Marketing and Creative teams continue to struggle with having enough resources to meet business needs. Can an Annual Operating Plan help to change the narrative?

As a seasoned Operations leader in the Creative and Marketing space, I've experienced firsthand the impact of not having an Annual Operating Plan (AOP) to guide a department. The ability to achieve strategic alignment, obtain resource optimization and drive operational excellence becomes strained.

While the traditional notion of annual planning may seem unpopular due to shorter planning horizons and dynamic marketing conditions, I contend that the discipline of crafting an AOP remains indispensable, serving as a linchpin in the overall resource planning framework of an organization.

An Annual Operating Plan is a comprehensive strategic roadmap that outlines the objectives, strategies, initiatives and resource allocations for the upcoming fiscal year. It serves as a guiding framework to align the efforts of the creative and marketing teams with the broader goals and priorities of the organization. The AOP typically covers a range of activities, including: Strategic Objectives, Key Initiatives, Timelines and Key Milestones, Resource Requirements/Allocations, Measures of Success (KPIs) and Risk Assessments.

The AOP does not just set targets and plans, it also drives continuous improvement. By monitoring progress, measuring performance and soliciting feedback, organizations can identify areas for improvement and implement corrective actions to enhance their effectiveness over time.

An Annual Operating Plan strongly supports resource planning and allows Operations Leaders to combine their subject matter expertise with data to identify the best resourcing options available to the business that supports reaching objectives. These options often lead to resourcing requests that may include additional headcount and/or budget request to outsource work.

It is at this point where Operations has the opportunity to change the narrative from a scarcity mindset. Rather than, “We don’t have enough resources to meet the business need,” it can become one of strategic resource stewardship: “This is the alignment we have come to on what will be done with the resources available.”

Is the “Annual” in Annual Operating Plan Stopping Us from Embracing This Key Planning Tool?

Operating planning does not necessarily need to be annual; however, it usually aligns to the enterprise’s fiscal year and supports resource planning which in many organizations is still done on an annual basis. Certainly, the pace of change has accelerated and planning horizons have shortened, resulting in a clear need to embrace agility and iteration in future planning efforts. It is advisable to adopt iterative planning cycles as best practice, such as quarterly or monthly reviews, to revisit and adjust AOPs based on emerging insights and feedback. Adding this layer of rigor to operating planning will provide opportunities to course-correct, reallocate resources and recalibrate strategies in light of new information or changing priorities.

Like many of you, I am hoping technology and future AI tools will align to better support the operational planning model of the future by enabling agility and flexibility in our responses to change. One thing is certain, AI planning solutions of the future will need to be fed data to enable the support we require. In my experience, the lack of data is what has been the blocker to teams embracing operating planning. We have all heard it said, “AI will not take your job, but people who know how to use AI will.” I believe what they mean is people who know how to use data to enable AI.

Effective Resource Allocation Lies at the Heart of an AOP, and Operational Rigor and Data Are Required to Strengthen It

According to the 2024 Cella Intelligence Report, the number one area of concern for both Marketing and Creative leaders was a lack of planning, followed by a lack of resources. Resources are usually determined in the planning phase, so this is not surprising. Another 39% of in-house creative teams reported they are not involved in the forecasting/planning process, and if you are not a part of those conversations, your expertise is not in the best position to influence. To ensure you have a seat at the planning table, make yourself indispensable to the process. Having the answers to fill in the unknown gaps is a good strategy for becoming an integral part of any process improvement effort, and the same is true for planning.

A strategic place to start is with understanding Level of Effort (LOE). This information is critical for planning because it provides insight into the amount of time, resources and effort required to complete a specific task, project or initiative. There are numerous ways to determine LOE: historical data, estimation techniques such as T-shirt sizing and/or subject matter expertise. The important consideration for LOE is to recognize that LOE should be continually validated and that it is an iterative process that will require refinement as data on actuals becomes available. Continuously review and update LOE logic based on actuals to ensure accuracy and alignment with changing circumstances.

In order to validate LOE, data on actual time spent on a task or project is required. Without time tracking, you run the risk of basing your planning efforts on inaccurate information, and certainly, this would not be a helpful start.

The intention of understanding LOE is not to make everything faster and require fewer resources. The critical role of Operations in our industry is to ensure we are telling the story of the always-present balancing act between efficiency and effectiveness. To achieve effectiveness, the answer may be to slow down the process, add cost and time to a task (i.e., think implementing pre-flight creative scoring to a process).

Leverage an AOP to Focus on Flexibility and a Learning Mindset, Not on 100% Accuracy

Annual Operating Planning does not need to be completely correct at the onset. Think of it as a strong base for iteration and adaptation. The AOP provides an opportunity for the organization to learn from their experiences and adapt their strategies accordingly. There is a lot to learn from the wrong that can still be useful. As a very simple example, planned volumes may never be correct but they can still be useful. If planned volumes are usually wrong by 25% each year, adjust the next year’s planned volume by 25% based on historical data.

As Marketing and Creative Operations leaders, we need to not only champion but enable the value of strategic planning and collaborate cross-functionally to ensure that our AOPs serve as dynamic roadmaps for success in the year ahead. The AOPs ability to empower marketing and creative leaders to proactively manage trade-offs, prioritize initiatives and explore alternative approaches to address business needs is a step in the right direction to achieving the necessary changes we require in the industry.