Planning is a necessary function that allows management to see the larger picture. This is a prerequisite to taking on other essential management tasks like arranging the staffing process, leading and planning. Many managers are disengaged from the planning process and don’t enjoy the benefits. This could be because of lack of knowledge or a predisposition towards not engaging in this role.
Improved Decision Making
A plan can force management to take into consideration the results of their decisions. A plan can help assess the benefits and risks of different options, since it outlines specific goals. It also assists them to keep their eyes on the future outcomes of their actions, for instance, how an investment they might make today will impact on the growth of the company in three years three years‘ time.
Increased Productivity
A clear strategy allows people to break complex tasks into smaller, manageable components, allowing them be completed in a shorter amount of time. This helps them utilize their time more efficiently and reduces the possibility of confusion.
A plan will help an organization determine its strengths and weakness in the market. This will allow it to take advantage of the growing markets before others do giving it a competitive advantage. A detailed and clear plan can give a structure to plan work and ensure that responsibilities are assigned efficiently and that important milestones are monitored regularly.