# Strategic Planning vs Operational Planning
## Strategic Planning
1. Shapes the organisation and its resources — focuses on what the organisation should become
2. Assesses impact of environmental variables — accounts for external forces (economic, social, competitive)
3. Takes a holistic view — considers the organisation as a whole
4. Develops overall objectives and strategies — sets the broad direction
5. Concerned with the long-term success of the organisation
## Operational Planning
- Focuses on day-to-day activities and short-term execution
- Concerned with specific departments, functions, or tasks
- Narrower in scope than strategic planning
- More detailed and concrete — translates strategy into specific actions, timelines, and resource allocations
- Primarily driven by efficiency and effectiveness at the task level
## Comparison Summary
| Dimension | Strategic Planning | Operational Planning |
|---|---|---|
| Time horizon | Long-term | Short-term |
| Scope | Whole organisation | Specific dept./function |
| Focus | Direction & goals | Tasks & procedures |
| Environment | Assesses external variables | Primarily internal focus |
| Output | Overall objectives & strategies | Action plans, schedules, budgets |
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## Strategic Uncertainty
Definition: Uncertainty that has crucial implications for the organisation (not all uncertainty qualifies as strategic).
### How to Deal with Strategic Uncertainty
1. Group uncertainties into logical clusters or themes
2. Assess importance of each cluster
3. Set priorities for information gathering and analysis based on that importance