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Times were tough for a large consumer goods company. A review of its monthly business performance reflected difficult operating conditions. Volume, gross revenue, and market share were all behind expectations year to date, with the projected outlook beyond 12 months even less certain. For employees, ensuing actions rang familiar. A series of prolonged and exhaustive activities were mandated to dig deeper into why revenue targets were being missed. In the back of people’s minds was the grim reality that incentive rewards based upon performance were likely not to materialise for a second straight year.

In the executive office, the president grew increasingly agitated at the inability of his team to identify and resolve issues. Frustration turned to finger-pointing. Eventually finger-pointing and animosity reached a crisis point at the monthly executive review meeting, when it became apparent that another year of “missing the numbers” was about to transpire.

During this combative review, no viable options were presented and discussed on how to close projected gaps in meeting the current year’s plan and budget. Most of the time was spent arguing about the current year’s revenue projection. Almost no time was spent reviewing actions to meet strategic objectives. One lone chart highlighting company initiatives was buried in the appendix of the review documentation.

The executives in the review felt pressured to respond to shareholder demands that the company return to profitability. With few answers, many in the room became exasperated. Some expressed that there had to be a better way to get hold of, and grow, the iconic business.

Contrast the preceding example with that of a business that took a very proactive approach toward managing its destiny. This company also faced significant business challenges; however, this leadership team chose a much different path. The executives responded to the challenges by collaborating rather than pointing fingers at one another.

This company utilised Integrated Business Planning to review the latest projections against the stated annual plan and goals as well as longer-term strategy. The review was conducted using a routine, systematic cadence. The executives wanted to identify “bad news early” rather than be surprised by “bad news late.” They also wanted to review various scenarios by which changes in assumptions, risks, and opportunities could be monitored and decisions made. They expected to review the scenarios every month as business conditions changed.