Purposes of organizational goals are to provide direction to employees of the organization. It is also called as Planning-horizon. There are three types of organizational goals called as strategic, tactical, and operational goals.

Strategic Plan:

Strategic plans are designed with the entire organization in mind and begin with an organization’s mission. Top-level managers, such as CEOs or presidents, will design and execute strategic plans to paint a picture of the desired future and long-term goals of the organization. Essentially, strategic plans look ahead to where the organization wants to be in three, five, even ten years.

Tactical Plan:

Once we have an idea of how an organisation if planning to evolve; Tactical plans support strategic plans by translating them into specific plans relevant to a distinct area of the organization.

Operational Plan

These plans are carried out by Low-level management & these plans are focused on specific procedure and processes.

Lets review below case study to understand these different plans.

Case Study: 

Lets assume Person “A” is a CEO for “XYZ Burger”. As a top-level manager, “A” must use strategic planning to ensure the long-term goals of the organization should achieve. For “A”, that means developing long-term strategies for achieving growth would be

• Improving productivity and increasing profitability
• Increasing ROI (Return on Investment)
• Improving customer Service

When Person “B” mid-level manager learns about CEO strategic plan for increasing productivity, “B” immediately start to think about the possible tactical plan for increasing productivity. Possible Tactical planning could be

• Testing a new process in making Burger that will take short time.
• Possibility of purchasing a better oven
• Optimizing the delivery time with the help of Map navigation.

Lets say “C” person works as a manager for operational planning. Some of the operational plans for “C” would be

• Scheduling employees duty each week for 24×7 support (Depends on business requirement)
• Evaluating, ordering and stocking inventory
• Preparing for monthly budget.
• Defining employee’s performance goal for the month/year.