Profit Plan recommends and facilitates an incremental planning approach to
business planning. This philosophy begins by looking at what will happen if we
do nothing more than more of the same. This is the basis of Profit Plan's default
forecast. If it is what you want, then do nothing but more of the same!
Unfortunately, for most of us, even if we do nothing, the world around us changes.
So, we plan. But with incremental planning, our focus is on what we need to do
to migrate from the default path. And the cost/benefits of doing so are measured by
the incremental impacts of these planned project items on the default future!
The clip above shows part of one company's incremental plan. They want to grow
and take advantage of a new Portland market. So they are looking at the incremental
costs and benefits of expanding into various geographic areas. In this clip, they
are creating an account line that will allow consideration of different pricing strategies
in this market.
