to address a specific issue or period. An example of a single-use plan is one that outlines the process of cutting expenditures during the following year.
• An ongoing plan , which can be altered as needed and will carry forward into future time periods. An example of an ongoing plan is one that outlines the process of bringing on new staff members as positions are created or vacated.

Strategic, Tactical, and Operational Plan Differences

A strategic plan is a business plan created by an executive management team which has a much wider scope than a tactical or operational plan. It is a plan that can outline the ambitions, future goals, and mission of an organization.

1. Strategic plans

Strategic plans tend to be broader and vaguer, although they may focus on the high-level and long-term goals that the company will work to achieve over the next three to five years. Strategic planning can also include the way an organization will measure its progress toward the established goals and any major projects that need to be completed to achieve the goals.

2. Tactical plans

A tactical plan is created by mid-level management professionals and includes the specific actions that employees must take to work toward the goals described in the strategic plan. This plan can also outline how a certain area or department of a business will support the strategic plan. A tactical plan isn't usually very detailed, but it will include more specific ideas and actions.

3. Operational plans

One of the main differences between a strategic and operational plan is the period of time covered. In a strategic plan, the goals are typically attainable in several years, while the operational plan goals are short-term ones and can be achieved during the next year in most cases.

Operations plans’ focal points

Focus areas are the foundation of your strategy. They expand on your Vision Statement and start to create some structure around how to actually get your organization to achieve its goals. The focus of the goals and objectives in each plan differs.

A strategic plan exists to outline the long-term vision of the company and how each department will work together to achieve the goals.

An operational plan focuses on specific departments and their roles in achieving short-term goals. A large department may have multiple plans to maintain a clear and detailed focus.

Differences between a strategic and operation plan

Here are the most significant differences between the two ideas:

Time period

Your strategic plan outlines long-term goals for the next three to five years. What you’ll be doing to achieve those goals in the shorter term (typically the next fiscal year) is outlined in your operational plan.

The goal of your strategic plan is to outline the company’s long-term vision and how all departments should work together to achieve it.

Because of its narrower focus on specific departments instead of the entire company, an operational plan is more detailed and outlines how to reach the outlined goals.

A strategic plan distinguishes your organization’s direction as being different from that of other companies. In contrast, an operational plan is all about being better operationally.

Who creates an operational plan?

Who creates each plan is another difference. Members of an organization's executive management team will handle the creation of a strategic plan, as those responsible for the overall vision and goals. Department heads may create an operations plan since they are the ones to implement the processes. Those involved in creating the plan are often more likely to work together to accomplish the necessary tasks.

Reporting on operations plans

Reporting is another key differentiator among the types of plans. When reporting on a strategic plan, which may happen as often as quarterly or once a year, executive management will outline how an organization is performing on specific measures. The reporting should be at a high level to avoid getting lost in details that don’t help an organization reach their goals.

An operational plan report is much more detailed and typically is prepared and reviewed more often. When you have a regular review of reporting, your team reviewing the reporting more frequently, individuals can make sure all team members remain on track and can handle the necessary tasks and processes to achieve the short-term goals related to the business operations.

Operational plans may not have specific measures to quantify results or report on, and these updates may be more qualitative or anecdotal.

Creating an Operations Plan

When creating an operations plan, you want to follow some key steps, such as:

1. Focus on goals

First, focus on important goals that pertain to the specific department or division that will follow the plan. After identifying the goals, determine any key initiatives that will help achieve those goals. These initiatives will easily enable those following the plan to understand what they must do to work toward achieving the broader goals.

An effective operational plan should also include key performance indicators that permit progress monitoring. A key performance indicator (KPI) is a measurable value that shows how well a company is achieving the key business objectives it has outlined. The KPIs in an operational plan will lead the team members involved as long as the KPIs are communicated effectively.

2. Outline responsibilities and tasks

The operations plan must also clearly define who, what, where, and when in great detail. It should outline who is responsible for which tasks, what tasks need to be completed to achieve a goal, where the individuals involved will work on their assigned tasks, and when they must be completed to maintain the timeline. You also want to discuss whether the plan is an ongoing or single-use plan. This information will help to better define the estimated timeline for completion.

3. Define resources

The final step to create an operations plan is defining the resources needed to achieve the goals. These resources may include software programs to improve processes, tools to manage new tasks, or training to bring all team members up to speed on a certain task. Determining the necessary resources can help divisional leaders know how to proceed and provide their team members with what they need to succeed.

Operations Plan Example

Don’t think that these types of plans are just for big organizations. Operational plans can be helpful in almost all industries and business structures. Your plan should be tailored to your unique business but many elements will be the same. You don’t have to reinvent the wheel - there are lots of plan examples out there. Below we've provided a simplified version to study.

Manufacturing Plant Operations Plan

• Objective: Improve plant workflow
• Category: Single-use plan
• Required Resources: Training, efficiency study, and new equipment that operates quickly and more efficiently
• Tasks: Learning how to set up new equipment, identifying ways to reduce production waste, determining how to best reduce the level of inventory maintained in the plant, and identifying strategies to improve procedures associated with materials handling

Final thoughts

By creating an operations plan, a business can outline its short-term, divisional, or departmental objectives and describe the initiatives required to achieve those objectives. Operations plans work together with other types of business plans to outline the overall goals of an organization as well as how the business plans to meet these goals.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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How to Write a Scope of Work (Examples & Templates Included)

What Is a Scope of Work?

A scope of work document is an agreement on the work you’re going to perform on the project. The scope of work in project management  includes deliverables, a timeline, milestones and reports. Let’s look closer at each of these elements below.

What Should Be Included in a Scope of Work Document?

Here’s an overview of the main components of a scope of work. You can add or remove some of these elements to better adjust to your project stakeholders’ requirements.

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Scope Of Work Template

Use this free Scope Of Work Template for Word to manage your projects better.

Project Deliverables

This is what your project delivers. Whether it’s a product or a service, it’s the reason you’re executing the project for your customer, stakeholder or sponsor. Whatever that deliverable is, and it can be some sort of document or report, software, product, build (or all of the above), you need to clearly identify each item here. Creating a work breakdown structure can help with this step. Also, make sure there’s an acceptance criterion for the project deliverables, such as quality standards or functional requirements.

