Following are the points which highlight the importance of planning : 

1. Planning provides directions – Every organisation has some objectives to pursue and achieve. Planning highlights these objectives so that all organisational activities are directed towards these objectives. Planning provides a sense of direction in an organisation. Planning directs efforts into actions that contribute to accomplishment of goals. By providing framework, planning makes work more meaningful and orderly. 

2. Planning reduces uncertainty – A business enterprise has to operate in a dynamic and complex environment which is full of economic, social and political uncertainties. In the process of planning, attempt is made to forecast conditions in future. This provides a better understanding of what is likely to happen in the future and how to face these situations. 

3. Planning facilitates decision-making – Decision-making involves making a choice from among the various available alternatives after evaluating them. Planned targets provide the basis against which available alternatives are evaluated and selected. Planning avoids hasty decisions.