Quick Answer
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A living business plan is continuously updated based on actual performance and changing conditions. AI enables this by automatically incorporating new data, highlighting where assumptions were wrong, and suggesting plan adjustments in real-time.
Key Takeaways:
- Static plans become fiction within months
- Living plans evolve with new information
- AI automates the update process that kills static plans
- Plans that update get used; plans that don't get ignored
Playbook
Start with a simple plan template, not a 40-page document
Identify key assumptions and how you'll validate them
Connect plan elements to actual metrics where possible
Set up monthly AI reviews comparing plan to reality
Update plan when reality diverges significantly
Version your plan to track how thinking evolved
Use plan as decision tool, not just funding document
Common Pitfalls
- Treating plans as sacred documents not to be changed
- Only updating plans for external stakeholders
- Detailed plans without feedback loops to reality
- Plans that don't connect to operational metrics
Metrics to Track
Plan update frequency (should be at least monthly)
Assumption accuracy (predicted vs actual)
Plan usage in decisions (are you consulting it?)
Stakeholder alignment with current plan
FAQ
How often should a business plan be updated?
Monthly minimum, or immediately when major assumptions are invalidated. The goal is for your plan to always reflect current thinking, not historical speculation.
What makes AI-assisted planning different?
AI continuously compares plan to reality, flags divergences, suggests adjustments, and maintains version history. It removes the manual work that causes traditional plans to become stale.
How simple can a living business plan be?
As simple as: key metrics targets, top 3 priorities, current assumptions, and next 90-day actions. Elaborate planning documents are less useful than simple, living ones.
Related Reading
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