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Blog What is an Action Plan & How to Write One [With Examples]

What is an Action Plan & How to Write One [With Examples]

Written by: Danesh Ramuthi Oct 26, 2023

An action plan is a meticulously structured strategy that pinpoints specific steps, tasks and resources vital to turning a goal into reality. It is extremely useful in any project management. 

Crafting an action plan is like plotting a route for a cross-country journey. It’s the strategic map that outlines every step, decision and pitstop needed to reach your ultimate destination.

With a well-thought-out action plan, you’re not just shooting in the dark; you’re making informed, purposeful strides towards your goals. Dive deep with our guide and witness real-world examples that will inspire and guide you.

Need a tool to kickstart your planning? Try out the Venngage business plan maker and explore their extensive collection of action plan templates .

Click to jump ahead: 

What is the purpose of an action plan?

When to develop an action plan, 7 components of a actions plan, 15 action plan examples.

• How to Write an action plan?

Final thoughts

An action plan serves as a strategic tool designed to outline specific steps, tasks and goals necessary to achieve a particular objective.

Its primary purpose is to provide a clear roadmap and direction for individuals, teams or organizations to follow in order to efficiently and effectively accomplish their goals. 

Action plans break down complex projects into manageable, actionable components, making it easier to track progress and stay on course.

Moreover, action plans play a crucial role in fostering accountability and coordination among team members. By assigning responsibilities and deadlines for each task or milestone, they ensure that everyone involved is aware of their roles and the overall timeline, reducing confusion and enhancing teamwork. 

Additionally, action plans help in resource allocation, budgeting and risk management by enabling stakeholders to identify potential challenges and plan for contingencies. 

Overall, the purpose of an action plan is to transform abstract goals into concrete actions, making them more achievable and measurable while ensuring that the resources and efforts are aligned with the desired outcomes.

Developing an action plan is crucial when you’re looking to achieve a specific goal or outcome. Here are instances when you should consider developing an action plan:

• Start of an organization : Ideally, an action plan should be developed within the first six months to one year of the start of an organization. This initial plan lays the groundwork for the future direction and growth of the entity.
• Project initiation : At the start of any project, an action plan helps to clearly define the tasks, responsibilities, and timelines.
• Goal setting : Whenever you or your organization sets a new goal. Action plans transform these goals from abstract ideas into concrete steps.
• Strategic planning : For long-term visions and missions, action plans break down the journey into manageable pieces, each with its timeline and responsible parties.
• Performance improvement : If there are areas where performance is lacking, whether it’s personal or organizational, an action plan can outline the steps needed to elevate performance.

An action plan is a detailed outline that breaks down the steps necessary to achieve a specific goal. Here are the typical components of an action plan.

1. Objective or Goal

The cornerstone of your action plan is the objective or goal. This should be a clear and concise statement outlining the desired outcome or result. Having a well-defined objective provides a direction and purpose to the entire plan, ensuring all tasks and actions are aligned towards achieving this singular aim.

2. Tasks or Actions

Once the objective is set, the next step is to list down the specific tasks or actions required to achieve this goal. These tasks should be broken down into detailed steps, ensuring no essential activity is overlooked. The granularity of these tasks can vary based on the complexity of the goal.

3. Set deadline

For each task or action, set a realistic and achievable deadline. This timeline ensures that the plan stays on track and that momentum is maintained throughout the execution. It also allows for monitoring progress and identifying potential delays early.

4. Resources needed to complete the project

It’s crucial to recognize and list the resources you’ll need to complete the tasks. This can encompass financial resources, human resources, equipment, technological tools or any other assets. Identifying these early ensures that there are no bottlenecks during execution due to a lack of necessary resources.

5. Person responsible

Assign a person or a team for each task. This designation ensures accountability and clarity. When individuals are aware of their responsibilities, it reduces overlap, confusion and ensures that every task has someone overseeing its completion.

6. Potential barriers or challenges

Every plan will face challenges. By anticipating potential barriers or obstacles, you can be better prepared to address them. This proactive approach ensures smoother execution and less reactionary problem-solving.

7. Measurement of key performance indicators (KPIs)

Determine how you’ll measure the success of each task or the plan overall. KPIs are tangible metrics that allow you to gauge progress and determine whether you’re moving closer to your goals and objectives. They offer a quantifiable means to evaluate success.

Action plans serve as blueprints, guiding the steps and resources needed to achieve a specific goal. 

They come in various formats, tailored to different scenarios and objectives. Here, we present a range of action plan examples that cater to diverse purposes and situations. 

From business strategies to simple task lists, these examples illustrate the versatility and importance of well-structured planning.

Business action plan example

A business action plan is essentially a strategy roadmap, meticulously tailored for realizing broader business objectives. By crafting a solid action plan, businesses can channel their resources, manpower and strategies in a direction that harmonizes with their larger vision.

Key to this plan is the identification and alignment of steps that resonate with the company’s comprehensive strategy, ambitions of growth and aspirations for operational enhancements. 

While this might entail a myriad of specific steps based on unique business goals, some common elements include setting clear key performance indicators (KPIs), undertaking a thorough SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to grasp the current business landscape and establishing a timeline to keep track of progress.

Furthermore, allocating responsibilities to team members or individuals ensures that every aspect of the strategy has a dedicated focus. Budgeting, essential to the success of the action plan, ensures that every initiative is financially viable and sustainable. 

Regular reviews and iterations based on feedback and changing market dynamics keep the action plan agile and relevant.

Related: 5 Steps to Create an Actionable Employee Development Plan [with Templates & Examples]

Company action plan example

A comprehensive company action plan serves as the strategic linchpin, ensuring a coherent and coordinated approach to realizing organizational goals. Central to this plan is the incorporation of rigorous market research and analysis, which provides insights into consumer behaviors, market trends and potential opportunities. 

Equally vital is the focus on product development and procurement, ensuring that the offerings align with market demands and stand out in terms of quality and relevance. 

Alongside, adept legal and financial management safeguards the company’s interests, ensuring compliance with regulations and prudent fiscal oversight.

Moreover, the essence of any successful company action plan lies in its sales and marketing strategies. These define how the products or services are positioned and promoted in the market, ensuring visibility and engagement with the target audience. 

However, while acquisition is crucial, retention plays an equally significant role. Hence, impeccable customer service and nurturing relationships become indispensable components, fostering loyalty and ensuring that clients remain ambassadors for the brand long after the initial transaction.

Related: 30+ Project Plan Examples to Visualize Your Strategy (2023)

Sales action plan example

A well-structured sales action plan serves as the backbone for systematic and efficient progress. Central to this plan is the identification and utilization of the most effective sales channels, whether they are direct, online or through third-party avenues. 

Clarity on the products and services on offer, combined with their unique selling propositions, facilitates tailored and resonant sales pitches. 

Budget considerations ensure that resources are judiciously allocated, balancing the act between expenditures and potential returns. This financial prudence is complemented by setting realistic sales projections, which act as both a motivational target and a yardstick for success.

Timelines, or proposed deadlines, infuse the process with a sense of urgency, ensuring that the momentum of the sales drive is maintained. 

However, the true measure of the action plan’s efficacy lies in its key performance indicators (KPIs). These metrics, be it lead conversion rates or customer retention figures, serve as tangible markers, highlighting the plan’s strengths and signaling areas that might require recalibration to increase sales.

Corrective action plan example

The essence of a corrective action plan lies in its meticulous structure, tailored to address and rectify deviations or inefficiencies identified within an organization. At its core, each action item serves as a focal point, detailing specific areas or processes that require intervention. 

Accompanying each action item is a clear description that provides a comprehensive understanding of the issue at hand. 

However, merely identifying a problem isn’t enough; delving deep into its origins through root cause analysis ensures that solutions target the fundamental issues, rather than just addressing superficial symptoms. 

This analysis then paves the way for defining the corrective action, a tangible step or series of steps designed to mitigate the identified problem and prevent its recurrence.

Besides, to ensure the plan’s effectiveness, assigning a responsible person to each action item is paramount. This individual or team is entrusted with the task’s execution, ensuring accountability and focus. 

The status of each action keeps stakeholders informed about the progress, be it in the planning phase, ongoing, or completed. 

Lastly, setting a due date for each corrective action introduces a sense of urgency and purpose, ensuring that issues are addressed in a timely manner, minimizing disruptions and maximizing operational efficiency.

Simple action plan example

A simple action plan strips away the layers of complexity, offering a concise and direct approach to achieving a goal or addressing an issue. This type of plan is characterized by its straightforward structure, devoid of extraneous details, yet powerfully effective in its clarity. 

It is specifically designed for tasks or objectives that don’t necessitate elaborate strategies or multi-layered approaches.

The core components of a simple action plan usually include a clear statement of the task or objective at hand, followed by a sequence of actions or steps to be taken. 

Each step is described succinctly, ensuring that anyone involved has a clear understanding of what is expected. Responsibilities are defined clearly, with each task allocated to an individual or a team, ensuring accountability. Timelines might be integrated, providing a clear framework for completion, even if they’re just broad milestones. 

Regular check-ins or assessments, although minimal, might be incorporated to monitor progress. 

The beauty of a simple action plan lies in its agility and adaptability, making it particularly suited for individual projects, short-term tasks or situations where a rapid response is required.

How to write an action plan?

Creating an effective action plan is a foundational step towards turning aspirations into tangible results. It provides a clear roadmap, ensuring that each step taken aligns with the overall objective.

Whether you’re aiming to enhance a business process or achieve a personal goal, a well-drafted action plan can be your guiding light. Here’s key steps on how you can craft one:

• Step 1: Establish SMART goals: Initiating with a goal that is specific, measurable, achievable, relevant and time-bound ensures you have a clear and focused endpoint in sight. Smart goals serves as the cornerstone for your entire strategic blueprint.
• Step 2: Determine necessary tasks: Decompose your overarching objective into smaller, actionable tasks. This modular approach not only makes the mission less daunting but also provides a sequential pathway to goal attainment.
• Step 3: Assign essential resources: Depending on the tasks at hand, designate necessary resources, be they human, financial or technological. This ensures that every activity has the backing it needs for successful execution.
• Step 4: Prioritize tasks by importance: Not all tasks hold equal weight. Determine the hierarchy of tasks based on their impact on the goal and their time sensitivity. This allows for a systematic progression.
• Step 5: Outline timelines and key markers: With tasks in hand, set clear deadlines for each. Introduce milestones, which act as periodic check-ins, ensuring you’re on track and allowing for celebrations of smaller victories.
• Step 6: Oversee and modify your strategy blueprint: As you progress, there will invariably be learnings and challenges. Regularly review your plan to make necessary adjustments, ensuring its relevance and effectiveness.
• Step 7: Consider ready-to-use templates: If starting from scratch feels overwhelming, lean on structured templates to guide your planning. There’s plenty of business plan softwares and platforms such as  Venngage that offer a plethora of action plan templates , tailored to various needs, which can significantly streamline the process.

An action plan is more than just an action steps, it’s a strategic blueprint that bridges the gap between aspirations and realizations. 

Through this comprehensive guide, I’ve walked you through the purpose, ideal timings, core components, and practical examples of action plans across various domains. 

Leveraging tools of project management , you can track progress, assign tasks and ensure every team member stays on the same page. 

It’s not just about setting goals, but about strategically planning every step, ensuring tasks completed align with the larger project goals. 

Remember, success isn’t just about having goals but about charting the right course to achieve them

And if you’re looking to supercharge your planning efforts, don’t miss out on the Venngage business plan maker. 

Dive into their extensive collection of action plan templates and make your strategic planning both efficient and effective. 

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How to create an action plan (with free templates and examples)

An action plan template provides a ready-made framework for quickly adding the steps — like tasks, due dates, and assignees — to achieve your project goals. It’s a great way to ensure your project action plans are effective and consistent so everyone understands what’s expected.

In this guide, you’ll learn how to write an action plan step-by-step, with examples for inspiration. Plus, you can download two free action plan templates — including one from our Work OS — to get started immediately.

Download Excel template

What is an action plan?

An action plan is a detailed blueprint that outlines the steps you, your team, or your organization will take to achieve a specific goal. It includes specific tasks or actions with due dates and assignees, a timeline, and the resources required to accomplish your goal.

Action plans include detailed information, such as:

• A description of each action or task to complete
• The person responsible for each action
• Due dates for each task
• Resources required to complete the action
• Space to reflect or take notes after you have completed a task

What is an action plan template?

An action plan template is a pre-structured document that gives you a framework for crafting your new action plan. A practical action plan template has designated spaces for each aspect you need to cover, often presented in a table format like this.

Free action plan templates

Here are two free action plan templates you can download and use today:

Try monday.com’s Action Plan Template:

This action plan template breaks down goals into actionable steps that you can prioritize, assign ownership, and track progress. You can also add start and end dates for each action, plus relevant details and files.

Get the template

Download the free action plan template for Excel:

Why is an action plan template important?

Leaders and managers use action plan templates to speed up the strategic planning process . Rather than spending unnecessary time designing the document used for planning purposes, project managers can simply pull up their template, save a new copy — keeping the existing template intact — and get straight to work scheduling and assigning tasks.

Action plan templates ensure consistency

Additionally, templates help to ensure consistency across plans and teams. When your organization uses the same action plan template for the whole company, it’s easier for team members to interpret and understand the plan — because they’re familiar with the format — and it contributes toward an organized, professional appearance.

Action plan templates help you plan more effectively

Action plan templates help project organizers plan more effectively by offering predefined categories and columns, reducing the chance of human error or omitting information from an action plan. In addition, you can apply any learnings from the project management process to your template. That way, you’ll consistently improve subsequent action plans.

While completing a project, you might find that some of the tasks in your task lists didn’t have clear outcomes. In addition, it wasn’t immediately obvious how to identify when the task was complete. So, you could borrow from the SMART goals framework — Specific, Measurable, Attainable, Relevant, Time-bound goals — and include a new column in your action plan template to note how you’ll measure if the task is complete.

And when using an action plan template built on a Work OS like monday.com, you can add your action plan to relevant project boards, create cross-team automations , and more — making it easier to collaborate with a distributed team in real time.

What are the essential features of an effective action plan template?

Action plan templates should contain the following features:

• Multiple views — such as tables, timelines, Kanban boards, and Gantt charts to visualize tasks.
• Task notifications — to detail and assign tasks to team members.
• Structured layouts — to plan tasks based on priority, status, and resource allocation.
• Collaboration ability — to maintain notes, comments, and files in one place.
• Automations — to update task status and notify owners.
• Status columns — to show the current status, such as Stuck, Working on it, and Done.
• Dashboards — to track overall progress, timelines, and budgets.

What is the difference between an action plan and a project plan?

A project plan is more detailed than an action plan. Both list the tasks, timelines, and resources required to achieve a desired goal. But project plans also include:

• Project goals and objectives
• Project milestones and deliverables
• Project scope and budget
• Project roles and responsibilities
• Project stakeholders and communication schedule
• Project risk mitigation and contingency plans
• Project success criteria

You can create an action plan from your project plan to outline the steps required to achieve your project goals.

What are the key elements of a well-written action plan?

A well-written action plan consists of seven components:

• Goals: define what the action plan aims to accomplish.
• Steps: detail the actions required to achieve each goal.
• Items: determine the task dependencies and priorities.
• Timeline: maps out the schedule and milestones from start to finish.
• Resources: identify the people, tools, and budget required.
• Responsibilities: assign tasks to an individual or a team.
• Review: monitor the overall progress of action items completed.

What are some examples of action plan templates?

Now that we know what they do, let’s look at a few action plan templates.

Business action plan template

This template outlines how to write an action plan to track progress toward a specific business goal.

( Image Source )

This action plan begins by detailing the primary goal, with the first column dedicated to a breakdown of each action required. For example, if your business goal was to design and launch a new website, your activities might include:

• Gathering design assets
• Choosing a color scheme
• Copywriting for new website pages
• Assembling design and development teams
• Creating design wireframes
• Design and development
• Launch and promotion

Note that the second to last column in this action plan template is reserved for noting potential hazards. This helps identify roadblocks that might get in the way of achieving your goals to plan around them.

Personal development action plan template

Though action plans are most often used in a business context, they can be a handy tool to help you stay motivated and work toward your personal goals.

This template allows you to break down your actions into a step-by-step sequence and includes a “How will I know I’ve been successful?” column to ensure that the actions you write down have a clear outcome.

Corrective action plan template

Creating an action plan can also be a great way to solve a specific business problem or even an issue with a particular employee’s performance. This is known as a corrective action plan, as shown in the example template below.

A corrective action plan template includes important columns, such as “metrics and constraints” — to help users complete tasks and plan for potential roadblocks — and “percent completed” — to help measure the progress toward the goal.

monday.com’s Action Plan Template

As you’ve seen in the examples above, the typical action plan format is a PDF or Microsoft Word document. While this is fine for goal setting and creating the plan itself, it’s not so great for putting it into action.

That’s why we’ve purpose-built a flexible, customizable, intuitive action plan template to use with monday.com.

When you design your action plan on monday.com, you can:

• Access multiple views (such as a table, Kanban, and timeline) to work in a manner that suits your needs.

• Assign tasks to individuals and notify them instantly.
• Comment and collaborate on tasks to keep communication contextual.
• Design custom automations to save valuable time and ensure nothing slips through the cracks.
• Report on progress with the Progress Tracking Column.

Once there is buy-in from the team on the plan, it is easy to copy actions, dates, and assignees over to the task management board.

Because monday.com is a comprehensive Work OS, any action plans you create with this template also integrate with relevant project boards. In addition, comprehensive analytics make tracking easy.

How to write an action plan step-by-step

Never created an action plan before? Then, follow this simple guide and get started with the free template above.

1. Determine your goals

First, you need to understand what you’re trying to achieve. Then, make this goal as specific as possible.

For example, “increase sales” is not a clear enough goal. “Increase sales by 20% in quarter three” is more specific and allows you to set a metric for achieving it.

2. Break down the steps required to achieve each goal

What actions are necessary to get there?

In this example, that might include:

• Hire three new sales development representatives
• Increase content marketing budget by $20,000
• Implement a new sales training program for new hires

3. Determine task dependencies and priorities

Remember: you can’t do everything at once! So now that you’ve broken down that big goal into bite-sized chunks, you need to figure out the perfect order for completing the tasks. In the above instance, you need to hire new sales representatives before starting a sales training program.

4. Set milestones

Now, set some milestones for significant events or checkpoints along the project. Some typical milestones are:

• Completion of a substantial task or phase of the project
• A significant event, such as a product launch
• Important meetings, like customer review meetings

5. Add deadlines

When do you need to complete each task? Setting deadlines for each task helps your team stay on track and allows you to identify if your timeline for the larger goal is realistic.

6. Identify the resources you need

What’s getting in the way of completing these tasks? What do you require — perhaps from leadership or another team — to meet or exceed your goals? In our sales team example, we might need some assistance from the HR department to advertise an open role and attract new applicants.

7. Assign tasks to individuals

Who is responsible for each action? Assign a clear task owner to each task. Ownership doesn’t just make someone feel accountable; it empowers them to take the initiative and solve problems without dragging in management at every twist and turn.

8. Agree on a plan to review progress

Before you jump in and start your project, determine how you will measure progress toward your goals. For example:

• Will you review your action plan every day or every week?
• Will the task assignees or the project leader be responsible for updating the plan to reflect progress?

Determining these answers upfront means the action plan remains a living document reflecting actual progress.

Customize our Action Plan Template to your needs today

Prepare and present your action plans with our flexible, customizable Action Plan Template. Team members will love the multiple views, automations, and collaboration features to keep them on point. And you’ll benefit from the Progress Tracking column in your weekly reports to stakeholders.

FAQs about action plans

What’s the difference between an action plan and a to-do list.

An action plan and a to-do list are helpful tools for organizing tasks and achieving goals. A to-do list is a list of tasks to complete, but not necessarily for the same goal or project. Typically, to-do lists are less organized than action plans and can change daily. In contrast, an action plan follows specific steps and includes tasks that all lead to completing a common goal.

What's the difference between an action plan and a strategic plan?

An action plan and a strategic plan are essential for an organization’s long-term and short-term planning. A strategic plan outlines an organization’s vision for the future and helps prioritize goals, make resourcing decisions, and unite employees. On the other hand, an action plan makes the strategic plan operational by providing detailed instructions on how to accomplish those goals.

What’s the difference between an action plan and an implementation plan?

An implementation plan and an action plan are essential documents that help teams execute a project successfully. An action plan focuses on the specific tasks needed to achieve a goal. In contrast, an implementation plan is a more holistic document outlining the steps, teams, and resources required to execute a project successfully.

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How to Write an Action Plan: Step-by-Step (Examples)

By Status.net Editorial Team on November 9, 2023 — 9 minutes to read

An action plan is a detailed roadmap of the necessary steps you need to take to achieve a specific goal or objective. It’s like a GPS that guides you from your starting point to your desired destination. Creating an action plan helps you break down a large goal into smaller, more manageable tasks, which makes the goal feel less overwhelming.

To start, you should first identify your end goal and be as specific as possible. For example, if you want to increase sales for your business, set a target like “Increase sales by 20% within the next six months.” This will give you a clear vision of what you want to achieve and make it easier to measure your progress.

