Action plans are instructions that managers need to follow in order to implement their organization's strategy. They consist of guidelines that outline how to act in certain situations, raising the companies' efficiency while keeping activities aligned with operational strategy.
Action plans provide managers with a mechanism for avoiding hasty or bad decisions about changes that need to be made in some activities. Action plans can be formal and in written form, and they can be non-formal and conveyed orally. The reasons for informal (unofficial) and oral plans of action are usually related to the strategic need for secrecy in relation to competitors. In some cases, unwritten informal plans of action may hinder the long-term success of the strategy. However, managers and employees usually love the freedom that is gained when the plans of action are informal.