The benefits of clear plans What are some of the benefits that might arise as a result of carefully planning future organisational activities? In answering this question, we can note that creating plans requires the managers of an organisation to think about the future in terms of:

• what the organisation might produce

• who it might sell it to

• where it will obtain its funding

• what other resources are needed

• what costs and impacts should arise

• what is the relevant legislation

• what are the expectations of various stakeholders

• what is the availability and expectations of employees?

This all means that the managers of an organisation need to gain an appreciation of what their organisation is doing and whether the plans are viable before they actually do anything. Establishing plans and related targets also enables managers to assess subsequent performance in terms of whether or not the targets have been achieved, and if not, why not. This control aspect will then facilitate learning and revisions to plans, and the cycle will continue. By analogy, without planning, an organisation is effectively sailing along without a map, and at some stage it is likely to run onto rocks!