Questions and Answers
We find five-year budgets to have little value. Is this really a necessary part of your process?
When used for strict financial control, a five-year budget is limited in its usefulness. This, however, is not the intent in requiring this tool as part of the Simplified Strategic Planning process. The five-year budget is developed subsequent to the completion of the company's Strategies, Goals and Objectives. Based upon that input, this "pro forma" look at the future is constructed to give the team a sense of the results they should expect from the successful execution of their Strategies. Its purpose is not to be highly accurate, but to provide a "sniff test" as to the validity of the plan.
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Center for Simplified Strategic Planning, Inc.
PO Box 8272
Ann Arbor, MI 48108
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