A performance plan differs from a conventional plan in that it is a proactive document. It is designed for continuous use throughout the year as a guide and reference tool to direct the leader and his or her unit's activities. The primary purpose of a performance plan is to create results and maximize performance.
Managers often produce an annual performance plan only to give senior management what they want to see. Leaders view performance planning as an opportunity to review and analyze actual past performance. It gives them the means to identify ways to improve their personal and organizational unit's overall performance and productivity.
Managers as leaders actively use their performance plan to drive the unit's as well as their own performance. They continually reference their performance plan as a roadmap throughout the year to guide and direct their activities and courses of action as well as those of their subordinates.