Formal Plan

A Formal Plan is a detailed structured document that outlines specific goals, actions, timelines, and resources necessary to achieve an objective.

• Context:
  • It can (often) be part of Project Management to ensure that all aspects of a project are planned and monitored.
  • It can (often) be used in Organizational Planning to guide the strategic direction of a company.
  • It can (often) be approved and reviewed by a management group.
  • It can (often) be updated periodically to reflect progress and changes in objectives or conditions.
  • It can range from being a Long-Term Formal Plan to a Short-Term Formal Plan.
  • It can involve Financial Planning and Budgeting.
  • It can include Performance Measures (to track the success and effectiveness of the plan).
  • ...
• Example(s):
  • a Formal Business Plan for a startup outlining market analysis, funding requirements, and growth strategies.
  • a Formal Project Plan for a construction project detailing timelines, milestones, and resource needs, Project Scope, Project Timeline, Resource Allocation, and Risk Management sections.
  • a Formal Marketing Plan specifying marketing goals, strategies, and budget allocation for the fiscal year.
  • a Formal Product Plan detailing the development, launch, and marketing strategies for a new product.
  • a Formal Risk Management Plan identifying potential risks and mitigation strategies for a business project.
  • a Formal HR Plan outlining recruitment, training, and retention strategies for the workforce.
  • ...
• Counter-Example(s):
  • an Informal Plan, which may lack detailed documentation and a formal approval process.
  • a Draft Proposal, which is a preliminary document not yet finalized or approved.
  • an Ad-Hoc Plan, which is created for immediate, short-term needs without a formal structure.
• See: Project Management, Business Planning, Financial Planning, Risk Management

---

---

References

2024

• Perplexity
  • Here are the key components that should be included in such a document:
    • 1. Executive Summary
      • Brief overview of the project/plan
      • Key goals and objectives
      • High-level timeline and resource requirements
    • 2. Detailed Goals and Objectives
      • Long-term strategic goals
      • Short-term tactical objectives
      • SMART (Specific, Measurable, Achievable, Relevant, Time-bound) criteria for each goal
    • 3. Project Scope
      • Clear definition of what is included and excluded from the project
      • Key deliverables and milestones
    • 4. Action Plan
      • Detailed breakdown of tasks and activities required to achieve goals
      • Responsibilities assigned to team members
      • Dependencies between tasks
    • 5. Timeline
      • Project schedule with start and end dates for each task
      • Critical path identification
      • Gantt chart or similar visual representation
    • 6. Resource Allocation
      • Human resources required (roles, skills, time commitments)
      • Financial resources (budget breakdown)
      • Material resources (equipment, software, etc.)
    • 7. Risk Management
      • Identification of potential risks and their impact
      • Risk mitigation strategies
      • Contingency plans
    • 8. Performance Metrics
      • Key Performance Indicators (KPIs) to measure progress
      • Benchmarks and targets
      • Reporting and review schedule
    • 9. Compliance Considerations
      • Relevant regulations and standards
      • Compliance monitoring and reporting procedures
    • 10. Financial Planning
      • Detailed budget
      • Cost-benefit analysis
      • Return on Investment (ROI) projections
    • 11. Approval and Sign-off
      • Senior management review and approval process
      • Stakeholder sign-off requirements
  • Best Practices for Plan Development
    1. Involve key stakeholders in the planning process to ensure buy-in and comprehensive input.
    2. Use project management software to create and maintain the plan document.
    3. Regularly review and update the plan as the project progresses.
    4. Ensure clear communication channels for sharing updates and changes to the plan.
    5. Incorporate lessons learned from previous projects into the planning process.
    6. Align the plan with overall organizational strategy and goals.
    7. Include contingency buffers in timelines and budgets to account for unforeseen circumstances.
    8. Conduct a thorough risk assessment and develop robust mitigation strategies.
    9. Establish a clear change management process for updating the plan as needed.
    10. Ensure the plan is accessible to all relevant team members and stakeholders.
  • Citations:

[1] https://www.getrodeo.io/blog/project-documentation
[2] https://www.indeed.com/career-advice/career-development/parts-to-a-business-plan
[3] https://www.projectmanager.com/training/make-action-plan
[4] https://opentextbc.ca/projectmanagement/chapter/chapter-16-risk-management-planning-project-management/
[5] https://bootcamp.umass.edu/blog/project-management/best-practices-in-project-management
[6] https://www.indeed.com/career-advice/career-development/project-management-strategies
[7] https://www.financestrategists.com/retirement-planning/plan-compliance/plan-document/
[8] https://www.slingshotapp.io/blog/project-management-goals
[9] https://www.pmi.org/learning/library/best-practices-effective-project-management-8922
[10] https://niftypm.com/blog/project-management-strategies/
[11] https://spmo.illinois.edu/best-practices/

---