Though it’s almost a cliche by now, the statement is true: Change is constant and rapid. The environment of constant change requires business managers to be flexible, attentive, and responsive. A recent CFO Magazine article, New Strategies Around Strategy, provides some insights that I summarize below:
- Have a long-term plan to set forth the direction for your products, markets, and strategy.
- Be flexible and nimble; based on changing factors in the marketplace, test the assumptions that went into your planning.
- Have contingency plans in place so that you will be ready to quickly respond to changes in the marketplace.
- Recognize that change is the “new normal,” and embrace the environment by taking calculated risks.
- Information is vital for planning, especially historical insights about how businesses responded in challenging circumstances.
- Write your long-term plan in pencil, not in ink. Keep an eraser handy.
Read the entire article for more details about flexibly budgeting and strategically planning.