Annual Plan: Definition, Functions & How to Develop One

Businesses, whether small or large, need careful planning to be successful in the long term. This is why a business needs an annual plan. An annual work plan is one of the essential elements of operational planning that helps companies outline specific goals and objectives within a specific timeframe.

You need to understand its definition and how to prepare it to organize activities and annual budgets to achieve the business objectives. The following article will be discussing its definition, functions and the process of making this plan. So, make sure you stick to the end!

What Is an Annual Plan?

An annual work plan is an operational document that sets out specific objectives and targets for a program of work over a period of time, usually one year. It is a report containing details of the activities to be carried out, when and by whom.

So, how does it differ from a strategic plan? An annual work plan refers specifically to the objectives set out in the strategic plan and explains how the programmes and activities will contribute to achieving the long-term strategic objectives. 

This plan is also a report related to the annual budget, taking into account the costs and income of specific activities. 

How to Make an Annual Plan

To make this company’s operational planning, it requires the right method and the involvement of company members in preparing the document. Here’s how to make an annual plan.

1. Review and Confirm Annual Objectives

First of all, it is a yearly work plan, so you need to know the direction and goals you want to achieve by the end of the year. 

Before you start thinking of new ideas, the first step is to review the previous year's goals and achievements to see how you performed and to determine what changes need to be made for the following year. 

To facilitate the discussion, you need to project the goals, evaluate the achievement of each goal, and involve your team in deciding whether to maintain or change the goals for the coming year. If you've successfully achieved your project goals, you need to continue to improve your performance in terms of recruitment and development opportunities.

2. Brainstorming in Small Groups 

After reviewing and confirming the targets, the next step in developing this plan is to have a discussion with the team. Try to brainstorm by dividing the large team into smaller groups so that everyone can be involved and contribute ideas.

Dividing the discussion group into smaller sections is an effective approach because everyone has the opportunity to participate actively and opinions can be heard clearly. You can divide your members into teams of 8-10 people so that they can voice their ideas and have a good discussion.

3. Presenting the Discussion Results

The next step is the presentation session where each group shares the best ideas in each aspect or category based on the previous brainstorming process. 

Set a time limit for the presentation to make this process smoother. When presenting, display the ideas for easy visualization. The ideas can be grouped into appropriate categories for better organization.

4. Prioritize Goals

After looking at the many ideas presented by members, the next step is prioritizing or determining the ideas to be implemented in the plan

This process involves discussion and voting to determine which plans will be prioritized and which should not be selected or continued. 

This step provides a clear picture of the preferred activities and plans that are a better fit for the team members and the company's goals, facilitating the next steps in the planning process.

5. Schedule Planning on Calendar

After achieving the established results from the previous process, put the plans into a master calendar that includes all important dates. Then, you can build your schedule by prioritizing the most important events first. 

You should also consider the right time for certain events, such as the season or time period that best suits the event. Finally, double-check the goals and objectives that have been set for the year to ensure that the scheduled events support the achievement of those goals. 

That way, you can ensure that the planned activities remain in line with the overall vision and mission. After that, you can start implementing the plans that have been prepared by all members carefully.

At last, that is the explanation of what is an annual plan and how to prepare it. It is a series of plans that are important for the company so you have to pay attention to the entire process in preparing it so that the projects in your company run optimally.

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