Why Contingency Planning? Importance and Benefits

Why Contingency Planning? Importance and Benefits

Simpkins (2009) argues that Contingency Planning (CP) is probably the most important topic of an organization’s overall strategic plan. The importance of preparing for any contingencies must not be underestimated. Contingency planning takes into account other outcomes than the expected and desired outcomes. And this is exactly what makes CP important.

Indeed, the world of today and its business environment is changing at fast pace. Every organizaton has to deal with continuous and fast changing internal and external environmental dynamics. Important changes today are technological changes, globalization, market transformations, democracy and more. Successful leaders should consider and prepare for those possible changes. Contingency planning enables leaders to mitigate the negative consequences of those transformations on their organizations.

Furthermore, CP makes leaders aware of and adapt to changes in consumers’ preferences. Every product goes through a product life cycle in which consumers’ preferences for certain products change over time. Contingency planning helps leaders to take into account those changing preferences and adapt to it. By continuously redesigning and reinventing products and services, products can become desired again for customers and stakeholders.

⇒ Do you have additional ideas why CP is important?
Source: Simpkins, R.A. (2009),"How Great Leaders Avoid Disaster: The Value of Contingency Planning", Business Strategy Series, Vol. 10 Iss. 2 pp. 104 - 108.

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		2 Roland Alech Consultant, France
	Importance of Contingency Planning HI! I agree fully. I add a few thoughts: - CP might be also about dealing with CHANGING RESOURCES (... Sign up

		3 Kirk C. Heriot Professor, United States
	Why Contingency Planning is Important As Master Kahn used to say in the "Kung Fu" TV Series: "Expect the unexpected." CP helps you antici... Sign up

		1 SANAJI Teacher, Indonesia
	Benefits of Contingency Planning I think CP is not a new idea. We know that nothing is permanent in this world except change itself. ... Sign up

		0 Tran le Phuong Teacher, Mongolia
	Preventive System Each organization has its own Mission-Vision that expresses the direction for achievement. However, ... Sign up

		1 Dr. Alan Williams Professor, Thailand
	Another Reason for Contingency Planning In a business organization the owner/CEO/BOD members have a MORAL AND LEGAL RESPONSIBILITY to protec... Sign up

		1 Gopalakrishnan Project Manager, Indonesia
	Why Contingency Planning in Project Management CP is to cover unknowns, unforeseen uncertainties, and/or unanticipated conditions that are not poss... Sign up

		1 K.Narayana Moorthy HR Consultant, India
	Why Contingency Planning is Important? In business "contingency planning" conjures images of NATURAL DISASTERS such as hurricanes, earthqua... Sign up

		1 kipkosgei chepkiyeng Manager, Kenya
	Aims of Contingency Planning CP is a kind of a road map when the planned does not materialize as expected. Its main aims are to m... Sign up

		4 Bernhard Keim Business Consultant, Germany
	CP is Important, but not Enough to Handle Any Type of Catastrophe When doing CP, we should always keep in mind that the outcomes are always different of whatever you ... Sign up

		1 shachi kanta khuntia Interim Manager
	A Contingency Fund is also Important to Serve as a Cushion at Need In India, the age old tradition of giving gifts of gold, silver ornaments, brass, bronze utensils to... Sign up

		0 Ramakrishnan Consultant, India
	Relevance of Contingency Planning The word contingency implies 'prepare for the unexpected' It would relate to several events, results... Sign up

		1 Nasir Sajjad Consultant, Pakistan
	Contingency Planning for Bad Days CP provides a path to react smoothly to certain events, because the RESOURCES ARE READY to be positi... Sign up

		0 Tito Rafael Hidalgo Barcia Strategy Consultant, Ecuador
	Contingence Planning Gives Confidence to an Institution Contingence planning as a plan B gives any company or non-profit organization CONFIDENCE on how to f... Sign up

		1 Mark Wm. Cawman Student (Other)
	Contingency Planning - PACER To anticipate that flexibility is necessary, I have heard a contingency plan should be 5 levels deep... Sign up

		0 jorge anibal hoyos hoyos Manager, Colombia
	Why Resiliency Management is Mandatory Contingency Management or Resiliency Management is not only about our products, services, finance in... Sign up

		4 Guillermo Vasquez Business Consultant, Colombia
	Benefits of Contingency Planning On a more strategic language, a contingency plan could be seen as coverage of risk as one of the par... Sign up

		0 Edy Khalife Manager, Lebanon
	Benefits of Contingency Planning CP allows firms to avoid the shock of complete surprise, reduces indecision and uncertainty when unp... Sign up

		1 Emmanuel Mwirichia Manager, Kenya
	Lessons from World War Z If you have watched the 2013 Brad Pitt movie World War Z, you will remember the scene where he is ta... Sign up

		2 Ramakrishnan Consultant, India
	Contingency Planning Should be Added to Fayol's First Management Role Fayol's Five Management Roles model distinguishes 5 elements: 1. Prevoyance (forecast and planning)... Sign up

		1 Omar HEMISSI Professor, Algeria
	A Risk in Emergency Planning The complexity of more and more markets and increasingly short product life cycles seem to place eme... Sign up