The benefits of planning to an organization cannot be overemphasized. Planning projects an organization toward where it wants to be in the future.
Here are some importance of planning in any business or organization.
- Planning helps to identify the objectives and goal of any business. This can only be achieved in the long run.
- Organizations exist to tap into the opportunities in the environment and manage available constraints. These opportunities and threats are identified through the planning process.
- Planning facilitates effective control. Where there are plans, there must be control to check whether things work accordingly.
- Performance improvement: since planning involves selecting and implementing better course of action, it brings progress to the organization.
- Planning unifies employees’ actions toward the chosen objectives.
- It promotes proper coordination of organizational resources direction and sense of purpose.
- It helps the organization in area of cashflow. This creates room for proper cash management.
- It secures the means of funding by identifying the sources of raising capital and borrowing in starting up a business.
- It helps to support and lay a strong foundation on the growth of the business.
- Since planning is future-oriented, it predicts the future and offsets uncertainty.
Although planning is a continuous process, it is a method of accomplishing a predetermined result thereby attaining stated objectives within a time frame.