Strategic, tactical, and operational planning: What they are and their differences

Planning is essential to ensure objectives are effectively and efficiently achieved.

However, often, the terms “strategic planning,” “tactical planning,” and “operational planning” are used interchangeably when, in reality, they represent different levels and processes of planning. 

With that in mind, in this blog, we will explore what each type of planning involves and their key differences. Happy reading! 

Differences between strategic, tactical, and operational planning

To elucidate the distinctions between strategic, tactical, and operational planning, it is helpful to imagine that each seeks to answer distinct questions, bringing the company closer to its primary objectives.

In summary, the strategy addresses the “what,” tactics the “how,” and operations the “action.” Below, we will explore each of them in detail.

What is strategic planning?

Strategic planning is the foundation upon which the entire organizational structure stands, establishing the company’s long-term vision and outlining the paths to achieve global objectives. 

In this sense, the company's mission, vision and values ​​are defined, in addition to analyzing the external and internal environment.

Strategic actions, designed for the long term, generally cover a period of 5 to 10 years. With a broad approach to the organization, excessive details that would be difficult to predict for such a distant horizon are avoided.

This process is essential to minimize disparities between planned and executed actions; providing a solid foundation for adapting to changes in the business environment.

However, it is crucial to continuously review and update strategic planning to ensure that the information remains relevant and can underpin decisions. 

Main characteristics of strategic planning

• Comprehensive vision: Strategic planning involves a global view of the organization, considering its mission, vision, values, and long-term objectives.
• Executive responsibility: The responsibility for formulating and implementing strategic planning falls on the company’s senior management and key executives.
• Long-term: Strategic planning covers broader time horizons, usually five to ten years, allowing the organization to set and achieve long-term goals and adapt to changes in the external environment.

Senior management and key executives are responsible for leading the strategic planning process; ensuring that the strategies adopted are aligned with the organization’s long-term vision and the conditions of the external environment.

Also read: How to create a strategic plan with the Balanced Scorecard (BSC)

What is Tactical Planning?

Tactical planning is responsible for establishing goals and conditions for the actions to be carried out outlined in strategic planning. Moreover, assessing and monitoring risks to address them effectively is essential.

While strategic planning covers the entire organization, tactical planning operates on a more limited scale. It is implemented at the departmental level, sometimes focusing on specific end-to-end processes.

Given its more specific focus, decisions in tactical planning can be made by leaders who hold positions between senior management and operational levels; such as board executives and managers.

A distinctive feature of tactical planning is the timing of when actions are implemented; usually 1 to 3 years, addressing a nearer future than strategic planning, that is, the medium term.

Main characteristics of tactical planning

• Specificity: Tactical actions are detailed and directed towards specific areas of the organization.
• Departmental responsibility: Each department or functional unit develops and implements its tactical strategies.
• Short and medium term: Tactical planning generally covers one to three years, adapting to changes and demands in the business environment.

Middle managers are primarily responsible for executing tactical planning, ensuring that daily operations are aligned with the company’s short- and medium-term objectives.

What is operational planning?

Operational planning is the starting point for implementing the actions and goals outlined by tactical planning; aiming to achieve the objectives established in strategic decisions. 

Additionally, this plan focuses on short-term activities, typically with a 3-6 month horizon.

All sectors of the organization are involved in this process, dedicating themselves to monitoring daily activities to ensure execution; according to defined procedures and achieve specific results.

Main characteristics of operational planning

• Execution responsibility: The responsibility for implementing operational planning falls on supervisors, team managers, and operational staff who carry out the company’s daily activities.
• Short-term: Operational planning generally covers a short-term time horizon, ranging from weeks to a year, focusing on immediate actions and day-to-day operations.
• Specificity and detail: The actions outlined in operational planning are particular and detailed, aiming to optimize processes and resources to achieve short-term goals.

Supervisors and line managers are primarily responsible for executing operational planning, ensuring that daily activities align with the company’s immediate operational objectives and that resources are efficiently allocated to meet daily demands.

Looking for strategic management software? Meet Tune by Actio! 

What is the relationship between the 3 types of planning?

The three types of planning – strategic, tactical, and operational – are interconnected and depend on each other for the effective growth of the company. 

Initially, the organization establishes its strategic objectives and goals; which are then broken down into more specific goals for each sector, forming tactical planning. Finally, the actions and operational practices necessary to achieve these goals are defined.

Therefore, having access to tools that assist managers and leaders in analyzing productivity and efficiently managing each sector is fundamental to establishing the project’s individual and collective goals, driving organizational growth with greater effectiveness and accuracy.

Introducing Tune by Actio, a strategic management software

Although these types of planning are powerful approaches, it’s important to remember that their implementation requires commitment, planning, and involvement from the entire organization to achieve significant results.  

However, it’s not just that; using the right technology for your management processes is crucial to being effective. Get to know Tune by Actio, a software to manage projects in your company; with it, you ensure total control of all information, goals, and actions. 

It is worth mentioning that Actio is part of the Falconi Group, a reference in business excellence. 

Frequently Asked Questions 

1- What is situational strategic planning?

Situational Strategic Planning (SSP) is an action plan that considers the company’s current situation; adapting to the constant changes in the real organizational context.

2- How does strategic planning influence company decisions?

Strategic Planning provides a clear vision of the company’s long-term objectives and guides decisions at all levels of the organization.

3- How can planning tools assist in the process?

Planning tools, such as the Balanced Scorecard and the SWOT Matrix; offer structures and methodologies to help analyze and make strategic decisions.

Conclusion

As you can see, strategic, tactical and operational planning are interdependent components that work together to boost a company's success and competitiveness. 

While strategic planning establishes overall direction, tactical and operational planning ensure that this vision is translated into tangible actions at all levels of the organization.

By understanding the differences and interconnections between these types of planning, companies can develop more effective and adaptable strategies to address current and future market challenges.

Don’t forget to follow Actio on Instagram, Linkedin and Facebook. 

Did you like the content? Tell me in the comments.