Production is concerned with land, labor, capital and entrepreneurship.
The process begins with reviewing the current operations of the organization and identifying what needs to be improved operationally in the upcoming year. From there, planning involves envisioning the results the organization wants to achieve, and determining the steps necessary to arrive at the intended destination--success, whether that is measured in financial terms, or goals that include being the highest-rated organization in customer satisfaction.
Efficient Use of Resources All organizations, large and small, have limited resources. The planning process provides the information top management needs to make effective decisions about how to allocate the resources in a way that will enable the organization to reach its objectives.
Productivity is maximized and resources are not wasted on projects with little chance of success.
Establishing Goals Setting goals that challenge everyone in the organization to strive for better performance is one of the key aspects of the planning process.
Goals must be aggressive, but realistic. Organizations cannot allow themselves to become too satisfied with how they are currently doing--or they are likely to lose ground to competitors. The goal setting process can be a wake-up call for managers that have become complacent.
The other benefit of goal setting comes when forecast results are compared to actual results. Organizations analyze significant variances from forecast and take action to remedy situations where revenues were lower than plan or expenses higher.
Even the largest corporations cannot control the economic and competitive environment around them.
Unforeseen events occur that must be dealt with quickly, before negative financial consequences from these events become severe. The pace of change in business is rapid, and organizations must be able to rapidly adjust their strategies to these changing conditions.
Team Building Planning promotes team building and a spirit of cooperation. When the plan is completed and communicated to members of the organization, everyone knows what their responsibilities are, and how other areas of the organization need their assistance and expertise in order to complete assigned tasks.
They see how their work contributes to the success of the organization as a whole and can take pride in their contributions. Individuals are less likely to resent budgetary targets when they had a say in their creation.
Creating Competitive Advantages Planning helps organizations get a realistic view of their current strengths and weaknesses relative to major competitors. The management team sees areas where competitors may be vulnerable and then crafts marketing strategies to take advantage of these weaknesses.
Transformation Planning and Organizational Change About the Author Brian Hill is the author of four popular business and finance books:Importance of Business Planning Chapter Exam Instructions. Choose your answers to the questions and click 'Next' to see the next set of questions.
You can skip questions if you would like and come. See his top 10 quotes about success, money, and life in general. Sir Richard Branson, best known for Virgin Group, has seen tremendous success in business. Advertiser Disclosure: The credit card offers that appear on this site are from credit card companies from which grupobittia.com .
A successful business cannot be built and run spontaneously. Planning is essential, and not just an initial business plan but regular, ongoing evaluations and updated strategies. Get good planning principles in place and you'll be creating a good plan on which you can build a prosperous business.
Nina Walia via flickr Innovation is a buzzword businesspeople can't live without, but over the years, its meaning has gotten lost in the abyss of business jargon.. We've compiled 27 great quotes. In my experience leading dozens of business planning workshops in countries all over the world, I'd say only about 10% to 15% of teams I've encountered have an effective business planning process.
Peter Drucker – That business mission is so rarely given adequate thought is perhaps the most important single cause of business frustration. Theodore Hesburgh – The very essence of leadership is that you have to have vision. Ten Inspirational, Strategic Planning Relevant Quotes From Great National Football League (NFL) Coaches.