July 3, 2024
8:57 AM
Strategic organizational planning serves as the bedrock of a successful organization.
Organizational strategic planning should be revisited periodically to ensure the company remains relevant and successful in the future.
We’ve put together a comprehensive, step-by-step roadmap to help you make progress towards your goals (in the best way possible).
We’ll also cover best practices, potential challenges, and ways to incorporate technology during planning and rollout.
Organizational planning is the process of defining and redefining an organization’s goals, purpose, and strategies to achieve those goals (including resource allocation).
There are several key components of an organizational plan. Later in this article, we will expand further on these.
Organizational planning is the guiding light of a business. Once organizational strategic planning is in place, it provides direction and clarity to the company’s operations.
At the outset of a new business, organizational planning ensures the company is heading towards its desired outcomes. Proper planning is also key to land funding.
However, an organizational development plan continues to serve businesses at each stage, whether they are new or well established.
And, here are some additional benefits to strategic organizational planning that many people overlook:
Let’s look at different types of organizational plans and how they differ.
Organizational Plan Example | Role and Goal |
Strategic plan | A plan detailing a company’s overarching objectives to achieve a particular goal. Created by top-level management. Meant to unify efforts across divisions and departments with clearly defined parameters. Usually a 2-5 year outlook. |
Tactical plan | A plan detailing how a particular division will utilize their resources to achieve the objectives. Often created by mid-level management since they have insights about the resources and capabilities available. Usually a 6 month to 2 year outlook. |
Operational plan | A plan detailing how a particular team will produce results, often derived from tactical plans. Usually mapped out by lower-level management with a 30 day to 6 month outlook. |
Contingency plan | A plan detailing next-step actions when an original plan is unsuccessful or unable to be executed. Contingency plans can be created for all levels of the organization (but consequences may arise). |
Understanding these differences will help you and your team delegate planning tasks and create strategic, informative plans.
Now that we’ve defined organizational plans and the various types, we’ve put together a step-by-step guide of organizational planning best practices.
Before we dive deeper, let’s identify differences between vision statements and mission statements.
Vision Statement | Mission Statement |
What you would like the organization to achieve now and in the future. Keep this short and concise. | What purpose your organization serves. This could be what it does and why it is in existence. |
Example: Apple’s vision statement is “to make the best products on earth, and to leave the world better than we found it.” | Example: Apple’s mission statement is “to bring the best user experience to customers through innovative hardware, software, and services.” |
Both of these statements should be clearly defined. While many businesses develop these at the outset, they should be revisited whenever organizational planning occurs.
The following organizational planning steps are best performed by top-level management:
Organizational goals and objectives are meant to unify efforts across the organization.
Just as before, the following steps are best performed by top-level management:
Once the goals and objectives are in place, division heads can formulate tactical plans that are specific to their sect of the business.
Operational planning is typically performed by lower levels of management, which could be team or departmental heads, depending on your organizational structure.
Once your initial tactics are in place, establish contingency plans at various levels of the organization.
For your contingency plans, repeat the steps above, paying attention to details (just like you did with your original plans).
Some contingencies to consider when planning:
Each contingency plan should address a specific issue so you can effectively remedy the situation and get back on track.
Successful execution comes from a well-defined organizational plan. Here are some additional recommendations to help you transform objectives into results:
Your original plans should clearly lay out a timeline for monitoring and evaluation. They should also clearly delegate these tasks to appropriate leadership.
Here are things to monitor during the evaluation phase:
What to Monitor | Significance to Organizational Planning | Adaptation Strategy |
Goal achievement | Identifies whether or not the organization fundamentally achieved what was intended. | Consider revisiting all plans, objectives, and the goals themselves. |
Key performance indicators (KPIs) | Provide measurable markers about the extent of success or failure. | Consider revising your plans and action steps to improve KPI results. |
Feedback | Generates helpful insights from various perspectives (from operational logistics to opinions, etc.). | Consider collecting feedback from frontline workers, stakeholders, customers, and consultants. |
Qualitative data | Points to additional, less “measurable” factors that influence goal achievement. | Consider assessing factors like workforce morale, organizational design, and skills gaps. |
With this information, leadership can adjust plans, roll out contingencies, and improve the organization’s efficiency and effectiveness.
This ensures flexibility when internal and external factors are at play.
As you build out your organizational plans, you may run into challenges, including:
Technology can be a powerful engine in the organizational planning and execution process.
Let’s discuss ways in which technology can amplify informed organizational planning from start to finish:
Technology Improvement | Significance on Org Planning |
Data analysis | When your organizational goals and plans are derived from real data, you know you are making informed decisions. |
Forecasting | Helpful for resource allocation and determining “what if” scenarios for contingency planning. |
Communication and collaboration | Can speed up communication and ensure clear messaging across teams. Can also make it easier for teams to accomplish tasks more efficiently. |
Visualization | Whether it’s a valuation of data or your organizational structure and culture, you can harness valuable insights to inform your plans. Visualization is also helpful in stakeholder adoption. |
By leveraging technology in organizational planning, your leadership can make data-informed decisions to create more effectiveplans.
Whether an organization is going through mandated changes, such as a merger or workforce reduction, or simply reevaluating its structure, organizational charts (or “org charts”) can provide invaluable insights.
Org charts can effectively assist HR professionals and managers in analyzing individual and group metrics related to salary.
By utilizing org charts, management can answer critical questions like, “Are we paying a group of employees in Location A more than their counterparts in Location B with similar skill sets?”
This kind of analysis enables a holistic comparison of groups with similar skill sets, and their salaries can be averaged and juxtaposed with industry standards. And from there, managers can devise an equitable compensation plan that retains talent and attracts it.
A well-planned and fair salary structure – guided by data from org charts – can significantly boost job satisfaction across the organization.
One key element that adds to an organization’s strength is the breadth and depth of its employees’ experiences.
Progressive companies often move employees across job functions to enrich their work backgrounds and increase their skill diversity. According to the Society for Human Resource Management, job mobility and the opportunity to utilize one’s skills contribute to job satisfaction.
Org charts can facilitate the identification of employees ready for a role change. These charts visually represent important metrics like work experience and tenure, assisting HR professionals in making informed decisions about internal mobility and promotions.
Proactive and strategic HR management involves preparing for the future. This includes planning for inevitable transitions when key personnel leave due to retirement, transfer, or resignation. Succession planning is a strategic move to identify and prepare potential successors to step into vital roles seamlessly.
Succession org charts can help visualize employees’ skill and performance metrics across the organization. This graphical representation aids HR professionals in identifying potential successors or pinpointing departments where management potential needs further development.
Transform how you manage your organization with OrgChart, the definitive tool for today’s forward-thinking HR professionals.
Unlock the power of transparent, data-driven decision-making with these six core benefits:
With OrgChart, you’ll make better-informed, more strategic decisions that align with your organization’s objectives.
No matter how much success they’ve seen thus far, businesses cannot stay the same forever, especially if they want continued growth.
Organizational planning is an important tool that should be revisited periodically by every business – whether they are struggling or experiencing unprecedented success.
Passionate and people-centric product leader. As a former teacher, Kimmie leans on her experience of problem solving, strong communication, and deep empathy to design, develop, and deliver impactful, client-focused technology. Kimmie is your partner in delivering a solid, comprehensive solution to your HR problems.
In her writing, Kimmie leverages her deep understanding of our customers and the products we offer to educate readers and audiences.
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