Pillar 1 – Strategic Planning and Management

Annual Operating Plans

It is widely known that the most important aspect of strategic and business planning is execution. Hence, the processes to execute these plans should (must) be well defined.

Strategic plans and business plans set the direction and goals for the annual operating plan. The annual operating plan has a 12-month horizon and is accompanied by a detailed financial budget consisting of a pro forma income statement, balance sheet, and cash flow statement.

Projects are defined as part of the annual operating plan, which has a 12-month (1 year) horizon. Projects are defined as “execution vehicles” to be managed within a fiscal year. Projects utilize the corporations key resources, namely people, processes and tools.

The diagram below shows how the mission vision and goals of an organization are cascaded down throughout the organization to departments and ultimately employee to execute the annual operating plan.

If you would like to learn more about the annual operating plan, contact us today and we can provide a free consultation and additional information to help you get started.