One type of planning that all companies should do but don't always do is contingency planning. This is the process of preparing alternative courses of action the firm can fall back on if the primary plans don't work out. Let's say an organization doesn't meet its sales goals by a certain date. The contingency plan may be to increase advertising or cut prices. Part of contingency planning is crisis planning which anticipates sudden changes in the environment. For instance, many cities and businesses have crisis plans for terrorist attacks or weather related emergencies like hurricanes. Others may have contingency plans if there is a serious product problem that has harmed or could harm consumers.

Does your organization prepare contingency plans or have any crisis management plans?