Planning as Learning

 

One of the most common criticism to financial planning and forecasting is : What is the point of prepare extensive and detail plans  if you know you will be going to miss it. This reason drives the frustration of analyst where they spend more time explaining differences, than analyzing new opportunities and the business it self. Arie de Gus  in a seminal paper of the HBR explains that the main purpose of planning is play with numeric models for creating different scenarios, this play with numbers allows to confront the mental models of the Managers. These exercises will bring new questions and hence more scenarios, this iteration process is what creates value because not just allows to anticipate future plan with actions also and accelerate institutional learning that is the key point. So, the true and real purpose of effective planning is not making good plans in contrast is to change the mental models of the decision makers carry in their heads.

Do you ever think it this way?  Is awesome  what you learn of your business with the planning process because desafiante every moment your mind.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s