In the October issue, I started a series detailing 7 common mistakes of business planning and how to avoid them. In this installment, we explore Deadly Mistake #5: "Planning Too Much Detail". If you missed the first four deadly mistakes, follow the link at the bottom left of this page and follow the newsletter link to "archive".

Deadly Mistake #5: Planning Too Much Detail
Detailed budgets, and action plans need only be articulated one or two quarters in advance, and linked to your longer term strategies. Why waste valuable time creating details for a world you know is going to look very different 12 to 24 months out?

Imagine a decreasing scale that shows how the farther you plan from the current quarter, the less detail you should be articulating. Why is it such a deadly mistake to plan for too much detail more than a quarter or two in the future? The detail itself doesn't harm anything. The real harm is done by the distraction and drain on resources that is caused. Eliminating unnecessary detail allows greater attention to be placed in the areas of planning that can really make a difference.

There is a natural tendency to try to plan to the greatest degree of detail possible. We constantly see companies planning across hundreds of budget centres for thousands of line items of detail; for 4 to 12 quarters into the future. It just isn't realistic that anyone can plan this accurately, but they can sure spend a lot of valuable time and effort trying.

Less is More
It takes courage to operate with less information farther into the future, rather than creating a lot of mindless detail. It's the busy work that goes with that level of detail that drives employees to dislike planning. Help your clients avoid this pitfall.

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