Project Timeline

Think of a timeline as a road leading from the start of a project to its end. It’s a section of the document that delineates the major phases across the schedule of the project’s duration. It should also mark the points in the project when your deliverables are ready. As you can guess, it’s essential to scope out the overall plan of any project. This is best presented visually, like a rolled-up Gantt chart plan, so the stakeholders can see the high-level timeline.

Project Milestones

Projects can be long and complex, which is why they’re laid out over a timeline and broken down into more manageable parts called tasks. Larger phases of the project are marked by what’s called a milestone . It’s a way to help you monitor the progress of the project to ensure it’s adhering to your planned schedule. Define your key milestones on a timeline in the scope of work document, including project kickoffs, meetings, hand-offs, etc.

Project Reports

You’ll be generating reports throughout the project, delivered to either your team or customer, stakeholder or sponsor. These can include status reports , progress reports, variance reports and more. They’re a formal record of the progress of your project, but they’re also a means of communication beyond whether the project’s on schedule or not.

Depending on how you customize reports , there’s a wealth of data that can serve a number of different audiences. Define how you’ll be reporting on the project and when the stakeholders can be expecting them and from whom.

How to Write a Scope of Work

Now that we’ve listed the elements of a scope of work document, let’s go through the step-by-step process of writing one. These steps can help you create a scope of work for different industries such as construction or manufacturing.

• Define the project goals: Before writing a scope of work, you should define what project goals will be accomplished through the execution of the project tasks that’ll be included in your scope of work.
• Use a work breakdown structure to identify project tasks: The first step when writing a scope of work is to identify all your project tasks. This is done by using a work breakdown structure (WBS), a project management tool that lets you break down projects and work packages into individual tasks, so you can better plan and schedule them.
• Determine your project deliverables: A project deliverable is a tangible or intangible output from tasks. They’re an important part of a scope of work as they’re the outcomes of the project.
• Establish acceptance criteria for your project deliverables: Project deliverables must meet the acceptance criteria established by the project client, such as quality standards or functionality requirements.
• Use the CPM method to create a project timeline: The critical path method is a project scheduling technique that allows project managers to create a project timeline and estimate project duration by identifying the longest sequence of tasks. It’s important that you use this or other project scheduling techniques to create a realistic schedule for your scope of work.
• Establish payment terms for the project: You may include payment terms as a section of your scope of work.
• Establish project reporting procedures: Communication between the project team and project stakeholders is very important, so your scope of work document should include a section that explains how reporting will take place.

Scope of Work Template

Now that you know how to write a scope of work, as well as what’s included in this all important document, download our free scope of work template for Word . It has everything you need to make a scope of work document for your own project, so your stakeholders know exactly what to expect in terms of schedule, deliverables and effort.

Scope of Work Example

To understand the purpose and importance of a scope of work in project management, let’s start with a simple scope of work example, planning a wedding. A wedding is a project, and depending on the bridezilla (or groomzilla), it could be bigger and more complicated than building a highway or an airport.

Let’s take one aspect of that larger project, the wedding invitations, and break this down into a scope of work. We’ll outline the deliverables, timeline, milestones and reports in this scope of work example.

Deliverables

• Invite list
• Addresses of attendees
• Addressed envelopes
• Jan. 1: Decide on the invite list
• Feb. 1: Have addresses collected of attendees
• March 1: Pick invitation style and have printed
• April 1: Address and mail invites
• May 1: Get the final count of guests
• June 1: Wedding
• Selection of guests and collection of addresses
• Mailing of invitations
• The final count of attendees
• Check on the status of address collection
• Stay in touch with the printer for progress on invitations
• Check RSVPs against the invitation list

With ProjectManager , you can build a project timeline in seconds with our online Gantt chart maker. Map your scope of work, create a budget, assign tasks, add dependencies and more. Then present to your team and stakeholders to get the project moving on the right foot. Try it free today.

Construction Scope of Work Example

Now, let’s create a scope of work for a small construction project , building a house. This project involves many steps, but for practical purposes, this construction scope of work example will only focus on some of the main deliverables, timelines, milestones and reports.

Project deliverables: These project deliverables are individual, tangible outputs from different construction activities.

• Land clearing
• Ground leveling
• Sewer Lines
• Wood Framing
• Sheathing Installation
• HVAC system installation
• Electrical panels and wiring installation
• Roof installation
• Insulation installation
• Drywall installation
• Interior painting, appliances, cabinets and other final details

Project Timeline: The scope of work timeline depends on the complexity of the construction design and the agreement that the project owner reaches with the general contractor, who will hire subcontractors to accomplish different types of construction work.

Project Milestones: The scope of work milestones marks important achievements during the project as tasks are executed . Instead of referring to individual project deliverables, they describe project phases that have been completed successfully. As a project manager, you might choose the milestones that are significant for your project.

• The building envelope has been completed
• Foundation, framing, plumbing and electrical inspections have been passed
• Exterior work has been completed
• Interior work has been completed
• Project has been delivered successfully

Project Reports: The reports that you use to track the scope of work might vary, but these are essential construction project reports.

• Project status reports
• Daily construction logs
• Construction punch list

Why Is It Important to Write a Scope of Work?

Here are some of the reasons why writing a scope of work is beneficial for projects.

Defines the Project Scope

The main purpose of a scope of work is to define the scope of a project . This means defining the work that’ll be done as well as project exclusions, activities or deliverables which aren’t part of a project.

Prevents Scope Creep

Scope creep is a risk that can affect any project. It occurs when additional project tasks are added to the initial project scope during the execution of a project. These unplanned additions of work cause extra costs and derail the project schedule. Scope creep can be avoided by having a clear scope of work that establishes what will and what won’t be executed. However, changes might be made to the project scope by using a change request, another important project management document.

Sets Clear Expectations for Project Stakeholders

Without a scope of work document, project stakeholders might have unrealistic expectations about a project , such as assuming certain tasks and deliverables will be done. Therefore, it’s important for project managers and project teams to make sure there’s a scope of work that lets stakeholders know what to expect.

