The first step in the planning process is to set goals. In order for goals to be effective, they must be specific, measurable, attainable, realistic, and timely. The acronym S$.$M$.$A$.$R$.$T$.$ can be a helpful reminder.

$$ Specific: Goals should be well defined and not vague.

$$ Measurable: Goals should be quantitatively measured.

$$ Attainable: Goals should not be impossible to achieve.

$$ Realistic: Goals should be within reach and relevant to the company$$s mission and values.

$$ Timely: Goals should have a deadline rather than an end date of $$someday$.$

The second step in planning is to develop commitment to goals. Goal commitment is the determination to achieve a goal. One method managers can use to develop goal commitment in employees is to set the goals participatively. That is$,$ if employees are involved in setting goals, they will be more committed to achieving those goals. Another method of developing goal commitment is to get top management$$s support. Top management can do this by providing funds, speaking publicly about the plan, or participating in the plan.

The third step in planning is to develop effective action plans. An action plan is a plan that lists the specific steps, people, resources, and time period needed to attain a goal.

Tracking progress toward goal achievement is the fourth step in planning. There are two methods for tracking progress.

$$ The first method is to set proximal and distal goals. Proximal goals are short$-$term or subgoals, while distal goals are long$-$term or primary goals.

$$ The second method is to gather and provide performance feedback. Regular feedback can indicate whether adjustments must be made to meet goals.

The final step in the planning process is to maintain flexibility. In options$-$based planning, the company maintains planning flexibility by making small, simultaneous investments in many alternative plans. Options$-$based planning requires the use of slack resources$$a cushion of extra resources such as people, money, or production capacity that can be used to adapt to unanticipated changes, problems, or opportunities.

Identify a true statement about the planning process.

The final step in developing an effective plan is to maintain flexibility.

Effective action plans precede the development of commitment in the planning process.

The planning process ends with developing effective action plans.

The first step in the planning process is to track progress toward goal achievement.