A company whose leaders have a clear understanding of the different types of planning can expect to create a successful business that is sustainable.
Strategic. A strategic plan is top-level, covering the whole business. Often created for the long-term (sometimes up to 10 years), strategic planning will dictate how long-term decisions will be made across all aspects of the organisation and will feed into your overall business plan, including vision, mission and purpose.
Tactical. Supporting the Strategic Plan, tactical planning breaks down the strategic plan into short-term chunks, often under one year in length. Tactical plans can be created, updated or scrapped regularly in response to any business or market changes. They are often created in the first place to respond to an issue or achieve a goal, such as winning clients from a competitor.
Operational. Supporting both strategic and tactical business plans, operational planning relates to the way the business operates day to day and includes any rules or regulations, budgets, policies and processes in place to achieve business goals.
Contingency. Contingency planning is for when something unexpected impacts on your business – both positive and negative. While standard business plans will consider everyday changes, contingency plans for the unforeseeable, such as the current Covid-19 pandemic.