Annual Planning versus Strategic Planning
Strategic plans typically span three to five years with measurable objectives for the first one to two years. In planning for a three to five year cycle, an organization needs to envision critical factors and assumptions that may occur in a five to ten year time span.
Annual plans are developed to keep strategic plans current. The goals of the strategic plan provide a framework for the focused set of objectives when developing the annual plan. Annual plans are part of the strategic plan and serve as measurement on the progress of the strategic plan.
The continuous review and adjustment of the annual plan leads to refining the achievement of the strategic plan.
Year One to Two - Action Planning
- Annual Strategic Review
- Priority Setting
- Program Planning
- Annual Operational Plan
Year Three to Five - Strategic Planning
- Value Discipline
- Goals, Objectives, and Strategies
- Organizational Strategy
Year Five to 10 - Critical Factors
- Assumptions About the Future
- Strategic Issues
- Strategic Choices