Next, list the necessary actions or tasks required to reach your goal. These can be further divided into smaller tasks that are easy to understand and implement. For example, to increase sales, you could:

• Improve your online presence by revamping your website, optimizing it for search engines, and posting regularly on social media platforms.
• Reach out to potential clients through email campaigns and cold calls.
• Offer promotions or discounts to incentivize new customers to try your product or service.

Now, it’s time to set a timeline for each task. Deadlines will enable you to monitor your progress and stay on track. Assign realistic due dates for each task, and if needed, break them down into smaller milestones.

To ensure your action plan’s success, make sure to assign responsibility for each task. If you’re working with a team, delegate tasks according to each team member’s strengths, skills, and workload. This will help ensure everyone knows what their responsibilities are, and they are held accountable.

Lastly, always monitor your progress and evaluate your action plan’s effectiveness. Regularly review the tasks you’ve accomplished, and make note of the tasks that were challenging or required more time than anticipated. This self-assessment will help you improve your action plan and make necessary adjustments as you work towards your goal.

Example Action Plan

Goal : Increase sales by 20% within the next 6 months (By January 1st, 2025)

Actions : 1. Improve online presence a) Revamp website design – Due October 15th b) Optimize website for SEO – Due November 1st c) Post regularly on social media (1x/week min) – Ongoing

2. Reach out to potential clients a) Create email marketing campaign – Due September 15th b) Start cold calling campaign (10 calls/day) – Start October 1st

3. Offer promotions a) Design promotion flyers – Due September 1st b) Run month-long 20% off sale – October 1-31st

Monitoring : – Check website analytics weekly – Track new clients monthly – Evaluate sales figures monthly – Adjust plan as needed at monthly meetings

Responsibilities : – John to revamp website – Susan to handle social media – Michael to create promotions – Jennifer to manage outreach campaigns

Steps to Creating a Powerhouse Action Plan

First, identify your goal . Be specific about what you want to achieve and set a time frame for accomplishing it. This will help keep your efforts focused and prevent you from getting overwhelmed by smaller tasks. For example, instead of “increase sales”, choose “increase sales by 20% in the next six months”.

Next, break your goal down into smaller, manageable tasks . Create a list of activities or steps that must be completed in order to reach your goal. If your goal is to Increase sales by 20%, some tasks might be:

• Research your target market
• Develop a marketing strategy
• Improve product offerings
• Train your sales team

Assign a deadline and responsible party for each task on your list. This will help ensure that all tasks are completed on time and that everyone knows their role in achieving the goal. Make sure to set realistic timelines for each task, taking into consideration the resources and time available.

Here’s an example:

• Research your target market – due in one week – assigned to Jane (marketing specialist)
• Develop a marketing strategy – due in two weeks – assigned to marketing team

Monitor your progress regularly. Keep track of your progress by using tools such as calendars, project management software, or a simple spreadsheet. Regularly assess whether you’re on track to meet your goal and adjust your action plan if needed. For example, if a task is taking longer than expected, you may need to reassign resources or revise the deadline.

Celebrate your milestones and learn from setbacks . Along the way, take the time to acknowledge and celebrate your successes, as well as learn from any setbacks or challenges. This will help maintain motivation and encourage continuous improvement.

Finally, communicate your action plan to all stakeholders involved, such as employees, investors, or clients. Clear communication ensures everyone understands the goal, their responsibilities, and the expectations for the project.

Defining Clear and Smart Goals

Specific goals.

When creating your action plan, start by setting specific goals. These are clear, well-defined goals that leave no room for ambiguity. You should know exactly what needs to be accomplished and how you plan to achieve it. For example, instead of aiming for “increasing sales,” set a goal like “increase sales by 15% over the next six months.”

Measurable Goals

Your goals should be measurable so that you can track your progress and know when you’ve achieved them. This involves identifying quantifiable indicators that will help you determine your progress. For instance, if your goal is to increase sales, a measurable component can be the number of units sold or the amount of revenue generated within a specific timeframe.

Achievable Goals

When setting goals, make sure they are achievable and realistic based on your current resources and constraints. Consider your team’s capabilities, time, and budget. Unattainable goals may negatively impact your motivation and morale. For example, if you have a small team with limited resources, setting a goal to double your company’s size within a month might be unrealistic. Instead, aim for a modest yet challenging growth rate that can be achieved with your available resources.

Relevant Goals

Your action plan goals should also be relevant to your organization’s mission and vision. These are goals that align with your overall strategic plan and contribute to its long-term success. Relevant goals ensure that your efforts are focused on high-impact areas and avoid unnecessary distractions. For example, if your business is focused on sustainability, a relevant goal might be to reduce your company’s carbon footprint by 20% in the next year.

Time-bound Goals

Finally, ensure that your goals are time-bound, meaning they have a deadline for completion. Deadlines keep your team accountable and help maintain a sense of urgency, which is crucial for staying on track and achieving your objectives. A clear timeframe also allows you to measure your progress and adjust your plans as needed. For instance, you could set a goal to expand your customer base by 10% within the next quarter.

Assigning Roles and Responsibilities

When creating an action plan, it’s important to assign roles and responsibilities to your team members. This helps ensure tasks are completed efficiently and everyone is clear about their duties. Here’s how to do it effectively:

• First, identify the necessary tasks to achieve your goal. Be specific about what needs to be done and break it down into smaller steps if needed. For example, if your action plan involves promoting a new product, tasks could include designing promotional materials, creating social media posts, and reaching out to potential partners.
• Next, evaluate the skills and expertise of your team members. Consider their strengths, weaknesses, and past experiences with similar projects. This will help you match team members with tasks that best suit their abilities. For instance, someone with graphic design expertise should be responsible for creating promotional materials.
• Once you’ve determined which team members are best suited for each task, clearly communicate their roles and responsibilities. This can be done through a project management tool, an email, or a team meeting. Make sure everyone is aware of their duties and the deadlines for each task.
• Keep track of everyone’s progress, and hold regular check-ins to see how each team member is doing with their assigned tasks.
• Be open to adjusting your action plan and roles as necessary. Sometimes, unforeseen challenges can arise and require you to modify your plan.

Creating a Time Frame

When working on your action plan, it’s important to establish a realistic time frame for achieving your goals. This helps you stay on track and prioritize tasks effectively. We will walk you through the process of creating a time frame for your action plan.

• First, break down your primary goal into smaller, manageable tasks. Think of these tasks as stepping stones that will lead you toward your overall objective. For example, if your goal is to start a new business, your tasks might include researching your target market, establishing a budget, and developing a marketing strategy.
• Next, assign a deadline to each task. Deadlines should be specific and set in stone but make sure to be flexible enough to adjust as necessary. Use a calendar or planner to visualize your timeline, marking important dates and milestones. For example, you could set a four-month deadline for completing market research and a six-month deadline for securing initial funding.
• To keep yourself accountable, set reminders or notifications for important deadlines. This can be done using digital tools like smartphone apps or traditional methods, such as sticky notes on your workspace. Regularly reviewing your progress and adjusting your time frame when needed will help you stay on track.
• Lastly, consider any external factors that might impact your time frame. Are there seasonal events, holidays, or industry-specific deadlines that could affect your ability to complete tasks? Factor in these considerations as you build your timeline.

Resource Allocation

When creating an action plan, resource allocation plays a major role. You’ll need to determine the resources required for each task and how they’ll be distributed among team members. This usually includes time, budget, and human resources.

• Start by estimating the time each task will take. Break tasks down into smaller chunks and allocate a specific deadline to each. This will help you prioritize tasks and balance workloads for your team members. For example, if designing a marketing campaign takes four weeks, divide it into weekly tasks like conducting market research, creating promotional materials, and setting up advertisements.
• Next, determine the budget needed to complete your project. Identify any expenses such as salaries, equipment, software, and project-related costs like travel. Create a budget for each task to avoid overspending, and allocate funds accordingly. Using our marketing campaign example, allocate separate budgets for market research tools, graphic design tools, and advertising platforms.
• Lastly, allocate human resources to tasks based on their skills and expertise. Delegate responsibilities to your team members, ensuring that everyone has a clear understanding of their role in the project. If needed, identify additional hires or outside consultants to fill gaps in your team’s expertise. For instance, if your team lacks graphic design experience, consider hiring a graphic designer or outsourcing the work to a design agency.
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What is an action plan? Steps, template, and examples

Editor’s note : This blog was updated 27 June 2023 to add more information about action plans, including examples of the types of organizations that can use action plans and an in-depth example study. The action plan template was also updated.

Have a thoughtfully laid-out product roadmap? Great! What’s next?

It’s time to make things happen and turn your product vision into reality.

As a product manager, you’re akin to an orchestrator, juggling multiple hats that need different levels of skill and communication — the glue that brings everything together. One of the most important things you need to get started is an action plan.

What is an action plan?

An action plan is a guiding document and work breakdown structure that outlines all the tasks that need to be completed so you can achieve your product goals.

An action plan is like a music sheet: if you have a defined set of notes, you know exactly what the music is going to sound like.

As the product manager, you need to be able to define the set of tasks in sequential order, considering dependencies and priorities, that will help you complete your project in the quickest, most efficient way possible.

What is an action plan example?

Action plans do not all have to be for complicated products or things — they can be for easy, short-term plans as well. For example, say a product team at a stationery company wants to introduce a new pen model. Their action plan could involve defining the new model’s design, sourcing materials, setting up manufacturing processes, determining marketing strategies, and setting a timeline for the product launch.

Another example could be a clothing brand apparel brand plans to launch a new, sustainable line. This action plan could include researching sustainable materials and manufacturing processes, designing the clothing line, determining pricing strategies, planning the marketing campaign to emphasize the sustainability angle, and coordinating the product launch across various sales channels.

As you can see, action plans don’t always have to be for complex software products. We’ll walk through an example later in the article more suited toward a digital tech product, but the point is that every team can use an action plan no matter what their product is!

How an action plan complements your product strategy

It’s important to note that an action plan and product strategy are not the same thing. Product strategy defines the high-level direction of what will make a product successful and a general idea of how to get there. An action plan is created from an execution standpoint and is not meant to define product strategy.

However, a good action plan should incorporate a long-term product strategy that aligns with business goals. Taking action that doesn’t ultimately lead to achieving your goals is simply unnecessary and a drain on your resources. A smart action plan embraces the fact that business goals and product priorities can change along the way, making it crucial to create a plan that is flexible and allows you to pivot with minimal disruptions.

All in all, an action plan (especially when finely tuned and strategic) complements your product strategy by providing an actionable roadmap to success. As mentioned earlier, while the product strategy paints the high-level vision for what will make a product successful, the action plan breaks this down into tactical steps — think of it as the bridge between the strategy and actual implementation. It’s important to clarify that a well-crafted action plan does not aim to redefine the product strategy but gives a path to execute it.

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How to create an action plan in 5 steps

Creating an action plan is a logical exercise, much like putting the pieces of a jigsaw puzzle together. It’s just that sometimes, you don’t have the jigsaw pieces readily available, so you have to do some digging to find them first.

Whether you’re using pen and paper or a more sophisticated project management tool such as Jira or Confluence, it’s important to write down your action plan so you can get everyone on the same page (literally) and reference it later.

The steps to writing an effective action plan are as follows:

• Define goals
• Build your framework and task list
• Define roles and responsibilities
• Communicate and get feedback
• Update your action plan

1. Define goals

The most important step in creating an action plan is to define the goals you want to achieve through that plan. This isn’t exclusively about launching a new product feature or enhancing user experience, you can equally use an action plan to reinforce security measures or diminish your product’s tech debt. The goals can be big or small, but defining them clearly is crucial.

To ensure these goals are robust and measurable, incorporate data metrics as your success indicators and set feasible timelines. The more precise and data-centric your goals, the more actionable they become. For example: Increase net-new users by X percent through the release of Y new feature by the end of Q3.

2. Build your framework and task list

Now that you have your goals defined, work backward from your goals and think about all the different pieces you need to reach them.

When dealing with so many moving parts, it’s important to create a structure for them. We call this the work breakdown structure.

Essentially, this involves dissecting the project into smaller, manageable tasks. Organize these tasks into groups and create dependencies and communication links between them. This forms the framework you can use to fully build out your action plan.

The framework will help you create a holistic execution plan and force you to think about the things that you possibly could have missed. No two companies are alike, so create a detailed framework that works for you and your company.

Example action plan framework

Here’s an example of a simple, high-level framework for a process-oriented action plan that’s ideal for software companies:

• Product scoping
• Technical scoping
• UI/UX design
• Development
• Release and review

Product scoping — Gather product requirements through product analytics, customer discovery, cross-functional collaboration and internal feedback, competitive and market trends, and any other source that brings insights into the product you’re building. Consider how your product will impact existing customers, other products, teams, revenue streams, etc. within your company.

Technical scoping — Once you have the product requirements nailed down, having technical scoping discussions helps to understand technical feasibility and dependencies better.

UI/UX design — Create prototypes according to user experience and design best practices. This will help validate technical feasibility, customer usability, and alignment with product strategy.

Development — Now that we have a solid set of requirements that are ready to be developed, you can create further action plans specifically for development in collaboration with your engineering manager(s) . Together with your engineering leaders, break down the development phase into manageable chunks of work, taking into account technical dependencies and the sequential order of how the tasks must be developed.

Testing — Once your product is developed, it’s time to test it. Engage a variety of stakeholders to test your product. More feedback means more insights into how customers will perceive and use your product.

Release and review — Releasing a new product feature can be nerve-wracking. Having a release checklist to go with your action plan can be helpful. Think about all the things that need to be put in place before the release, including communicating with other stakeholders (e.g., support, marketing, sales, leadership, etc.). Once you release, review customer feedback to find ways to improve your product.

Once you have your framework, create a detailed list of tasks for each stage. Support each task with a written description of what the task entails and what defines it as completed . Reach out to your team members to help you understand each task better and include any other details that you think are relevant.

3. Define roles and responsibilities

Use the framework as a point of reference to manage your resources. Resources can make or break your project, so it’s important to manage them as efficiently as possible.

In collaboration with your engineering manager, establish the team that will be working on the specific project. Define the roles and responsibilities of each team member and make sure everyone understands how they are expected to contribute to the project.

Assign tasks to team members accordingly and help them understand the scope of their tasks. It’s also important to collaboratively set up deadlines for tasks and then hold them accountable to those timelines.

4. Communicate and gather feedback

You now have a well-established action plan. You know who is doing what, when, and how it all leads up to achieving the goals of your action plan. But there are always caveats.

For instance, sometimes you make assumptions before validating, or you’re just not aware of something that can become a problem later on. The list of potential nags is literally endless.

To avoid this, communicate your action plan to your core team, management, cross-functional stakeholders, and other team members to gather feedback. Being open to feedback is critical to learning and growing. Incorporating feedback will build your own credibility and will help evolve the process of creating action plans.

5. Update your action plan

The only constant is change. As market trends and business strategies evolve, you have to be ready to pivot. This can put a damper on your well-established action plans.

Acknowledging this and building flexibility into your action plans will help you keep projects on track. Create milestones or checkpoints in your action plans; this will enable you to make informed decisions on how best to pivot when the need arises.

As things change, update your action plan and communicate at the earliest possible to the project team, as well as any other stakeholder that needs to be in the loop.

Action plan in-depth example: Improving user engagement with a new feature

Let’s walk through a specific (and realistic) example product managers may face — improving user engagement by releasing a new feature. Specifically, let’s say you’re working on a news app and have been seeing declining user engagement recently. You’re not exactly sure why, but think that introducing a personalization feature might increase engagement. Following the steps outlined to create an action plan, the process would look like this:

The primary goal is to increase user engagement by 20 percent over the next two quarters. You’ll do this by introducing a personalization feature that tailors content to the individual user’s interests — something that we believe our competitors are doing already.

This will be measured by tracking metrics such as session duration, number of articles read per session, and click-through rates on personalized content suggestions.

You’ll use the simple, high-level framework we outlined to build the task list.

Product scoping — Conduct market research to understand user preferences for personalized content and see how our competitors are currently doing it.

Technical scoping — Collaborate with the technical team to assess the feasibility of implementing personalization algorithms, dependencies, and any potential challenges. This step may include meetings with data scientists and backend developers.

UI/UX design — Design the user interface for the personalized content feed. It could include the location of the personalized feed on the home screen, a section for users to choose their interests, etc. This step will involve creating wireframes, developing prototypes, and conducting user testing to validate the design.

Development — Implement the personalization feature, including the development of the algorithm, changes to the backend to handle user data securely, and the frontend changes to display personalized content.

Testing — Extensively test the new feature for usability, security, learning curve, etc.

Release and review — Plan the release of the new feature, and consider a soft launch with a small user group to collect early feedback. After the release, continue to collect user feedback to identify any needs for improvement.

For the sake of our example, let’s assume all of the team members have availability to help. The product manager will work on the product scoping phase and coordinate with the technical team for technical scoping, UX designers will handle the UI/UX design phase, developers and data scientists will work on developing the personalization algorithm and integrating it with the app during the development phase, etc.

4. Communicate and get feedback

The plan is then shared with all stakeholders — the core team, senior management, executives, and other teams impacted by this feature. You’ll get their feedback and make the necessary amendments. You’ll also use project management tools to ensure everyone has a clear understanding of the action plan and their roles.

Lastly, you’ll set up regular reviews to monitor progress and make necessary changes in the plan as we encounter new information or challenges.

Action plan template

Now that you have a foundational understanding of what to include in an action plan and how to write one, where do you start?

This action plan template is designed to help you keep track of tasks, resources, dependencies, and progress in a single, easy-to-read, and even easier-to-update spreadsheet:

To customize the action plan template for your next project, click here and select File > Make a copy from the main menu at the top of the page.

5 tips to build an action plan that drives value

A rushed or incomplete action plan will lead to stress and frustration down the road. Here are five best practices to help you create an effective and efficient action plan:

• Create multiple action plans
• Identify milestones and critical tasks
• Communicate early and often
• Embrace technology
• Continuously improve your processes

1. Create multiple action plans

Action plans can get pretty daunting for bigger projects. Don’t overwhelm yourself; use the same concept as the work breakdown structure.

Start by creating a holistic, high-level action plan that encompasses the entire project. Then, take each part of that plan and break it down further, and so on.

You can create individual action plans for each part of the high-level action plan. You may also need to do this for specific parts of the project if they have a lot of dependencies or require many people to collaborate with each other.

2. Identify milestones and critical tasks

When you have numerous tasks, you might have trouble managing them all.

Identifying milestones and critical tasks can bring visibility to the most important parts of the action plan. Make sure you have the right stakeholders in the room when discussing these.

Celebrating milestones is also a great way to improve the morale of the team.

3. Communicate early and often

No matter how detailed your action plans are, if you are not able to communicate them properly to the project team, it will be difficult to achieve your goals.

Keep the communication continuously flowing and keep an eye out for blockers. As the product manager, you need to work with the team to remove obstacles and keep things moving along.

Communication also goes a long way to align the team during change management .

4. Embrace technology

Technology can make our lives so much easier when we know how to apply it in the right ways.

There are many software tools that can help you create, document, and manage your action plans. Assess your needs and experiment with free trials to gauge which tool suits your process the best.

If paid software is too far out of the picture at the moment, you can simply use Google Sheets/Docs or Microsoft Excel/Word to create your action plan. Click here for a simple action plan template in Google Docs.

5. Continuously improve your processes

Small things that are done to better the process eventually add up and create drastic efficiencies over time.

Make time for feedback and introspection loops. Find ways to incorporate relevant feedback and distribute the knowledge. Monitor for process patterns and areas that need improvement and discuss with the team how you can make the overall process better for everybody.

Collaborate with the team to make improvements incrementally and continuously .

The framework and process for creating and managing action plans can vary based on the project and team. As long as you have action plans documented and communicate regularly with relevant stakeholders, you will be able to get things done efficiently.

Remember, as the orchestrator (product manager), you need your music sheet (action plan) and your orchestra (project team) to align, and you’ve got yourself a fantastic concert (product)!

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What is an Action Plan? Learn with Templates and Examples

Planning on turning your vision into reality? And what’s your best way to avoid challenges and problems during this journey? A solid action plan.

We have outlined 6 steps explaining how to write an action plan. Once you familiarize yourself with them, go ahead and use the editable templates below to start planning right away.

What is an Action Plan?

Why you need an action plan, how to write an action plan, action plan templates.

An action plan is a specific list of tasks in order to achieve a particular goal. It can be regarded as a proposed strategy to execute a specific project to achieve a specific or general goal effectively and efficiently. It outlines steps to take and helps stay focused and organized, whether it’s personal or work-related. Breaking down the goal into smaller, manageable steps, makes it easier to stay motivated and track progress.

It’s an essential part of the strategic planning process and helps with improving teamwork planning Not only in project management, but action plans can be used by individuals to prepare a strategy to achieve their own personal goals as well.

Components of an action plan include

• A well-defined description of the goal to be achieved
• Tasks/ steps that need to be carried out to reach the goal
• People who will be in charge of carrying out each task
• When will these tasks be completed (deadlines and milestones)
• Resources needed to complete the tasks
• Measures to evaluate progress

What’s great about having everything listed down on one location is that it makes it easier to track progress and effectively plan things out.

An action plan is not something set in stone. As your organization grows, and surrounding circumstances change, you will have to revisit and make adjustments to meet the latest needs.

