Planning is important in management because it allows managers to use resources efficiently and prepare for the unexpected. It also helps managers determine the right goals to seek. Proper planning helps employees at a company know what they should be trying to accomplish.
Companies need to use their available resources as efficiently and effectively as possible to gain an edge on competitors. Planning provides a means of determining which resources are available and how soon certain goals can be accomplished. It also forces managers to think about the future and make contingency plans if goals are not met.
Experienced managers know that they need to expect the unexpected, and planning helps them clarify their vision for the future and prepare to respond to unplanned situations. Dwight D. Eisenhower famously said, "In preparing for battle I have always found that plans are useless, but planning is indispensable." In addition to its other benefits, planning should be viewed as a means of thinking through problems.
Employees need guidance, and managers are expected to provide it. Proper planning allows managers to share their visions with their employees, and employees are able to provide extra help if they know what their goals should be. Employees may also be able to provide input about how plans should be modified.