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Contingency Planning Importance

Why is contingency planning important? Describe and discuss the necessary collaboration between business partners with respect to changes in 3 of the following areas in your response. Explain your rational. Provide any applicable examples.

a. Share goals

b. Shared vision

c. Roles

d. Information

e. Focus

f. Flexibility

Solution Preview

The formal definition of contingency planning is: The development of a management plan that uses alternative strategies to ensure project success if specified risk events occur.

In other words, a business needs to have back-up plans for all aspects of their operations in order to plan for worst-case scenarios. This is done in order to avoid panic in case things go wrong. If contingency plans are in order, then preparations could be done in advance, drills can be done with employees, and financial numbers can be crunched.

Shared vision.

Every firm has a vision - every company has goals, and works hard to achieve their goals. Every department works together to achieve these vision. The financial team works out how to finance and invest money for the good of the company, the market researchers study how consumer are interested in the product and how willing they are to purchase it, human resources works to improve employee relations and work hard to satisfy employees.

All of these departments are interconnected in the sense that they all share the same vision - to make the company profitable and successful. Thus, it is necessary for the departments to all collaborate together and make a contingency plan should something occur and normal business activities are interrupted, preventing the firm from achieving its collective vision of financial successes. One primary goal would be to make sure that if the company shuts down, no one looses their job. This contingency ...

Solution Summary

A discussion of the role and importance of contingency planning between business partners.