Why Do Managers Plan?(cont.) Planning and Performance generally speaking,formal planning is associated with ·higher profits higher return on assets quality of the planning process and the appropriate implementation of the plans probably contribute more to high performance than does the extent of planning external environment may undermine the effects of formal planning planning performance relationship is influenced by the planning time frame ©Prentice Hall,.2002 7-6Why Do Managers Plan? (cont.) Planning and Performance – generally speaking, formal planning is associated with: • higher profits • higher return on assets – quality of the planning process and the appropriate implementation of the plans probably contribute more to high performance than does the extent of planning – external environment may undermine the effects of formal planning – planning/performance relationship is influenced by the planning time frame © Prentice Hall, 2002 7-6