Imagine a ship that sets course based on last month’s weather patterns. No matter what happens, the ship doesn’t deviate from the course, because after all, the forecast predicted calm weather. Now apply that same logic to your forecasts.
These mistakes are all too common
Many organizations make similar mistakes every day. They spend weeks or months laboring over the annual plan or budget, even though by the time it’s finished, the market has changed dramatically and the assumptions are now out of date. They forecast based on historic data and the best guesses of functional business leaders and line managers. They don’t change course, no matter what competitive winds battle them.