2.1.1.2 Why is Planning Important?

Why is Planning Important?

Strategic planning is important for looking into the future of the organization. It is most concerned with the larger objectives. The process sets the long-term objectives for the organization and focuses on the resources, competition, and rapidly changing environment.

Tactical or action planning translates strategic plans into detailed plans that can be implemented over a shorter period. Examples include budgets, department action plans, control systems, and proposed organizational structure changes.

• Planning provides direction to an organization and helps the organization identify potential problems and solutions.
• Goals and objectives address customer satisfaction, growth, social responsibility, management, diversity, human resources, and profit.

Managers must change and/or modify plans continually, depending on the goals and objectives of the business.