Navigating budgets and forecasts

The blog differentiates between strategic forecasts and operational budgets, emphasizing their unique roles in business planning. It references Kaplan and Norton's work to explain that while budgets focus on incremental improvements, forecasts drive breakthrough performance. The blog advises that forecasts should be realistic, focusing on big-picture goals and considering various internal and external factors. It underscores the importance of using forecasts to inform future budgets and the necessity of balancing both for accurate business goal setting and performance assessment.