Many people consider planning the most important function of management. However, other functions that are of utmost importance include organizing, leading and controlling. Leadership is especially crucial because a plan without someone or something to implement it is basically worthless.
Planning affects all aspects of the business. It includes coming up with objectives and crafting a strategy that can help the company achieve these objectives. Without proper planning, all other functions of management become irrelevant because the organization lacks a proper road map.
Other functions of management such as organizing, controlling and leading must conform to the framework crafted in planning. There are three main types of planning. Strategic planning entails a close examination of the organization's strengths, weaknesses, opportunities and threats and then uses the information to come up with solutions that help achieve the objectives. Tactical planning normally has a time limit to achieve results. It gives more definite ways of achieving the objectives of the organization. Operational planning is normally implemented to achieve short-term goals because it may last for a period of 1 week to 1 year. It is subject to change according to the dynamics that exist in the business environment.