Scope of Work Tips

But before you get to writing, you need to make sure you follow these tips.

• Be specific : explain the terms used clearly
• Use visuals : a picture is worth a thousand words
• Get sign-offs : make sure everyone who needs to okay the work, does

It’s not that difficult, but it needs to be thorough because you don’t want to have to play catch-up with paperwork when you’re in the heat of the project.

Pro tip: The SOW is essential to the project plan and is often included as part of the overall project plan, but it can be time-consuming to write. We’ve created dozens of project management templates to help you create all your project documents. 

How to Manage Your Scope of Work With Project Management Software

It can feel overwhelming with so many tasks to keep track of, but project management software can simplify the process. In ProjectManager , you can import your spreadsheet or use one of our industry-specific templates to get you started.

A list of tasks is only a start. To bring order to that chaos, you’ll want to estimate duration by adding start and finish dates. We then automatically put your tasks on a timeline in our Gantt chart project view , so you can see the whole project in one place. Further reign in the tasks by prioritizing them, linking dependencies to prevent bottlenecks later in the project and setting milestones to break up the larger project into more manageable phases.

Collaborate at the Task Level

Tasks need people to execute them and move your project forward. You have your schedule, so onboard your team and start assigning them tasks. You can do this from any of our multiple project views. We offer collaborative tools that make teams more productive and help them work together. You can direct them with task descriptions and by attaching files to the task. Then, they can work together, commenting at the task level with other team members, who are notified by email. This is great for remote teams and even those working in the same room.

Track Progress to Stay On Time and Under Budget

Speaking of distributed teams, how can you keep track of their progress if you can’t check in on them? We solve that problem with great monitoring features, such as a real-time dashboard that shows you task progress, costs and other high-level views of the project. Our software takes status updates and automatically displays them in easy-to-read charts and graphs. You can even share them at stakeholder meetings to keep them in the loop.

For more in-depth data, we feature one-click reports that can be filtered to show just the data you’re looking for. Reports track project variance, workload and more. You’ll catch issues and resolve them quickly before they become problems that threaten to derail your project.

If you want that scope of work to be the beginning of a beautiful project, then try ProjectManager for free with our 30-day trial offer.

Video: Scope of Work Best Practices

In this video, Jennifer Bridges, PMP, shows you how to write a scope of work for project management . Follow her steps to get started or use our project plan and scope document template!

Here’s a shot of the whiteboard for your reference!

If you need a tool that can help you manage and track your scope of work document, then sign up for our software now at ProjectManager .

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A Framework to Design an Effective Operations Strategy

Erica Golightly

Senior Writer

December 12, 2023

Why do some companies align on strategic priorities and operate at peak efficiency while others have a stockpile of unsuccessful projects? 

The short answer is the shelf life of an operations strategy hinges on day-to-day implementation.

In a 2023 ClickUp global survey of hundreds of business leaders, 35% of respondents said operational efficiency is their top focus for business success. This is a call to action for Outcome Champions—operations management professionals coordinating resources, processes, and people to achieve operational excellence. ✨

The fundamental question to ask before taking any steps is a two-parter: What are your organization’s logistical and culturally relevant strategies, and how do you sustain a best-in-class partnership between all leadership levels and teams for success? 

Building strategies isn’t just about solving problems. Instead, it should leverage the capabilities of technology and build a workplace that removes fear-based opinions about trying new ideas. And that type of innovation is fuel for both strategic work and production .

• Types of operations strategies

Step 1: Define what the operations strategy will impact or transform 

Step 2: identify and secure the essential resources required for successful strategy execution, step 3: co-create an action plan to secure the flow of materials, information, and resources, step 4: leverage technology and be the driving force behind the strategy’s implementation, step 5: set checklists and decision rules for continuous improvement.

What is an Operations Strategy?

Operations strategy is the actionable plan that guides how a company manages its processes and resources in alignment with its overarching organizational goals. These processes involve the production and delivery of products or services that the company offers. 

Beyond the jargon, there’s a concept that molds a workplace’s culture, productivity, and business goals. Any company—small, mid, and large—does this to fit what they’re doing, where they’re doing it, and how they want to be different from others in their field.

While it could be perceived as an overlap with strategic planning , there is a distinction to be mindful of as we explore this guide: Strategic planning sets the overall vision and direction for the organization, often done annually or semi-annually. The operation’s main goals describe the processes and workflows that will be used to complete the work. ⚙️

Let’s take a look at operation strategy examples of specific functional areas within the organization:

Types of operations strategies for improvement, efficiency gains, and innovation

These operations strategies are not mutually exclusive. And this is good news! No one wants to be locked into a single business strategy. An integrated approach lets organizations optimize their operations for different products/services, customer segments, and markets. 🎯

When an organization invests in operations strategy and implementation, it invests in employee productivity. With a direct line of sight to the why and how behind their tasks, they aren’t forced to navigate high levels of ambiguity.

Instead, they are prepped with clear instructions to complete the right tasks. 

If you’re eager to begin process mining and outline your operational objectives right now, download the Operational Plan Template by ClickUp . It’s time to declutter your mental garage to make space for exciting, growth-oriented projects.

Extend invitations to your nearest collaborators and organize a systems architecture workshop, whether in real-time or asynchronously! 📧

So far, we’ve learned the inner workings of an operations strategy. Let’s see this in practice.

How to Build the Elements of an Operational Strategy Into Project Plans

This compact guidebook is built for an operations manager to implement the best core business processes and workflows into project plans. 

So, why is this guide compact? Disclaimer: We’re all in the same sitcom but reading different scripts. While there are business models and industries we can sort ourselves into, every company has a different set of core values that reflect its purpose and guiding principles. 

For this reason, the systems you’ll read below are the key success factors all operational strategies need. Teams can reach their peak performance by putting just one insight into action!

Think short-term perspective (competitive priorities) and long-term vision (trade-offs). 

Short-term planning meets immediate customer requirements, helps allocate resources at the right place and time, and provides benchmarks for evaluating team performance.

Long-term planning allows organizations to invest in modern technology solutions, guide market expansion opportunities, and redesign logistics. 

