Real life. Real strategy. Turned all the way up.
Note from Michaela
Willeaux is ready for October with her pumpkin scarf, but that look of pure fear… that’s not because the salon cut her hair too short (oops); it's her asking, “Wait?! You forgot to put WHO in the budget?”
This is the look I imagine on a CEO’s face when the 2027 plan is approved, and someone realizes the critical person was never part of the compensation conversation. The scary part isn’t the costume. It’s finding out after the budget closes that the operating plan depends on someone you’ve promised a comp review and forgot to include it in the budget.
TL;DR
Your 2027 plan assumes key people will stick around to deliver it. Before the compensation budget closes, identify the roles that matter most, check where pay and scope may be out of sync, and make a decision you can explain.
Your budget should reflect the people your forcast depends on, not last year’s budget with a 3% increase.
YOUR 2027 PLAN ASSUMES THEY’LL STAY. DOES YOUR BUDGET?
The pay conversation an employee has with you in December may be what you're deciding right now in October. By the time the manager says, "I'd love to do more, but the budget is closed," the decision window may be gone.
Meanwhile, the operating plan still assumes that person will carry a revenue target, keep production moving, or hold an integration together in Q1. That's the business assumption worth testing before you approve the budget.
Ask your leadership team three questions:
Who does the plan depend on? Name the roles that would disrupt a Q1 commitment if they were vacant.
Where has the job outgrown the pay? Look at actual scope, contribution, market information, and internal equity. Do not treat every request as identical.
When can we decide? Identify who can approve an adjustment, when the decision will happen, and what the manager can honestly say to the employee.
Some answers will be no, but a vague "maybe at review time" is not a decision. It leaves the manager with nothing useful to communicate and leadership with a risk that has not priced this month's move.
Put three critical roles beside your Q1 operating plan before you close the compensation budget. Decide which pay questions need an answer now and who owns each conversation.
Your budget should reflect the people your forecast depends on, not just last year's budget with a 3% increase
On My Radar
📖 Reading: Own or Be Owned by Codie Sanchez — I’m currently reading this one and its message fits today’s issue: a business cannot scale if its plan depends on a few people holding everything together.
🎧 Listening: The McKinsey Podcast/”How the best CEOs are meeting the AI moment.” 1.21.2026 — AI has moved even further in the past year, but the leadership question hasn’t changed: are you experimenting with it, or actually building it into how your business operates?
📺 Watching: Looking for suggestions on what should be on my “to watch” list.
👍🏻 Saying Yes to: Compensation conversations early enough for a manager to give someone a real answer. (And the occasional Pumpkin Spice Latte!)