Sometimes businesses don’t spend much time on developing an action plan before an initiative, which, in most cases, leads to failure. If you haven’t heard, “failing to plan is planning to fail” said Benjamin Franklin supposedly once.

Planning helps you prepare for the obstacles ahead and keep you on track. And with an effective action plan, you can boost your productivity and keep yourself focused.  

Here are some benefits of an action plan you should know;

• It gives you a clear direction. As an action plan highlights exactly what steps to be taken and when they should be completed, you will know exactly what you need to do.
• Having your goals written down and planned out in steps will give you a reason to stay motivated and committed throughout the project.  
• With an action plan, you can track your progress toward your goal.
• Since you are listing down all the steps you need to complete in your action plan, it will help you prioritize your tasks based on effort and impact.

From the looks of it, creating an action plan seems fairly easy. But there are several important steps you need to follow with caution in order to get the best out of it. Here’s how to write an action plan explained in 6 easy steps.

Step 1: Define your end goal

If you are not clear about what you want to do and what you want to achieve, you are setting yourself up for failure.

Planning a new initiative? Start by defining where you are and where you want to be.

Solving a problem? Analyze the situation and explore possible solutions before prioritizing them.

Then write down your goal. And before you move on to the next step, run your goal through the SMART criteria . Or in other words, make sure that it is

• Specific – well-defined and clear
• Measurable – include measurable indicators to track progress  
• Attainable – realistic and achievable within the resources, time, money, experience, etc. you have
• Relevant – align with your other goals
• Timely – has a finishing date

Use this SMART goal worksheet to simplify this process. Share it with others to get their input as well.  

• Ready to use
• Fully customizable template
• Get Started in seconds

And refer to our easy guide to the goal-setting process to learn more about setting and planning your goals.

Step 2: List down the steps to be followed

The goal is clear. What exactly should you do to realize it?

Create a rough template to list down all the tasks to be performed, due dates and people responsible.

It’s important that you make sure that the entire team is involved in this process and has access to the document. This way everyone will be aware of their roles and responsibilities in the project.

Make sure that each task is clearly defined and is attainable. If you come across larger and more complex tasks, break them down to smaller ones that are easier to execute and manage.

Tips: Use a RACI Matrix template to clarify project roles and responsibilities, and plan projects

Step 3: Prioritize tasks and add deadlines

It’s time to reorganize the list by prioritizing the tasks . Some steps, you may need to prioritize as they can be blocking other sub-steps.

Add deadlines, and make sure that they are realistic. Consult with the person responsible for carrying it out to understand his or her capacity before deciding on deadlines.

Step 4: Set milestones

Milestones can be considered mini goals leading up to the main goal at the end. The advantage of adding milestones is that they give the team members to look forward to something and help them stay motivated even though the final due date is far away.

Start from the end goal and work your way back as you set milestones . Remember not to keep too little or too much time in between the milestone you set. It’s a best practice to space milestones two weeks apart.  

Step 5: Identify the resources needed

Before you start your project, it’s crucial to ensure that you have all the necessary resources at hand to complete the tasks. And if they are not currently available, you need to first make a plan to acquire them.

This should also include your budget. You can assign a column of your action plan to mark the cost of each task if there are any.  

Step 6: Visualize your action plan

The point of this step is to create something that everyone can understand at a glance and that can be shared with everyone.

Whether your action plan comes in the shape of a flowchart , Gantt chart , or table , make sure that it clearly communicates the elements we have identified so far – tasks, task owners, deadlines, resources, etc.

This document should be easily accessible to everyone and should be editable.

Step 7: Monitor, evaluate and update

Allocate some time to evaluate the progress you’ve made with your team.

You can mark tasks that are completed as done on this final action plan, bringing attention to how you’ve progressed toward the goal.

This will also bring out the tasks that are pending or delayed, in which case you need to figure out why and find suitable solutions. And then update the action plan accordingly.

Business action plan

You may like to read: The Easy Guide to Making a Business Plan for Presentations

Marketing action plan

Strategic action plan, corrective action plan template.

Learn more about: Corrective Action Plan template .

Additional resources: The Easy Guide to Creating a Business Contingency Plan

Simple action plan template

Any more tips on creating an action plan.

An action plan is designed to guide your way to accomplishing your goals. It turns your vision into actionable goals and steps. And it helps you stay focused and motivated.

From an individual employee in an organization to larger departments can make use of action plans to steer their way towards completing their goals.

Maybe you are about to create your very first action plan, or you are already a pro at writing them. Either way, we’d like to hear your opinions on how to write an action plan. Do share them with us in the comments section below.

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FAQs About Action Plan

Lack of clarity on goals: Make sure the team understands the goals and objectives of the action plan. The goals should be specific, measurable, attainable, relevant, and time-bound (SMART).

Unclear responsibilities: Assign clear roles and responsibilities for each team member to avoid confusion and ensure accountability.

Overcomplicating the plan: Keep the action plan simple and easy to understand. Avoid adding unnecessary complexity or detail that may confuse the team.

Failure to prioritize tasks: Prioritize tasks based on their importance and urgency. This will ensure that the team focuses on the most critical tasks first.

Inadequate resources: Ensure that the team has access to the necessary resources such as time, budget, and equipment, to carry out the action plan successfully.

Lack of communication: Effective communication is crucial to the success of any action plan. Ensure that team members are regularly updated on progress and any changes to the plan.

Failure to monitor progress: Regularly monitor progress and adjust the action plan as needed to ensure that it stays on track and achieves its goals.

Strategic action plan: This type of plan outlines the long-term goals and objectives of an organization, and the actions that will be taken to achieve them. It typically covers a period of several years and includes high-level strategies and initiatives.

Operational action plan: This plan focuses on the day-to-day operations of an organization, outlining the actions that will be taken to achieve short-term goals and objectives. It typically covers a period of one year or less and includes specific actions and timelines.

Project action plan: This type of plan is used for individual projects and outlines the actions that will be taken to achieve specific project goals and objectives. It includes a detailed breakdown of tasks, timelines, and responsibilities.

Sales action plan: This plan focuses on the actions that will be taken to increase sales and revenue. It includes specific strategies for marketing, sales, and customer service.

Marketing action plan: This plan outlines the actions that will be taken to promote a product or service and increase brand awareness. It includes strategies for advertising, social media, public relations, and other marketing initiatives.

Crisis management action plan: This type of plan outlines the actions that will be taken in the event of a crisis, such as a natural disaster or security breach. It includes specific protocols for communication, evacuation, and other emergency procedures.

An action plan can be used by anyone who wants to achieve specific goals or objectives. It is a useful tool for individuals, teams, and organizations in a variety of contexts. Here are some examples:

Individuals: An individual can use an action plan to achieve personal goals such as losing weight, completing a degree, or starting a business.

Teams: A team can use an action plan to achieve goals related to a specific project or initiative. For example, a marketing team may use an action plan to launch a new product.

Small businesses: Small businesses can use an action plan to achieve goals related to sales, marketing, operations, or finance.

Non-profit organizations: Non-profit organizations can use an action plan to achieve goals related to fundraising, volunteer recruitment, or program implementation.

Government agencies: Government agencies can use an action plan to achieve goals related to policy implementation, disaster response, or public safety.

Educational institutions: Educational institutions can use an action plan to achieve goals related to improving student outcomes, increasing enrollment, or expanding programs.

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Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

Small Business Trends

What is an action plan and how to create one + an example.

An action plan is an organized list of steps that you can take to reach a desired goal. Creating an action plan requires carefully considering resources, goals, and available time. With a well-structured action plan, you can reach your goals in the most efficient way possible. Here’s how to create an action plan – plus some helpful examples and time-saving tips to guide you during your strategic planning process.

Table of Contents

What is an Action Plan?

At one point or another, you may have a task that seems larger than life. But an action plan helps.

In essence, an action plan is a systematic, detailed blueprint, or a comprehensive document, that lays out the strategy to achieve a certain goal or set of goals. It’s similar to a roadmap, providing clear directions on how you can move from your current status to your desired state.

The concept of an action plan is not limited to any specific domain, making it a versatile tool. It can be applied in various fields such as business, education, project management, personal growth, healthcare, and so forth.

A well-crafted action plan typically encompasses several elements:

• Objective: The objective is the ultimate goal that you aim to achieve. It needs to be clear and precise. This is the “destination” you’re striving to reach, so it’s vital to define it in a way that leaves no room for ambiguity. Often, the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) is used to frame these objectives.

• Steps or Tasks: Once the goal is set, the next stage is to break it down into smaller, manageable steps or tasks. Each task should be straightforward, feasible, and should contribute directly to the attainment of the ultimate goal. For example, when you break down a large project into smaller, manageable tasks, it keeps you on track to success, and makes staying motivated in business easier during tough projects.

• Resources: For each task, you should also identify the necessary resources. These can be physical resources, such as equipment or materials, or human resources, like specific skills or personnel. By identifying these upfront, you can better plan and mitigate potential bottlenecks.

• Timeline: It’s also crucial to set a timeline for each task, which includes a start and an end date. This not only instills a sense of urgency but also helps to track progress over time. A well-planned schedule can also prevent tasks from overlapping or clashing.

• Responsibility Assignment: Each task needs a responsible person or team who will see it through to completion. Defining this ensures accountability and prevents tasks from being overlooked.

• Contingency Plan: Despite the best of planning, unforeseen circumstances may arise. Having a contingency plan prepares you for such scenarios, ensuring that your plan remains robust and flexible.

• Tracking and Evaluation: An important aspect of an action plan is tracking progress and evaluating outcomes. This step is essential as it allows you to adjust your plan as needed, based on the performance of each task or changing circumstances.

Creating an Effective Action Plan

Creating an effective action plan is an integral part of achieving any goal. In the following video, Brian Tracy, a well-known speaker and author in the field of self-development, outlines his method for formulating such a plan. Tracy’s process, built from years of experience, provides clear and practical steps that can be applied to any project or objective.

How to Write an Action Plan

An effective action plan operates as a guiding light, leading the way towards achieving specific objectives, milestones, and goals. For any project or substantial task, it can be the pivotal element that swings the balance between success and failure.

To make the process of creating an action plan easier, we’ve provided a summary table below. This table functions like a checklist, outlining clear steps and eliminating any confusion about what needs to be done next.

Having this overview can be a great starting point, but a deeper understanding of each step will further assist you in crafting a robust action plan. So let’s get started and explore each of these steps in more detail.

Step 1: Define the goal

Defining project goals is a critical first step in the action-planning process. It involves establishing a clear and concise objective that guides the rest of the plan. A well-defined goal serves as a roadmap for the team, providing direction and focus for their efforts. It also helps to keep everyone aligned and on track, ensuring that the plan is executed effectively.

To define a goal effectively, it is important to consider several key factors. First, the goal should be specific, meaning that it should clearly state what is to be achieved. Second, it should be measurable, allowing for progress to be tracked and evaluated.

Third, it should be attainable, meaning that it should be realistic and achievable given the available resources and constraints. Fourth, the goal should be relevant and aligned with the organization’s overall strategy and goals. Finally, it should have a specific timeline, with deadlines established to ensure that the goal is achieved within a reasonable period of time.

Step 2: Project management – Identify the necessary actions

This step outlines the specific tasks and activities that need to be performed in order to achieve the defined goal. It involves breaking down the goal into smaller, manageable steps and determining what needs to be done to accomplish each step. The actions should be specific, measurable, and have clear deliverables.

Project management plays a vital role in this step, as it helps to ensure that the necessary actions are planned and executed effectively. Project managers use a variety of tools and techniques to identify the necessary actions, such as creating a work breakdown structure, creating a project schedule, and identifying project dependencies.

They also work closely with the team to ensure that the necessary resources are available, that risks are identified and managed, and that progress is tracked and reported. Using project management best practices, the team can ensure that the necessary actions are performed efficiently and effectively and that the project remains on track and on schedule.

Step 3: Assign tasks and responsibilities to project managers and any person responsible

Assigning tasks and responsibilities is a key step in the action planning process, as it ensures that all the tasks have a designated person responsible for their completion. This step involves identifying who will be responsible for each of the necessary actions identified in the previous step and assigning ownership for the delivery of each task. It is important to ensure that responsibilities are clearly defined and that each person understands their role and what is expected of them.

Project managers play a central role in assigning responsibilities, as they are responsible for ensuring that the right person is assigned to each task. They work closely with team members to understand their strengths, skills, and availability, and make assignments based on this information.

They may also assign backup resources to ensure the team can complete tasks even if the primary person responsible is unavailable. It is important to remember that assigning responsibilities is a collaborative process, and that team members should have the opportunity to provide input and feedback. Employ team building exercises to promote teamwork, and provide streamlined methods for employees to communicate with managers and decision makers.

Step 4: Determine the timeline and deadlines

This step involves creating a timeline that outlines when each task should start and finish, and when milestones should be reached. The timeline should be based on the scope of the project, the availability of resources, and any other constraints. Use a calendar or gannt chart to outline the exact schedule for each step.

Having a clear timeline and deadlines helps to keep the project on track and ensures that tasks are completed in a timely manner. It also provides a clear visual representation of the project’s progress and helps to identify any potential issues or delays.

Deadlines also help to keep team members accountable and focused, as they know when they need to have their tasks completed. Deadlines also help to prioritize tasks and ensure that the most important work is completed first.

Step 5: Establish a system for monitoring progress

Establishing a system for monitoring progress provides a way to track the project’s progress and identify any issues or challenges that may arise. This step involves implementing tools, processes, and metrics that can be used to measure the project’s progress against the timeline and goals. The system for monitoring progress should be simple, efficient, and easy to use.

Having a system for monitoring progress is important for several reasons. First, it provides real-time visibility into the project’s progress, allowing the project manager and team to quickly identify any issues or challenges that may arise.

Second, it helps to keep everyone accountable and focused, as team members know that their work will be monitored and evaluated. Third, it allows for continuous improvement, as the project manager can use the data and metrics collected to identify areas for improvement and make adjustments as needed.

Step 6: Track progress, evaluate, and adjust as necessary

Evaluating and adjusting as necessary is a critical step in the action planning process, as it provides a way to ensure that the project remains on track and is executed effectively.

This step involves regularly reviewing the actual progress of the project and making any necessary adjustments to the plan, timeline, and actions. The evaluation should be based on the system for monitoring progress that was established in a previous step.

Tracking progress is an important part of this step, as it provides the data and metrics needed to evaluate the project’s progress and identify any areas for improvement. The project manager should use the system for monitoring progress to track key metrics, such as task completion rates, timeline progress, and resource utilization. This information can then be used to assess the project’s progress against the goals and timeline and to identify any areas for improvement.

By evaluating and adjusting as necessary, the project manager can ensure that the project remains on track and is executed effectively. This helps to minimize disruptions and delays and ensures that the project stays aligned with the goals and objectives.

The process of evaluating and adjusting should be continuous, with regular evaluations and progress reviews. This allows the project manager to respond quickly to any changes or challenges that may arise, and to make any necessary adjustments to keep the project moving forward. For example, you may need to employ some time saving tips or delegate to get back on schedule. Alternatively, you may need to try some new call to action examples to more effectively impact customer behavior to meet your goals.

Do I Need an Action Plan?

Everyone who has set business goals should strive for effective business planning . Without an action plan, it’s very easy to become overwhelmed by significant goals or lose sight of what perspectives should guide the decision-making process. Having an organized, realistic plan is how to stay motivated and stay focused on reaching success.

This is especially true for larger companies that are trying to navigate complex projects or launch multiple initiatives at the same time. An action plan can help them stay organized, track project progress, anticipate potential challenges, and simplify hiring .

Smaller businesses can also benefit from having an action plan, as it will provide a road map for scaling up operations in the future. An effective action plan should include strategies, resources, timelines, revenue targets , and measures of success. The business budget and cash flow should always be taken into account when creating an action plan.

Why Your Business Should Have an Action Plan

Every business should have an action plan as it’s essential to success and keeping your company on track. Here are five reasons your business needs one:

• Clarity of Purpose: An action plan lets everyone in your company know exactly what they need to accomplish, so they can stay focused and productive. Set call-to-action examples and performance expectations so everyone knows what to strive for.
• Measurable Results: Having specific goals and a timeline helps you keep track of your progress, see what’s working, and adjust plans when needed.
• Achievable Goals: Action plans make sure that you don’t set yourself up for failure by setting unrealistic objectives. Outline steps for success in manageable pieces.
• Effective Use of Resources : An action plan helps you prioritize tasks and resources, so you can get the best return on investment (ROI). Public relations strategies and campaigns are two common examples.
• Increased Accountability: By clearly defining roles, responsibilities, deadlines, and expectations, everyone involved is more accountable for their tasks and the success of the project overall.

Plan of Action Example (Template)

A well-structured action plan helps to keep the project on track and on schedule providing a clear path to success. Here’s an action plan template example you can use to inspire you for your own projects:

I. Define the goal:

A. Objective: Launch a new product line

B. SMART Goal: To launch a new product line in 6 months, generating $500,000 in revenue within the first year.

II. Identify necessary actions:

A. Conduct market research to determine the target audience and demand

B. Develop product prototypes and conduct testing

C. Create marketing materials and promotional campaigns

D. Set up the supply chain and logistics

E. Launch product through digital and physical channels

III. Assign responsibilities:

A. Market research: Marketing team

B. Product development: R&D team

C. Marketing plan , materials, and campaigns: Marketing team

D. Supply chain and logistics: Operations team

E. Product launch: Marketing and Operations teams

IV. Determine timeline and deadlines:

A. Market research: Month 1-2

B. Product development: Month 2-4

C. Marketing materials and campaigns: Month 4-5

D. Supply chain and logistics: Month 5-6

E. Product launch: Month 6

V. Establish a system for monitoring progress:

A. Key metrics: Revenue, market share, customer satisfaction

B. Tools: Project management software, weekly progress meetings

C. Progress review meetings: Every 2 weeks

VI. Evaluate and adjust as necessary:

A. Regularly review revenue and customer satisfaction data

B. Adjust marketing strategy and promotions as necessary

C. Monitor supply chain and logistics, and make adjustments as needed

D. Evaluate timeline and deadlines, and adjust as necessary to ensure a timely product launch.

Tips for Building a Fantastic Action Plan

Building an action plan is the first step to reaching your business goals. Here are five tips for creating a fantastic action plan:

• Be Clear & Specific: Make sure that everyone involved in the project understands what needs to be done and when it needs to be completed. Set measurable and achievable targets, with specific timelines and deadlines.
• Prioritize Tasks: Identify which tasks should take priority so you can focus on what’s important right now, while still having a plan for the future.
• Start Small: Break large projects down into smaller components that you can do in stages, rather than trying to accomplish everything at once. Team-building exercises are a great way to keep energy and motivation high.
• Outline Resources Needed: Research ahead of time what resources will be needed for each task and make sure you have everything in place beforehand.
• Include Room for Change: The reality is that things don’t always go as planned so be prepared to adjust timelines or objectives as needed along the way.

Action Plan Vs To-Do List

Action plans and to-do lists may seem similar at first glance, but they are two different tools that serve specific purposes. An action plan is an organized approach to achieving a goal. It helps you break down larger tasks into smaller, manageable pieces and outlines the steps you need to take in order to reach your objectives.

A to-do list is a tool used to keep track of day-to-day tasks or items that need attention. It’s typically used as a checklist for getting things done in a certain timeframe. While both can be helpful when it comes to staying organized and productive, action plans offer a more comprehensive approach to reaching longer-term goals.

Action Plan Vs Strategic Plan

An action plan and a strategic plan are two distinct frameworks used in planning and executing goals, each serving its unique function. An action plan is a detailed outline of the specific, immediate steps required to achieve a short-term objective. It focuses on the ‘how’ aspect, breaking down larger tasks into smaller, actionable items, typically with a shorter time horizon.

On the other hand, a strategic plan is a comprehensive roadmap designed for long-term goals. It involves a broader perspective, focusing on the ‘why’ behind the goals. This plan outlines the organization’s vision, mission, and core objectives over a more extended period, often including market analysis, competitive positioning, and long-term resource allocation. While action plans are more about tactical execution, strategic plans provide the overarching direction and purpose that guide these actions.

Both plans are crucial: the strategic plan sets the course, and the action plan drives the day-to-day activities needed to steer the ship towards the destination outlined in the strategic plan.

Action Plan Vs Project Plan

An action plan and a project plan are both tools used to help maintain organization and productivity when working toward a specific goal. Action plans focus on smaller tasks that need to be completed and prioritize them in an organized list.

Project plans are more comprehensive, providing an overview of all the steps required for completing a particular project. They usually include timelines, deadlines, resources needed, and other specifics. While action plans can help define the daily tasks necessary for completing a project, they should ultimately be formulated as part of the larger project plan.

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How to Write an Action Plan (Examples Included)

Before you start any project, you have to draw up a plan to manage, organize, and realize the project’s goals. Planning is a crucial component of the project initiation phase of the project management life cycle.

The best way to turn your project objectives and goals into reality, and to avoid risks and challenges during the project management life cycle , is to use a solid action plan. You can use an action plan to create a clear path to success for any goal (personal, business, or financial goal ).

In this article, you will learn how to write an effective action plan and why you need one for your project.

Let’s get started.

What is an Action Plan?

