Strategic plans become the budget’s descriptive front end, often projecting five years of financials in order to appear “strategic.” But management typically commits only to year one ; in the context of years two through five, “strategic” actually means “impressionistic.”Read More . . .
The bottom line, therefore, is that the predictability of costs is fundamentally different from the predictability of revenue. Planning can’t and won’t make revenue magically appear, and the effort you spend creating revenue plans is a distraction from the strategist’s much harder job : finding ways to acquire and keep customers.
A detailed plan may be comforting, but it’s not a strategy.