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Finance for Non-Financial Managers
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istics that make them most likely to succeed—or at least
most likely to produce a clear and mutual understanding of
what was expected and what was delivered.
❏ Strategic plans are typically long-term (three to five years)
and broad in their description of the goals to be achieved.
Operating plans are usually short-term (one year) and more
detailed in their description of the work. Strategic plans
guide the operating plans. Operating plans guide the day-to-
day activities that get work done.
❏ A realistic operating plan should define the goals the com-
pany wants each department to achieve and it should also
outline the challenges they must overcome in order to reach
the goals and how they will be met, for the plan to be both
believable and achievable.