An action plan is a comprehensive plan on how to reach a goal. This is a step-by-step process you have to perform to attain your goal.

Every organization has a guideline or strategy in place to achieve its goal, be it small or big. An action plan can work towards a quarterly or yearly goal. This will include setting goals and objectives that are realistic to achieve.

A goal is the primary objective of an action plan. An action plan does not only exist in organizations, but it is very useful in our day-to-day life.

When you set a goal, an action plan has to be in motion to bring such a goal to life. Some processes or structures have to be in place to create an action plan.

Ask the following questions before you write an action plan.

• What are the goals you need to achieve?
• What methods will go into achieving them?
• What is the end goal of these goals and objectives?

You also need to follow processes to set an effective action plan.

1. Setting A Goal

The first step for writing an action plan is to set a goal. When you discover the goal of the whole operation, you can then draw up an action plan to achieve it. The purpose of this is to create or have a picture of what the goal is going to be about. This ensures that you set a realistic goal.

During the process of setting a goal, consider the following.

• The goal must be clear and actionable
• Must be realistic
• Must have a completion date

Organizations at this phase create a project charter to sketch out the goals and objectives.

2. Structures to Achieve the Goal

These are the guidelines or step-by-step plans to achieve the goal. During this stage, you write a well-described and outlined plan. The action plan is a guideline for achieving the already set goal.

Break down the goal of the project into smaller units and tasks that will lead to the eventual progress of the goal. Set targets and deadlines, and share responsibilities and resources needed to achieve the goal.

Some of these structures to achieve the goal include:

• Listing the steps to be followed
• Establishing key goals and targets
• Identifying available resources
• Visualizing the goal

Why You Need an Action Plan

An action plan is a framework for how to complete a project effectively. One of the reasons why projects fail is due to a lack of planning. Many projects fail because they either did not carry out extensive research or they did not have a solid plan to bring all their goals to fruition.

Every goal must have a to-do list of all tasks that need to be accomplished to achieve an objective. An action plan guarantees a well-organized objective. You need this plan to stay on track and manage the progress of the project or goal.

1. Provides Motivation and Eliminates Procrastination

An action plan is simply a to-do list that one checks till a task or goal is accomplished. A well outlined and organized arrangement of your plan encourages one to start and complete the task. Breaking the task into smaller units makes it feel less overwhelming and cumbersome.

Ticking your to-do list makes the progress of the goal visible. You can easily track milestones and accomplishments of the set objective.

2. Sets Direction and Priorities

One of the benefits of writing an action plan is that it establishes direction and priorities for your goal. It defines the whole purpose of the operation. In an organizational setting, it can be likened to a project charter. This represents a sketch of what the end goal should look like or should be.

An action plan helps the project team to stay on track and focus on the purpose of the project without going outside of the main objective. This prevents the waste of time and resources on scope creep . If eventually, you have to make changes, there will be adjustments that will easily fit into the project.

3. Uncovers Weaknesses and Opportunities

In the course of drawing up an action plan, one uncovers both the strengths and weaknesses of the project. An action plan provides you with a better chance of adjusting and creating a better plan for your goal or project.

The weaknesses uncovered could be the risk involved in the project. The action plan helps you discover the weaknesses and how to quickly eliminate them before the project begins.

During the process of writing an action plan, one can also find opportunities that can be generated from it. An action plan will force you to think strategically to deliver insights that will improve your project.

How to Write an Action Plan

There are seven steps to follow that serve as a guideline for writing a strategically well-detailed action plan.

1. Define Your Goals

The first step to writing a good action plan is to define the goal, be it a personal or business plan . Break down the overall goal into smaller, easier, and understandable sub-goals.

The reason for this is that, when people start to accomplish a task, the first impression they will develop is that it will take lots of time and energy. Breaking down the goal into smaller units will make it easier to understand and accomplish

By defining the goal, you understand what it takes to achieve it. It is at this stage you decide if you can go through with the plan. The goal you define should be SMART – Specific, Measurable, Actionable, Realistic, and Timely.

2. List the Key Objectives

Listing priorities is another important step when writing an effective action plan. What are these priorities? They are the key elements that form the goal of what you want to achieve.

By listing the key objectives , you know where to focus on majorly or areas that will require more attention.

3. Create a Step-by-Step Guideline to Achieve Your Goal

A guideline ensures you do not get stuck during the process of achieving your aim. Many businesses have failed due to getting to a particular segment of achieving their goal and not knowing what to do next. Creating a step-by-step guideline ensures there is the next thing to do.

4. Set Targets and Deadlines

Time is a very important factor when setting a goal. During the process of trying to achieve the aim of the project, you can easily lose track of time if you do not track it.

When a goal drags on for a particular period, it can lead to loss of interest or the goal might fail to accomplish what it was intended for.

5. Identify Available Resources

An action plan should have an estimate of the resources available. When talking about resources, this is not just in terms of financial resources but also human resources. This refers to the number of teams on the ground to achieve the goal.

The essence of identifying available resources is to manage them effectively to achieve a specific goal.

6. Set Milestones

In every sector of life, the show of success no matter how little serves as a morale booster. Setting milestones helps you keep track of the project’s progress.

When working on a project, after completing a milestone, no matter how little the step is, it is important to celebrate or mark that milestone.

Milestones show progress. The essence of setting milestones is to give morale and motivation to your team members to do more work. A good practice is to reward team members when they accomplish a set milestone to show appreciation for their effort and encourage them to accomplish more.

7. Monitor and Evaluate the Plan

Monitoring and evaluating the plan is the last section of an action plan. This is where you evaluate the whole plan, check for the loopholes, and whatever was missed when writing the plan. It also leaves room for adjustments and scope creep.

Tips for Writing an Effective Action Plan

1. involve team members and experts.

This goes with the saying that “no man is an island.” No matter how much you understand a project, you need to involve team members and experts for better opinions and inputs. Following this tip allows for growth and communication among the team.

When opinions are welcomed from the team, this helps develop the project and might even uncover a greater benefit to the project. There are certain aspects of the project you may miss which your team members can pick up.

2. Have a Timeline

Getting your timing right is key to the success of any project. Having a timeline guiding all the activities you want to carry out in the project is crucial. A well-established timeline for your project ensures that you accomplish all tasks and milestones at the appropriate time.

3. Communicate the Plan

Communication is the foundation upon which a project can develop. When communication is in place, there will be a smooth transfer of information from one section to another. This is key because, without communication, the goal will remain stagnant.

4. Tick Off Items As You Accomplish Them

After completing an item or task in your project, mark them as completed. Doing this will make it easy for you to know the items or tasks you have completed and the ones that are still pending.

Ticking off items as you accomplish them can boost the morale of the team and encourage them to put in more effort to achieve the project.

5. Write an Action Plan Template

Writing an action plan template helps you save time and energy. Instead of having to create an action plan from scratch each time you need one, you can write or collect action plan templates you can edit to fit your needs.

Since the format for writing an action plan is similar for many projects or goals, writing an action plan template is a great idea.

6. Use a Project Management Tool

The best project management tools help you write effective action plans and keep you on track. Project management software like Monday.com, ClickUp, and Wrike have project planning and reporting features that help you monitor the progress of your project and the performance of your project team.

Action Plan Template

An action plan template makes it easier and faster for you to create an action plan for your goal or project. While almost every action plan template follows the same format, modifications vary depending on its purpose and the industry.

1. Business Action Plan

2. Marketing Action Plan

3. Sales Action Plan

4. Project Action Plan

5. Corrective Action Plan Template

Action Plan Example

An example of an action plan for a marketing agency.

Problem: Slow growth due to lack of sufficient employees and clients.

Goal: Increase profit by 50% within three years.

We expect our marketing agency to increase our profitability by 150% as we increase our marketing and customer service team and attract more clients over the next three years.

Current State of Our Agency: Annual profit of $100,000, six employees, and fifteen clients.

Our Agency in Six Months: Training for our existing customers in marketing and customer service and our profit will increase by 10%.

Our Agency in 12 Months: Annual profit of $150,000, ten employees, and 25 clients.

Our Agency in Three Years: Annual profit of $225,000, fifteen employees, and fifty clients.

Action Plan to Achieve Our Goal

Task 1 – Training

Action: Train all employees in the latest marketing and sales trends, client acquisition, and customer service.

Completion Date: August 2022

Person Responsible: Project Manager

Task 2 – Recruitment

Action: Work with the HR manager to hire new employees that fit the skill sets needed to achieve the agency’s goal.

Completion Date: November 2023

Task 3 – Improve Customer Service

Action: Improve relations with clients to convert them into repeat customers by updating the agency’s website, taking note of their birthdays, and sending customized gifts showing the agency’s logo to them.

Completion Date: Ongoing

Person Responsible: IT Manager

Task 4 – Generate More Sales

Action: Organize meetings with clients and in-house staff to develop the best strategies for increasing sales conversions.

Completion Date: January 2024

Person Responsible: Sales Manager

Action: Run marketing campaigns on Google, Facebook, and Instagram to generate more sales for clients.

Completion Date: March 2024

Person Responsible: Marketing Manager

Task 5 – Reduce Friction at Payment Channels

Action: Optimize your payment clients for a seamless payment experience for your clients and increase the number of payment channels

Completion Date: May 2024

Task 6 – Expand Client Base

Action: Participate in relevant regional marketing summits to hunt for high-paying clients.

Completion Date: June 2024

Action: Target weaknesses in competitors’ services and offers and create better deals to attract more clients.

Completion Date: October 2024

Evidence of Success: Annual profit of $225,000 or more. Tracking and Evaluation Process: Assess staff size, client number, and profits.

Was This Article Helpful?

Anastasia belyh.

Anastasia has been a professional blogger and researcher since 2014. She loves to perform in-depth software reviews to help software buyers make informed decisions when choosing project management software, CRM tools, website builders, and everything around growing a startup business.

Anastasia worked in management consulting and tech startups, so she has lots of experience in helping professionals choosing the right business software.

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What is an action plan? (Example and template)

May 3, 2024 - 10 min read

An action plan is a definitive checklist of tasks and resources needed to complete a project or achieve a goal. You can think of it as a visual countdown to the project delivery or a breakdown of the list of tasks needed to achieve desired results.

Now you may be thinking, “What is the purpose of an action plan vs. a to-do list ?” 

The most significant difference between action plans and to-do lists is that action plans focus on achieving a specific goal . In contrast, to-do lists are ongoing and include tasks for different goals and projects. 

Understanding this distinction, it becomes clear that action plans are powerful tools for goal setting and project execution. They help teams manage necessary resources, adhere to schedules, and track progress toward specific goals and project initiatives. 

In this article, we’ll go through the purposes of action plans, the key steps usually included in them, how you can use action plans to help your project management, and step-by-step instructions on how to put one together yourself. 

And, as a bonus, we’ll also give you information on Wrike’s prebuilt action plan template , which can jump-start your action plan process. 

What is the purpose of an action plan?

An action plan , also sometimes referred to as a plan of action , helps order project tasks in a sequential and timely manner to achieve a goal. Project managers and individuals can use action plans to achieve their work and personal project goals.

Developing an action plan clarifies the goals to be achieved, the teams and service providers to involve, and the tasks, dependencies, milestones, and resources needed to complete the project.

Working with an action plan ensures you complete every task and requirement to meet the expected standards of a project. As you develop an action plan, you identify any critical paths and dependencies. 

Keep in mind that a developed action plan isn’t set in stone, because the environment in which projects operate is often subject to change . External factors such as market conditions, economic influences, technology advancements or failures, regulatory requirements, and unexpected events can impact the execution of any plan. A dynamic document allows for flexibility and adaptability so you can adjust your strategies in response to evolving circumstances.

Why are action plans important in project management?

​​An action plan in project management is a quick and easy way to keep projects on track. Creating an action plan means you can quickly map out the resources and requirements you need and sketch a timeline to complete tasks. 

Here are several benefits of using a strategic action plan in project management:

• They’re simple and easy to set up, helping to maintain operational efficiency without taking much time.
• They declutter managers’ minds by providing a framework for structuring new projects in a sensible order.
• They clarify the objectives of the project and build consensus on how the work should be done.
• They prepare you for predictable and preventable challenges and focus your resources to achieve your main goals for the project. 
• They maximize personal and team productivity and resource allocation.
• They reduce the possibility of forgetting tasks in the project.
• They generate a goal-driven workflow, so you know what to work on throughout the project.
• They provide a way to track progress as you check tasks off the action plan as you complete them.

Action plan vs. project plan

Action plans should not be confused with project plans . Both list the tasks, resources, and timelines required to achieve a desired goal, but project plans go deeper, including details such as contingency plan action steps, risk mitigation strategies, quality assessment criteria, and stakeholder communication schedules. In contrast, action plans simply list the tasks, resources, and timelines needed to achieve a goal. 

Think of it this way: For big, complex, or long-term projects, you create a project plan first. Once your project plan is in place, an action plan helps you detail the steps and flow for allocating resources, sharing and executing tasks, and setting deadlines.

In summary, action plans and project plans differ in the following ways: 

• Complexity : Action plans are simpler than project plans. They focus solely on the tasks, resources, and timelines required to achieve a goal. Project plans include additional sections for other measures, standards, and procedures for completing a project. 
• Duration : Action plans focus on specific, short-term goals. These may be for standalone goals or part of a larger project. Project plans are more encompassing, covering longer-term objectives, which may take months or years to complete. 
• Flow : Action plans are linear, with one task following another until the goal is achieved. Project plans may have multiple phases, e.g., planning, executing, monitoring, controlling, and reviewing, with each stage containing its own distinct tasks and deliverables.

The components of an action plan

Let’s take a look at the essential components of an action plan:

• Action plan objectives: The action plan objectives serve as the main guide for the action plan, defining and communicating what the plan seeks to achieve. 
• Action plan steps: Action plan steps form the core of the action plan. They detail crucial targets and set milestones that must be completed to reach the goal. These steps divide the goal or project into manageable chunks and provide a framework for identifying tasks (action items), allocating resources, and determining timelines. 
• Action plan items: Action plan items are the nitty-gritty details of the action plan — the actual tasks to be performed. Each action plan item must be clearly defined, actionable, and understood by the team involved. 
• Action plan timeline: The action plan timeline maps out the plan schedule from start to finish. It’s crucial for setting expectations, tracking progress and performance, and ensuring the project stays on schedule. 
• Action plan resources: These are the inputs required to execute the plan, e.g., labor, time, tools, and funds. Identifying action plan resources before delving into execution helps ensure tasks are not delayed or compromised due to resource constraints. 
• Action plan matrix: The action plan matrix provides a structured layout for the strategic planning of tasks. It serves as a roadmap and helps to categorize your action steps and tasks based on priority, status, and resource allocation. This alignment helps identify any dependencies or potential bottlenecks.
• Action plan report: The action plan report provides an overview of the progress made in executing the action plan. It includes details like the tasks completed, time taken, costs incurred, resources used, and any deviations from the plan.
• Assignments: Each task should be assigned to a person, team, or group. Clear assignment of responsibility is crucial for accountability and the successful execution of any action plan.

What are the key steps of an action plan?

The main point of a plan of action is to ensure you don’t overlook critical tasks and milestones of your project. In its simplest form, developing an effective action plan entails listing tasks you need to complete and prioritizing them.

As you develop your action plan, you decide which tasks you can delegate, outsource, or delay. The steps below map out how to write a sound action plan to increase your chance of success.

Step 1: Define your goal 

Get clear on what you want to achieve with your project. Define the action plan in terms of where you are and where you want to be. If you have alternative methods to achieve your goal, assess your situation and decide the best chances of success depending on your resources.

Step 2: List tasks

Once you have your goal, list the tasks and activities you must complete to achieve it. Then order them sequentially by adding key dates and deadlines. This should include a time frame with start and end dates for each task.

Step 3: Identify critical tasks

Are there any specific steps that must be completed before others can start? These are critical time-bound tasks with dependencies. Prioritize these tasks and set realistic deadlines. If you plan to assign them to team members, be sure to let them know the dependencies and allow enough time to deliver them.

Step 4: Assign tasks

Now that the project is broken down, you can start assigning tasks. Will you be handling some yourself in addition to managing the project? Make sure you allocate time and human resources carefully — you may choose to delegate or outsource specific tasks.

Step 5: Assess and improve

At the end of each project, assess performance, analyze key performance indicators (KPIs) and metrics, and learn from mistakes or missteps to improve your action planning and project execution. If you work with a team, collect feedback and improvement suggestions from team members for better performance in the future.

Action plan best practices

Following these best practices will mean you ’ re more likely to succeed: 

• Involve your team: When working with a team, involve them early in the planning process to get their input and save time. Get team members’ work schedules before assigning tasks to avoid conflicts. Clear communication enables responsible parties to prepare for their specific project tasks.
• Set SMART goals: SMART goals are s pecific, m easurable, a ttainable, r elevant, and t imely. Ensure your action plan starts with a strong foundation by defining clear and SMART goals that add value, either as a personal project or at work.
• Make your action plans into templates: To get more benefits from your action plans, make them into templates. After assessing your action plan at the end of a completed project, make a copy of the plan and remove all project-specific details, so you’re able to use the action planning template in future projects. This minimizes the need to repeat work, saving a lot of time and reducing errors.

Who needs to write an action plan?

Action plans aren’t just for project managers — they’re handy for all sorts of professionals and individuals tackling personal or business projects. Action plans can also be used alone or with a team. When working with a team, the leader puts together the action plan with everyone’s input.

Developing an action plan helps individuals, managers, and organizations finish their projects more successfully. They’re great for getting started, keeping track of what needs to be done, and maintaining progress on any project. Remember to check off tasks as they are done, update the plans, and communicate with your team as your project progresses.

A variation of a traditional action plan is a corrective action plan. Project managers and individuals use corrective action plans when they need to fix recurring problems or deviations in a project, process, or organization, so they don’t happen again in the future.

An example of an action plan 

Action plans are quick and easy to create. It’s all about putting down what you need to accomplish your goal or project. 

Here’s a simple action plan example for a marketing team working on a new campaign:

Action plan objective: Increase brand awareness and boost product sales by 30% by the end of Q4 2023 through a localized multimedia marketing campaign.

Other action plan examples in project management include:

• Launching a new product
• Organizing an event
• Improving customer service
• Enhancing employee training
• Expanding into new markets
• Increasing your social media following

Maximizing efficiency with action plan templates

A project action plan template is a preformatted document providing a framework to outline, execute, and track the tasks and specific actions needed to accomplish your larger goal. It streamlines the action planning process by providing a ready-to-use format you can quickly fill out to create a robust action plan. This way, you don’t waste time making one from scratch using Excel, Google Docs, or Microsoft Word. 

Wrike’s simple action plan template manages projects and goals with an intuitive interface designed to help plan and launch projects with teams of any size. This template’s features enable real-time collaboration, easy task assignments, time tracking, and reporting.

Common issues like a lack of visibility on remote workers’ assignments and confusing project priorities are mitigated with functionalities such as: 

• Organizing tasks by departments into folders, making the journey from “To Do” to “In Progress” to “Completed” smooth
• Identifying dependencies and defining the priority of tasks to determine which tasks need to be done first
• Providing a snapshot of the tasks due now and in the coming weeks, ensuring the project schedule is adhered to
• Securing sensitive data from unauthorized personnel with permissions offering various levels of access and visibility for collaborators and stakeholders

How to create an action plan with Wrike

Using project management tools helps to organize your business action plan visually and make it feel more achievable. With project management software like Wrike , you get a free action plan template included with your subscription — so you can easily input your project resources, requirements, and timelines, and track your progress throughout the project. 

As outlined above, the best way to jump-start your action plan is to use our prebuilt plan of action and milestones template . It helps you take control of your task management by providing sample folders to organize tasks, a calendar for project scheduling, and prebuilt dashboards for monitoring progress. All you have to do is add your tasks and due dates to get a complete overview of all project work. 

Our template works for all different types of action plans. You can use it as:

• A personal action plan template for personal projects
• A business action plan template to simplify project management
• A corrective action plan template to fix issues with an existing project

If you’re ready to develop action plans and track your progress while better managing your projects, you need Wrike. We make it easy to plan, execute, and ensure success, even when you’re on the go.

Click here to start your free two-week trial and kick off your action plan today.

Kelechi Udoagwu

Kelechi is a freelance writer and founder of Week of Saturdays, a platform for digital freelancers and remote workers living in Africa.

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How To Write A Plan Of Action (With Examples)

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Summary. An action plan is a plan that allows you to achieve your goals. To write an action plan you should first specify a SMART goal and then strategize a list of tasks leading up to that goal. You should also schedule a timeline to reach your goal and establish milestones through out that timeline. Finally you should track your progress.

It’s an inherent human quality to dream of success. Dreaming is the easy part, but attaining it is much more complicated. It requires vision, goal-setting, and most importantly, a detailed action plan to meet your objectives.

Key Takeaways:

An action plan breaks a complex long term goal down into achievable pieces. It also sets a timeline, which allows you to track your progress.

Action plans can be helpful for managing large projects with multiple goals, or as a way to track personal progress.

There are several different planning techniques that are effective, such as the SMART system and SCHEMES.

What Is an Action Plan?

How to write an action plan, template for action plan, example of an action plan, why an action plan is useful, who needs an action plan, action plan schemes, action plan faq, final thoughts.

