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A CEO has many responsibilities, and among the top is ensuring the company has a sound plan and budget going into each new year. Seasoned CEOs have likely developed a trusted method for getting this done. Sometimes it’s as simple as estimating organic growth by applying a reasonable percentage to this year’s numbers and maybe adding additional revenue for a new product or channel. There might be a review of the current year’s spending by department to estimate the new year’s needs—adding a little here and cutting a little there—and, of course, there will be an Annual Planning Meeting that brings the management team together to have strategic discussions, gain alignment and hash out the details. As with anything, it’s easy to fall into the trap of doing things the same way year after year, especially if it’s been working for you.
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