This article Corporate planning through the fog describes how annual budgets will become a thing of the past. The markets and economy are changing so rapidly, more now than ever, that a budget may become useless in the next quarter. Here is what other companies are doing. I was a bit perplexed by this article because most of the methods mentioned here are already being used even mid-size corporates.

1. Integrating scenario planning into financial models
2. Rolling forecasts for next 4 quarters
3. Monthly management meetings to revisit the assumptions that led to the budget allocations
4. investing in sophisticated technology to receive sales data in real time
5. Take things quarter by quarter. (even if managements does not follow this markets will force them anyway)