What planning is and why it matters

Planning is deciding in advance what to do and how to do it. It bridges the gap between where we are and where we want to go.

It means setting objectives, working out different courses of action, and choosing the best one. So it is about both ends (the goals) and means (how to reach them), within a time frame.

Why planning matters:

• It provides direction: everyone knows what they are working towards.
• It reduces the risk of uncertainty: it looks ahead, foresees changes, and prepares for them.
• It reduces overlapping and wasteful activities, because departments' work is planned to fit together, avoiding confusion.
• It promotes innovative ideas: planning makes managers think of new ways.
• It facilitates decision making: the options have already been weighed.
• It establishes standards for controlling. Controlling compares actual results with the goals and standards that planning sets, so without planning there is nothing to control against.