THE FINANCIAL STATEMENTS
KEY FINANCIAL INDICATORS
ACCOUNTING ISSUES
WHAT-IF ... SENSITIVITY MODELS
TIMING MATTERS
JUSTIFYING INVESTMENT
SCORECARDS AND VALUE MANAGEMENT

Lookups – Making Assumptions Explicit

Here we try to quantify the impact of our actions on the variables in the model.

If we make our assumptions explicit, clear for everyone to see, then we can monitor over time whether our assumptions were correct. By being explicit, we are more likely to learn and our future forecasting will be more accurate.

The other advantage of making assumptions explicit is that they provoke discussion and that can lead to a much better understanding of the business.