Question 1

How often should I review plan vs actual?

Accepted Answer

Weekly for operational metrics (sales, traffic), monthly for financials (revenue, EBITDA), and quarterly for strategic KPIs. A deviation above 10% is a signal to dig into the causes.

Question 2

How do I build a realistic plan?

Accepted Answer

Three common methods: "from the base" (last period's actual × a growth factor), "from the market" (market share × market size), and "bottom-up" (the sum of every department's plan). A bad plan is worse than none.

Question 3

What should I do about chronic underperformance?

Accepted Answer

First check whether the plan was realistic (it may have been inflated). Then find the bottleneck (sales, production, logistics) and fix the process rather than the plan. Revising the plan mid-period is generally poor practice.

Question 4

How can plan vs actual drive motivation?

Accepted Answer

Tie bonuses to completion: 100%+ = full bonus, 90–99% = partial, under 90% = none. The plan must be ambitious yet achievable — an impossible target demotivates rather than inspires.

Question 5

What is a "rolling forecast"?

Accepted Answer

Each month you re-forecast the next 12 months using the latest actuals. Unlike a fixed annual plan, it always stays current. It suits companies facing high uncertainty, such as startups and cyclical industries.

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