Maker of specialty vehicles, the tomers in fresh ways such as Dudng the lecession, as busi- recession triggered a massive through social-networking sites.

ness forecasts based on seem- overhaul of strategic planning. Mr. Ullman says the bri{ge ingly plausible swings in sales Officials’used.to draft a,one-year”* plan succeeded, and he cites smacked up against reality, exec- _. strategic plan and a &reelyear- Penney’s irnproved margins and utives discovered that strategic Jiaaacial plan-and then review lack of layoffs. Next month, he’ll planning doesn’t always work. each one every’quarter. Chief Ex- offer fellow directors his views

Some busiless leaders came ecutive John Sztykiel says that about reviving his 2007 strategic away convinced that the new relatively inflexible method plan after he analyzes “whet}er priority was to be able to shift bears some of the blame for it is as relevant as it was three course on the fly. Office Depot Spartan’s sharp drop in sales ,years ago.” Inc., for example, began’updat- and gross profit during the fust Other ‘executives have em- ing-.its- annual budget”‘every* hine montJrs of 2009. braced “just-in.timetr-decision: rnonth, starting The Charlotte, Mich., manu- . making, a tactic that Lowell PRACIICE Other companies enough to shifting aeman4 tre sultants McKinsey & Co., thinks

started to factor says. will spread dwing the.recovery.

rDr,rategrc rlans Lose ravor Slump Sltowed Bqsses Value of Ftexibtlity, Quick Decisions Bv Joanrrr s. Lw’N ,l{h / oour., meetings. B

“/ things,” he explains, while

AND DANa MArrrou ‘ | ” I For Spartan Motors Inc., a speeding up efforts to woo cus-

inore”-extreme -scenarios.;.into Last July, lvlr. Sztyhel inaugU- Prematwe decisions can create their thinking. A few even set’up rated a tree.yearstrategicalan.- excessive risks, he says, b,ut iop- l’situation rooms,”. where staff- that*re.-and.his lieutenank up- portunity costs, are faritaiticr erS glued to cirmputer screens date.every-monti;ifhe Spartan when decisions are delayed for monitored developments affect- CEO has started to see a payoff. too long. McKinsey itself sogght ingsalesandfinances. In November, the company ,to capitalize on the recession-.Read the three articles on budgeting posted on Course Content. Then write up an essay on the problems in budgeting derived from the articles or your own experience on budgeting. The essay should be one to two pages, double spaced, 12 front.

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