Get your free personalized podcast brief

We scan new podcasts and send you the top 5 insights daily.

According to SAP's CEO, the velocity of AI development and its impact on execution speed means traditional annual planning is obsolete. Companies must now adopt much shorter, faster planning cycles for everything from financials to workforce management to keep pace.

Related Insights

Due to the rapid pace of AI-driven development, Ramp has abandoned annual or multi-year planning. They now operate on a three-month horizon, which is considered a long time because it allows them to accomplish what previously took three years, making long-term roadmaps obsolete.

Committing to a quarterly roadmap is futile when the AI landscape and customer needs change daily. Instead of detailed feature plans, leaders should set broad strategic objectives and focus on short-term, validated learning cycles. This approach builds a foundation that can adapt to rapid market shifts.

In an era where AI capabilities improve 20-30% monthly, Snowflake's CEO argues long-term plans are futile. Instead, he advises leaders to maintain a "childlike" discovery mindset, treating new model releases like real-time traffic data that can instantly render previous routes—and strategic plans—obsolete.

The rapid pace of technological change requires a new strategic planning cadence. Upwork's CEO has shortened planning cycles, arguing that if you're executing the same plan in month 11 as in month 1, "something's probably wrong." The new model is to set big goals but only plan one step at a time.

The speed of AI-driven change, which outpaces human comprehension, makes traditional long-term planning impossible. Axios CEO Jim VandeHei notes that even six-month plans are fantasy; leaders must now focus on what they can be highly confident about in the next 6-7 weeks.

Christian Klein predicts that AI agents will overcome current accuracy hurdles (e.g., from 93% to 100%) for specific business functions like financial closing in a matter of months, not years. This will dramatically accelerate enterprise adoption.

In the fast-moving AI sector, quarterly planning is obsolete. Leaders should adopt a weekly reassessment cadence and define "boundaries for experimentation" rather than rigid goals. This fosters unexpected discoveries that are essential for staying ahead of competitors who can leapfrog you in weeks.

The current pace of AI development is not just accelerating progress, it's a time compression event. Innovations previously projected for the 2030s and 2040s are being realized now, fundamentally shortening strategic planning horizons and forcing companies to adapt at an unprecedented speed.

The rapid pace of change in AI renders long-term strategic planning ineffective. With foundational technology shifts occurring quarterly, companies must adopt a fluid approach. Strategy should focus on core principles and institutional memory, while remaining flexible enough to integrate new tech and iterate on tactics constantly.

In stable markets, planning offers a good return. However, in today's rapidly changing, AI-driven world, that time is better invested in building and shipping product faster. The fastest-growing companies now plan weekly, not quarterly or annually.