AOP stands for annual operating plan, a planning process used to develop company goals and objectives for the coming year. The process involves setting clear objectives, identifying critical initiatives, allocating resources effectively, and developing contingency plans to overcome challenges and obstacles. By following a structured AOP planning process, businesses can achieve their objectives more efficiently and effectively.

A critical aspect of a well-run AOP planning process is ensuring that all stakeholders have the tools they need to make decisions and take action. This includes having access to the right data, which requires breaking down silos across all levels of business to enable collaboration and visibility. By leveraging an AOP process built on a cloud-based, collaborative planning platform, leaders can reduce manual work and spend more time on strategic analysis and decision making.

Once companies have set clear objectives and identified critical initiatives, they can create an action plan to achieve those objectives. This may include establishing timelines, milestones, and key metrics. It is also important for businesses to allocate resources effectively, which includes human and financial resources. By prioritizing resources and assigning them strategically, companies can maximize their impact and meet their goals more effectively.

AOP planning can also help businesses manage risks more effectively. By identifying critical initiatives and developing contingency plans, businesses can mitigate the effects of challenges and obstacles and stay on track to reach their goals. AOP planning can also enhance accountability and ownership throughout the organization by promoting greater collaboration and communication.