Planning is an essential function that allows the management to see a bigger picture. It is a prerequisite to other managerial tasks that are fundamental to the job such as coordinating, staffing, and leading. Many managers aren’t involved in the planning process and don’t reap the benefits. This could be because of the lack of education or a inclination to not engaging with this function.
Improved Decision Making
The process of creating a plan requires management to look at the effects of their decisions. This is because a plan sets out the specific goals they intend to achieve, and it assists them in assessing the potential advantages or risks of each decision they make. It also aids them to keep their focus on the long-term outcomes of their decisions – for example, how an investment they may make today will have an impact on the growth of the business in three years’ time.
Productivity Boosted
A well-defined plan allows people to break difficult tasks into manageable pieces, allowing them to be completed in less time. This allows them to use their time more efficiently and decreases the likelihood of miscommunication.
A plan can help an organization understand its strengths and weaknesses in the market. This will enable it to benefit from growing markets before other competitors do, giving it a competitive advantage. A clear and precise plan can be used to provide a framework to project work and ensure that responsibilities are allocated efficiently and that important events are monitored in a timely manner.