Its that time of the year. For some, it is wrapped up. For others, it is still in the works. The Plan. It is the thing that consumes enormous amounts of time in many organizations, with no real return for the effort put in. In others, there is absolutely no thought at all. In too few, it is a thoughtful, efficient process that gives the organization the right level of focus on achieving key objectives in the coming year.
Over the years, my thinking on the most effective approach to planning has shifted away from the annual plan in favor of a five-quarter rolling forecast. By keeping an eye on the markets and continuing to evolve based on new information, the organization is utilizing the best forward looking information (and history) to achieve objectives. That doesn’t mean flopping around in the wind. It means executing against long range objectives based on current market conditions. How does your organization approach planning? Are you as effective as you can be?