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A strategic plan is a document used to communicate with the organization regarding organizations goals, the actions needed to achieve those goals.Strategic plan defines the performance to be measured and the performance measurement through KPI's provides feedback that keeps the strategic plan on target to achieve the organisational goals.
A key aspect of performance management is performance measurement.
At operational level, performance is measured against established key performance indicators(KPIs).
Successful attainment of these operational plans will help improve performance of critical success fectors (CSFs) and tactical / departmental targets to be achived.
In turn, achivement of depatmental goals ensure successful achivement of strategic plans.
In other words, broad strategic targets / objectives are broken down into more detailed plans upto the lowest operational level targets (KPIs) and performance management is aimed to achive these overall objectives.
Another way to explain the relationship is to consider;
Strategic planning as "doing the right things", and
Operational planning as "doing the things right"
Performance management is all about doing the "right things" (chosen at strategic level) right ....!