by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"
There are only 3 things management can ever control:
- The arrangement of its own business processes (e.g. sales, production, customer service, etc.)
- The resources (money, people, assets) applied to those business processes, and
- The volume and quality of work carried out within those business processes
However, organisations operate in an uncontrollable and often unpredictable business environment, such as market demand, energy, inflation and exchange rates. As a consequence, the role of planning is to help manage what can be controlled to produce outcomes that will achieve organisational objectives, within an uncontrollable and unknowable external environment.