Why Contingency Planning? Importance and Benefits




Crisis Management (Contingency Planning)
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Anneke Zwart
Student (University), Netherlands

Why Contingency Planning? Importance and Benefits

Simpkins (2009) argues that Contingency Planning (CP) is probably the most important topic of an organizationís 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 consumersí preferences. Every product goes through a product life cycle in which consumersí 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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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

 
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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

 
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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

 
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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

 
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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

 
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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

 
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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

 
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Ramakrishnan
Consultant, India
 

Relevance of Contingency Planning

The word contingency implies 'prepare for the unexpected' It would relate to several events, results... Sign up

 
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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

 
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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

 
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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

 
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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

 
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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

 
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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

 
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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

   

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