Expert Opinion

What is Action Planning?

Action plans help people know what needs to be done to complete a task, project, initiative or strategy. An action plan generally includes steps, milestones, and measures of progress, as well as responsibilities, specific assignments, and a time line.

Action plans are an important part of strategic planning. In simple terms, strategic planning involves providing responses to four questions:

1. WHERE ARE WE NOW?
2. WHERE DO WE WANT TO BE?
3. HOW DO WE GET THERE?
4. HOW DO WE MEASURE OUR PROGRESS?

Action planning seeks to address the question “How do we get there?” Other management briefs on Strategic Planning and Strategy Deployment Metrics address the other three questions.

Figure 1, below, depicts where action planning is located within the strategic planning process:

Carter McNamara, co-founder of Authenticity Consulting in the United States, writes that action planning is often poorly executed because organisations believe that a job is essentially finished as soon as higher-order conceptual planning work has been completed. [2] Unfortunately, unless effective action plans are put into place, valuable strategic planning efforts may be rendered meaningless. An organisation’s commitment to strategic planning is commensurate to the extent that it completes action plans that have been specifically designed for the achievement of strategic goals. The actual format of individual action plans will depend upon the nature—and needs—of the organisation involved. Action plans commonly specify the following:

• goals that are to be accomplished
• the contribution of each goal towards organisational strategies
• the specific, measurable objectives that need to be accomplished in order to achieve goals
• the assignment of responsibilities required to achieve objectives
• the resources required to achieve objectives (for example, man-hours, finances and equipment)
• the risks involved and how these will be managed
• anticipated timelines for the achievement of each objective.

The following table, see Figure 2 below, depicts a basic format for action planning:

Action plans may be developed directly from goals and objectives (as shown in Figure 1) or stem from business plans that have been developed to answer the “How do we get there?” question. One can think of a business plan as a translator of the strategic plan or a short-term management control tool. For many organisations, business planning is the process that carries the strategic plan to each level and functional area of the organisation, ensuring alignment with the strategic plan. If the business plans of the functional areas are not fully aligned with the strategic plan, then wildcat objectives can be developed (managers pet projects), which can use up resources but not contribute to achieving the strategic objectives.

Vicki and John LaPlant, founders of Vital Learning Experiences in the United States, write that “goals without action plans are day-dreams”. [3] By creating and implementing a business plan, organisations can generate sales, profits, cash flow, and improved efficiencies. For this reason, an organisation’s goals need to be specific and measurable, thus enabling success to be effectively monitored. Action plans describing the processes, procedures, systems, behaviours or required actions should accompany each desired goal.

Action plans also provide defined steps to hold management and employees accountable for meeting organisational goals. In practice, adjustments are usually required, as financial performance is reviewed each month, and progress is measured against business plans and budgets (see Figure 3, below). The refinement of plans may be accomplished as management and employees report on the progress of the action plans for which they are individually accountable. Progress towards the achievement of goals — along with any adjustments to action plans — should be communicated throughout the entire organisation. This will help all parties remain focused on primary goals.

Douglas Mader, president of SigmaPro Inc., a consulting firm in the United States, writes that action plans may be integrated using Hoshin planning (or strategy deployment),
which includes:

• setting high-level goals, targets, and timeframes, and delegating ownership for each goal
• setting functional and departmental goals, targets, timeframes, and owners by cascading the highlevel goals through to lower levels
• integrating lower-level goals into performance plans for individuals and teams
• carrying out regular performance reviews related to the achievement of high-level and local-level goals
• the integration of performance with goals via the structure of bonus systems for management. [4]

Action Plans for Project Teams

According to Kul Uppal, a professional engineer, action plans should be as follows:

• specific and clear, without any vague statements that may lead to misinterpretation
• comprehensive—including all necessary actions to reach a desired goal
• accepted as a personal responsibility by specific persons
• definitive in regard to completion dates for tasks and milestones
• visible to all involved for good communications
• regularly reviewed. [5]

The following key steps were recommended for developing action plans at project meetings:

1. Define what needs to be recorded at the meeting (i.e. obligations, decisions or issues). Obligations are the heart and soul of an action plan, without which actions may be forgotten or carried out in a haphazard manner. It is also important to have a record of key decisions for future reference. Unresolved issues should also be recorded for future reference.
2. Agree on the wording of the proposed action steps. It is possible to make false assumptions about what team members intend, which may result in unintended actions—or perhaps in no action being taken at all. It is recommended that the whole team be involved in deciding on the appropriate wording. Keep the action plan easily accessible, so that all team members can see what has been recorded.
3. Agree on when the activities are to be undertaken. Since actions must be carried out within defined periods of time (and it is usual for actions to be dependent on other issues), time frames must be clearly specified.
4. Agree on who is going to do it. When deciding individual responsibilities, it is important to take into consideration the availability of the individual, as well as his or her skills and motivation. Asking for volunteers is desirable. The team may also consider sharing responsibilities in order to develop the expertise of its members.
5. Periodically review the plan. An action plan is a working document, and as such needs frequent adjustment during implementation.

Bob Dick, of Southern Cross University in Australia, states that the formation of action plans should be an integral part of an organisation’s goal-setting and problem-solving procedures. However, surprisingly, this action-planning component is often neglected. [6] Basically, action plans convert goals into step-by-step statements that delineate who does what, and when. Dick describes an effective methodology for action planning, which incorporates the following elements:

• deciding upon goals
• developing an initial sequence of actions (or a rough action plan) to achieve the desired goals
• refining the initial plan by identifying where it might go wrong, how this can be monitored, and developing remedies for potential issues.

This approach creates a “double action plan” by outlining the proposed activities, while also monitoring potential deviations from the plan. The steps in this action-planning process are summarised below:

1. Develop a rough action plan by:

• listing possible actions
• choosing key actions
• arranging actions in sequence.

2. Refine the action plan:

• identify other key events, as well as events that must follow these
• check assumptions, while making allowance for these as potential risks that need to be monitored
• plan for potential problems and develop contingency plans, as well as ways of monitoring progress
• add regular goal reviews, while taking into account the length of time over which the action plan has to operate and the associated rates of change.

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