All entrepreneurs and businesspersons agree the main goal of establishing a business is success, but when it comes down to planning their views are radically different. Some believe planning is of utmost importance where by other believe different and see it as unnecessary. This essay will critically analyse the statement ‘Organisations that fail to plan are planning to fail’ presenting perspectives of academic scholars and successful business persons.
Planning involves the outlining of the organisations goals, developing strategies to achieve these goals and establishing plans to coordinate organisational activities. Planning could then be divided into informal and formal planning. With ...view middle of the document...
It is also important in larger more complex organisations as it allows the organisation to coordinate its workforce to achieving a common goal.
In reference to the statement organisations that fail to plan are planning to fail there are countless reasons why organisations choose to plan, these can be summarised into four main points. Firstly, a well-established plan give an organisation direction and allows all workers to work towards common goals promoting teamwork and cooperation. Secondly, long term planning will reduce inertia, allowing employees to adapt better to change as processes will be established within the plan. This is important as the business environment is very dynamic. Thirdly, planning insures all aspects of the business is coordinated, resulting in minimal time and resource wasting. Finally, planning is key to the establishment of goals and organisational standards allowing workers to constantly check the plans and evaluate whether their work efforts are helping the organisation achieve its goals. (Robbins et al, 2014)
A scholar who agrees with the proposed statement, that failing to plan is planning to fail, is Richard Gooding the author of ‘Failing to plan, or planning to fail?’, published in the Hartford Business Journal. He suggests in his article that no matter whether the organisation is big or small planning is crucial, believing that bigger companies can afford mistakes but a similar mistaken in a smaller business could lead to closure. Richard Gooding then went in depth as to why he believes organisations that fail to plan are planning to fail stating that an organisation with a clear direction, knowing where the organisation wants to in the near future allows them to allocate their resources and time more effectively and efficiently than a business who doesn’t plan. To make his article more valid Richard Gooding then gave the example of research carried out by Andersen Consulting and MassMutual Life Insurance Co. with the finding that a business with a written plan experience greater sales than that with a vision or unwritten plan. (Gooding, 1998)
This view is also supported by Daymond John who stated in his article titled ‘Fail to plan. Plan to fail’ “Until your idea is in writing with a detailed plan of how you are going to achieve success, it’s just a dream.”(John, 2013). Analysing Daymond John’s quote it is revealed he strongly agrees that plans are necessary in order for an organisation to succeed, agreeing with Richard Gooding that a business can be more productive with a clear direction outlined in a well written business plan.
An example of a successful business person that also supports the above statement is Sean Hackney co-founder and co-owner of Roaring Lion Energy Drink. He says a business plan is a must and was able to develop a business from a $62,000 investment to now the second biggest energy drink sold in bars and night clubs. The company is now worth $6.2 million dollars and Sean Hackney says...