Why Planning Has Impact In Business

The Classic Management Theory presents five functions within the management act that altogether compile organisation’s success: planning, organizing, directing, coordinating and controlling. Planning is the first of these sequential steps and so must be applied in order to achieve its purpose. One thing is clear: if you miss this first part it’s going to be impossible to accomplish the others. In fact, planning represents a crucial stage at any level of activity in the enterprise.

If you plan ahead what you’re going to do, how you’re going to do it, when it’s going to be done and who is taking over those tasks there are more probabilities of a positive outcome. This happens as a result of efficient use of your available resources rather than facing unexpected events in an impulsive manner making your department look untidy and your people working without sense of direction. This is typically known as “the fire-extinguishing management” whereas time is used to handle emergencies instead of a prefabricated assignation of tasks for every possible upcoming events.

Investing time in planning only brings constructive effects in spite of deviations from the expected prevision that was originally calculated; uncontrollable factors from environment can influence your plan but it doesn’t demeanor value to this tool. Your methodology should also include a backup plan to endeavor further occurrences. It will enable your business running with confidence and smoothness for the unexpected which is worthier than improvisation, responsible of causing uncertainty among employees and ultimately a reduction in motivation and productivity. Human beings don’t like to feel vulnerable to changes, as opposed to the peace of mind that comes from knowing what one is supposed to do under specific circumstances.

Naturally, executing plans is a requirement of the company in first order but it’s also true that everyone appreciates a clear vision of objectives as well. That is why long and midterm planning are considered fundamental for creating the vision and mission statements of a business; those principles enclose how investors, employees and society in general will benefit from its operation. They claim a general course of action that will be taken over the future and constitute guidelines for each department to follow along in every aspect, including financially and ethically. Our duty as managers is to design undertakings aligned with those resolutions through operations that are based on the same original planning.

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