Your operational plan should have a narrower scope and be concerned with the day-to-day activities and actions necessary to implement the strategic plan . The key to securing leadership approval and support is articulating your plan’s value, feasibility, and alignment.

This is where co-creating easily measurable KPIs with teams and all levels of leadership is essential to provide each team member with a sense of ownership in their tasks. 🔑

Putting together a task force for the operations strategy is a group effort, especially when partnering with other teams. Collaborators in finance, marketing, human resources, and more will help fill knowledge gaps and advocate for enhancing efficiency , reducing costs, and delivering greater value.

Every department has business-as-usual tasks that keep the ship moving. If your operations strategy requires a significant chunk of time, there needs to be conversations with department leads about the best approach to minimize disruption. 💬

Because operation managers have a complex and multifaceted role, these discussions are teachable moments to influence the outcome of projects. 

Three valuable tools—capacity planning, resource planning, and process mapping—will take the guesswork out of this step. 

• Capacity planning gives visibility into whether you have enough company resources to meet the demands of a project’s needs
• Resource planning answers the question: What projects are our resources currently working on?
• Process design mapping outlines the sequence of events, tasks, and activities involved in a business process

This action plan will take multiple rounds to finish, but it won’t be complete even then because priorities may evolve as circumstances change. The best safeguard for transparency in any shift in the strategy is having a single source of truth to revisit and make micro-adjustments. ⚖️

The contents of your action plan will vary based on your company’s business model and operational processes. At minimum, the contents of your action plan document should include: 

If it feels as if the universe gets bored and starts making things happen on its own because it takes you over a week to draft an action plan, try ClickUp AI . We’ve covered you with 100+ tools that use research-based prompts tailored to specific roles! 🤖

Are teams feeling comfortable sharing their ideas, concerns, and feedback? Is there a rise in delayed projects because of a lack of accountability? Are team members asking, “What should I do today?”

Your leadership, communication, and problem-solving skills are essential to the operation strategy’s success. Because you’re working between different teams, you’ll have to organize assorted information that’s coming at you from different channels. 👨‍💻

You’ll need the right task management container to set everyone up for success and communicate expectations for executing projects. If you think the action plan you wrote in step 3 will be “good enough,” consider this: 

Managing tasks through a static action plan can overwhelm larger teams or complex projects. There’s too much noise and clutter to scroll through daily. Dedicated task and project management software sets the stage for individual and team productivity at scale.

Manual models can’t keep up with the demands of an agile workforce, and being agile is a non-negotiable in today’s marketplace as industry-tailored AI use cases continue to grow. Your time and attention should be spent on high-value tasks and activities that move teams closer to their goals.

Take a quick water break, then download the Daily Action Plan Template by ClickUp . This template has all the ingredients to organize task assignments, milestones, deadlines, and contributors. 

As ClickUp users, your teams and stakeholders have all the tasks and documentation within reach to monitor progress closely throughout the implementation phase!

Warning: The hidden costs of shortcuts

It’s easy to underestimate the impact of small, seemingly mundane tasks that accrue over time. However, these “save for later” tasks can quickly snowball into a significant team problem. 

Let’s take a closer look at the hidden costs of shortcuts: 

• Workplace cultural debt : Workplace cultural debt refers to the negative consequences of neglecting the company’s culture and core values, like low employee morale, high turnover, and decreased productivity, which can harm their long-term success
• Technical debt : Technical debt arises when software or technology solutions are developed quickly or with suboptimal coding practices to meet immediate needs
• Process debt : Process debt refers to accumulating inefficiencies and shortcomings in an organization’s workflows and procedures over time
• Knowledge debt: Knowledge debt occurs when organizations fail to invest in continuous learning and development for their employees

Tackling any debt is a team effort. Here are a few quick methods to pull out of your productivity toolbox and tackle small tasks for minimum impact on your production initiatives: 

• Prioritize tasks : Prioritize tasks using the Eisenhower Matrix (urgent and important tasks come first, followed by important but not urgent ones)
• Team session blocking : Schedule focused time blocks for small tasks, avoiding multitasking to minimize distractions
• Task batching : Group similar tasks together and address them in batches to reduce context-switching
• Delegate when appropriate : Delegate action items and tasks that others on your team can handle

Now, back to our regularly scheduled program! 🎬

Considering that other routine tasks and special projects are running simultaneously in your workload, how do you maintain group momentum in the operations plan?

Begin with questions to help the operations management team systematically gather and analyze data on a centralized dashboard. This will reduce cognitive burden and allow team members to make confident decisions. 

These checklists and rules can be as detailed as you need them to be for internal use. If it helps to assess their true usefulness, run it through a beneficiary test. Give them to project leads, stakeholders, and senior leadership to confirm whether or not they’re focusing on the right questions to evaluate day-to-day implementation. 📊

So, how can operations managers apply checklists and decision rules on a tactical level when they’re up against tight timelines? 

Deliver a consistent experience to your team with a scheduled routine. 

Here’s a breakdown of operational strategy tasks at intervals. Is there anything you notice that can be added to your personal or team schedule? 🗓️

What’s Next?

With your newly acquired operations strategy framework in hand, apply it in the context of your company’s operations and processes . From supply chain management to software and everything in between, you’ll have the tools to coordinate even the toughest operations strategies. 💪

Lastly, if you’ve ever experienced fleeting progress in your responsibilities, it might be because you’re not focusing on the right things at the right time. It’s okay—no, it’s allowed —to ask your peers to challenge your observations when you get stuck. 

Count on the team at ClickUp as one of your peers, and reach out if you need help stepping out of a revolving door of unsuccessful implementation. Happy planning! ✍️

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What Is Business Scope (Explained: All You Need To Know)

Looking for Business Scope ?

What does scope mean in business?

What’s essential to know?

In this article, I will break down the meaning of Business Scope so you know all there is to know about it!

Keep reading as we have gathered exactly the information that you need!

Let me explain to you what business scope means once and for all!

Are you ready?

Let’s get started!

Table of Contents

Business Scope Meaning

You’re looking to write a business plan, apply for a business loan, or register a new business entity and you’re asked to provide the “scope” of your business…

What does business scope mean?

What should you indicate there?

