Planning involves defining organizational goals, establishing strategies to achieve those goals, and developing plans for work activities. Formal planning uses specific, written goals covering a defined time period and shared with employees. Formal planning is associated with higher profits, returns, and financial results. The quality of planning implementation affects performance more than the extent of planning. Plans can be strategic, operational, long-term, short-term, specific, directional, single-use, or standing. Approaches to planning include reactive, inactive, preactive, and proactive. Dynamic environments require plans that are specific but flexible and see planning as an ongoing process that can be changed and pays off with persistence over time.