With Much Less Emphasis On Long-term Detailed Budgets

The reason is the planning gap, that great divide between strategic planning and execution

. Usually known as operational planning, this area of the overall planning process is often misunderstood and overlooked in many companies. To make matters worse, as many firms focus on being more strategic at the senior leader level, and putting tight process around project execution at the lower levels, the planning gap is becoming more pronounced.

The solution to overcoming the gap is not simple, but it has a few consistent ingredients: one part process, one part communication, two parts leadership development, and three parts cultural change. A solution that focuses on improving process and communication alone is doomed to fail because most of the required changes are steeped in history, and require serious change of attitude and culture. Imagine the reaction you would get in your company if you started talking about planning:

Every 90 days

With much less emphasis on long-term detailed budgets

For a horizon of only two to three years

With actions defined in detail for only the next quarter

As if January 1 was just another day

With changes like this, the transformation takes time, even in change friendly environments. Changing process is relatively easy. Most of the effort to eliminate the planning gap must be directed at making leaders and employees into better planners.

by: aas1

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