Rethinking the Annual Plan in a Constantly Changing Economy
January 21, 2026
Authored by Todd McElhatton
Constant disruption and changes like rising interest rates, AI disruption, tariffs, and geopolitical instability have all reshaped business conditions more rapidly than annual planning cycles can accommodate. Traditional annual plans can’t keep pace with re-forecasting, mid-quarter pivots, or executive meetings where outdated numbers are still treated as commitments.
My team has accepted that volatility is no longer episodic. It’s structural. In that environment, locking decisions for twelve months doesn’t create discipline. It creates blind spots. That reality has pushed us toward continuous planning, built on rolling forecasts, real-time data, and clear accountability. The goal is not constant change. It is staying oriented while the business keeps moving.
How continuous planning actually works
We start each year with an initial plan, but treat it as a starting point. We maintain a rolling three-year forecast, reviewed monthly with real-time data. This approach requires us to reassess investments, monitor progress, and adjust as conditions change. Continuous updates allow us to respond within weeks rather than quarters, avoiding reactive decisions.
This model only works if it’s grounded in the right signals. Each month, we focus on:
- Committed backlog
- Gross retention
- Weighted pipeline
- Long and short term investments
- and Linearity
We place far more weight on late-stage pipeline than early deals, and we track linearity closely. If we expect to close 100 deals by quarter end, we know roughly how much should be sold along the way. In SaaS, revenue may be backloaded, but patterns still matter. When linearity does not support the outcome, that is a planning signal, not just a sales issue.
Technology enables this discipline. Better revenue visibility, real-time data, improved forecasting, and automated cash collection help us see reality sooner and act earlier. Improvements in our order-to-cash workflows have materially changed how quickly FP&A sees performance, giving us clarity within days after month and quarter end.
Making continuous planning stick
Planning fails when it lives solely in finance, so monthly business reviews bring functional leaders together around a small set of company objectives and shared indicators. We aim to accelerate what’s working, make targeted adjustments, and pivot quickly when outcomes are falling short.
For the upcoming fiscal year, Zuora is focused on a set of company objectives, with clear cross-functional metrics. Those priorities cascade throughout the organization. Every employee has goals tied to company objectives that are tracked in our employee engagement tool and tied to their compensation. Accountability only works when it reaches every level.
The biggest risk in continuous planning is when motion turns into noise. Before we pivot, we ask whether we had a clear plan, defined guardrails, tried corrective action, and gave it enough time. If the data still does not support the goal, it is time to move on. Constraints help maintain focus. We have seen periods where spending less led to our strongest new-business results in years. Focus beats scale. Depth wins.
Continuous planning is not about perfect prediction. It is about clarity, focus, and the willingness to change course when the data demands it. Annual planning assumes stability. Continuous planning assumes change. In 2026, that assumption matters more than ever.
Data point of the week
89% of finance leaders say they’re expected to serve as strategic advisors, yet 70% say their current technology stack holds them back from doing so. Among SaaS leaders, that number rises to 92%.
My POV: This gap is what holds continuous planning back. Finance leaders are expected to guide the business in real time, but too many are still working with systems built for static plans and backward-looking reporting.
Continue the conversation
January 28: Mastering Usage-Based Models Across Order-to-Cash
Join Zuora and PwC for a practical discussion on how finance teams can design, manage, and scale usage-based models across order to cash, while maintaining control, accuracy, and confidence as the business grows.
February 25: Unlocking AI for Finance: Moving From Manual Work to Strategic Impact
AI is taking work off finance teams’ plates, but the real value comes from how leaders redeploy that time. Join MGI’s Andrew Dailey to hear how finance organizations are moving beyond automation to apply judgment, insight, and strategic partnership where it matters most.
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