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What is an Operational Plan? An operational plan describes how the company or organization will achieve the goals, objectives and strategies described in the larger strategic or business plan.
The operational plan includes all actions that are needed to meet the strategic plan objectives, personnel responsible for carrying out the described actions, and the timing, costs and KPIs key performance indicators that align with these actions.
The operational plan must be reviewed and updated regularly to ensure that the company is meeting outlined objectives. Sample Business Operation Plans As with our other examples, for our first sample we are going to use our fictional company, Terra Engineering for this operations plan example.
Included are the general operating procedures, human resources, insurance, and working capital requirements of the business. Also included is a table outlining the office space requirements, asset acquisition and an outline of Terra Engineering's operational workflow.
Terra Engineering will be operational year round. Smith will be the sole employees of Terra Engineering for the first two years of operation.
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When additional human resources are needed, Terra Engineering has identified the persons qualified and able to assist on a contract basis for the same rate as the owner. Wes Aaron, and environmental engineering technician will be sub-contracted to complete work as needed. It is estimated that Mr.
Aaron will eventually be hired full time by Terra Engineering once demand warrants growth. Leanne White holds a Masters in Environmental Engineering and will also be sub-contracted to perform work for the company.
Eventually, Terra Engineering intends to hire Mrs.
Charles Pearson holds a Bachelors of Science Degree in Environmental Engineering and has a vast technical experience base in the environmental assessment area and will be retained when needed. Also at this time, an administrative assistant will be sought. A professional user of Auto Cad will be sought to perform various jobs for the company.
It is unknown at this time who will fill this position, however, job advertisements will be put in the local papers and organizations to attract a good pool of respondents. Once hired, all employees will be covered by the Workers Safety and Insurance Board and covered for Employee Benefits.
Insurance Requirements Terra Engineering will have to incur costs for business liability insurance. Operating Capital Requirements Due to the demands imposed at start up, Terra Engineering will require that the business have sufficient working capital to meet all operational responsibilities of the business for the first three months.
Also, throughout the year there tends to be periods of low activities. Consequently, the company will experience financial pressures during these months. While much of this time will be spent developing proposals and marketing strategies, there will be a need to maintain sufficient working capital to cover these periods.
A long term strategy to maintain a positive cash flow during these periods will be to diversify the company and develop environmental training programs for certain communities.
These training programs will be given during these months. In addition, Terra Engineering will require specialized environmental equipment. These are the estimated costs associated with those investments: Further, the equipment may be leased out to partner associates during times of low activity.MetLife has become aware of a recent phishing attack against some of our customers.
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