Dos and Don’ts
Do
• Whenever possible, include statistical inputs from external sources to avoid the risk that internal company-specific assumptions may be inaccurate.
• Be prepared to question and challenge assumptions during the process.
Don’t
• Don’t rely totally on any one strategic planning technique.
• Don’t plan for every conceivable eventuality as it is not practical to do this—even the best analysis can come unstuck should a highly improbable “freak” event happen. For example, as a result of the recent credit crunch, a reliance on bank finance to fund future product development costs has been a weakness against the backdrop of tighter credit conditions.