GLOSSARY OF INDUSTRY TERMS

OPERATIONAL PLANNING

Action Plan

Definition: In an action plan the focus is on specific, concrete, intended

actions. The plans emphasize what will be done, when and by whom. The
plan has a minimal focus on concepts, needs, and the rationale for the
objectives and actions. Actions are described in detail and the actions are
measurable. Once a firm's strategic direction has been set, then knowledge of
a situation should be used by the leader/manager/planner to propose and
choose actions and initiatives

Assessing

Definition: Assessing involves estimating the value or worth of elements of a

planning situation

Benchmarking

Definition: Benchmarking is an ongoing, systematic process of measuring and

comparing an organization's operations, practices, and performance against
other organization within and outside of an industry, including evaluation the
"best practices" of other organisations

Business Continuity Plan (BCP)

Definition: One example of contingency planning is Business Continuity

Planning. It is an "ongoing process supported by senior management and
funded to ensure that the necessary steps are taken to identify the impact of
potential losses, maintain viable recovery strategies and plans, and ensure
the continuity of operations through personnel training, plan testing, and
maintenance

Business Plan

Definition: A business plan is a formal statement of a set of business long and

short-term goals/objectives, the reasons why they are attainable, and the
specific actions for reaching them. It may also contain background information
about the organisation attempting to reach those goals

Competitive Analysis

Also Known As: SWOT Analysis: Strengths, Weaknesses Opportunities and

Threats

Trainer Subject Resource: Glossary of Terms Operational Planning © Reece Thomas, 2015
 GLOSSARY OF INDUSTRY TERMS

Definition: Competitive analysis involves assessing and analysing the

strengths and weaknesses of competitors; the analysis include developing a
company profiles, an analysis of current and potential product and services
and an analysis of current strategies.

Contingency Plan

Definition: A Contingency plan is a statement of actions that will be taken if a

specific contingency occurs. Action choices are made contingent on
information about the future state of the world. For example, if a competitor
introduces a new product in a market, the contingency plan is to lower prices
of our products and increase the R&D budget 10%. Introduction of a new
product by a competitor is therefore the contingency event. A contingency
plan is a flexible, low-commitment plan that provides for follow-on information
gathering and situation monitoring.

Crisis Action Plan

Definition: A crisis action plan is created in response to an unanticipated crisis

situation. A crisis is an unstable situation of extreme danger or difficulty.
Webster's (1913) dictionary defines crisis as "the point of time when it is to be
decided whether any affair or course of action must go on, or be modified or
terminate; the decisive moment; the turning point." In some cases a crisis
action plan is developed from one or more contingency plans

Demographic Variables

Definition: Demographic variables describe a specific population, for example

a customer segment. Examples of demographic variables include population
size, age structure, employment data, income, ethnicity, education, and
genderr

Disaster Recovery Plan

Definition: A Disaster Recovery plan describes how an organization expects

to respond to potential disasters. A disaster recovery plan includes
precautions that are and will be taken to minimize the effects of a disaster and
steps to "either maintain or quickly resume mission-critical functions".
Typically, disaster recovery planning involves an analysis of business
processes and continuity needs; it may also include a significant focus on
disaster prevention

Economic Feasibility Test

Definition: An economic feasibility test focuses on returns and costs of a

proposed plan in both the short and long-term. An economic feasibility study

Trainer Subject Resource: Glossary of Terms Operational Planning © Reece Thomas, 2015
 GLOSSARY OF INDUSTRY TERMS

(EFS) should consider investment and operating costs, the time value of
money, risk and uncertainty, quality of available data, and the sensitivity of
assumptions. An economic feasibility study should demonstrate the net
benefit of the proposed course of action in the context of direct and indirect
benefits and costs to the organization and to the general public as a whole.
An EFS makes a business case, prepares analytical worksheets and other
necessary supporting documentation. An EFS should be required for both
pilot and long-term activities, plans and projects

Financial Plan

Definition: A financial plan can be an individual plan for personal retirement or

asset management, an organization plan for financing a corporate acquisition
or for financing a major investment, or any plan related to obtaining financial
resources

Forecasting

Definition: Forecasting refers to a process of making a prediction of coming

events, results or conditions. Forecasting is a process a person or an
organization can use to think about and prepare for the future. Quantitative
forecasting methods use historical data. A number of commentators have
equated quantitative forecasting to driving a car by only looking in the
‘rearview mirror’

Gap Analysis

Definition: Gap analysis identifies the actions required to move an

organization from its current situation to its desired future state

Job Description

Definition: A document which describes the purpose, expected activities and

responsibilities of a particular job

Long Term Objectives

Definition: Long-term objectives are results that an organization seeks over a

multiyear period. Common categories for business long-term objectives
include profitability, employee development, productivity, technology
development, employee relations, competitive position and public and social
responsibility. A long-term objective should be acceptable to key
stakeholders, it should be flexible and appropriate for the planning horizon, it
should be measurable and achievable, and if it is achievable it should be
challenging enough to be motivating, and it should be suitable to the current
position of the organization and suitable in the context of the organization's

Trainer Subject Resource: Glossary of Terms Operational Planning © Reece Thomas, 2015
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mission. Finally, a well-stated and meaningful long-term objective should be

understandable to all organization stakeholders

Market Development Strategy

Definition: A market development strategy involves selling present products or

services in new markets. Managers take actions like targeting promotions,
opening sales offices and creating alliances to operationalise a market
development strategy

Operational Plan

Definition An operations plan covers a broad scope related to anticipating and

scheduling day-to-day activities in a wide variety of organization settings. The
time frame for an operations plan is usually 1 year or less. It is a plan for a
connected series of activities to achieve senior management's objectives
within a given time frame. A business operations plan contains: 1) major
activities in functional areas like marketing and finance; 2) business process
changes; 3) any organizational culture issues; 4) budget plans; 5) logistics
plans for delivering products or services; and 6) human resource and
managerial policy decisions critical to running the business

Organisational Chart

Definition: Organisational chart are a graphical representation of an

organisation's structure

Risk Assessment

Definition: Risk assessment is a step in the risk management process. Risk

assessment is measuring two elements of a risk (R)(Hazard), the magnitude
of the potential loss (L), and the probability (P) that the loss will occur

Standard Operating Procedure

Definition: Standard Operating Procedures (SOPs) provide a detailed

description of commonly used procedures. SOPs briefly describe a topic's
purpose, give staff contact information, and provide procedures to follow,
usually including personal roles. Focusing on steps to accomplish a task,
SOPs have links to more detailed background information on policies and
regulations.

Strategic Plan

Definition: A strategic plan refers to a series of actions that an organization

intends to pursue to accomplish its mission and long-term objectives. Such a

Trainer Subject Resource: Glossary of Terms Operational Planning © Reece Thomas, 2015
 GLOSSARY OF INDUSTRY TERMS

plan focuses on how obstacles can be overcome, how resources will be

allocated and what the most important actions that must be implemented. See
strategic business plan

Vision Statement

Definition: A vision statement is the guiding image of success for an

organization conceptualized in terms of a major contribution to society. A
strategic plan is the "blueprint" for an organisation's work and a vision
statement is the "artist's depiction" of the achievement of that plan. It is a
description in words that evokes a similar meaning and picture of the future
for each member of a group of the destination for the group's work together."

Trainer Subject Resource: Glossary of Terms Operational Planning © Reece Thomas, 2015