Operational Goals and Plans

The specific results expected from departments, work groups and individuals are the operational goals.

Operational goals are precise and measurable as following examples:

• Process 150 sales applications each week.
• Achieve 90 percent of deliveries on time.
• Reduce overtime by 10 percent next month.
• Develop two new online subjects in accounting.

Operational plans are developed at the lower levels of the organization to specify action steps towards achieving operational goals and to support tactical plansOpens in new window.

The operational plan is the department manager’s tool for daily and weekly operations. Goals are typically stated in quantitative terms, and the department plan describes how goals will be achieved.

Operational Planning

Managers use operational goals to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively.

Schedules are an important component of operational planning. Schedules define precise time frames for the completion of each operational goal required for satisfying the organization’s tactical and strategic goals.

Operational planning must also be coordinated with the budget to ensure resources can be allocated for the desired activities. Schedules are an important component of operational planning.

Operational planning must also be coordinated with the budget, because resources must be allocated for desired activities. One example of a company that is strong on operational planning is BoeingOpens in new window, an American company that has been in operation since 1916, and employs around 3000 people in Australia. Some of these make aeroplane components in Melbourne, while others are engaged in very high-tech software development in Brisbane.

The systems analysis laboratory (SAL)Opens in new window in Brisbane conducts high-level, technical ‘systems of systems’ analysis work. SALOpens in new window conducts military simulations, but it is also capable of many other applications, and is being used increasingly for non-Boeing applications.

Boeing is a major company by any standards, with more than 160 000 employees and revenues of more than US$96 billion in 2015. The SAL operation plans its activities separately from the main aeroplane manufacturing business, but must also fit strategically with the overall company mission and direction. Boeing sees such spin-offs as very positively adding value to its core capabilities.