Planning is a vital function that helps management see the larger picture. It is essential to performing other managerial functions such as organizing staffing, directing and coordinating. However many managers are disengaged from the process of planning and they don’t get the full benefits it brings. This could be due to lack of knowledge or a predisposition to avoid engaging in this role.

Improved Decision Making

A plan can force management to look at the effects of their decisions. A plan can help assess the benefits and risks of various choices, since it outlines specific goals. It also helps them to keep their eye on the long-term effects of their decisions – for instance, how an investment they make now could affect the growth of the company in three years after.

Productivity Increased

A clear strategy allows people to break complex tasks into smaller, manageable components, allowing them be completed in less time. This lets them utilize their time more effectively and decreases the chance of confusion.

A plan can help an organization identify its strengths and weakness in the market. This will allow it to benefit from emerging markets before other companies do and give it an competitive advantage. A well-organized and clear plan can serve as a guideline to project work and ensure that the responsibilities are distributed efficiently and that important events are monitored in a timely manner.