A management plan describes how an organization or business is run.

Writing a management plan

allows you to formalize your management structure and operations. It also ensures that everyone is one
the same page and that your goals will be accomplished. You can easily write your own management
plan with a few simple steps.

The best way to write a management report is to describe the company’s management structure in 10
to 20 pages. Name the board members and explain the company’s ownership policies. Introduce all
management members and present the strengths of each team member. Then, write out workplace
policies and procedures. Send the management report to the company’s bank, investors, or fundraising
bodies. For more tips from our Financial Reviewer, like how to outline, format, and revise your plan,
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1.

Determine the need for a management plan. The management plan serves the purpose
of formalizing the procedures and policies crucial to your organization and the
responsibilities and authorities of everyone involved in running it. Without a plan, your
operations may be inconsistent, responsibilities might be unclear, and the organization
may be unprepared for certain events.
 A management plan allows everyone in the organization to clearly see
their place, including who they report to, who reports to them, and the
responsibilities of their position.
 Defining roles also creates accountability by making it clear whose fault it
was that something did or did not happen.
2.

Outline your plan. Your management plan will have to contain a number of key elements. Create a
simple outline, perhaps on a whiteboard or word processor, that shows the parts of your management
plan so that you and your team can move through them. Your plan should include the following
sections:

 A description of management structure.

 A section detailing management members and their responsibilities and authorities.

 A chart of section detailing interactions between and responsibilities of each level of the
organization.

 A section explaining different aspects of your organization being managed and the policies and
procedures of that management.

 A schedule for updating, enhancing, and growing management and the management plan.
3.

Describe your management structure. Each organization or business has a slightly different

management structure. At the start of your plan, outline clearly with words or diagrams your
management structure. Identify who makes the final decisions, whether it is management, a board, or
one person. Include external and internal decision-makers and consultants. If necessary, explain how
decision-making is allocated to different levels of the hierarchy.

List different aspects of your organization being managed under the plan. Divide up all of the processes
and functions being managed as part of the management plan into categories. These categories may be
different departments in a large business or business processes in a small one. Common aspects of
operations might include managing employees, overseeing finances, controlling inventory or supplies,
marketing or public relationships, and operations (like manufacturing or sales). Split up the different
aspects of your organization so that you can define management roles and procedures for each.

Describing Ownership and Management

1.Note what type of ownership policies are in place. Describe your company's ownership in
clear terms. You should distinguish if it is a public, private, or non-profit organization.
Furthermore, if there are multiple owners or investors, you may need to indicate how authority,
liability, and stock are distributed. For example, ownership might be divided in a partnership
agreement or to holders of stock in the company

2.

Name your board members. If your business has a board, you should clearly identify its members. Write
a brief summary of their leadership capabilities, past experiences, strengths, and weaknesses. [6] Small
private business will probably not have a board of directors. You do not need to include this section if
you do not have a board.

 Include a copy of board policies, including election policies, term length, responsibility,
authority, and conflict resolution. This information should already be stated in your operating
agreement or other founding documents.
3.Introduce the key management members. Present each member's qualifications
and experience. In addition to your owners and board members, this may include
investors, executives, managers, important employees and staff, and entrepreneurs.
Layout the background of these members, along with their characteristics and how each
will contribute to the success of the business.