Defining and properly understanding your business scope is very important for all businesses to ensure that all employees, managers, executives, and directors are all paddling in the same direction.

In the English language, the word scope is defined as “area” or “subject matter”.

In essence, “business scope” means the “area” in which your business operations (your business objective).

Depending on your business, you may have to define your business scope per department, per region, per product line, or for the entire business.

For example, a small boutique selling t-shirts will have a highly defined scope (the sale of consumer goods at retail).

On the other hand, a large conglomerate having subsidiaries operating in different lines of business will have to define its scope per subsidiary or line of business.

Business Scope Definition

How do you define business scope?

If you ask ten people to define business scope, you may potentially get ten different answers.

Business scope is a broad term that can be defined in many ways.

Scope in business tends to summarize in a few words what your company does.

Here is a definition of business scope that can be considered:

Business scope refers to the main strategic direction of your company Author

In other words, your business scope refers to the reason why company shareholders appoint the board of directors and the board’s overall objectives.

Your “business scope” should refer to every business activity performed by your company from sales, marketing, product development, contracting, and all other functions.

Why Is Business Scope Important

Defining the scope of your business is quite important.

For a new company starting out, defining your business scope allows you to better target your business plan, increase your chance of getting the business financing or loan that you need, and ensure that everyone in your company is working on the same objective.

Having a good understanding of your business scope will also allow you to properly define your business when you’re looking to form a new business entity.

In many states, you’ll be asked to provide the “business scope” when you’re looking to form a new business entity.

Having defined your business scope, especially for a new business, will help you immediately answer this question.

In other jurisdictions, the scope of your business is also mentioned in the company’s incorporation papers, charter, memorandum, articles of association, or similar documents.

Related article:

• Need of business

How To Write A Business Scope

The scope of your business should be clear enough allowing everyone to quickly understand what your business does.

To define your business scope, you’ll first need to understand the nature of your business.

There are three broad nature of business categories: service business , merchandising business , and manufacturing business.

For example, a consulting firm will be in the service business whereas a grocery store will be in the merchandising business.

Once you have defined your overall business nature, then you can start defining your scope.

For most small businesses, the business scope should cover what your company does as a whole.

However, large businesses may need to consider their scope per unit, region, industry, or other segments.

To narrow your scope, consider the strategic direction of your company.

What is your company looking to achieve?

What’s the overall purpose of your company?

Who are you trying to serve?

Your scope should cover the products and services you offer, all your physical locations, and the markets you serve.

For example, a shoe store will potentially have the following business scope: provide affordable sports shoes to sports amateurs and athletes.

• Nature of business meaning

Business Scope Example

Let’s look at a few examples of business scope to better understand the topic.

A family-owned catering business can define its scope as “providing catering services to individuals and companies in the city”.

A small boutique could define its scope to be “purchase consumer goods wholesale and sell to consumers at retail”.

A large company having different lines of business can define a scope for each line of business, such as:

• Provide professional services to companies for the implementation of network security products and equipment 
• Provide network security products and equipment to companies of all size 
• Types of businesses

Takeaways 

So there you have it folks!

What does business scope mean in simple terms?

Scope in business refers to a statement summing up all the activities performed by a company from sales, marketing, product, contracts, and more.

For most businesses (small businesses and SMEs), business scope covers all departments and all functions of the business.

For larger organizations, the scope may be defined per region, industry, or other qualifications.

Properly defining your business “ scope ” is crucial allowing you to quickly verbalize what your company does and the results it is looking to achieve.

Now that you know what “business scope” means, why it’s important, and how to define one, good luck with your business!

If you enjoyed this article on Business Scope , I recommend you look into the following terms and concepts. Enjoy!

You May Also Like Related to What Is Scope In Business

Product scope Project scope  Project scale Economies of scale  Economies of scope  What is scope  Scope creep  Scope management  What is a business Author

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A Scope of services template to define your operations

Clear communication is crucial in every aspect of a business. Before undergoing operational changes within your departments or undertaking a client project, both sides should clearly understand what to expect. If there are miscommunications, you or the other side could end up frustrated or not receiving what you planned upon completion. Thankfully, a scope of services document can eradicate potential miscommunications by providing a clear roadmap of objectives and final deliverables.

Today, we’ll discuss how you can use a scope of services template or document to define your operations for your company, individual departments, or client projects. We’ll also share a free scope of services template that you can pair with monday.com’s Work OS to make undertaking the defined work simpler and more efficient.

Get the template

What is a scope of services template?

Generally, an SOS operates as a contract that both parties sign to ensure all involved parties are on the same page. A scope of services template provides a uniform foundation to begin writing all your company’s operational plans or contracts. Using a template allows you to write an SOS faster and more efficiently while negating the potential for errors and missing information.

Why use a scope of services template?

Using a template to write your SOS ensures you don’t miss any crucial information. Using an SOS, in general, can:

• Ensure all involved parties understand the work to be done
• Provide a clear outline of deadlines, deliverables, payments, and resource allocation
• Keep your project on schedule and within budget
• Protect you and the other party when dealing with clients by providing a legally-binding contract
• Establish control factors you can use to address potential changes, bottlenecks, and roadblocks within the defined project or operational plan
• Clearly define company expectations within a department (when using an internal scope of services document)

You may find some examples helpful in understanding why you should use a scope of services template.

What are some examples of scope of services templates?

You can use an SOS both for clients and internal processes. For example, you may use one to define expectations for a client’s project or to establish the adoption of new operational processes.

Project overview SOS

You can use a scope of services template to define a client’s project so both parties have the exact expectations regarding the work being done. When creating a project overview SOS, you’ll want to include all the necessary tasks, deadlines, and expected deliverables. Deliverables can consist of products or services, but they should also outline what reports a client will receive. For example, the SOS template might state you’ll deliver a weekly progress report to the client every Friday.

Company operational processes adoption plan 

A scope of services document can be used when your company (or an individual department within your company) adopts new operational processes to maximize efficiency, increase productivity, or otherwise better achieve internal objectives and goals. In this scenario, the SOS clearly defines expectations of employees moving forward and may or may not be a signed contract. When creating a company operational processes adoption plan, you’ll want to clearly highlight changes. You’ll also want to highlight any deadlines, goals, and success benchmarks.

