Planning is a necessary function that helps management see the larger picture. It is an essential element to other managerial tasks that are fundamental to the job like coordinating staffing, directing, and coordinating. Many managers are not involved in the planning process and fail to enjoy the benefits. This could be due to a lack of training or a predisposition to avoid taking part in this task.
Improved Decision Making
A plan can force management to take into consideration the results of their decisions. This is because a plan sets out the goals they hope to achieve and so it helps them to evaluate the potential benefits or risks of each decision they make. It helps to keep a close eye on the long-term outcomes of their actions like what kind of investment they make today will affect the growth of the company over the next three years.
Increased Productivity
A clear plan allows individuals to break down complicated tasks into manageable parts, allowing them to be completed in a shorter amount of time. This helps them use their time more effectively and minimizes the risk of miscommunication.
A plan can also assist an organization understand its strengths and weaknesses in the market, allowing it to take advantage of emerging markets before competitors grasp this opportunity, gaining an advantage in the first mover category. A clear and precise plan can provide a framework to plan work and ensure that responsibilities are allocated efficiently and that important milestones are tracked proactively.