Why is planning necessary

Why planning

Planning is carried out in many companies. However, it is often unclear why a lot of effort is involved in planning every year. Often the planning is even commented on with the quote:

Planning is the replacement of chance by error.
is attributed to Albert Einstein

It is repeatedly expressed that planning should have nothing to do with reality because the future cannot be predicted. Action that has just been planned is part of what constitutes intelligence. Everyone plans and makes predictions. You look at the weather and decide whether to take an umbrella or not. The decision is based on the assessment of the probability of rain in the near future given the current weather. When planning a celebration, an estimate is made of how many people are likely to come, may come, or will not come. Afterwards, or on the basis of past experience, the purchase of drinks, the preparation of something to eat and the organization of seating are carried out. Planned action is something everyday that is carried out over and over again.

Definition of planning

There are numerous definitions of the term planning, but they always come down to the same basic idea. Therefore, the following definition is representative:

Planning is the mental anticipation of future action.
after Horst Albach

Planning is therefore a process in which those responsible in a company should agree across divisions on coordinated activities in the near future. As a result, the company's resources, such as the available working hours of employees, machines, premises or liquid funds, are to be used in such a way that no resources remain unused and no one has to wait because several areas want to use a resource. Of course, planning also contains numerous imponderables and risks. Planned, goal-oriented and coordinated action allows a company to react better to surprising situations than when work is done haphazardly and in an uncoordinated manner.

Planning and implementation

Unfortunately, one has to realize again and again that although planning is in progress in numerous companies, none of them stick to the plan afterwards. Often planning is only done because the parent company or capital providers, such as banks, demand it. Of course, in such a case, you can also leave the planning behind. However, it is precisely in these companies that it is then also evident that many resources are deployed without it being of any use to the company and that many activities take a very long time. These companies are characterized by great weakness, so that they repeatedly fail to survive economic crises. A company can only work efficiently if the plan is implemented. Of course, a company has to react to unexpected events. However, this is easier if the activities of the areas are coordinated. In addition, efficient, coordinated action in the time between the surprising events is necessary in order to strengthen the company and thus face crisis situations with economic strength.