Planning the future.
Even before we embark on specific things in the field of planning, it may be good to realize the consequences of our decision from perspectives of the future.
A key problem of financial planning is the dependence of the future investment opportunities on today's capital decisions.
Or perhaps better, let we paraphrase:
"How much does it cost of our decisions in the future "?
For this I have borrowed the 1:10:100 rule from the IT field, specifically from the field of software programming. Although this rule is already being used and modified for a wide range of human action, often you will hear something about a "funnel" within social networks, etc. I think that for the planning area is its original significance most evidential.
From my point of view perhaps preferably is this rule represented by a simple pyramid. You can get it whenever you are going to something plan easily draw so that to warn you:
What does it telling us? How much of the invested value (money, time,…) does it cost us the remedy of the erroneous decision we made in the planning process?
1-error is revealed at the time of preparation and course of planning.
We are considering the way of planning, looking for an optimal solution, simulate the future. We don't invest any real money yet, at this time. (Although time is our biggest asset which we have in the life!)
10-The error is revealed when the plan is already established, preparatory work based on the planning process is carried out.
We have issued other interested instructions, started the preparatory work, starting to spend the first money (studies, projects, selection procedures, procurement...)
100-the error is revealed during or at the end of the plan implementation.
Planned activities and actions are fully running, the means to realise the intention, Material, services (Money has already been invested in the purchase of land, machinery, preparations,....).
Is good for any activities in process of preparing actions to the future to have before the eyes this simple pyramid. In the following chapters, we will discuss some activities which can ensure prosperity for the company or bring the company to bankruptcy.