Regardless of how you use a scope of services template, you can optimize the creation process and manage the subsequent project or operations by pairing the template with monday.com Work OS.

Scope of services templates on monday.com

The monday.com Scope of Services Template allows you to outline all the strategic processes necessary to improve your business or complete your project. The template is fully customizable and can be tailored towards individual departments, like marketing or sales and finance, to be most effective. Plus, you can pair the template with monday.com’s powerful Work OS, which helps you:

• Achieve maximum transparency:  Using a single virtual workspace for your projects or business operations enables every stakeholder to stay informed. You can achieve maximum transparency when everyone has access to the same information.
• Save time:  Save valuable time by automating routine tasks and approvals  so you can focus more on creating a thorough SOS and executing those tasks moving forward. You can also integrate some of your favorite tools  with monday.com’s Work OS, which decreases the number of open applications necessary to complete your work. Some potential integrations include Google Drive, Salesforce, and Hootsuite.
• Stay organized:  The workdocs feature lets you organize your digital assets  and turn words into workflows. Plus, Work OS enables real-time collaboration  between stakeholders from anywhere, allowing for questions to be answered in real-time and decreasing the risk of stalled work due to misunderstandings and confusion.
• Promote accountability:  Assign tasks within the platform and track team members’ progress at every step. When everyone understands their assignments and those of their coworkers, you promote greater accountability across your team.

There are numerous templates  you can use within monday.com’s Work OS platform alongside the scope of services template.

Related templates on monday.com

You can use scope of services templates to define the type of work to be done in numerous situations, both for clients and internal organization departments.

In addition, you can use other templates to launch, manage, and complete projects once a scope of work (SOW) has been accepted. For example, you may use a single project template to define client project specifics, or a marketing activities template to define operations within your company’s marketing department.

Single project template

Once a client has approved your scope of services for a project they’ve commissioned, you can use this valuable template to launch, manage, and complete the agreed work. With our Single Project Template , you can:

• Set milestones and timelines to optimize your workflow
• Automatically notify task owners when one of their assignments becomes overdue
• Organize tasks into groups for each stage of your project
• Categorize assignments based on priority level
• Optimize your project workflow from start to finish
• Achieve maximum transparency as a project manager

Marketing activities template

If you just got approval for a scope of work that’s set to optimize your marketing department, you can follow through with your approved task list using our Marketing Activities Template , which lets you:

• See all your marketing operations from one customizable dashboard
• Collaborate with writers, editors, and designers from a centralized workspace
• Automate routine tasks and approvals to help you meet deadlines more efficiently
• Capture marketing requests using customizable forms
• Stay on track using the timeline view

By now, you should have a working knowledge of SOS templates and why you might want to use them. Check out the FAQs below in case you still have questions.

Frequently asked questions

What is scope  of work.

Scope of work (SOW) is an agreement on what work will be performed or how a company department will run its daily operations. For clients, a scope of work should include deadlines, objectives, reports, deliverables, and anything else that may pertain to the work being done. An internal scope of work for departments or your organization should include how tasks will be done, what needs to be achieved short- and long-term, and the deadlines for each necessary task.

How do you write a scope of service?

When writing an SOS document, you should:

• Be specific about the work to be performed (using visuals and easy-to-read language can help)
• Collaborate with stakeholders (which can be employees or clients)
• Define business objectives or the project’s expected outcomes
• Define payment terms (when and how)
• Include a timeline to complete the project or achieve the business goals
• List all project deliverables (including reports)

Define your operations with a Scope of Services Template from monday.com

An SOS can help you define your internal operations or the expectations of client projects. Using a template makes the process easier and more efficient. Pairing the template with monday.com Work OS can help you create detailed scope of services documents and manage the defined work moving forward.

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• Understanding Business Continuity vs BDR: A Guide
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• Business Continuity

Important: The Scope Of A Business Continuity Plan (Updated)

Dale Shulmistra

• September 28, 2023
• 11 min read

Disasters, both natural and man-made, can happen at any time, often with very little warning. The consequences of not being prepared can be devastating. According to the Federal Emergency Management Agency (FEMA), almost 40 percent  of small businesses affected by a disaster never reopen their doors.

How can you ensure that your company won’t be part of that statistic? The answer is to have a well-thought-out business continuity plan.

What is a Business Continuity Plan (BCP)?

A BCP lays out the steps and procedures a company will follow before, during and in the wake of a disaster, so that it can maintain maximum functionality during the emergency and get its operations back to normal in the shortest possible time. With a good BCP in place, your company’s employees will know exactly what to do when disaster strikes.

In this post, we outline the scope of a typical business continuity plan and how to create one, including:

• Sections to include
• Identifying the plan’s objective
• How to test the BC plan
• Outsourcing your business continuity planning
• Choosing BC/DR vendors for backup and recovery

The Scope of a Business Continuity Plan

What should be in your BCP so that you can be sure that your business is adequately prepared for a disruption? The following are seven  areas any good business continuity plan should address . If you’re creating a BCP for the first time, these are high-level tips to help you create the core framework of your plan. Below, we go into more detail on what to include within each section.

1. Identify the Objectives and Scope of the BCP

Business continuity plans can vary significantly in size and scope. They can be focused on specific business systems or the company’s entire operations. As such, each BCP needs to clearly state what its objectives are – along with its scope and limitations. For example, if the plan is focused narrowly on maintaining continuity for IT systems, then this objective should be clearly stated at the beginning of the plan.

2. Identify Critical Business Functions

One of the most vital steps in formulating a good BCP is to conduct a business impact analysis (BIA) to identify the crucial areas of your business that must be maintained or quickly restored when a disaster strikes. It’s these core business functions that your BCP will be designed to protect.

3. Identify Critical Systems and the Dependencies Between Them

Your BCP should identify the systems and data that are most critical for the continued operation of the company. What equipment, supplies and records (both digital and paper) must be available and operational in order for your company to continue to function? What is their role and importance? Why are they crucial to the survival of the business? Your BCP should identify this in clear terms to emphasize the importance of establishing effective recovery protocols.

