An annual plan is goal setting on a longer term (higher) horizon of 3-12 months. The motivation for planning at a higher horizon is to gain the freedom to set more ambitious and motivating targets. This freedom however comes at a cost of a higher responsibility to consider for wider range of possible outcomes and risks and identification of pre-requisites resources and capabilities which you may not know of or have access to in the moment.
Freedom makes a huge requirement of every human being. With freedom comes responsibility. For the person who is unwilling to grow up, the person does not want to carry his own weight, this is a frightening prospect. - Eleanor Roosevelt You Learn By Living - 11 Keys for a more fulfilling life - 1960
“annual” and “quarterly” plan may be used interchangeably, and “quarterly” in some cases is a more accurate description.
Why use the term “annual” instead of “quarterly”?
The choice of keeping the “annual” label is based on :
Close match to historical commiting pattern at natural cycles
Easier to commit to natural cycles - daily, weekly, monthly and annual vs non-natural - fortnightly or quarterly
Relaxed constraints of current context to feel comfortable setting ambitious and meaningful targets
Conservatism - Realistic expectation that targets on a 3 month horizon often realistically materialize on a 12 month horizon
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