Planning: choosing a goal and developing a strategy to achieve that goal. If planning done right, it brings about tremendous increases in individual and organizational performance. If planning done wrong, it can have opposite effect and harm individual and organizational performance. Planning consists of setting goals, developing commitment to goals, developing effective action plans, tracking progress and maintaining flexibility. Setting goals: direct behaviour and increase effort, goals need to be specific and challenging, s. m. a. r. t. goals goals that are specific, measurable, attainable, results-oriented, and time-bounded. Developing effective action plans: action plan the specific steps, people, and resources needed to accomplish a goal. Tracking progress: two accepted methods of tracking progress are proximal goals and distal goals, proximal goals short-term goals or subgoals, distal goals long-term or primary goals. Planning is critical to organizational success and failure to plan can lead to its demise.