Strategic planning is a process that takes place within an organization that aims to ensure that the organization will

remain financially sound and is moving in the direction as it has been envisioned for the next five or ten years. It is an activity undertaken by the management and is primarily focussed on acquisition of resources, improving operations, identifying long-term goals, and develop contingencies for any probable changes in the business environment over a certain period of time. The outcome of this process yields the future shape of the organization and its success is determined mainly by the strength of these plans. Team building is an important function of strategic planning. Team is the biggest resource pool of any organization to begin with. The choice of an appropriate team is pivotal to the strategies of an organization becoming successful. A strategic plan, is described by the Foundation for Community Association Research (Best Practices 2001) as: “a systematic planning process involving a number of steps that identify the current status of the association, including its mission, vision for the future, operating value, needs (strengths, weaknesses, opportunities and threats), goals, prioritized actions and strategies, actions plans, and monitoring plans.” Operational plan An operational plan is an integral part of an organization’s strategic plan that describes how the goals and the vision of the organization will be executed through everyday workflows. In other words, an operational plan is a layout that how any portion of the strategic plan will be executed. While strategic planning is long-term, operational plans are more focused on smaller time frames addressing a certain part of the larger strategic plan of the business/organization. An operational plan is also a justification of an organization’s budget. A carefully worked out operational plan ensures allocation of resources required to optimize the business outcome whether it is production or provision of services. An operational plan addresses four questions:  Where are we now?  Where do we want to be?  How do we get there?  How do we measure our progress?

A complete operational plan includes human capital investment requirement, financial requirements, risk assessment and project lifespan, sustainability and exit strategy. In short, an operational plan addresses the many details that are demanded by the broader spectrum of strategic plans. Performance management system (PMS) is a periodic assessment of an employee. An employee is the human capital and both strategic and operational plans of a business are meant to address the team and human resource as their foremost need. Thus performance management system should be based on the

results of previous performance management reports. This linking helps in analysing the current direction of the business, decision of budget allocations, and determining the indigenous strengths and weaknesses of the company in order to come abreast with the threats and opportunities in an effective way.