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Setting a specific goal illuminates where you want to end up. An action plan lays out a way to achieve that outcome.

A detailed plan for making goals reality provides necessary guidelines for what to do next, milestones to reach, and defines ultimate success . This makes it easier to know how far you’ve come and what’s left to do before you reach a goal.

Formulating an action plan in the early stages of strategic planning is essential. It establishes the steps to take that lead towards completion. This is a crucial practice for any type of project, whether it be professional or personal , because it provides details for how to proceed.

Specify a SMART goal . The first step to writing an action plan is to decide on a concrete goal that adheres to SMART standards. This is a framework that helps align fanciful ideas of a goal to become a realistic objective.

The letters of the SMART framework stand for:

Specific. A good goal needs to be detailed and clear. While a broad goal, such as making more money, seems like the way to go, there’s too much room for straying and not enough direction.

Measurable. The goal that you choose to pursue should be quantifiable. Along the way, this allows you to track your progress and growth . For instance, if your goal is to sell more tickets to a concert, state how many you want to sell exactly.

Attainable. Never set a goal that’s too outlandish to accomplish either in your timeframe or at your skill level. While being ambitious is good quality, it needs to be met in equal part with realism. Evaluate your circumstance and spend time on an attainable goal .

Relevant. SMART goals should be relevant to the overall outcome you’re trying to achieve. In a professional setting, make sure your objectives are relevant to your long-term career plans – vice versa for personal goals.

Timeframe . The final aspect of a SMART goal is specifying a timeframe that you’ll complete the end goal. Stating a timeline keeps your mind focused on finishing goals by the deadline.

Strategize a list of tasks leading up to the goal. Once a SMART goal has been established, start strategizing the actions you’ll take to work towards it. The best way to accomplish this is by creating a list of these tasks.

Schedule a timeline. Having a time-frame in mind is a qualifier for whether a goal is up to SMART standards, and it’s also a requirement for writing an action plan. A timeline should be a series of deadlines, in addition to the final date that you aim to achieve the end goal.

Establish milestones. Define what the milestones of the project are during the writing phase of an action plan. Incorporating milestones into the timeline of an action plan supports motivation and gives you a good idea of where you stand.

Track progress and assess success. After writing a detailed action plan, the final aspect is following through with the map to success you’ve outlined. The effort you put into planning is validated by completing the work you’ve strategized. Begin working on your scheduled plan immediately — or be sure to set a start date.

Track your progress throughout the journey of working towards your goal. This can be done by scheduling a team meeting at work or just doing some self-reflection by yourself for personal goals. If anything needs to be tweaked or isn’t going according to plan, progress tracking is when you’ll be made aware of it.

The Issue At Hand Is: The End SMART Goal Is:

The Issue At Hand Is: Lacking servers at a restaurant. The End Goal Is: To increase restaurant staff by 3 experienced employees in the next month. Tasks Leading Up To End Goal Who is Handling this Task? Task Timeline Needed Resources For Completion Progress Updates The Result Post a detailed open job posting online to at least three career websites. Include details regarding the restaurant background, position expectations, and requirements for the role. The Restaurant Owner December 28, 2021 A computer Internet connection Information about the position and restaurant A write-up of the job description was completed (12/21/2021) Five free career websites were found to post the job opening (12/23/2021) The position opening was posted on the career websites (12/28/2021) The job opening description was approved and the posting went live on 12/28/2021 Run the applications received from the open job posting through an Applicant Tracking System (ATS). Go through the resumes of the remaining candidate pool. Reach out to candidates with the most potential to come in for an interview. The Restaurant Manager January 4, 2022 A computer Access to Applicant Tracking System Software (ATS) 25 applications for the job were received (12/31/2020) The applications were run through the applicant tracking system (1/2/2022) 14 applications passed the ATS (1/2/2022) 6 applicants showed potential and were called to come in for an interview (1/4/2022) After receiving many applications, six promising applicants were chosen to come in for an interview. Schedule an interview with the potential hires. Ask a series of approved and relevant questions to assess the candidate’s abilities to succeed in the role. Take notes about particularly remarkable interviewees. The Restaurant Manager January 15, 2022 A place to conduct the interview Pen and paper Relevant interview questions to ask The six candidates with potential were scheduled at various times to come in for an interview (1/6/2022) The first three interviews were all completed. Two candidates seemed to be great candidates for hire (1/11/2022) The last three interviews were completed. One of the applicants never showed up and the other didn’t have enough experience. The final applicant was perfect for the job (1/15/2022) Six candidates were interviewed for the server positions at the restaurant, and three seemed to be a good fit. Gather a list of the strongest interviewees and offer them the job. Discuss the paperwork they will need to begin, their salary requirements, and when they can start. Hire at least three new restaurant staff members. The Restaurant Manager January 22, 2022 Contact information for applicants Necessary hiring paperwork The information about the three chosen candidates was gathered (1/17/2022) The candidates were all called to be offered the position and give more detailed information. All three of the candidates accepted the position. (1/21/2022) Each newly hired employee was scheduled to begin their first training shift on February 25th (1/22/2022) All three applicants who were offered the position accepted. They are scheduled to begin training on February 25th, 2021.

Identifies how far you have to go. A clear picture of how far you have left to go before you reach your goal is a strong case for writing an action plan. It shows you have much work there’s still left to do and what exactly it entails. Having this timeline is especially helpful for accomplishing long-term goals .

Provides direction. Completing a goal is much tougher when the project lacks an objective . An action plan points you in the right direction and keeps you on track.

Strengthens motivation . One of the biggest reasons for falling short of meeting a goal is failing motivation. It takes a lot of personal drive to continue towards a goal that years in the making. A written action plan provides a cushion of motivation when the hurdles seem insurmountable. It’s the reminder that there’s an end in sight and of what exactly you’re trying to achieve.

Establishes milestones. An action plan spells out the steps you need to complete to reach a goal. This can also aid with motivation, as breaking it down into more readily achievable pieces makes you seem like you’re making progress. It also shows you how much closer you are to your ultimate goal.

Action plans can be useful for anyone’s personal or professional life in a wide variety of situations. While the high-level executive plan of action might look a lot different than your entry-level worker’s, the ultimate goal of both is the same: ensuring that daily tasks are building toward a specific goal.

The only real difference between action plans at different levels of a company is scope. A manager needs to plan achievable goals for their employees by setting up a system for measuring results, giving and receiving feedback, budgeting in a smart way, and generally promoting an atmosphere where work can be done efficiently and effectively.

An entry-level employee, on the other hand, might develop a plan of action after meeting with a supervisor . By making sure to write down exactly what the larger business goals are while they’re fresh in your mind, you’ll have a much easier time setting and achieving short term goals that align wtih broader corporate interests.

A good way to check that your plan of action is comprehensive and you’ve got all your bases covered is to run it by SCHEMES, which is an acronym that stands for:

Not every action plan has to consider all of these elements. Some small-scale projects will only require you to consider helpers and expertise, for example.

SCHEMES can help make sure that you haven’t missed anything important while planning your big goal. After all, it would be pretty disappointing to have your vision fall of the rails because you run out of cash or your lack of expert knowledge is creating a bottleneck in production.

What are the parts of an action plan?

The parts of an action plan should include the “who,” “what,” and “when.” Your who should be who will be involved in the plan. You should include responsibilities of the individuals involved in this plan. The “what” should be the steps in the plan and what you want to accomplish. The “when” will be a timeline of when you want to achieve this goal.

Do you need an action plan to be successful?

No, you do not need an action plan to be successful, but they can be an effective way to help you be successful. Action plans are useful when you want to identify how far you have to go and give you a clear picture of your goal. They can also provide you direction to the necessary steps in completing the goal.

What is a written plan of action?

A written plan of action is a plan that indicated what tasks need to get done, the timeline that it needs to get done, and who will be responsible for the tasks. A written plan of action will lay out a plan to achieve your goals that you have set either for yourself or for your team

An action plan is your ticket to a much less stressful project. By setting achievable goals early on, you not only help your time management but also your mindset. It’s much better to start a project off with a plan for achieving it than some vague resolutions or a mission statement without an equally compelling vision for the process.

Writing an action plan doesn’t need to be a daunting task. For how much time it will save you in the long run, it’s worth your while to develop a plan of action today.

Feinberg School of Medicine – Developing a Research Action Plan for Your Organization

Augsburg University – Creating an Action Plan

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Sky Ariella is a professional freelance writer, originally from New York. She has been featured on websites and online magazines covering topics in career, travel, and lifestyle. She received her BA in psychology from Hunter College.

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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

Free business plan template

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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How to Write an Action Plan (Example Included)

What Is an Action Plan?

In project management, an action plan is a document that lists the action steps needed to achieve project goals and objectives. Therefore, an action plan clarifies what resources you’ll need to reach those goals, makes a timeline for the tasks or action items and determines what team members you’ll need. We’ll define what project goals, project objectives, action items and action steps are later in this guide.

An action plan documents the execution of the project plan; it’s a detailed list of the work that must be done to complete the project goals, including the action steps that are involved in getting from the start of the project to the finish. An action plan is similar to a project implementation plan and it’s very helpful during the project planning and project execution phases.

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Action Plan Template

Use this free Action Plan Template for Excel to manage your projects better.

Action Plan Components

An action plan answers the who, what and when of what you’re proposing. Those questions are answered by the various components that make up an action plan. The following are the basic building blocks of a successful action plan.

• Action Plan Steps: The action plan steps are the answer to the question of what. They’re the activities that’ll lead to achieving your goal. Action plan steps detail what will happen, and the more detail, the better.
• Action Items: The action items are the specific, small tasks that make up the action plan steps. These are the tasks that, when executed, lead to the next action plan step.
• Action Plan Timeline: An action plan timeline is the whole action plan laid out from start to finish. It shows the full duration of the action plan and every step and task is also plotted on this timeline, including their start and end dates.
• Action Plan Resources: Resources are anything needed to execute the action plan. That includes labor, materials, equipment, etc. You’ll want to identify the resources you’ll need for the action plan and attach them to the tasks to which they’ll be applied.
• Action Plan Matrix: A matrix is just a tool to help you determine which tasks you need to complete and in what order. Use our free action plan template to outline the steps, items, timeline and resources you’ll need to get the plan done right.
• Action Plan Report: Once you start to execute the action plan, you’ll need to ensure your actual progress matches your planned progress. To track progress, you’ll want to use an action plan report, which is a snapshot of your time, costs and more over a specific period.

Not only are you figuring out the action steps and timeline, but you’ll also determine who you’ll assemble for your project team to work on those tasks. This requires robust project management software like ProjectManager . ProjectManager offers multiple action planning tools such as Gantt charts, kanban boards, project calendars and more. Best of all, these project planning views sync with project dashboards, timesheets and workload charts to keep track of progress, project resources and costs.

Types of Action Plans

There are many different types of action plans that are used on various kinds of strategic initiatives. Each is similar in makeup but differs in their goals. Here are a few of the varieties of action plans.

Business Action Plan

A business action plan is used to set goals and tasks when you want to start a business or grow an existing business. It outlines the vision for the business and the actions you’ll take to achieve that vision.

Project Action Plan

An action plan for a project is really no different from a general action plan. The only difference is that it’s about producing a deliverable at the end of the plan, whether that be a product or service.

Personal Action Plan

Again, a personal action plan differs little from any other action plan except for the goal. For example, a personal action plan might be for an individual to exercise more. Therefore, the goal might be to walk for a half-hour a day, say, during lunchtime.

Action Plan Sample

Take a look at this sample of an action plan. We used our free action plan template for Excel  and filled out some potential marketing tasks, phases and assignees. Download this action plan template for free from our site, and get started on your own plan today.

How to Write an Action Plan for Project Management in 10 Steps

The benefits of an action plan are simple: you’ve now outlined what action steps and what resources are needed to reach your stated project goals. By having this collected in a single project management document, you can more successfully plan out how to execute your project plan.

People get overwhelmed by project management jargon when having to plan out a project, but the word “action” everyone can understand. The fundamentals to getting an action plan together for any project follow these four project planning basic steps:

1. Define Your Project Goals

There’s a difference between project goals and project objectives. Project goals refer to the high-level goals that the project will achieve. Those generally align with the strategic planning and business objectives of organizations.

2. Define Your Project Objectives

The project objectives are much more specific than the project goals. Project objectives refer to the deliverables and milestones that need to be completed to achieve your project goals.

3. Define Action Steps

The action steps are a group of related tasks or action items that must be executed to produce project deliverables.

4. Identify and Prioritize Action Items

Action items are small, individual tasks that make up the action steps that are outlined in your action plan. First, you need to identify task dependencies among them, and then assign those action items a priority level so that they’re executed sequentially.

5. Define Roles & Responsibilities

Now that you’ve divided the work required to accomplish your action plan, you’ll need to assign action items to your project team members and define their roles and responsibilities.

6. Allocate Resources

As with your project plan, your action plan has resource requirements. Having identified your action steps and action items will help you understand what resources are needed for each task and allocate them accordingly.

7. Set SMART Goals

Your action plan needs to be monitored and controlled to measure its performance. That’s why it’s important that you set SMART goals for your action items, action steps and your project objectives. SMART goals stand for specific, measurable, attainable, relevant and timely.

8. Set a Timeline for Your Action Plan

As a project manager, you’ll need to do your best to estimate how long it’ll take to complete your action items and action steps. Once you do so, you’ll have a timeline. You can use project management techniques like PERT charts or the critical path method to better estimate the duration of your project action plan.

9. Write an Action Plan Template

Create or use a simple action plan template to collect tasks, deadlines and assignments. This is the place where everything task-related goes in your project action plan, so you have a place for all this crucial information.

Writing an action plan template it’s a great idea because you’ll need to use that format throughout the project. That’s why we’ve created a free action plan template that you can download. There are also dozens of other free project management templates for Excel and Word that can help you with every phase of your project.

10. Use a Project Management Tool

Use a project management tool to keep you on task. ProjectManager has project planning features that help you monitor and report on project progress and performance. Get a high-level view of the action plan with our live dashboards. Unlike other tools, we don’t make you set up the dashboard.

Once you’ve mapped out your action plan, you can use project planning tools to zoom into all the details about your action steps and action items. With ProjectManager, you can calculate various metrics, such as project variance, workload and more. They’re displayed in easy-to-read charts and graphs. Share them with stakeholders to give them updates on action steps whenever they want.

Tips to Write an Action Plan

Once you have an action plan, how do you work with it to run a successful project? Here are some tips to help with implementing your action plan:

• Focus on priorities and what’s due now when identifying action steps and setting your action plan timeline
• When you complete action steps, mark them off
• Have your team members work on one project management platform
• Set up alerts
• Discuss pending or overdue tasks

Action Plan Example

We’ve been talking a lot about an action plan, but let’s take a look at one in-depth. Below, you’ll see our free action plan template . It’s set up for the development of a website.

It’s broken down into phases, the first being the project planning phase , which includes the action steps, market research and the design of the site. You’ll see that tasks are outlined for each action step, including a description of that task, who’s assigned to execute it, the priority and even the status of its completion.

This is followed by the third action step, which is the launch of the site. This is the execution phase of the action plan, but it follows the same format, such as noting the priority, who’s responsible for the work, what that work is and its status.

There’s also a timeline to define the start dates of each of the tasks in the action steps, including the planned hours. This allows you to determine the length of each task and the duration of the entire action plan, from start to finish.

Finally, there’s a place to add your resources. They’re broken down into departments, for example, marketing, web development, etc. Then the materials that are required for each task are listed, including their costs. This allows you to estimate the cost of the plan.

How to Make An Action Plan With ProjectManager

Follow along with this action plan example to see how action plans are typically laid out using project planning software .

1. Map Action Plan Steps Using Multiple Project Views

ProjectManager can help you build your action plan and then execute it. Collect all your action steps tasks on our list view, which does more than light-weight to-do list apps because it allows you to then map your action plan with Gantt charts , project calendars and kanban boards. These robust project management tools allow you to prioritize action items, customize tags and show the percentage complete for each task. Our online project management software gives you real-time data to help you create an action plan and stick to it.

2. Assign Action Items to Your Team Members

Once you’ve mapped out your action plan steps with ProjectManager’s project planning tools , you can assign tasks to your team members and indicate what resources are needed for the completion of each action item. Indicate their roles and responsibilities and set priority levels for each task to ensure the work is carried out properly.

3. Set Action Plan Steps and Deliverables

It’s important to note all the phases of the project timeline to know what action steps and tasks will take place and when. In addition, ProjectManager’s Gantt chart allows you to identify project phases, find the critical path, and set due dates for project milestones and deliverables

4. Track Progress With Real-Time Dashboards

Once you start the project, you’ll need to chart the progress of the work being done. This leads us to the real-time project dashboard , where you’ll check whether your action plan is on schedule and under budget.

Manage Your Project With an Action Plan

Getting a plan together is only the first part of managing a project . Remember, it’s not something to write and put away, but rather it’s a living document that should follow you throughout the project life cycle. Jennifer Bridges, PMP, offers more tips on how to write an action plan in the video below.

Here’s a screenshot for your reference:

ProjectManager’s Action Planning Tools are Ideal for Managing Action Plans

If you’re looking to make an action plan and then take action on it by executing, monitoring and reporting on a project, then you’ll want ProjectManager. Our online project management software lets you make an action plan online with multiple project planning tools such as Gantt charts, task lists, kanban boards and project calendars. Then, you can use timesheets, project dashboards and resource management tools to keep track of progress, time and costs.

Plan & Schedule With Gantt Charts

ProjectManager’s Gantt chart is ideal to map out your action plan on an interactive project timeline that helps you organize your tasks, link dependencies and set milestones. More than that, you can filter for the critical path. When you’re done scheduling your action steps you can set a baseline. This allows you to always see the planned versus actual progress of your action plan to help you stay on track.

Manage Action Items with Kanban Boards, Task Lists and Project Calendars

Once you’ve used the Gantt chart to create a timeline for your action plan, you can zoom into the nitty-gritty details of everyday work with kanban boards , task lists and project calendars. With these tools, you can assign tasks and give teams a collaborative platform to comment and share relevant documents with unlimited file storage and real-time communication features.

Track Progress, Resources and Costs With Real-Time Action Plan Dashboards

ProjectManager’s real-time action plan dashboards sync with all its project management tools so you can check the status of your action plan at any time. You can check on your team members’ progress to see who’s over or underallocated, check labor costs and track whether your team is on schedule.

ProjectManager gives you all the tools you need to create and implement a successful action plan. Regardless of the type of action plan that you need to create, our award-winning project management software makes it easy to do so. Get started with a free 30-day trial today. 

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Plan of Action Examples: How to Master Action Plans

Learn all about action plans. We cover the benefits, specific steps, and provide you with some great plan of action examples.

We all juggle multiple tasks daily, so we all know that being disorganized can unleash some serious chaos. It can transform a productive day into an inefficient and stressful one.

Disorganization drains time and energy and can leave essential tasks in the unfinished pile.

That’s why so many teams turn to action plans. They provide a clear and structured approach to task management.

In this guide, we explore how these plans can be a solution for your organization and provide a few plan of action examples to help you get started.

What is a plan of action?

An action plan is a detailed sequence of steps to achieve a certain goal.

They usually consist of:

• A clear objective
• Necessary tasks
• Assigned team members

It’s a framework that ensures a goal is accomplished.

Its roots can be traced back to military strategies where detailed planning was vital. As businesses grew in the 20th century, they adopted action plans, too.

These plans helped them to:

• Drive growth
• Streamline projects
• Set a clear direction

How does an action plan differ from generic plans or to-do lists?

A simple  to-do list  or a generic plan isn’t nearly as strategy-oriented and specific as an action plan.

Lists or basic plans might detail tasks but wouldn’t necessarily dive into the specifics. An action plan, on the other hand, is far more comprehensive and strategic.

‎It doesn’t just outline the "what" but delves deep into the "how" and "why" of each task. It ensures that every step is well-thought-out, which reduces the risk of oversight.

Action plans are also distinct in that they incorporate timelines, metrics, and accountability. So, they’re great tools to clarify all team members' roles.

Why create an action plan?

An action plan is a powerful tool that lays the foundation for your team's objectives and effective communication.

It breaks down a larger goal into smaller, tangible steps. This detailed, systematic roadmap to success allows teams to see what needs to be done — and how to do it.

As a result, efforts are aligned with the desired outcome.

You can also think of your action plan as a shared reference point from which team members can communicate, understanding how their roles and tasks fit into the broader plan.

What are the primary benefits?

Let’s now cover the benefits your team can reap using these action plans.

Increased efficiency and productivity

With a well-structured action plan, teams can swiftly move from one task to another without losing momentum. The clarity it provides reduces the time spent on figuring out the next steps or other types of decision-making.

Ultimately, with an action plan you ensure energy is directed toward execution and progress rather than having to use it to keep the momentum going.

Reduced risks and errors

A solid action plan outlines the needed steps and anticipates potential challenges. That allows for the ability to recognize pitfalls earlier and proactively address obstacles.

For example, a startup launching a new product could use an action plan to detail which features need to be ready by what date. The team members can identify challenges like supply chain disruptions or software bugs and have contingency plans in place before a problem arises.

Components of a plan of action

Next, let’s break down the key components of an action plan.

Goals and objectives

Recognizing your desired outcomes guides your focus for the project. It clarifies priorities and end goals.