4. Identify Your Risks

What are the most likely disruptive events that might impact your company’s operations? Cyberattacks, accidental data loss, server outages, ransomware infections? What about natural disasters, such as tornadoes, hurricanes, wildfires and earthquakes? Obviously, it’s not possible to predict which disaster will strike your operations or when. But you can and should specifically plan for every possible scenario within your BCP. Some businesses may have a higher risk of certain types of disasters, which is why a comprehensive risk assessment should be conducted for each company, as we outline below.

5. Specify Your Data Backup and Recovery Plan

Your BCP should specify procedures and systems for data backup and recovery. How frequently will backups be conducted, and by whom? Where will the data be stored, and how will it be geographically replicated so that no local disaster can result in a permanent loss? How will it be recovered? These questions should be addressed both for electronic and critical paper records.

6. Identify the Composition, Functions and Procedures of Your Disaster Recovery Team

Who can declare an emergency that activates the recovery procedures in the BCP? Who are key employees who should be notified (and how), and who will be in charge? Where will disaster recovery team members and other employees meet if the company premises are not usable? These questions and more should be addressed in detail in the BCP.

7. Have a Detailed Communications Plan

How will the BC team be notified of an emergency if, for example, your email systems and telephones are disrupted? Who is authorized to speak on the company’s behalf to media, customers, suppliers and external partners, such as government agencies? The plan should include a list of people and agencies that will be contacted when an emergency is declared.

8. Specify BCP Testing, Refreshing and Training Procedures

A BCP that looks good on paper may be totally unworkable in practice. It must be realistically tested before it is put into operation, and key employees trained in its use. It must then be updated on a regular basis. With changing conditions, technology, organizational structures and personnel, the plan can quickly become outdated and unusable. Procedures for training, and for both testing and refreshing the plan should be included in the BCP itself.

The Importance of Proper Planning

Creating a thorough business continuity plan is the most important thing you can do to prepare your business for an operational disruption.

As the  Department of Homeland Security  notes, “A business continuity plan to continue business is essential.” Proper planning ensures that operations can be quickly restored, regardless of what has caused the incident.

Preparing for  all  possible disasters is vital to this planning, as FEMA  writes :

“The planning process should take an ‘all hazards’ approach. There are many different threats or hazards. The probability that a specific hazard will impact your business is hard to determine. That’s why it’s important to consider many different threats and hazards and the likelihood they will occur. In developing an all-hazards preparedness plan, potential hazards should be identified, vulnerabilities assessed and potential impacts analyzed. Strategies for prevention/deterrence and risk mitigation should be developed as part of the planning process. Threats or hazards that are classified as probable and those hazards that could cause injury, property damage, business disruption or environmental impact should be addressed.”

Getting the scope of your business continuity plan right is crucial to the survivability of your business if disaster should strike. If the planning falls short or fails to anticipate certain disasters, then recovery will be far more challenging.

What is Your Business Continuity Plan Objective?

Above, we mentioned the importance of identifying an objective for your BCP. What is the purpose of your business continuity plan? What does it aim to accomplish?

While the fundamental goal of every BCP is similar—to ensure continuity through a disruption—plans can vary in their approach. This is why it’s important to identify your business continuity plan objective at the start of your planning. Typically, this is one of the first sections in a BCP.

For example:

• A BC plan objective can be focused on the business as a whole, or specific business units and processes.
• Some organizations create separate BCPs for IT operations, focused on continuity of networking, data storage, backup, Internet connectivity and so on.
• A business with little risk for technology-related hazards, such as smaller retail establishments, may set a business continuity plan objective that is more focused on emergency response protocols, employee safety and workforce continuity.

Setting a plan objective is crucial for ensuring that everyone is on the same page about what the plan aims to achieve. If, for example, the plan is focused solely on IT continuity, then this will make it clear that additional planning is needed for other areas of the business.

What about RTO and RPO?

Recovery Time Objective (RTO) and Recovery Point Objective (RPO) are additional objectives that should be identified within certain sections of your business recovery plan. However, unless your plan is strictly focused on a specific system (rather than the business as a whole) then these objectives should not be used as the plan’s key objective. Instead, RPO and RTO should be identified within your recovery planning sections.

Here’s the difference between RTO and RPO:

• RPO  is the desired backup recovery point for restoring data (or essentially the age of the most recent backup). The more recent, the better.
• RTO  is the desired speed of restoration following an outage. The faster, the better. i.e. a 2-hour RTO following hard drive failure.

For example, an RPO of 8 hours would dictate that no backup should be more than 8 hours old. An RTO could be used to specify how quickly a data recovery should occur. For example, an RTO of 1 hour would dictate that a backup must be able to be restored within 1 hour.

It’s important to note that being able to achieve these objectives depends largely on the capabilities of the backup systems deployed. This is why RPO and RTO should be determined during the planning process to help identify which technologies are required.

Business Continuity Plan Assessment

Your business continuity plan assessment—often referred to as a  risk assessment —is another critical section of your planning document.

Above, we mentioned the importance of identifying the most likely risks to your organization. This is the section where you will outline those risks, defining what they look like and their likelihood of occurring. By assessing your risks in this fashion, you’ll be able to prioritize your planning around the most urgent risks.

Some organizations may also choose to incorporate aspects of their business impact analysis in this section, in the form of a table or chart. This provides a clearer overview of the threats and their severity, at a glance. Here is a basic example of what this business continuity plan assessment might look like:

Business Continuity Plan Checklist: Have You Included These Sections?

We’ve touched on the fundamental scope of a business continuity plan and some key components to include. But there are several other sections you’ll want to include to ensure that the plan is effectively communicated and able to be properly executed. Use the business continuity plan checklist below as a basic outline for how to structure your document and what these sections should entail.

