Planning 

is the process of goal setting; developing the approach to

achieve those goals; outlining activities; prioritizing them; and creating
a schedule that brings us closer to the goals that we set.

It is impossible to achieve such control without the right planning.

Therefore, planning becomes necessary to keep good control. Being
goal-centric is the key. It keeps working hard to fulfil these goals.

Prerequisites of Effective Planning:

1.Defined objectives:

Objectives are like goal setting. You can’t walk the path if you don’t
know where it leads you. Objectives should be reachable, objective and
definable. If possible, attach numbers, timelines, and even resources to
these objectives. This will ensure a sense of direction for
the organization and facilitate control and coordination.

2. Management Information System:

For the development of plans, a collection of data, analysis, and

selection of the right alternative is needed. Well, the MIS Systems are
the future of most successful companies now. It is the companies that
give an edge to data and analysis to make data-driven decisions that
make it big in their sectors.

3. Top-Level Initiative:

To make planning effective they originate at the top. These layers exist
to ensure that a company runs like a well-oiled machine. In this
situation, the work of the top level management is to visualize and
chase those dreams to then pass it on to their teams further The top
management should generate interest in planning throughout the
organization.
A good manager always enables his/her team member to manage
themselves. If a team is self-run, there’s nothing like it. This can be
achieved by management by objectives, the formation of
planning committees and the preparation of budgets.

4. Planning should be Flexible:

Its execution should be oriented to events. In case of changing events

alternate or contingency plans should be kept ready for changes. They
should be developed step by step.

5. Resistant to Changes:

There is always going to be push back when there is a need for change
but the extermination of old gives way to the new. Only when there is a
change can we expect exponential growth. And change is never easy to
accept or work with. Which is why it is important for the management
to ensure smooth transitions.

6. Careful Premising:

In planning premising is an important step. It is a pre-requisite for

determining future settings. In setting planning premises due
consideration is to be given for various factors based on the needs of the
organization.

7. Integration of Long-Term and Short-Term Plans:

Both short and long term plans are to be prepared and integrated to
achieve the objectives of the organization. They should be prepared and
integrated to achieve the objectives of the organization. Perfect
coordination between the two types of planning is to be achieved.

8. Cost-Benefit Analysis:
The planners are to undertake a cost-benefit analysis to ensure that the
benefits of planning are more than the cost involved in it.

9. Proper Forecasting:

One of the important steps in planning is the forecasting of the future.

Management must have a mechanism of forecasting changes in the
environment which are influenced by economic, social, political and
international factors.

10. Dynamic Managers:

Rigidity leaves no space for modifications and growth. Which is why

it’s highly important for managers to grow and fix while working and
be flexible to the environment.