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Annual Planning is Killing Your Growth‚ Try This Plan Instead

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First Round Review
First Round Review
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Founder and Executive Chairman of Monetate David Brussin explains why the annual plan is broken and sub-optimal and shares his new system and its positive and fundamental changes on his company.

The Problems with Annual Planning

  • You make bad investment choices because you are discouraged from investing in people and resources that will not pay off until next year.
  • You fail to anticipate disaster because all the risk is pushed to the end of the year and your feedback cycle is shortened.
  • You are blind to cause and effect because marketing is about taking often lengthy amounts of time to build leads and converting those leads into closed business.
  • Your benchmarks are meaningless because your end of year (EOY) becomes your only data point.

The Three-Year Plan

  • Look at each quarter individually using a strategy called the “trailing 12 month plan.”
  • Three years contains 12 quarters in which goals are set around different key areas of operations and growth.
  • Essentially, look at annual change every single quarter and compare yourself with other similar companies and their growth and changes.
  • Make steady investments to receive steady results such as hiring regularly throughout the year and investing evenly in sales and marketing.
  • Look at trailing indicators as well as leading indicators. 
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