Companies that have reached late adolescence typically build financial plans. The better ones build a cohesive financial AND operational plan — which ties revenues and expenses to key results and KPIs.

The best ones know how to use the plan.

And the worst ones?

They file it away, and the high-level goals get put into a spreadsheet (e.g. revenues, # of logos).ASIDE: Companies also frequently file away strategy documents and business plans — wasting valuable thinking and support for decision-making.

When the company exceeds the goal, the ELT celebrates without considering the goals might be too easy, they got lucky, or something that wasn’t flagged as a Key Result might be on fire. When the company misses the goal, the team vows to do better — or worse, they overcorrect by frequently changing tactics or strategy, without diagnosing the problem.

Don’t file away your operating plan. Use it as a living and breathing playbook.