Planning promotes managers direction and guidance to carry out their activities effectively. Planning is a coordinated effort that is carried out in order to meet objectives and realize various organizational purposes. Setting goals and choosing the best way to achieve them is the main function of planning, as well as designing the activities and processes to follow to achieve those goals and identify the people in charge who will undertake the corresponding actions.

Forecasting is an essential part of the planning process, it means looking to the future and predicting what might happen. The analysis of the environment helps to contemplate the economic, political, technological, legal, and social risks, among others; besides analyzing the clients, suppliers, market and status of the organization before said elements.

On the other hand, if the strategic framework of the organization is taken into account, the planning contemplates the overall strategy of the company, that is, it involves all the organizational areas and departments of the same. Strategic planning seeks to create strategic objectives that create value for shareholders, customers, and other interested parties.

No matter the size of the organization, planning implies better performance. Here are some benefits of strategic planning:

1. Improving the coordination of activities: by setting clear objectives, goals and action plans, the performance of the people involved can be improved.
2. Reduce uncertainty and minimize risks: perform an analysis of the general environment before planning allows the uncertainty to decrease as well as the risks associated with organizational performance.
3. It increases the predisposition and preparation of the company to future changes: if you have an idea of the changes or events that may happen in the future to this day, you can prepare the company to face them.
4. It improves communication and generates commitment and motivation among the members of a work team: involve the personnel of the area in the planning process, generates a commitment and identification of the members with the objectives and, therefore, motivates them in their achievement, promoting communication between the parties involved.
5. It obliges the company management to think systematically and strategically: strategic planning requires visualizing the company as a whole, generating a systematic reflection of the adequacy of resources and capabilities of the company, with a view to future growth.
6. The available resources can be better adjusted to the opportunities generating higher levels of investment profitability: the timely allocation of resources and capacities can generate greater growth and profitability in the future.

Planning is a continuous and flexible process, once the objectives have been met, managers and managers must propose new goals. Likewise, the plan should allow for changes and corrections when necessary, adaptation is the key to successful strategic planning.

Source: Sainz, J. (2003). Strategic Plan in practice (1st ed.). Spain: Editorial ESIC.

Membrado, J. (2007). Advanced methodology for planning and improvement (1st ed.). Spain: Diaz Santos.