In many cases, this is nothing more than a reluctance to change. In others, it is a matter of not being strategically astute. It is not uncommon for market conditions such as competition, the economy, customer preferences, alternative methods of distribution, pricing and the like to shift significantly. This generally calls for some sort of adjustment in the way a business goes to market. Failing to recognize these shifts can sometimes be devastating to a business.
Timing is important since it can take time to affect change within the organization.
If a business waits too long to recognize the shifts, it could be too late. We stress the importance of keeping track of competition, alternative product and service offerings, price shifts, economic changes, customer perceptions and preferences and other market related factors. By doing so, a business can identify the need to make changes early. Budgets should not be considered something that is done annually to satisfy the bank, board of directors or just because they're supposed to be done. Budgets are a critical management tool that should be taken seriously.