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Issues in Planning
By 1a2b.com | August 21, 2007
Nobody can deny that planning is important for a business to succeed because it enables companies to have a sense of direction on what they want to accomplish and how to accomplish it. However, there are also issues in formalized planning that had been raised because of the changing global environment that had challenged the importance of planning itself. Some of these issues should be faced because they mirror the real environment today. Here are some of the issues:
1. Planning can create rigidity- this means that when a plan was made, it is usually made with a specific timeframe and the steps that needs to be completed within this timeframe. However, these kinds of plans were made on the assumption that the environment would not change during that period except for the forecasts that were made at the time of planning. With this kind of planning, managers will have a hard time adapting to unique situations with new ideas and methods because the timeframe and the rules had already been set.
2. Planning isn?t suited for a dynamic environment- the environment today is constantly changing, and as such, plans are usually discarded because it is no longer relevant to the situation that companies find themselves in.
3. Plans cannot replace creativity and intuition- most successful organizations are founded on creativity and intuition. But as companies grow bigger, they tend to become more formalized. And this development makes it hard for companies to continually innovate and come up with new ideas so they tend to lag behind from the competition.
4. Plans tend to focus a manager?s attention on today rather than tomorrow- plans are usually created with a set of tasks that a manager should do on an everyday basis. This hinders him from looking ahead and seeing what may happen in the future. It also limits the manager from grabbing opportunities because he is busy following the guidelines of the plan
5. Formal planning enforces on success which may lead to failure- it is hard to change plans that had been proven to be successful in the past. But these successful plans may be the cause of the downfall of the company if managers aren?t responsive enough to changes.
With all these issues comes the question, ?Is planning still relevant?? Yes, it is because businesses would have a hard time surviving without a specific plan in place. The entire organization would become disorganized without proper planning. Actually, everyone agrees that having a plan is crucial for an organization?s success; the problem only arises when the plans begin to become too rigid to accommodate changes in the business environment. So the key to successful planning is to create plans that are flexible enough to adapt to possible changes tomorrow.
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