Daniel Kahneman warned us:
โWeโre generally overconfident in our predictions, especially when we have a lot riding on them.โ
In financial forecasting, this ๐จ๐ฉ๐ญ๐ข๐ฆ๐ข๐ฌ๐ฆ ๐๐ข๐๐ฌ ๐ฌ๐ก๐จ๐ฐ๐ฌ ๐ฎ๐ฉ ๐๐ฏ๐๐ซ๐ฒ๐ฐ๐ก๐๐ซ๐:
Sales targets built on emotion, not evidence.
โBest-caseโ forecasts presented as expected outcomes.
Pipeline deals marked 90% likelyโฆ with ๐ง๐จ ๐ก๐ข๐ฌ๐ญ๐จ๐ซ๐ข๐๐๐ฅ ๐๐ฅ๐จ๐ฌ๐ ๐ซ๐๐ญ๐ ๐ญ๐จ ๐๐๐๐ค ๐ข๐ญ ๐ฎ๐ฉ.
As Fractional CFOs, we help founders and teams de-bias their forecasts using a few tools Kahneman would approve of:
๐ ๐๐จ๐ง๐ญ๐ ๐๐๐ซ๐ฅ๐จ ๐ฌ๐ข๐ฆ๐ฎ๐ฅ๐๐ญ๐ข๐จ๐ง๐ฌ โ
We run 1,000+ probabilistic scenarios to show the range of outcomesโnot just the one we want to believe. Suddenly, risk becomes visible, and runway planning becomes real.
๐ ๐๐๐๐๐ซ๐๐ง๐๐ ๐๐ฅ๐๐ฌ๐ฌ ๐๐จ๐ซ๐๐๐๐ฌ๐ญ๐ข๐ง๐ โ
We donโt just ask โWhat do we expect?โ โ we ask โWhatโs actually happened in similar periods?โ
๐งฉ ๐๐ซ๐-๐ฆ๐จ๐ซ๐ญ๐๐ฆ๐ฌ โ
Before the quarter even starts, we assume failure and work backward to stress-test every assumption.
The result? Sharper decisions. Cleaner cash flow. Fewer surprises.
Kahneman put it simply:
โThe idea that the ๐๐ฎ๐ญ๐ฎ๐ซ๐ ๐ข๐ฌ ๐ฎ๐ง๐ฉ๐ซ๐๐๐ข๐๐ญ๐๐๐ฅ๐ ๐ข๐ฌ ๐ฎ๐ง๐๐๐ซ๐ฆ๐ข๐ง๐๐ ๐๐ฏ๐๐ซ๐ฒ ๐๐๐ฒ by the ease with which the past is explained.โ
โจ Forecast with humility. Operate with clarity.
๐ฌ How does your team challenge its assumptions?

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