• Contact information : Include the names and contact information of those who have created the BCP. You may also choose to include the contact information of disaster recovery team members here, as well as stakeholders who should be notified first when critical business disruptions occur.
• Plan objectives:  Outline the key goals of the plan and its areas of focus, as directed above, to define its scope (and limitations).
• Risk assessment:  Identify probable risks and disaster scenarios, as outlined above, which have the potential to cause a break in continuity.
• Impact analysis : Define the impact of those scenarios, including the potential length of the disruption, business systems or areas that will be affected and the estimated costs.
• Prevention : Define the systems and protocols that will help to prevent those scenarios from occurring or that can mitigate the issue. A basic example would be antimalware solutions to prevent a malware infection.
• Response : Provide step-by-step instructions for how to respond to the disaster scenarios identified in the risk assessment. Typically, these are the protocols that should be followed immediately after a disruption to ensure a swifter mitigation and recovery.
• Recovery : Detail the additional protocols for fully recovering affected systems or business functions. Examples could include recovering data from backup, restoring lost power or rebuilding a structure after a natural disaster.
• Contingencies:  Identify backup assets and contingency plans for incidents involving extended disruptions. This could include a sudden transition to remote work, as was seen during the COVID-19 pandemic, as well as secondary business locations and backup equipment if primary facilities are destroyed.
• Action items:  Explain any weaknesses identified during the planning process or outstanding action items that need to be followed up on. For example: the need to deploy a new  data backup solution for greater protection  against emerging threats such as ransomware.
• Communication:  Identify the means of communicating important updates between recovery teams and to other personnel. Examples could include the use of mobile devices/text messages, intranet/extranet sites or emergency phone lines for employees to call for updates during prolonged disruptions.
• Plan review:  Specify how often the business continuity plan should be reviewed and updated, and by whom.

Auditing a Business Continuity Plan

Routine review and auditing of a business continuity plan is crucial for ensuring that the information within the plan is still accurate and up to date. As new risks emerge, or business objectives change, it is necessary to revisit the plan and update those sections accordingly.

For example, only a few years ago, the threat of ransomware was not on many businesses’ radars. Today, it is one of the most dangerous risks to organizations, and as such, is now commonly included in BC plans across numerous industries.

But also, on a smaller level, even personnel names and contact information within a BCP can become quickly outdated when employees leave a company. So it’s important to make sure every aspect of the plan is up to date.

How to Conduct Business Continuity Testing

Business continuity testing is another vital part of the planning process. Testing ensures that the protocols and systems identified in the plan are actually effective. Routine tests also help to educate recovery teams and have them walk through the steps, so they are familiar with the processes when real disruptions occur.

Business continuity testing can encompass nearly any aspect of your planning, including:

• Data backup validation and recovery tests
• Mock drills for IT infrastructure failures
• Emergency response & evacuation procedures
• Network stress tests

All tests should be thoroughly documented. Did anything go wrong? Were recovery objectives met? What improvements must be made? If any critical gaps are uncovered during the testing process that require significant infrastructure changes (such as a new backup system, for example), these should be identified in the Action Items section of the BCP.

Hiring a Business Continuity Professional or Consultant

Hiring a business continuity consultant can be a smart move for businesses that need an outside perspective from a professional. Experienced consultants can identify any gaps in your business continuity plan, as well as the need for additional systems or procedures.

If you plan to hire a business continuity professional, you’ll want to be sure that the consultant is the right fit. Here are some tips:

• Look for a consultant with experience in your specific industry or niche
• Confirm the consultant’s area of expertise; for example: IT-only or comprehensive business continuity planning
• Ask for referrals that you can contact for a deeper understanding of the consultant’s quality of service

Outsourcing Business Continuity

Businesses with limited resources may want to consider outsourcing business continuity planning to an outside provider. This is a perfectly acceptable strategy for both small and large businesses, particularly if in-house personnel have little experience building a BC plan.

Even if your organization already has a BCP, outsourcing business continuity planning can help to provide an independent audit of your plan or manage specific aspects, such as your continuity technologies.

Which BCDR Vendors are Right for You?

Business continuity and disaster recovery (BCDR) vendors can help to deploy the technologies you need to maintain continuity. These solutions can include data storage, data backup , cloud replication and network solutions, just to name a few.

Choosing the right BCDR vendors is much easier when you already have a business continuity plan in place. Your BCP will identify the specific technologies you need to mitigate risks and recover from a disruption. Your continuity objectives will further help to narrow down your options: if a potential data backup solution can’t meet your RPO, for example, then you need to look for other vendors.

Frequently Asked Questions (FAQ) about a Business Continuity Plan

1. what is in a business continuity plan.

A business continuity plan includes the systems and procedures that help a business stay open during an operational disruption. A typical plan includes:

• Plan Objectives
• Key Contacts
• Risk Assessment
• Business Impact Analysis
• Disaster Prevention Strategies
• Communications Plan
• Disaster Recovery Protocols
• Business Continuity & Disaster Recovery (BC/DR) Technologies
• Plan Review & Testing Schedule

2. What is business continuity in simple words?

In simple terms, business continuity means that a business can continue operating during a disruptive event. All companies aim to maintain business continuity. A break in continuity—whether caused by natural disaster, cyberattack or other incidents—can be costly and can threaten the survival of a business.

3. What is the most important step in business continuity planning?

The most important step in business continuity planning is identifying the systems and procedures that will help a business maintain operations during various disaster scenarios. To effectively complete this step, the business will first need to conduct a comprehensive risk assessment and business impact analysis.

4. Who is responsible for a business continuity plan?

A business continuity plan is typically the joint responsibility of leaders from different operational divisions. While one individual may be tasked with overseeing the plan as a whole, the content is usually a team effort, requiring managers to identify operational risks specific to their respective units.

5. Is backup part of business continuity?

Yes, backups are integral to business continuity, because a loss of data can result in a costly operational disruption. This is why it’s important to identify data backup systems and protocols within the business continuity plan, including deployed technologies, recovery objectives, backup testing and recovery procedures.

Developing and maintaining a good business continuity plan is essential for keeping operations running through an unexpected disruption. By adequately assessing risks and outlining strategies for prevention, response and recovery, organizations can greatly reduce the chances of a prolonged interruption to essential systems and services.

Need more help? Learn more about the scope of a business continuity plan and supporting technology.

Request more information about dependable data backup and disaster recovery solutions that keep your business running after disaster strikes.  Request a free demo  or contact our business continuity experts at Invenio IT: call (646) 395-1170 or email  [email protected] .

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