Determine what you want to achieve in specific, measurable terms.

For example,  a team might aim to launch their new product by the holiday season or achieve a four-star average rating in customer reviews in the first month.

Tasks and actions

Each overarching goal must be transformed into a series of actionable steps.

Each task should include an exact deadline and who’s best suited for each task.

For example , the marketing team could be assigned a campaign to complete by the end of September or the development team could be given a series of deadlines for tasks that lead to product completion.

Every action plan needs a well-defined timeframe, with realistic start and end dates for the project.

You’ll also need key milestones that act as progress checkpoints.

For example,  a team could create a  Gantt chart  against a calendar with milestones such as finalizing the prototype and securing the first 100 pre-orders.

Evaluation criteria

Your plan also needs metrics for how you'll measure the success of each task and the overall plan.

There should be set intervals, whether weekly or monthly, to review progress. These checkpoints will be moments to evaluate and pivot strategy where necessary.

For example,  A team’s KPI (key performance indicator) might be their customer retention rate or the number of units produced without defects. Based on their early data, they could see their successes and where they needed to improve.

Step-by-step guide to creating an action plan

Let’s get into the nuts and bolts of each step, including actionable tips for each.

‎Step #1: Understand the objective

Your planning starts with a clear destination. Don’t rush through this step, because an unclear vision at the start will complicate all the later steps.

Gather your core team and discuss the overarching goal. This is the time for big-picture thinking.

Frame the outcome in relatable terms and put it in writing. This will become your team’s North Star.

Expert tip:  Use the SMART criteria (Specific, Measurable, Achievable, Relevant, Time-Bound) to ensure your goal is well-defined and actionable.

Step #2: Brainstorm tasks

With a clear objective, it's time to break it down into manageable tasks.

Enlist your team members in this phase, as they can provide valuable insights. Encourage out-of-the-box thinking and jot down every task. Organize related tasks together to keep a logical order and make the process seem less daunting.

Expert tip:  Use brainstorming tools like mind maps or sticky notes on a board. This visual approach can help you see the entire process and identify potential gaps or overlaps.

Step #3: Prioritize

Next, host a workshop with your team to determine task importance.

Team leads can help articulate and align each task's implications with the larger objective.

You can use a tool like the Eisenhower box to categorize and prioritize tasks.

Expert tip:  Variables change, and so should your priorities. Regularly revisit them and adjust based on new info or unforeseen challenges.

Step #4: Allocate resources

First, map out all the requirements for each task.

Then, hold individual meetings with your team to assign tasks based on their strengths and current bandwidth. Also, identify and resolve gaps in tools, software, or other  resources . That might mean training, investing in new tools, or hiring additional help.

Expert tip:  Open communication is key. Set up open communication channels so team members can report on their needs as the project progresses.

Step #5: Set a timeline

You want to maintain a balance between setting goals that are ambitious  and  realistic.

Define start and end dates and milestones with adequate buffer time.

Determine task dependencies with your team, and always have a contingency plan.

Expert tip:  Use project management tools that allow for visual timeline representation, making adjustments easier.

Step #6: Monitor and adjust

Next, set up regular progress-tracking sessions.

These should be short-focused, allowing team members to voice concerns or ask for adjustments.

During these sessions, go beyond just ticking off completed tasks. Probe deeper by asking team members about any roadblocks they're facing. If a task is lagging, investigate the root cause early and make changes.

Expert tip:  Cultivate a feedback-friendly culture. When team members feel their input is valued, they're more likely to share vital information.

Step #7: Review

Once your project reaches completion, gather your team for a review session.

The emphasis should be on learning and growing. Discuss what went well, where there were hiccups, and what could be improved.

Engage in open dialogue and encourage feedback from all team members, no matter their position. Take the insights from these discussions and integrate them into your strategy for future projects.

Expert tip:  Conduct a post-project debrief involving all key stakeholders to gain a holistic view of the project's successes and areas for improvement.

Plan of action examples

It helps to see exactly what we’re talking about. That’s why we’ve put together a couple of examples.

Consider this first one here. It has an overarching goal and the different components necessary for achieving it.

‎Here’s another example. This one focuses on multiple goals and spells them out as well.

‎How automation is changing action plans

Automation has created a new era of streamlined processes. But automated planning tools aren’t just about speed. They're about precision and adaptability.

These tools quickly generate plans while maintaining consistency. That dramatically reduces manual intervention and related errors.

One of the other main benefits of automated planning is flexibility.

When circumstances inevitably change, automated tools can recalibrate plans in real time. As a result, businesses remain agile and respond well to ever-evolving challenges.

But automation isn't a replacement for traditional action planning. It’s more of a collaboration between human strategy and time-saving technology.

Automation can take over repetitive tasks and allow the team to focus on higher-level thinking and decision-making.

Despite advances in automation, the value of the human touch in planning remains irreplaceable. You need both human and machine to generate real magic.

‎Motion, in particular, exemplifies how automation and traditional planning can coexist. It merges the best of both worlds for action plans that are

With its real-time adjustments, businesses stay ahead of the curve.

Best practices for action plans

Use these tips to dive a little deeper and master the art of effective action plans.

Scenario planning

While flexibility is essential, being proactive can set you apart.

Engage in "what if'' scenario planning, where you visualize possible challenges and decide responses in advance. That way, you're better equipped to navigate unforeseen circumstances.

External experts

Bringing in an external expert or consultant with a fresh perspective can have a powerful impact.

An outsider’s view can highlight blind spots or suggest innovative approaches you hadn't considered.

In-depth risk analysis

Instead of a superficial look at potential risks, delve deep. Use tools like SWOT analysis or PESTEL analysis to understand internal and external factors that might impact your plan.

Advanced tech integration

Don’t just resort to basic tools. Consider tools like advanced analytics, AI-driven insights, or predictive modeling to take your planning process to a new level. These can provide genuine insights and forecast trends.

Cross-functional collaboration

Encourage teams from different departments to collaborate.

Their combined expertise can lead to a well-rounded plan that accounts for diverse perspectives and addresses organizational challenges.

Who needs an action plan?

The reach of action plans extends far beyond the corporate boardroom. Let’s explore how these action plans can be put to use.

‎Individuals aiming for personal development

An action plan provides a roadmap for individuals to reach their goals purposefully and precisely.

That could be for individuals:

• Charting a career path
• Pursuing a hobby
• Setting personal milestones

Teams working on projects

Teams benefit from a clear, shared vision. Action plans spell out:

• Responsibilities

That helps teams with anything from creative endeavors to logistical challenges.

Businesses aiming for growth

It doesn’t matter the size. Companies find value in action plans when launching new products, entering markets, or creating strategies for growth. They help to align resources and track progress.

Students and educators

Students can use action plans to navigate study goals or research projects in the academic world.

Educators can design lesson plans or academic calendars.

They serve as a tool to ensure alignment with learning objectives and timelines.

Plan better with Motion

You now have all the knowledge you need to start making powerful action plans. Remember to look back at our plan of action examples if you need a visual reminder of what to strive for.

In the intricate dance of planning and execution, leveraging tools like Motion is imperative. With its cutting-edge, AI-driven capabilities, Motion redefines the essence of efficient planning.

Don't let projects and tasks overwhelm you. Transform your action planning with our software.  Try Motion for free  today.

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Action plan templates: Why they’re important + examples

Blog: monday project management blog.

We’ve all heard the phrase, “If you fail to plan, you plan to fail.” But planning can be a time-consuming process, and all too often, we just want to dive into fixing the problem we’re trying to solve. Plus, many of us aren’t particularly confident developing an action plan from scratch.

That’s why having a customizable, pre-built action plan template on hand is crucial. Action plan templates provide a framework for your goals, meaning you can jump straight into planning instead of wasting time planning how you’re going to plan.

In this article, you’ll learn how action plan templates can transform your business and personal planning processes and gain inspiration from a variety of action plan template examples. Plus, we’ll share a powerful action plan template on monday.com and show you why planning work on our Work OS  is a lot more efficient than messing around with spreadsheets.

What is an action plan template?

An action plan is a detailed blueprint that outlines the steps you, your team, or your organization will take in order to achieve a specific goal you have. As you might’ve guessed, an action plan template, then, is a pre-structured document that gives you a framework for crafting your new action plan.

Action plans include very specific information, such as:

• A description of each action or task to be completed
• The person responsible for each action
• Due dates for each task
• Resource required to complete the action
• Space to reflect or take notes after you have completed a task

An effective action plan template has designated spaces for each aspect you need to cover, often presented in a table format, like this:

( Image Source )

Get the template

Why use an action plan template?

The main reason leaders and managers choose to use action plan templates is that they speed up the strategic planning process. Rather than spending unnecessary time designing the document they’ll use to plan, project managers can simply pull up their template, save a new copy — keeping the existing template intact — and get straight to work scheduling and assigning tasks to be done.

Additionally, templates help to ensure consistency across plans and teams. When your organization uses the same action plan template for the whole company, it’s easier for team members to interpret and understand the plan — because they’re familiar with the format — and contributes toward an organized, professional appearance.

Action plan templates help project organizers to more effectively plan by offering predefined categories and columns, reducing the chance of human error or information being left out of an action plan. Plus, you can apply any learnings you discover during the project management process to your own template. That way, you’ll consistently improve subsequent action plans.

While completing a project, you might find that some of the tasks in your task lists didn’t have clear outcomes. That is, it wasn’t immediately obvious how to identify when the task was complete. So, you could borrow from the SMART goals framework  — Specific, Measurable, Attainable, Relevant, Time-bound goals — and include a new column in your action plan template to note how you’ll measure if the task is complete.

And when using an action plan template built on a Work OS like monday.com, you can add your action plan to relevant project boards, build cross-team automations , and more — making it easier to collaborate with a distributed team.

What are some examples of action plan templates?

Business action plan template.

This template outlines how to write an action plan to track progress towards a specific business goal.

This action plan begins by detailing the primary goal you have, with the first column dedicated to a breakdown of each action required. For example, if your business goal was to design and launch a new website, your individual actions might include:

• Gathering design assets
• Choosing a color scheme
• Copywriting for new website pages
• Assembling design and development teams
• Creating design wireframes
• Design and development
• Launch and promotion

Note that the second to last column in this action plan template is reserved for noting potential hazards. This is helpful for identifying roadblocks that might get in the way of achieving your goals, so you can plan around them.

Personal development action plan template

Though action plans are most often used in a business context, they can be an extremely useful tool to help you stay motivated and work toward your personal goals.

This template allows you to break down your actions into a step-by-step sequence, and includes a “How will I know I’ve been successful?” column to ensure that the actions you write down have a clear outcome.

Corrective action plan template

Creating an action plan can also be a great way to solve a specific business problem, or even an issue with a specific employee’s performance, as opposed to working toward goals. This is known as a corrective action plan, as shown in the example template below.

This action plan template includes important columns such as metrics and constraints, so users can know how to complete tasks, and can plan for potential roadblocks along the way.

A “percent completed” column is included as a helpful way of measuring your progress toward the goal.

monday.com’s action plan template

Like you’ve seen in the examples above, the typical action plan document is formatted as a PDF or Microsoft Word document. While this is fine for goal setting and for creating the plan itself, it’s not so great for putting the plan into action.

That’s why we’ve purpose-built a flexible, customizable, intuitive action plan template on the monday.com Work OS.

When you design your action plan on monday.com, you can:

• Access multiple views (such as table, Kanban, and timeline) to work in a manner that suits your needs.
• Assign tasks to individuals and notify them instantly.
• Comment and collaborate on tasks to keep communication contextual.
• Design custom automations to save valuable time and ensure nothing slips through the cracks.
• Report on progress with the Progress Tracking Column.

Because monday.com is a comprehensive Work OS, the action plans you create with this template also integrate with any relevant project boards, and comprehensive analytics make it easy to track any progress.

That means that once you’ve got buy-in from your team on the plan you’ve created, you can easily copy actions, dates, and assignees over to your task management board and get moving.

How to build an action plan

Never created an action plan before? Follow this simple guide and get started with the free template above.

1. Determine your goals

First, you need to understand what you’re trying to achieve. Make this goal as specific as possible.

For example, “increase sales” is not a clear enough goal. “Increase sales by 20% in quarter three” is more specific and allows you to set a metric for having achieved it.

2. Break down the steps required to achieve each your goal

What actions are required to get there?

In this example, that might include:

• Hire 3 new sales development representatives
• Increase content marketing budget by $20,000
• Implement a new sales training program for new hires

3. Determine task dependencies and priorities

Remember: you can’t do everything at once! Now that you’ve broken down that big goal into bite-sized chunks, you need to figure out the ideal order for completing the tasks. In the above instance, you need to hire new sales representatives before you can start a sales training program, for example.

4. Add deadlines

When do you need to complete each task? Setting deadlines for each individual task helps your team stay on track but also allows you to identify if your timeline for the larger goal is realistic.

5. Identify the resources you need

What’s getting in the way of completing these tasks? What do you require, perhaps from leadership or from another team, to meet or exceed your goals? In our sales team example, we might require some assistance from the HR department to advertise an open role and attract new applicants.

6. Assign tasks to individuals

Who is responsible for each action? Assign a clear task owner to each task. Ownership doesn’t just make someone feel accountable; it empowers them to take initiative and solve problems without dragging in management at every twist and turn.

7. Agree on a plan to review progress

Before you jump in and start your project, determine how you’re going to measure progress toward your goals.

Will you review your action plan every day or every week? Who will be responsible for updating the plan to reflect progress, the task assignees or the project leader? Determining these answers up front means the action plan remains a living document that reflects actual progress.

FAQs about action plan templates

How do i write an action plan.

To write an effective action plan, first, download our free action plan template, then follow these steps:

• Determine your goals.
• Break down the steps required to achieve each goal.
• Determine task dependencies and priorities.
• Set milestones.
• Add deadlines.
• Identify the resources you need.
• Assign tasks to individuals.
• Agree on a plan to review progress.

We outlined this process in more detail above.

What is an example of an action plan?

Action plans are structured documents designed to help users achieve personal or organizational goals, identifying the steps they need to complete to achieve those goals, setting due dates and priorities, and determining potential roadblocks and resources required. Action plans often look like this:

What should an action plan look like?

Your action plan should include, at a minimum:

• The high-level goal your action plan seeks to achieve
• A breakdown of the individual actions or tasks you’ll complete
• A designation for each task of the person responsible

For a more in-depth action plan, include these columns:

• Start and end dates
• Potential roadblocks
• Metrics or measurements of success
• Percentage complete
• Comments/notes

One platform for better teamwork

With monday.com work os.

The post Action plan templates: Why they’re important + examples appeared first on monday.com Blog .

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Some integration examples

Risk Management Action Plan

Many business owners, companies or even those who run universities can tell you this hard fact. There is always any kind of risk when you plan to do something . When managing a company, a business or even a university, there is no greater problem than having to find yourself in a lot of hazards and risks that may present itself. A lot of people would often think that with a lot of risks and hazards, what is the whole point of doing business? Of course some may say that when doing business risks are always present and that is true. But it does not mean that because you think it may be risky, you would simply give it up. 

There is always a way to resolve or to eliminate risks and depending on the severity of it and the situation you are in. When you think of solutions, you think of these as something that can be done immediately or at least in the long run. You think of ways to fight or to solve the issues regarding your business or company, or even any issues when running a university. But you may not immediately associate solutions with action plans . Making a risk management action plan is the right tool to help you eliminate the risks that cause the problems. 

10+ Risk Management Action Plan Examples

1. risk management action plan template.

2. Standard Risk Management Action Plan

Size: 406 KB

3. Risk Management Action Plan in PDF

Size: 641 KB

4. University Risk Management Action Plan

Size: 924 KB

5. General Risk Management Action Plan

Size: 148 KB

6. Formal Risk Management Action Plan

7. Proposed Risk Management Action Plan

Size: 305 KB

8. Club Risk Management Action Plan

Size: 429 KB

9. Risk Management Strategy Action Plan

Size: 186 KB

10. Risk Management System Action Plan

11. Risk Management Framework Action Plan

Size: 34 KB

What Is a Risk Management Action Plan?

As mentioned above a lot of people may not associate an action plan with the word solution for a risky type of issue. A risk management action plan is a tool used to outline in detail or in general form the goal to eliminate any risk that may threaten a company, a business or running a university. This risk management action plan consists of the following elements. Your goal, the objectives to this goal, the outlined details, the timeline and the list of strategies.

In addition to that, a good reason for using or for writing this kind of plan is to make sure that any issues, problems, hazards or risks that may threaten your goal would be eliminated. If not, at least it would be addressed as soon as possible. Another reason to be making this kind of plan is to be able to see the bigger picture. In a way that it allows you to measure out the good and the bad. As not all risks can destroy a goal, as well as not all goals have risks in it.

How to Write a Risk Management Action Plan?

Being able to know what to do to manage the risks that appear in your workplace is a good thing. But how to write a risk management action plan is another.

1. Define Your Goals

First thing is always first, defining the goals , vision and mission which can be optional in an action plan. Defining your goals means that you already have one or more set out for your action plan. Your goals can be as simple as eliminating a risk to a more complex one. Depending on how you may want to define your goal. As long as you write one.

2. Make a Timeline of Your Goals and Objectives

Once you have your goals all set up, it is time to write an outline or a timeline for your goal and objectives. The timeline helps by giving you a big picture of what you can expect to happen at a certain time. Of course others would prefer to make sure that the timeline of their goals and objectives will show them immediate results, so when plotting, you must be specific.

3. Write Your Strategic Steps to Resolve the Issues

The next step is to make strategic steps to resolve all the issues or the risks you made a list for. Making strategic steps also helps you by dictating where you should go first and where you should tread. It’s basically like a roadmap to getting a better view of what you are going to be doing and how you should do it. Without having to risk more than is necessary.

4. Setting up the Milestones in Your Action Plan

Milestones after milestones are necessary in your action plan. They give you a good view of where you went right and where you may have failed. Milestones are also a stepping stone for you to achieve your goal. Whether these milestones be small or huge, write them down.

5. Update Your Action Plan After Every Attempt

Lastly, updating your action plan after every attempt should also be a requirement. The reason for this is to make sure that what has worked for you when you were eliminating the risk may at one point work for a different kind. Especially in a different situation.

What is a risk management action plan?

A kind of action plan that focuses on managing any kind of risk. They are usually found in any kind of work or project that you may do. In addition to that, these risks presents itself in your work in any shape or form.

Why is it necessary to have an action plan made?

An action plan helps by maintaining your focus on the goal you plan to achieve. With this in mind, when you plan to have something to do, bear in mind an action plan can help you out.

Is an action plan helpful?

Yes. Depending on how you write your action plan, and how you use it. An action plan is really a helpful tool.

When it comes to finding out solutions to problems, we do not immediately think of action plans. We think of avoiding the problem, hoping it goes away. What we don’t realize is it often does not work. Making an action plan will help lessen the risks and you are able to find a solution to it. Rather than to avoid it, having to face some risks head on with plans can also be a better solution.

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PESTLE Analysis

Insights and resources on business analysis tools

PEST Analysis: Examples and Meaning in Business

Last Updated: Apr 8, 2024 by Jim Makos Filed Under: PEST Analysis

What is a PEST analysis, and what are its four parts? What is the difference between PESTLE analysis and PEST, and why is it important for every business? As a business student, analyst, manager or owner, you are called to conduct a PEST analysis sooner or later. In the next 10 minutes, I’ll go through everything you need to know about PEST analysis and how you can do a PEST analysis of an organization starting from scratch. I promise you’ll know more about PEST analysis than 99% of people out there, as I’m explaining everything as concisely as possible. Let’s start with the PEST analysis definition.

What is a PEST Analysis?

PEST analysis is a strategic tool for organizations to identify and assess how Political, Economic, Social, and Technological external factors impact operations so that they can gain a competitive edge. A PEST analysis helps you determine how these factors will affect a business’s performance and strategy in the long term. It is often used in collaboration with other analytical business tools. For example:

• A combination of PEST and SWOT analysis usually gives a clearer understanding of a situation with related internal and external factors
• PESTLE analysis is an extension of PEST analysis that covers legal and environmental factors

I’m going to explain the PEST analysis as simply as possible with examples and a template for better understanding. I will also show how to do a PEST analysis starting from scratch, even for people without any business education like me!

Why Do a PEST Analysis

It’s simple: to succeed. For a business to be successful, they need a few things:

• A solid product
• Marketing plan
• Identifiable brand
• Happy customers
• Thorough budget
• An investor or two
• Unique selling position
• And a whole lot of research

Throughout the endless market research, customer acquisition costs, and project risk assessments, business managers could forget about outside influences ( we call these external factors in this type of analysis). Aside from the company’s internal resources and industry factors, PEST’s macroeconomic factors can impact a company’s performance in a big way.

By being aware of external factors, managers can aid their business. But if they don’t know them, they can cripple their business before it begins. That’s how advantageous PEST analysis is .

What are the four parts of PEST analysis?

Now, let me explain each of the four parts of a PEST analysis more thoroughly. You’ll better understand what each of these external factors in this analysis is all about.

