Similarities and Differences: The Business Plan and The Strategic Plan
A Business Plan is a lot like a Strategic Plan, and many people use the terms interchangeably. However there are some important differences between the business plan and the strategic plan:
- A Strategic Plan is broader, and strategic.
- A Strategic Plan provides direction.
- A Strategic Plan is developed for a timeframe of 2 to 5 years.
- A Business Plan is operational and tactical.
- A Business Plan has a shorter timeframe, usually one year.
- It shows you how things will be done.
A good Business Plan will create appropriate connections with the Strategic Plan in all of the important areas, such as: governance, program, human resources, finance, fund raising, marketing/community outreach, administration and other areas. The Business Plan will then provide more detailed analysis about important areas of the agency’s work, such as an analysis of each program, its key activities, target audience, achievements and outcomes and cost. And, whenever possible, the return on investment (ROI) even if the ROI is social and community-based over against investment of funds. A Business Plan would take a detailed look at both the finances and budgeting process, and fund raising. And, it would be appropriate for a Business Plan to outline steps that an agency would take in the event that certain funding is cut.
One should be able to cut up a good Business Plan into distinct areas, which would then be assigned to appropriate departments. Whereas the Strategic Plan is broad, the Business Plan drills down into important core areas of the agency to provide a roadmap for work in each of the departments.
The board and chief executive coordinate the implementation of the Strategic Plan. And it is the chief executive, board president and department managers that coordinate the work of the Business Plan.
When a Business Plan is clear, focused, and implemented with effective leadership, it is what makes the Strategic Plan move forward. If the Mission and Vision are the heart and soul of an agency, then the Strategic Plan is the head, and, the Business Plan represent the arms and the legs.
Related Pages:
Strategic Planning
Planning & Outcome Evaluation
BusiegiBusinessess Plan, Strategic Plan
business plan, strategic plan
business plan, strategic plan
Strategic Plan
