Planning is a necessary function that helps management see the larger picture. This is an essential requirement for taking on other essential managerial duties like organizing, staffing and leading. However, many managers find themselves disengaged from the process of planning and they don’t get the full benefit it offers. This could be due to the lack of education or a predisposition towards not engaging in this role.
Improved Decision Making
A plan forces managements to think about the implications of their decisions. A plan assists in assessing the risks and benefits of different choices, as it defines specific goals. It also helps them to keep their focus on the long-term outcomes of their decisions – for example, how the investment they make today could impact the growth of the business in three years’ time.
Increased Productivity
A clear plan enables people to break down complicated tasks into smaller manageable components which allows them to be completed in a smaller amount of time. This helps them utilize their time more efficiently and decreases the likelihood of confusion.
A plan can help an organization identify its strengths and weakness in the market. This allows it to take advantage of growing markets before other competitors do and give it an competitive advantage. A detailed and clear plan can provide a framework to project work and ensure that responsibilities are assigned effectively and that key milestones are tracked proactively.