• Political – Here, government regulations and legal factors are assessed in terms of their ability to affect the business environment and trade markets. The main issues addressed in this section include political stability, tax guidelines, trade regulations, safety regulations, and employment laws.
• Economic – Next, businesses examine the economic issues that have an impact on the company. This would include factors like inflation, interest rates, economic growth, the unemployment rate and policies, and the business cycle followed in the country.
• Social – At this stage, businesses focus on the society and people. Elements like customer demographics, cultural limitations, lifestyle attitudes, and education come into play here. This part allows a business to understand how consumer needs are shaped.
• Technological – This may come as a surprise, but technology may not always be an ally for businesses. Depending on the product, technology may affect the organization positively but also negatively. In PEST’s last section we find technological advancements, the role of the Internet, and how an industry’s innovation creates winners and losers.

Every business is different. Some factors may not affect a firm or industry as they would with others. But it’s beneficial to have a well-rounded view of the many factors that could affect them. Along with the ones that will affect them.

This is why we do PEST analysis for a business — to be aware of risks, opportunities, influences, and limitations. Let’s go deeper into these external factors that impact the success of a business. I’ll also briefly mention a specific example for each of them.

Political Factors

Political factors in PEST analysis refer to the extent to which the government and political actions in a country influence the business climate. Here are some examples that will occasionally make it into the (P) of my PEST analysis:

• Tax policies
• Tax incentives
• Political tensions
• Employment laws
• Import restrictions
• Health and safety laws
• Consumer protection laws
• Tariff and Trade restrictions
• Regulation and deregulation

For instance, a country’s foreign policy often plays an important role in determining trade regulations. This can either result in trade restrictions or trade incentives and can affect an organization’s operations. Read my dedicated page on political factors with more examples here .

Economic Factors

In the (E) part of PEST Analysis, we run into how the economy affects the organization. I consider the following economic factors when doing a PEST analysis:

• Interest rate
• Inflation rates
• Exchange rates
• Unemployment rate

For instance, exchange rates affect a global organization by influencing the cost of imported and exported goods. Furthermore, interest rates influence the cost of capital available to the organization. Thus they are significant in the expansion and growth of a business. Find more economic factors and examples of how they affect businesses here .

Social Factors

Social factors include different cultural and demographic aspects of society. These can affect the macro-environment in which the organization operates.

In the ‘S’ part of the PEST analysis I usually examine:

• Age distribution
• Cultural diversity
• Demographics shifts
• Population growth rate
• Health consciousness and trends
• Changing consumer lifestyles and preferences

A study of these factors can help organizations understand the dynamics of existing and emerging potential markets along with future customer needs.

Social factors are more unpredictable than economic and political factors, simply because people are unpredictable. But every business needs customers. And what and how they buy has an immediate effect on an organization’s profitability.

Based on these social factors, marketers create buyer personas. These avatars are necessary for businesses to target the ideal customer.

For example, if you’re selling whey powder, you go after fitness enthusiasts and bodybuilders. You are looking for people that follow an active lifestyle. Hence, a declining trend in health consciousness doesn’t seem encouraging.

That’s the tip of the iceberg. Learn more about social factors here .

Technological Factors

Technological factors aren’t important only for tech-related businesses. The (T) part in PEST analysis may affect even the most old-school organization that’s been operating for a century.

Technology is evolving at a rapid pace and consumers are becoming extremely tech-savvy. With the advent of new technology, older technology gets outdated and obsolete. If an organization does not look out for technological changes, it can lag behind its competitors.

I often include the following technological factors when conducting a PEST analysis:

• Cybersecurity Threats
• Emerging Technologies
• Big data and computing
• AI and Machine Learning
• Supply Chain Automation

Let’s consider the advancements in computing; more specifically, networking.

If a business offers the latest and fastest Wi-Fi in their store, it’s an added luxury. It’s annoying if it still operates on 3G speeds, but won’t ruin sales. However, if they handle all receipts in an online database and that goes offline because they didn’t keep their network infrastucture up-to-date then they have a major problem. Especially in big holidays like Black Friday.

Again, this is about impact on the business operation. How will ‘X’ technology affect the business in the long and short term? That’s what we’re trying to figure out with PEST analysis.

A ton more technological factors can be found here .

PEST Analysis Examples

Here is a hypothetical PEST analysis example that can give you a clear understanding of how this works:

Here at PESTLEanalysis.com I rarely limit myself to PEST analysis. I almost always go the extra mile and include the Legal and Environmental factors when I initiate a PEST analysis. This leads to a more detailed analysis called PESTLE.

PESTLE Analysis: An extension of PEST Analysis

PESTLE analysis is an extension of PEST that is used to assess two additional macroeconomic factors. These factors are the  Legal and Environmental conditions that can have an impact on a organization. Examples of PESTLE analysis are similar to those of a PEST analysis, but they will include factors such as these:

• Discrimination laws
• Copyright and patent laws

Environment:

• Waste management
• Changes in weather and climate
• Laws regarding pollution and recycling
• Use of green or eco-friendly products and practices

So, if you want to assess a business situation comprehensively, a PESTLE analysis is a definite must. You can find more about that analysis here .

Why PEST Analysis Is Important For Every Business

So, now that we did a PEST analysis, how’s that going to help the business?

What does a five-year business plan look like? Or a ten-year plan? It likely involves growth.

Whether it’s the expansion of a product line or opening stores in new locations, business changes need proper preparation. And that’s where the PEST analysis comes in.

PEST analysis is the foolproof plan for business expansion !

Both new business owners and veterans should include PEST analysis in their business plan. By breaking down the critical influences in the P.E.S.T. categories, businesses get a better understanding of whether their next business move is strategic or doesn’t make sense.

For example, politics isn’t just about political tensions, unrest and elections. Politics are also about trade policies, regulations and taxation. Companies doing business worldwide have to consider laws in the countries they operate, as well. Even if they aren’t doing international trade yet, it could be a possibility in the future, and going in blind is a good way to toss success out the window.

PEST analysis helps people become aware.

Aware of how political parties and regulations can impact a business. And how the economy (past, present, and future) affects an industry. It allows people to understand consumers — who they are, what they buy, and why they don’t buy. And finally, it identifies what technology is necessary for the development and success of a product, business, or industry.

It’s almost like an outline. It shows people what influences impact the quality, success, or devastation of businesses and industries. You can’t stop the four influences, but if you’re aware of them and their impact, you can plan around, against, or with them.

PEST analysis is often used by business analysts, marketers, students, and business owners, since it’s super important for every business!

All you need to do a proper PEST analysis is time. And the payoff is worth every second.

How PEST analysis works

PEST analysis requires research and data, sometimes ten years old, sometimes only a couple. The more information I have to go through, the more accurate my final results will be. By looking into the past and the present, I can make predictions for the future.

By studying these recent developments through a PEST analysis lens, organizations are deciding whether to jump into this for the long haul or for the time being.

You want to look at your industry in a similar light. Ten years ago, did it exist? Has it slowed down within the last two years or are more companies diving in? More competition can be a strong sign an industry is booming, but it could also be the first sign of oversaturation.

Break down your assessment into the four categories of PEST analysis. Start with politics and work your way through the remaining factors. Or start from the bottom. Whatever gets the job done and makes the analysis enjoyable.

How to Do a PEST Analysis From Scratch

I’ve written dozens of PEST analyses over the last couple of years. Below I document my process on how to do a PEST analysis , even when you’ve never written one before.

You should have a topic in mind. Most PEST analyses are about a specific business, industry, or product. However, they can also be applied to countries, too. You can’t start without a topic, though, so have it ready.

Where to find information for your PEST analysis

It’ll be easier to find and segment information if you break your analysis down into four sections, like the acronym implies:

• Technological

Each section will require its own information. However, some of this information will overlap.

For instance, the economy is often closely tied to political (in)stability. And the state of the economy always affects consumers (social). You don’t need to look for these patterns specifically— it’ll become apparent as you discover new information.

Start with the history

You should be familiar with your topic. If you’re not, read about its history. Learn how it was established, how long it has been around, and who founded it. Read about any major achievements on the organization in question over the last few years. Jot down notes whenever something that seems relevant or important pops up.

After this informational primer, it’s time to start on the four sections. I do my PEST analysis in order of the acronym because the information often bleeds into the next section.

Finding Political Information

Political information is easier to find than in other sections of the analysis (social and technological, specifically). Here, you’ll want to investigate the current political climate.

For instance, if the organization originates from America, you’ll research the current political parties. Who is in charge? Has this affected business operations in any way?

If your topic (business, product, industry) was established years ago, what was the political climate like then? Are different parties in power now? If this is the case, then you’ll want to compare how things have changed for your topic from then to now.

This is also the section where you’ll look into laws and regulations affecting business. Remember the list we went through in the beginning.

I find this information with a simple Google search. Such as “tariff laws USA” (plug in the country you’re searching for if it’s not the United States).

It’s best to get this information from a government site. These sites end in .gov. You may also find information from organizations (websites ending in .org) but not all of these sites are legitimate organizations. Be wary while you research.

Honestly, most of the information you’ll find is dense. But it’s easier if you have a goal. Look for signs of:

• Government (in)stability
• Possible political corruption
• New bills/regulations that may impact your topic
• Any issues your topic has had with current/former regulations or political parties

If your topic is a company, finding the right information may be easier. Search for “company name + political issues” or “company name + policies” and see what comes up. Avoid any information from untrustworthy sites and sites with no legitimate source.

Finding Economic Information

While you’re researching political information, you may come across connections to the current economy. For instance, political instability often leads to economic instability. This causes unemployment rates to rise and employee strikes. This affects how much disposable income people have.

You may have already found information in your political section that confirms economic problems. But if you haven’t, search government sites for current tax rates, interest rates (if your topic involves international business), and the current state of the economy. Is it good? Thriving? Or bad and declining?

Again, use government websites. Search for economic statistics over the last few years. If your topic is an industry, see how many companies (startups) have started within the last few years.

If your topic is a business that has international stores, look into the relationship between the country of origin and each country the company does business. If the relationship is good, it’s often a good outlook for the company. But if it’s bad, it may lead to problems. What problems? Do a bit of digging online.

Also, if your PEST analysis is for a company, you may look into stocks . Have they been declining? On the rise? Because if it’s the former, then the business may not be looking good. And you’ll want to find out why .

If my topic is a business, I sometimes check out the competition. I’ll look into how that other company has been fairing economically, specifically how its sales have risen or fallen over the last couple of years. If it’s dropped products, shifted marketing efforts, etc., I want to know why . A competitor analysis isn’t always necessary , but it can shed light on possible problems your topic may face.

Finding Social Information

This section is a bit trickier. Political and economic sectors rely heavily on data and evidence. You can find this information on government websites. News sites too, even. And although you can find databases about demographics and population growth for this section — all applicable in a PEST analysis — I wouldn’t stop there.

In the social section, I often examine how consumers are impacted by political and economic factors. You can draw conclusions based on the information you’ve already gathered from your political and economic segments.

For instance, if there is political instability and the economy is on the fritz, then consumers may feel uneasy. They may have fewer job options. And that means they’re less likely to spend frivolously. If your topic is a luxury product, it may mean the company that makes it may have lower sales this year.

But you also want to learn about how consumers feel about your topic. If it’s a company, do consumers generally like it? Or is public opinion souring? There should be a reason for why.

Consider Facebook. The company’s CEO, Mark Zuckerberg, has consistently been in hot water over the years. If not for data breaches affecting millions of users, but for their shady involvement with fake news and political tampering.

This has led many consumers to shy away from using Facebook. And this affects businesses that use Facebook to reach new customers.

In this section of the PEST analysis, I’m more likely to search for my topic on news sites and publications. The more popular the topic, the easier it’ll be to find articles written about it. But if the topic has ever been in the news, you’ll likely find it online.

Websites to search include :

• Consumer Reports
• Local news websites
• Other reputable sources

If you know your topic has been in the news for something bad, you can search the topic + the problem.

Although the information may overlap, take keynotes here. See how the problem is affecting consumer opinion. You may even want to take a look at the comments (if there are any) and see what people are saying. It’s coming straight from the lion’s mouth (consumers).

I think many PEST analyses favor numbers too much. We live in a world where anyone with an opinion can be heard, thanks to the internet. And enough of those voices can cause a business to change its policies and products. It can even cause the company to collapse.

So it’s important to search for how consumers feel about your topic too.

Finding Technological Information

This section of the PEST analysis is a bit abstract as well. You’re looking into how new technological advancements has affected your topic positively or negatively. You should also look into what technology your topic uses (currently). And what technology they may want to incorporate.

You may want to look at competitors if your topic is a product or business. See what others are using. And think about why they are.

Press releases

It may be beneficial to search for press releases involving your topic, if possible. If your company is using new technology, they may have announced it through a press release. You can search “company name + press release” or search through these press release websites:

• PR NewsWire
• NPR: National Public Radio

You may also find other information here for the other sections of the PEST analysis. Which is just an overall bonus. If all else fails, check if your topic has a website (unless it’s an industry or country). Discuss how they use social media (if they don’t, then… discuss that too!). In this section, you’re assessing what your topic uses, what it doesn’t, and why.

Putting it all together in a final PEST analysis

You’ll likely have heaps of information at hand. For some it’ll feel like too much — but that’s never the case for a PEST analysis. As you begin to read through each section’s notes, incorporate the most interesting, pressing, or surprising information. If anything overlaps with other sections, include that too.

I write each section of a PEST analysis at a time. I take my notes and create coherent sentences. Sometimes I make a list of the most important points and include them that way. If the section is long, I’ll use subheadings to break up the information.

Work on each section separately. And then if there are overlapping themes, incorporate those in. You may want to use those at the end of each section to connect to the next.

Once you’ve done this, you’ve completed your PEST analysis! Most of the work is in finding the information and making it coherent. The last 10-20 percent is putting it all together. So, once the research phase is done, you’re basically done too!

Understanding PEST Analysis: Taking Action

In conclusion, developing an understanding of what is PEST analysis becomes even more important when a company is about to launch a new business or a new product. In general, when they are about to change something drastically. That’s when all these factors play an important role in determining the feasibility and profitability of the new venture.

Therefore, developing an understanding of PEST analysis is useful for organizations for analyzing and understanding the ground realities of the environment they have to operate in.

Realizing what is PEST and knowing how to take this analysis into consideration, the organization can be in a better position to analyze the challenges, environment, factors, opportunities, restrictions and incentives it faces. In case an organization fails to take into account any one of these factors, it may fail to plan and operate properly.

But don’t PEST analysis stop you. Here are some variations that may come in handy when assessing how the external environment affects an organization:

• STEEP Analysis
• STEEPLED Analysis
• SWOT Analysis

• For Small Business

The Ultimate Guide to Setting Mentoring Goals in 2024

• May 13, 2024
• by steven-austin

Mentoring has long been recognized as a powerful tool for supporting employee development and driving organizational success. However, in the face of a rapidly changing world of work, the way we approach mentoring must evolve. By setting clear, meaningful goals, mentors and mentees can unlock their full potential and thrive in the new normal.

In this ultimate guide, we‘ll dive deep into the art and science of setting mentoring goals in 2024. Whether you‘re a mentor, mentee, or HR leader looking to optimize your mentoring initiatives, you‘ll gain evidence-based insights and practical strategies to help you achieve success.

The Business Case for Mentoring: Why It‘s More Important Than Ever

Workplace mentoring programs have been growing in popularity for two key reasons: they‘re cost-effective and they work. A 2023 report by the Association for Talent Development (ATD) found that organizations with strong mentoring cultures experience:

• 62% lower turnover rates
• 56% higher employee engagement scores
• 23% faster time-to-productivity for new hires
• 45% higher likelihood of employees advancing in their careers

What‘s more, mentoring can be a smart investment for companies looking to do more with less in the post-pandemic economy. According to the Center for Workplace Mental Health , mentoring programs cost an average of $1,500 per employee per year, while replacing an employee can cost up to 150% of their annual salary.

As a workplace learning expert, I‘ve seen firsthand how mentoring can transform careers and organizational cultures. It‘s not just about skill-building – it‘s about creating a sense of belonging, purpose, and resilience in the face of change. And in a world where the pace of change is only accelerating, those human connections are more vital than ever.

SMART Goals: The Key to Mentoring Success

So, how can you ensure that your mentoring efforts deliver real results? The answer lies in setting SMART goals. SMART is an acronym that stands for:

• Specific : Goals should be clear and precise, leaving no room for ambiguity.
• Measurable : Goals should have specific metrics or milestones attached to them.
• Achievable : Goals should be realistic and attainable given the mentee‘s current skills and resources.
• Relevant : Goals should align with the mentee‘s career aspirations and the organization‘s objectives.
• Time-bound : Goals should have a specific deadline or time frame for completion.

Here‘s an example of how a vague mentoring goal can be transformed into a SMART goal:

By setting SMART goals, mentors and mentees can:

• Provide direction and focus for their efforts
• Track progress and celebrate milestones along the way
• Ensure alignment with individual and organizational priorities
• Hold each other accountable for achieving results

A 2022 study by the Journal of Leadership Studies found that mentees who set SMART goals with their mentors were 33% more likely to report career advancement and 29% more likely to report job satisfaction compared to those who did not set specific goals.

A Step-by-Step Guide to Setting Mentoring Goals

Now that we understand the power of SMART goals, let‘s walk through the process of setting them in your mentoring relationships.

Step 1: Identify Focus Areas

The first step is for the mentee to reflect on their current strengths, weaknesses, and career aspirations. Some questions to consider include:

• What skills do I need to develop to reach my career goals?
• What knowledge gaps do I have in my industry or function?
• What challenges am I currently facing in my role?
• What do I want to be known for in my organization or field?

The mentor can provide guidance and insights based on their experience and understanding of the mentee‘s situation.

Step 2: Brainstorm Potential Goals

Once the focus areas have been identified, the mentor and mentee should generate a list of potential goals. Encourage the mentee to think big but also be realistic. Some examples might include:

• Improve time management skills to increase productivity by 20%
• Develop a stronger network within the organization by attending 3 cross-functional events per quarter
• Enhance emotional intelligence by completing an EQ assessment and working on 2 key areas for improvement
• Prepare for a leadership role by taking on a stretch project and receiving feedback from a senior leader

Step 3: Refine and Prioritize Goals

Review the list of potential goals and prioritize the ones that will have the greatest impact on the mentee‘s development and align with organizational objectives. Then, refine each goal to make it SMART. Use the following template:

Step 4: Create an Action Plan

Once you have your SMART goals defined, break each one down into specific tasks and milestones. Consider using a project management tool or spreadsheet to track progress. The action plan should include:

• The specific steps the mentee will take to achieve each goal
• The resources, tools, or support needed from the mentor or others
• The frequency and format of check-ins between mentor and mentee
• Any potential obstacles or risks and how they will be mitigated
• Key milestones and deadlines for each phase of the goal

Step 5: Review and Adjust Regularly

Mentoring goals should not be set in stone. Regularly review progress with your mentor and don‘t be afraid to make adjustments along the way. Celebrate successes and learn from setbacks. The mentor‘s role is to provide ongoing guidance, feedback, and accountability to help the mentee stay on track.

By following this step-by-step process, mentors and mentees can create meaningful goals that drive personal growth and business impact. But the process isn‘t always easy – there are common challenges that can derail even the best-laid plans.

Overcoming Obstacles to Mentoring Success

While setting SMART goals is essential, it‘s not a guarantee of success. Here are some common challenges that mentors and mentees may face and strategies to overcome them:

Unclear Expectations

If goals are too vague or unrealistic, it can lead to frustration and disengagement on both sides. To avoid this, mentors and mentees should have an open discussion at the start of their relationship to clarify expectations and ensure goals are truly SMART.

Lack of Time or Commitment

Mentoring requires dedicated effort from both parties, but competing priorities and busy schedules can make it challenging to stay engaged. To mitigate this, mentors and mentees should block out time on their calendars for regular check-ins and treat them as non-negotiable commitments.

Communication Breakdowns

Misunderstandings or lack of transparency can erode trust and derail progress. Mentors and mentees should establish clear communication protocols and preferences (e.g. email, phone, video chat) from the start. If conflicts arise, address them promptly and honestly.

Accountability Gaps

Without clear milestones or consequences, it‘s easy for mentees to lose motivation or for mentors to become disengaged. Setting up a system for regular progress updates and feedback can help keep everyone on track. Some mentoring software platforms even send automated reminders and allow mentees to log their achievements.

One best practice is to create a mentoring agreement that outlines goals, expectations, communication norms, and accountability measures. Having a written record that both parties can reference provides clarity and structure.

Another strategy is to invest in mentor and mentee training. Many organizations offer workshops or e-learning courses to build skills like active listening, providing feedback, and goal-setting. For example, LinkedIn Learning offers a "Developing Your Mentoring Skills" course that covers key concepts and best practices.

By proactively addressing these common challenges, mentors and mentees can set themselves up for success and make the most of their time together.

Measuring the Impact of Mentoring Goals

Setting goals is one thing – achieving them is another. To truly optimize your mentoring efforts, it‘s essential to measure progress and impact over time. But what metrics should you track? And how can you gather meaningful data without overburdening mentors and mentees?

Here are some key indicators to consider:

Mentee satisfaction and engagement : Conduct regular surveys or interviews with mentees to gauge their satisfaction with the mentoring relationship and its impact on their career development. Ask about their progress towards goals, the quality of support from their mentor, and any areas for improvement.

