Planning requires more than just forward thinking in time. It also requires a look backward. I suggest you extend your timeline back for a minimum of ten years. Extend your time analysis backward to give as much depth to your business plan as possible. If you can plot data further back in time that would be even better. The rule of thumb is to put as much information on the board as possible. You need extensive historical data to ascertain where you have been in performance and how the projections are forming. This is done using trend analysis of your time schedule.
To successfully carry out long-range planning you must alter the creeping methodology. You stand in danger of planning and thinking too small, not thinking in bold terms. Planning creep is a common business trap limiting a company’s potential. Planning creep is also moving toward the future by “adding 10 percent” to last year’s budget and goals. When these outcomes are added over time they do not give the same results as well-developed goals. Planning creep is moving cautiously toward the future in a nonrisk mode. It is safe, will get your plans approved, and will get you rewarded for accomplishment.
In the normal planning process, planners build on past success. The result of planning creep is mediocre or average performance. Planning creep is the desired format for some shareholders because it is predictable and safe. It is called “blue chip” investments. This is dangerous for four reasons:
1. It fails to meet expectations.
2. It doesn’t live up to organizational potential.
3. It fails to use full intellectual capital.
4. It leads to stagnation of mind and action.