Planning promotes the creation of "what-if"scenarios in which managers attempt to imagine potential risk factors and develop contingency plans to deal them.Organizations must be able to quickly adjust their strategies to these changing.

Fremont, CA: Planning assists an organization in charting a course to achieve its objectives. The process begins with a review of the organization's current operations and identifying what needs to be improved operationally in the coming year. From there, planning entails imagining the outcomes the organization desires and determining the steps required to arrive at the desired destination – success, whether measured in monetary terms or goals such as being the highest-rated organization in terms of customer satisfaction.

Efficient Utilization of Resources

Every organization, big or small, has limited resources. The planning process provides top management with the information they need to make effective decisions about how to allocate resources so that the organization can achieve its goals. Productivity is maximized, and resources are not wasted on projects that are unlikely to succeed.

Establishing Organizational Goals

One of the most important aspects of the planning process is setting goals that challenge everyone in the organization to strive for better performance. Goals must be aggressive while remaining realistic. Organizations must not become overly satisfied with their current performance, or they will lose ground to competitors.

Risk Management

Risk management is critical to an organization's success. Even the largest corporations do not have complete control over the economic and competitive environment in which they operate. Unforeseen events occur and must be addressed as soon as possible before the financial consequences of these events become severe.

Planning promotes the creation of "what-if" scenarios in which managers attempt to imagine potential risk factors and develop contingency plans to deal with them. Business is changing at a rapid pace, and organizations must be able to quickly adjust their strategies to these changing conditions.