Planning is a universal propensity and man has been saving for the proverbial ‘rainy day’ since the beginning. However, planning in management is a much more scientific activity requiring the interpretation of a variety of factors for success. Thus, planning essentially requires the assessment of present capabilities, resources, goals, values, strategies; analyzing them against time and scientifically tested organizational principles and case studies; study of goals and aims, their feasibility and need; and changing either the resources or the strategies so as to ensure maximum benefit in a fast changing world. Planning must ensure that the core values are not compromised, nor the ultimate goal modified.
Planning may incorporate redefinition of organization resources and roles, goals and principles. The purpose of planning is always to ensure that the primary objective is fulfilled by bringing possible or probable risk factors into calculation, and building on contingencies from them. Planning ensures that the process keeps going at the rate and towards the goal as originally specified.
Forecasting is a related activity that tries to predict future contexts or factors, and in this view adapt the organization goals and resources. Forecasting is a difficult, and at times impossible, venture requiring analysis of a lot of factors to come anywhere near success. It is essential as it enables any organization to prepare itself for ‘what if’ scenarios. The survival of any organization in a fast changing and competitive world depends on its ability to change – and this requires attunement and acquaintance with contingencies. Forecasting enables an organization to respond in pre-planned and practiced way in case the factors under consideration change erratically. Forecasting is a fall back tool that provides businesses salvation before a catastrophe comes calling.
Business factors and risks are many and varied, and proper planning and forecasting are essential for most of them. In this section of 01webdirectory, we try to acquaint you with many relevant resources.