Introduction to

Operational Management
Gemnel Kipp May Pomado, LPT
Central Philippine University
Senior High School Department
Most companies spend valuable time and resources to create strategic plans,
giving their best to outline a strategy that establishes a solid long-term
vision. While having a strategic plan is necessary, a vast number of
organizations often lack a critical strategy element: an operating plan.
Operations Management
The management of systems or processes that create goods
and/or provide services. It includes planning, organizing,
controlling and coordinating all the resources needed to
produce company’s goods and services.
 Operational Plan
is an extremely detail-
oriented plan that clearly
defines how a team or
department contributes to
reaching company goals.
It outlines the daily tasks
required for running a
business
Mapping out the day-to-day
tasks that ensure a clear
path to your business and
operational goals is
essential to success.
Can you tell us what your goals in life
are?
Though difficult at times, never underestimate the importance of
defining roles and responsibilities in business.

Many employees wear several different hats, completing jobs

outside the initial range of their job description. Unfortunately,
this can lead to a great deal of confusion within the company,
especially when leadership responsibilities are not properly
assigned.

When employees ask, “How are leadership responsibilities and

performance measured?” you’re going to want to be prepared
with your answer. Clearly defining roles and expectations can
have a positive impact on the company as a whole, particularly
as it relates to team projects.

How can we say that the operational plan is

properly
What are the strategies and tasks that need to be
completed or achieved?
Who are the individuals responsible for those tasks and
strategies?
When must each strategy be
completed? How much will it cost?
Strategic Plan vs. Operational Plan
• Companies usually use both plans in the organization
• Operating plans define what processes need to be finished
to achieve those goals.
• An operating plan supports the efforts of a strategic plan and
makes sure everyone runs their day-to-day tasks as efficiently
as possible.
• A strategic plan outlines your long-term goals for the future,
while an operating plan defines how to get there through
daily activities and processes.
STEPS IN DEVELOPING AN
OPERATIONAL PLAN
Allocating Human Resources

Every strategy must have an "owner"

i.e. somebody has to be responsible for
that strategies implementation.
What happens if someone is not
made responsible for the strategy?
For example:
Conduct series of three Clinics for Coaches. Who is the person responsible?

• The coaching director

Planning the schedules of employees in the University. Who is
responsible?

The schedule coordinator

Allocating Financial Resources
Is the assignment of available resources to various uses. In the context of an entire
economy, resources can be allocated by various means, such as markets, or planning.

Do all strategies require money? Why or why not?

Give examples/scenarios wherein financial resources are needed in the business operations.

What happens if there are inadequate allocation of money for a implementation for
strategy?
Not every strategy requires money, but most will. If people have to be paid
to do work, then there will be financial resources needed for remuneration.
If volunteers are involved, money may be need to be set aside for food
and/or other perks for them.

Many strategies will involve administration costs in the form of telephone

calls, printing and photocopying and postage. Some strategies will need
purchases of equipment, or materials, or promotional costs such as
advertising.

The point is that thought has to be given to all possible costs that might be
incurred if a strategy is implemented. If there is an inadequate allocation of
money for the implementation of a strategy, chances are it will fail.
Setting Timelines
is a time period during which work is
performed to achieve the desired outcome.
 What is the purpose of timeline in business?
Give example of a strategy /actions and tell the class the timeline
of your chosen strategy

The purpose of inserting a timeline for each strategy in the

Operational Plan is to give order to the great many tasks that need
to be done. There is always limited resources and therefore, at any
given time, decisions need to be made as to priorities and where
work effort should be focused. There is no use focusing work effort
on strategies that don't need to be completed as yet while no work is
performed on strategies that are urgent.
Set Performance Indicators
Performance indicator may be defined as a standard or target that should
be achieved. If the standard is reached or the target is achieved, then the
strategy might be considered as "performed", in other words a success.
 EXAMPLE:

STRATEGY PERFORMAN
CE
INDICATO
R
Conduct series of three 20 coaches attending each
Clinics for Coaches

Host an Open Day 100 visitors from public

A primary function of the operations manager is to guide the system by
decision making.
–System Design Decisions
–System Operation Decisions