Organisations that fail to plan, plan to fail.

Ever since the 1960’s, strategic planning has been seen as “the one best way” to establish and carry out strategies that would help the business in achieving success in comparison to their competitors (Mintzberg 1994). Success from any sort of business whether it be small or large, stems from the foundation of planning. Whether it be planning the operations within the business, what kind of employees will help in developing the organisation or even planning in regards to setting goals and achieving them. However, those businesses that decide to ignore the fundamental need of planning, can experience an increase in a failed working environment in regards to successfully accomplishing what the business sets out to do. Although, that being said there are positives as well which can be seen from businesses who do not necessarily have a strategic plan. Eventually, some implications for business planning will be presented.

The importance of business planning is vital as it creates opportunities for new employees, sets work methods and ethics. As well as creating a structured work diversity, bringing out the best in each employee. In order to help plan a business it all begins at the first step of creating a business plan, which ultimately helps the business achieve what they set out to do. Butler (2010) has stated that the important thing within a business is to remember that a business plan will not automatically result in producing high levels of profit or create a prosperous business. The business plan acts as a mechanism to demonstrate the gradual progress at work and can be monitored, therefore businesses are able to respond to any future problems or modify any parts of their business. Within the business plan, organising the bu...

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...ments. However, even though those businesses who fail to plan aren’t necessarily planning to fail, it can still be statistically proven that if a business has a plan then the company will most likely succeed. According to a study by Sexton and Van Auken in 1985, 20% of non-planners failed within three years, in comparison to the 8% fail rate of businesses who engaged in planning. So even though businesses can still fail with planning, there is a higher certainty that if there is no strategic plan involved then ultimately the business wont reach the level they thought or desired to achieve. Through the demonstration of the sources which were relevant, it is provable that society has different attitudes towards this notion. But in the end, it all really depends on the type of management the company has chosen to follow and the way in which they treat their employees.