Mentor satisfaction and engagement : Don‘t forget about the mentor‘s experience! Assess their satisfaction with the mentoring relationship, the progress of their mentee(s), and the support they receive from the organization. Identify any challenges or skill gaps that need to be addressed.

Goal attainment : Track the percentage of mentoring goals that are achieved within the defined timeframe. Identify any patterns or obstacles that impact goal attainment across the program.

Skill development : Measure the mentee‘s progress on specific skills or competencies related to their goals. This could include assessments, 360-degree feedback, or performance evaluations.

Career progression : Monitor mentees‘ career advancement over time, including promotions, lateral moves, and retention rates. Compare the progression of employees who participate in mentoring to those who do not.

Business impact : Assess the impact of mentoring on key business metrics such as productivity, innovation, customer satisfaction, or revenue growth. Look for correlations between mentoring participation and performance in these areas.

By combining quantitative and qualitative data, organizations can gain a holistic view of their mentoring program‘s effectiveness and ROI. Regular reporting and communication of these metrics can help build buy-in and support for mentoring at all levels of the organization.

For a real-world example, consider the case of Zynga , the mobile gaming company behind hits like Words with Friends and Farmville. In 2018, Zynga launched a formal mentoring program with the goal of supporting leadership development and increasing diversity in management.

The program included a structured goal-setting process, regular check-ins, and a focus on skill-building and career advancement. Over the course of a year, Zynga found that:

• 90% of mentees reported improved leadership skills and confidence
• 70% of mentees received a promotion or expanded responsibilities
• Mentees were 25% more likely to stay with the company compared to non-participants
• The program generated a 5x return on investment based on retention and productivity gains

By tracking these metrics and communicating the program‘s impact, Zynga was able to secure ongoing executive support and expand the program to reach even more employees.

Mentoring in the New World of Work

As we look ahead to 2024 and beyond, it‘s clear that the way we work is fundamentally changing. The pandemic has accelerated trends like remote work, digital transformation, and the need for agility and resilience in the face of disruption.

These shifts have significant implications for mentoring. On one hand, the lack of in-person interaction can make it harder to build rapport and trust between mentors and mentees. Virtual communication can feel less spontaneous and more transactional.

On the other hand, remote mentoring can offer greater flexibility and accessibility. Mentors and mentees are no longer limited by geographic location and can connect more frequently thanks to video conferencing and collaboration tools.

The key is to be intentional about adapting mentoring to the new world of work. Here are some strategies to consider:

Leverage technology : Use video conferencing, instant messaging, and virtual whiteboards to create engaging, interactive mentoring sessions. Experiment with VR and AR tools to simulate in-person experiences and build empathy.

Create a virtual mentoring agreement : Establish clear guidelines and expectations for remote mentoring, including communication norms, technology requirements, and contingency plans for technical difficulties.

Focus on emotional intelligence : In a world of screens and distance, empathy and emotional connection are more important than ever. Mentors should prioritize active listening, non-verbal communication, and checking in on mentees‘ well-being.

Embrace asynchronous communication : With time zone differences and competing priorities, it may not always be possible to meet in real-time. Encourage mentors and mentees to use email, chat, or video recordings to share updates and feedback on their own schedules.

Create virtual communities : Foster a sense of belonging and support by creating virtual forums or groups where mentors and mentees can connect, share experiences, and learn from each other. Consider using social learning platforms or online communities of practice.

Celebrate successes and milestones : Remote work can feel isolating at times, so it‘s important to recognize and celebrate progress along the way. Create virtual recognition programs or events to showcase mentoring achievements and inspire others.

By embracing these strategies, organizations can create a culture of mentoring that transcends physical boundaries and supports employees‘ growth and development in the new world of work.

Conclusion: Unlocking Potential Through Mentoring

Mentoring has always been a powerful tool for driving personal and organizational success. But in a world of constant change and disruption, the way we approach mentoring must evolve.

By setting SMART goals, measuring impact, and adapting to the new world of work, mentors and mentees can unlock their full potential and thrive in 2024 and beyond. It takes intentionality, vulnerability, and a willingness to learn and grow – but the rewards are well worth it.

Whether you‘re a seasoned leader looking to pay it forward or an early-career professional seeking guidance, investing in mentoring is one of the smartest things you can do for your career and your organization.

So what are you waiting for? Find a mentor or mentee, set some SMART goals, and start your journey to greatness today. With the right mindset and tools, there‘s no limit to what you can achieve together.

Get Started with our SMART Mentoring Goal Template

Ready to put these insights into action? Download our free SMART Mentoring Goal Template to start setting powerful goals with your mentor or mentee today.

By using this template, you‘ll be well on your way to creating a mentoring relationship that drives results and transforms lives. Happy goal-setting!

Money blog: 600 new skyscrapers 'on way' for London, report finds

A reader seeks help as her employer of 24 years is bringing in a new clock-in system to pay her by the minute. Read this and all the latest personal finance and consumer news in the Money blog - and share your own problem or dispute below.

Monday 13 May 2024 16:15, UK

• Gen Z would rather deliver parcels than work in restaurants, Michel Roux Jr claims
• 600 new skyscrapers on way for London, report finds
• Money Problem: My workplace is bringing in new clock-in system to pay us by the minute - is this allowed?
• Free childcare applications open for new age band

Essential reads

• How to make sure your car passes its MOT
• 'Loud budgeting': The money-saving trend that has nothing to do with giving up your daily coffee
• How to avoid a holiday data roaming charge (while still using the internet)
• Best of the Money blog - an archive

Ask a question or make a comment

Gordon Ramsay's restaurants tripled losses to £3.4m last year, as the chef warned businesses in the industry were facing a "challenging" climate. 

The chef's group spent millions opening five new restaurants in 2023, including a Lucky Cat in Manchester, a Bread Street Kitchen in Battersea Power Station and a Street Pizza in Edinburgh. 

Sales at his wide-ranging establishments rose, however, by 21% to £95.6m in the year to August, according to The Telegraph. 

"It's been a really hard-fought year, but at the same time an exciting year, and in tough times it amazes me how strong and vibrant our industry is," Ramsay told the news outlet. 

"It's challenging out there and businesses are battling to stay afloat, rising costs, rent and food costs, multiple strikes. It's a battle" 

He was optimistic, however, saying there hasn't been "so much passion and vibrancy" in the industry since he opened his first restaurant in 1998.

"We've still got something wonderful to celebrate, and I truly believe the industry has never been so exciting."

Once the UK's favourite alcoholic beverage, beer's popularity seems to be fading among the younger drinking generation... 

In fact, only 30% of people aged 18 to 24 ever drink it, according to a study commissioned by the Society of Independent Brewers. 

Instead, younger drinkers say they prefer drinking spirits, wine and cider. 

Pub visits appear to be suffering as well, with almost a quarter of the 2,000 people surveyed saying they have never visited their local. 

SIBA's 2024 Craft Beer Report paints a more positive picture for small and independent brewers, however, with more than 55% of beer consumers saying they now drink "local craft beer". 

It also found average beer production volumes among independent breweries has risen by 14% since last year - a return to pre-pandemic levels for the first time in 4 years. 

"Demand for local, independently brewed beer in the UK is strong, with independent brewers reporting production volumes up by 14%, meaning they have returned to 2019 volumes again," Andy Slee, SIBA's chief executive, said. 

But, he said, it's time for "cautious optimism" only, with the industry still plagued with a number of issues. 

"The short-term issue for small independent breweries isn't demand; it's profitability, rising costs and financial pressures such as lingering COVID debt," he said. 

"Far too many breweries are simply trying to survive rather than thrive, so while there are many positives signs highlighted in the report, for now it's cautious optimism."

Earlier this year, our Money reporter Emily Mee explored whether the UK's big night out culture was dying out. 

Nightlife experts warned we're losing one club every two days at the moment - and if we stay on this trajectory, we will have none left by 2030.

You can read more about her findings here...

A total of 583 skyscrapers are "queuing up in the pipeline" to be built across central London, a development thinktank has said. 

That is more than double the 270 built in the past decade. 

In the eastern borough of Tower Hamlets alone, 71 tall buildings were completed in that time that time, the report by New London Architecture found. 

A further 24 were in the City of London and 27 in Canary Wharf and Isle of Dogs. 

The report said the rapid change has been fuelled by a "burgeoning demand" for office and residential space, overseas investment and a supporting planning environment. 

"Tall buildings have changed the face of London substantially over the last 20 years and will continue to do so - the pipeline that NLA has tracked means there is at least 10 years' supply that has already been defined," Peter Murray, the organisation's co-founder, said. 

"London's population continues to grow, passing the 10 million mark at the end of this decade.

"We'll still need tall buildings; and NLA will continue to keep a close watch on what's going on." 

Restaurants might only be able to open three or four days a week due to staffing problems, Michel Roux Jr has warned. 

Speaking to The Telegraph as he gears up to open his new restaurant Chez Rouz, the Michelin starred chef admitted the industry needs to change to accommodate flexible working hours. 

"Just because I worked 80 hours a week or more doesn't mean the next generation should," he said. 

"Quite the contrary. That is something that we have to address in our industry."

But, he warned that the move will come at a cost... 

"It will mean ultimately that going out is going to be more expensive, and that maybe your favourite restaurant is no longer open seven days a week - it's only open three or four days a week," he said. 

The industry is known for its long, unsociable working hours, and Roux Jr explained that the real issue hit after the pandemic, with people no longer wanting to work weekends. 

"People don't want to work unsociable hours and would rather work delivering parcels as and when they want to. It's as simple as that," he added. 

Earlier this year, Roux Jr said goodbye to his famous restaurant Le Gavroche in London. 

It had been opened by his father Albert Roux and uncle Michel Roux in 1967. 

Now, he said it's "brave" to open a new restaurant, with the market "very, very tough". 

"I really feel for anyone that is brave enough to open up a restaurant now. It's incredibly difficult," he added. 

Chez Rouz at The Langham in Marylebone, central London, is due to open on 22 May. 

By James Sillars , business news reporter

A pause for breath on the FTSE 100 after a 3% gain over the course of past week that took the index to a fresh record closing high.

The rally of recent weeks - significant for London's standing and pension pots alike - has been broad based and reflects several factors.

A major driver has been sterling's weakness versus the US dollar.

The US currency has been strong as the Federal Reserve, its central bank, has hinted it will be some time yet before it begins to cut interest rates.

Language out of the Bank of England last week sparked a flurry of bets that UK rates could be cut as early as next month.

A weaker pound boosts dollar-earning constituents on the FTSE 100 because they get more for their money when dollars are converted to pounds.

Also at play is the view that UK stocks represent good value, as they are cheaper compared to many of their international peers.

A few moments ago, the FTSE 100 was trading 6 points lower at 8,423.

A major talking point is the possibility of the Chinese fast fashion firm Shein listing in London.

According to Reuters, the company has shifted its focus to the UK after receiving a lukewarm reception in the United States.

The news agency, citing two sources, reported that Shein was stepping up its preparations for an initial public offering in London that would be expected to be one of the biggest carried out globally this year.

By Emily Mee , Money team

No one likes the date in their calendar when their MOT rolls around. 

But to make things a little less stressful, consumer expert Scott Dixon - known as The Complaints Resolver - has given us some tips on what to look out for to help your vehicle pass with flying colours. 

Some of the most common failures are faulty steering, brakes, suspension, worn or damaged tyres, cracked windscreens and faulty lights. 

Mr Dixon recommends you get your car serviced a couple of weeks before your MOT, in case there are any complex or costly issues. 

This will give you time to get them fixed and get your car through first time without any advisories. 

Aside from taking your car for a service, there are also some easy checks you can run yourself... 

Listen for unusual clunks while you're driving - this could be a sign of a damaged suspension. 

You could also check by pushing the car down on each corner. It should return to normal without bouncing a few times. 

Another option is to look with a torch under the wheel arch, as this should reveal any obvious defects. 

Blown bulbs are a common MOT failure, but they're cheap to fix. 

Walk around your car and check all the bulbs are working - this includes the headlights, sidelights, brake lights, indicators and the number plate bulb.

Mr Dixon says it's "not an easy job" to change the lightbulbs yourself on most modern cars, as the MOT will also check the positioning of the light. Therefore he recommends getting this done professionally. 

Squealing or grinding noises may be a sign your brake pads need replacing. 

You should also check whether your car stops in a straight line, or whether it pulls in different directions. 

Don't forget about the handbrake, too. Test it out on a slope and see if it securely holds the car. If it doesn't, you should get it adjusted. 

It's easy to check if your wipers work okay, but you should also make sure to inspect the blades for tears and rips. 

They should be able to clean the windows with no smears. 

Mr Dixon says you don't need to pay Halfords to change your wiper blade as you can "do it yourself in seconds". All you need to do is look for a YouTube tutorial. 

He also recommends buying the Bosch wiper blades, as he says these are good quality and will also be a sign you've looked after your car well when you come to sell it. 

One thing to look out for is tread depth. You can do this by looking for the "wear bar" that sits between the tread. 

If it's close to 1.6mm and is low, you should get the tyre replaced so it's not flagged as an advisory. 

Also check for perished tyre walls, which can happen when a vehicle is standing for any length of time. 

Uneven tyre wear is another potential issue, and if there are signs of this you should get the tyre replaced and tracking and suspension checked. 

These must be in good condition and working order, with no tears or knots. 

Registration plates

Your number plates should be clean and visible with a working light bulb at the rear. You may need to give them a wipe and replace the bulb if necessary. 

This should be in good condition, without damage such as loose bumpers or sharp edges. 

Mr Dixon advises against using automatic car washes during your car's lifetime, saying they "wreck your car". 

"It's not just your paintwork but they can also damage the wiper blades and the bodywork," he says. 

Check for warning lights

You'll need to take your vehicle to a trusted garage or mechanic for this. 

Exhaust emissions

Some diesel vehicles can fail their MOTs based on emissions. To avoid this, you can buy a fuel treatment pack and take your car for a good run to clear the fuel lines and tank.

Driving for at least 30 to 50 minutes at a sustained speed on a motorway or A-road should help to clear the filter. 

You should make sure the driver's view of the road isn't obstructed, so check for stone chips at eye level and remove any obstructions such as air fresheners and mobile phone cradles. 

What else should you think about? 

Make sure your car is clean beforehand, as a tester can refuse to do your MOT if the vehicle is filthy and full of rubbish. 

Giving your car a clean can also give you a chance to inspect it, Mr Dixon says. 

Another thing to do is to check last year's MOT for any advisories that might crop up this time. 

These potential issues will still be there - so it's best not to ignore them. 

You can check your vehicle's MOT history using  https://car-check.co.uk . 

Every Monday we get an expert to answer your money problems or consumer disputes. Find out how to submit yours at the bottom of this post. Today's question is...

I have worked at a bank for 24 years - the facilities are outsourced. This new company is bringing in a system where the staff have to click in and out and are then paid by the minute? Is this allowed? Amber

Ian Jones, director and principal solicitor at Spencer Shaw Solicitors, has picked this one up...

Your rights depend on your contract and what it says about payment. Does it specify an annual salary, or payment by time? Does it allow for changes to how payment is calculated?

If the contract does not allow for this type of payment, your employer may be trying to vary the contract of employment unlawfully.

If you're directly employed by the bank, and your pay arrangements are changing because of a new monitoring system, this would be an internal contract variation. If you work in the facilities department and the new contractor is taking over as your employer, the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) 2006 may apply. 

In this case, your current terms, conditions and previous service will transfer to the new employer.

TUPE may make the issue sound more complicated but, in practice, either way the changes will be valid only if the employee agrees to them.

If you have not agreed to the change, then this could be a breach of contract. This could give rise to a successful claim in the civil courts or the employment tribunal. 

If the breach is serious (for example, you're paid less than agreed in the original contract) and you resign in response, this could amount to constructive dismissal for which a claim can be made in the employment tribunal. 

It would be sensible to get the contract reviewed by a solicitor for advice. But act swiftly - if you continue working for the employer, you are effectively waiving the breach and accepting the change to your contract.

To make it possible to pay by the minute, employees may be monitored while at work. When collecting and processing data and using it to make a decision, the employer must comply with data protection laws. If not, the employee could be entitled to compensation, depending on the breach, or the employer could be at risk of a sanction by the regulator the Information Commissioner's Office.

This feature is not intended as financial advice - the aim is to give an overview of the things you should think about.  Submit your dilemma or consumer dispute via:

• The form above - make sure you leave a phone number or email address
• Email [email protected] with the subject line "Money blog"
• WhatsApp us  here .

Please make sure you leave your contact details as we cannot follow up consumer disputes without them.

We're back for another week of consumer news, personal finance tips and all the latest on the economy.

This is how the week in the Money blog is shaping up...

Today : Every week we ask industry experts to answer your Money Problems . Today, a reader's employer is bringing in a new clock-in system to pay workers by the minute - but is this allowed?

Tuesday : This week's  Basically...  explains everything you need to know about the PIP. 

Wednesday : We speak to one of London's top chefs for his Cheap Eats at home and in the capital.

Thursday : Savings Champion  founder Anna Bowes will be back with her weekly insight into the savings market.

Friday : We'll have everything you need to know about the mortgage market this week with the guys from Moneyfacts.

Running every weekday, Money features a morning markets round-up from the  Sky News business team  and regular updates and analysis from our business, City and economic correspondents, editors and presenters -  Ed Conway ,  Mark Kleinman ,  Ian King ,  Paul Kelso  and  Adele Robinson .

You'll also be able to stream  Business Live with Ian King on weekdays at 11.30am and 4.30pm.

Bookmark  news.sky.com/money  and check back from 8am, and through the day, each weekday.

The Money team is Emily Mee, Bhvishya Patel, Jess Sharp, Katie Williams, Brad Young and Ollie Cooper, with sub-editing by Isobel Souster. The blog is edited by Jimmy Rice.

By Jess Sharp , Money team 

Money saving trends are constantly popping up on social media - but one in particular has been gaining huge amounts of attention.

Created accidentally by a comedian, loud budgeting is breaking down the taboo of speaking about money.

The idea is based on being firmer/more vocal about your financial boundaries in social situations and setting out what you are happy to spend your money on, instead of "Keeping up with the Joneses". 

On TikTok alone, videos published under the hashtag #loudbudgeting have garnered more than 30 million views - and that figure is continuing to climb. 

We spoke to Lukas Battle - the 26-year-old who unintentionally created the trend as part of a comedy sketch. 

Based in New York, he came up with the term in a skit about the "quiet luxury" hype, which had spread online in 2023 inspired by shows like Succession. 

The term was used for humble bragging about your wealth with expensive items that were subtle in their design - for example, Gwyneth Paltrow's  £3,900 moss green wool coat from The Row, which she wore during her ski resort trial...

"I was never a big fan of the quiet luxury trend, so I just kind of switched the words and wrote 'loud budgeting is in'. I'm tired of spending money and I don't want to pretend to be rich," Lukas said. 

"That's how it started and then the TikTok comments were just obsessed with that original idea." 

This was the first time he mentioned it...

Lukas explained that it wasn't about "being poor" but about not being afraid of sharing your financial limits and "what's profitable for you personally". 

"It's not 'skip a coffee a day and you'll become a millionaire'."

While talking money has been seen as rude or taboo, he said it's something his generation is more comfortable doing. 

"I've seen more debate around the topic and I think people are really intrigued and attracted by the idea," he said. 

"It's just focusing your spending and time on things you enjoy and cutting out the things you might feel pressured to spend your money on."  

He has incorporated loud budgeting into his own life, telling his friends "it's free to go outside" and opting for cheaper dinner alternatives.

"Having the terminology and knowing it's a trend helps people understand it and there's no awkward conversation around it," he said. 

The trend has been a big hit with so-called American "finfluencers", or "financial influencers", but people in the UK have started practising it as well. 

Mia Westrap has taken up loud budgeting by embarking on a no-buy year and sharing her finances with her 11.3k TikTok followers. 

Earning roughly £2,100 a month, she spends around £1,200 on essentials, like rent, petrol and car insurance, but limits what else she can purchase. 

Clothes, fizzy drinks, beauty treatments, makeup, dinners out and train tickets are just some things on her "red list". 

The 26-year-old PHD student first came across the idea back in 2017, but decided to take up the challenge this year after realising she was living "pay check to pay check". 

She said her "biggest fear" in the beginning was that her friends wouldn't understand what she was doing, but she found loud budgeting helped. 

"I'm still trying my best to just go along with what everyone wants to do but I just won't spend money while we do it and my friends don't mind that, we don't make a big deal out of it," she said. 

So far, she has been able to save £1,700, and she said talking openly about her money has been "really helpful". 

"There's no way I could have got this far if I wasn't baring my soul to the internet about the money I have spent. It has been a really motivating factor."

Financial expert John Webb said loud budgeting has the ability to help many "feel empowered" and create a "more realistic" relationship with money.

"This is helping to normalise having open and honest conversations about finances," the consumer affair manager at Experien said. 

"It can also reduce the anxiety some might have by keeping their financial worries to themselves." 

However, he warned it's important to be cautious and to take the reality of life into consideration. 

"It could cause troubles within friendship groups if they're not on the same page as you or have different financial goals," he said.

"This challenge isn't meant to stop you from having fun, but it is designed to help people become more conscious and intentional when it comes to money, and reduce the stigma around talking about it." 

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