PlusPoint's mission is to help growing businesses grow faster and more predictably by ensuring they have the information to navigate and make informed decisions. A virtuous planning process is an essential element.
Congratulations—you just completed your financial plan, and it's wrong! It's true that financial plans are always wrong, but that doesn't mean they aren't valuable. Good planning is a virtuous cycle. You capture your best thinking about future actions and outcomes, and then reality unfolds. The critical action in this cycle is comparing actual results to your expectations, and the real value is in stepping back to understand the story those numbers are telling. By focusing on key drivers and examining where results differ from expectations, you gain insights to guide future decisions. Too much focus on low-level details, both in planning and subsequent analysis, wastes time and can prevent teams from seeing the bigger picture. While detailed analysis might give finance professionals comfort with the numbers, it rarely helps in understanding overall business performance. The real value lies in analyzing what truly drives success—the relatively few but critical business drivers that impact outcomes. Effective financial planning keeps us on track with what matters most, guiding smarter decisions and continuous improvement. If you are interested in implementing a virtuous planning process, please don't hesitate to reach out. #Finance #FinancialPlanning #StrategicFocus #BusinessDrivers #ContinuousImprovement