It’s a sad fact that the annual planning and budgeting process for next year starts while we’re still fighting to get through the current year. And in quite a few large companies, that process may start a full 6 months before the next year. That means they’re going to make a best-guess about what they’ll be doing from 6 to 18 months from now without the benefit of learning from executing most of their current year’s plan.
Here’s a tip – it doesn’t have to be that way. Once you realize that high-level budgeting can reasonably be separated from low-level planning, you’re free to focus on execution until the last responsible moment when plans must be made. And while it’s hard to cover all the nuances of the myriad different ways organizations operate, hopefully this simplified example illustrates some key concepts you can apply to your own situation. And, hey, you can always bug us if you want to talk about it. In fact, we encourage it – helping businesses is our business :)