Financial Planning, Budgeting, and Forecasting: Financial Intelligence Collection (7 Books)

Chapter Four

Principles of Adaptive Processes

If you cannot know what your customers will want or your competitors will offer next year—or even who your customers or competitors will be—you cannot develop an effective plan for achieving targeted levels of sales and profits.¹

—STEPHAN HAECKEL

The three cases described in chapter 3 can tell us much about the principles and practices of managing with adaptive processes as opposed to annual budgets. Although their approaches have been similar, they have not been the same. The primary purpose of this chapter is to identify and explain the key principles that best describe what they have done. Then we will examine how these alternative processes change attitudes and behavior.

Six Principles of Managing ...