Why is it detrimental for planners to overlook the current state of the business?

Overlooking the current state of the business can lead to unrealistic financial projections because planners need to base their forecasts on accurate and relevant data. Understanding the present circumstances, such as market conditions, customer demand, and internal capabilities, is crucial for making informed decisions. If planners fail to consider these factors, their projections may not align with reality, leading to budget shortfalls, misallocation of resources, and ultimately, poor strategic planning. This disconnect can also affect stakeholder trust and impede the organization’s ability to respond to changes effectively. Accurate financial projections rely on a solid grasp of the current state, ensuring that plans are both viable and achievable.