Benefits of planning

Benefits of planning
See also
Importance of swot analysis Strategy deployment Benefits of strategic management Project feasibility study Information strategy Importance of planning Advantages of teamwork Strategic management model Change agent roles

Benefits of planning

Benefits of planning is a positive effect of setting specific goals that lead to development of the company. The main purpose of planning is making the right decisions. The planning process consist of combining information, assessing alternative solutions and estimating the future consequences.

There are several benefits of planning:

• it is necessary component of decision making
• improves decision making results
• reduces risks of activities on operational and strategic level
• helps to anticipate potential problems
• motivates to be proactive rather than reactive
• gives clear quantitative measures of specific goals and results
• provides method for optimal resource allocation
• gives sense of direction to all employees according to organization's mission and vision
• increases focus on results and goals
• improves communication and team cohesion
• provides information necessary to other management functions
• provides method for coordination of complex action and multiple projects
• is crucial for efficient time management
• is a tool for learning and knowledge transfer

Advantages of planning

Planning is a system of actions arranged in the right order, which form a whole. It is not possible to predict what will happen in the future, but having a plan of action we strive to achieve the set goals is. It is a tool used to determine and implement strategic decisions. The main purpose of planning is making the right decisions. The planning process consist of combining information, assessing alternative solutions and estimating the future consequences.

Advantages of planning are as follows:

• Planning supports improved organization in the company.
• Planning starts with setting goals.
• Planning makes it easier to manage through goals.
• Goals become more specific and clear.
• Planning distinguishes the most important goals.
• Employees are more focused on the goals of the company.
• Every organization/company should have guide/boss who is responsible for setting, controlling and achieving goals.

Managing of Benefits

It delivers information for optimizing resources. Managing of benefits consist of:

• setting tasks regarding the presentation of benefits in each project
• creating a deadline of achieved the goal
• updating plans
• setting a person who will be responsible for benefit after finished project
• monitoring benefits

Examples planning of benefits:

• a completed investment
• increasing the competence of employees
• increased sales revenues

The role and benefits of planning

Planning in companies and organizations serves to set goals and strategies, and translate them into feasible activities in the field of operational activities. It creates a concept of stages that defines how to achieve goals. The benefits that we achieve from planning result from setting clear goals that strive to grow your business.

The benefits of making a business plan

Every entrepreneur starts a business should draw up a business plan. It is a very important element in the planning process, because how we prepare it determines the success or failure of the company. A business plan is a document that helps in managing a business.

BUSINESS PLAN - a document containing an assessment of the profitability of an economic venture. It performs the function of:

• planning - allows you to develop goals to be achieved through a given investment,
• control - a set of goals with results achieved, allows you to make the appropriate analyzes,
• information - is an important source of information for potential investors, contractors.

Benefits of a business plan:

• verify the expected financial results,
• increase the efficiency of a business project,
• focus your attention on strengths and weaknesses which will help you run the business,
• helps in obtaining a loan or subsidy for running a business,
• the ability to control planned expenses and receipts in the company.

The benefit of the planning horizon

Companies or organizations try to estimate the economic benefits of planned activities using two types:

• Longer planning horizons (20 to 30 years) can give to the users more benefits in the future, increased benefits and decreases cost.
• Shorter planning horizons (1 year) can give to the users more benefits but in shorter time than longer planning horizons, however shorter planning is more popular than longer one because benefits may lose their value.

References

• Bradley, G. (2012). Benefit Realisation Management: A Practical Guide to Achieving Benefits Through Change, Gower Publishing.], CRC Press.
• Dzurik, A.A., Theriaque, D.A., (2003). Water Resources Planning, Rowman & Littlefield.
• Gollwitzer, P. M. (1996). Benefits of planning. The psychology of action: Linking cognition and motivation to behavior, 287-312.
• Illingworth, J.R. (2002).Construction Methods and Planning, CRC Press.
• Mintzberg, H. (1994). The fall and rise of strategic planning. Harvard business review, 72(1), 107-114.
• Schwetje, G., Vaseghi, S. (2007).The Business Plan: How to Win Your Investors' Confidence, Springer Science & Business Media.

Footnotes

Author: Patrycja Garbacik