๐ŸŽฏ ๐˜๐จ๐ฎ๐ซ ๐ฌ๐š๐ฅ๐ž๐ฌ ๐Ÿ๐จ๐ซ๐ž๐œ๐š๐ฌ๐ญ ๐ข๐ฌ ๐ฐ๐ซ๐จ๐ง๐ . ๐€๐ง๐ ๐ข๐ญโ€™๐ฌ ๐ฉ๐ซ๐จ๐›๐š๐›๐ฅ๐ฒ ๐ฒ๐จ๐ฎ๐ซ ๐Ÿ๐š๐ฎ๐ฅ๐ญ.

Daniel Kahneman warned us:
โ€œWeโ€™re generally overconfident in our predictions, especially when we have a lot riding on them.โ€

In financial forecasting, this ๐จ๐ฉ๐ญ๐ข๐ฆ๐ข๐ฌ๐ฆ ๐›๐ข๐š๐ฌ ๐ฌ๐ก๐จ๐ฐ๐ฌ ๐ฎ๐ฉ ๐ž๐ฏ๐ž๐ซ๐ฒ๐ฐ๐ก๐ž๐ซ๐ž:
Sales targets built on emotion, not evidence.
โ€œBest-caseโ€ forecasts presented as expected outcomes.
Pipeline deals marked 90% likelyโ€ฆ with ๐ง๐จ ๐ก๐ข๐ฌ๐ญ๐จ๐ซ๐ข๐œ๐š๐ฅ ๐œ๐ฅ๐จ๐ฌ๐ž ๐ซ๐š๐ญ๐ž ๐ญ๐จ ๐›๐š๐œ๐ค ๐ข๐ญ ๐ฎ๐ฉ.

As Fractional CFOs, we help founders and teams de-bias their forecasts using a few tools Kahneman would approve of:
๐Ÿ“Š ๐Œ๐จ๐ง๐ญ๐ž ๐‚๐š๐ซ๐ฅ๐จ ๐ฌ๐ข๐ฆ๐ฎ๐ฅ๐š๐ญ๐ข๐จ๐ง๐ฌ โ€“
We run 1,000+ probabilistic scenarios to show the range of outcomesโ€”not just the one we want to believe. Suddenly, risk becomes visible, and runway planning becomes real.
๐Ÿ” ๐‘๐ž๐Ÿ๐ž๐ซ๐ž๐ง๐œ๐ž ๐œ๐ฅ๐š๐ฌ๐ฌ ๐Ÿ๐จ๐ซ๐ž๐œ๐š๐ฌ๐ญ๐ข๐ง๐  โ€“
We donโ€™t just ask โ€œWhat do we expect?โ€ โ€” we ask โ€œWhatโ€™s actually happened in similar periods?โ€
๐Ÿงฉ ๐๐ซ๐ž-๐ฆ๐จ๐ซ๐ญ๐ž๐ฆ๐ฌ 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:
โ€œThe idea that the ๐Ÿ๐ฎ๐ญ๐ฎ๐ซ๐ž ๐ข๐ฌ ๐ฎ๐ง๐ฉ๐ซ๐ž๐๐ข๐œ๐ญ๐š๐›๐ฅ๐ž ๐ข๐ฌ ๐ฎ๐ง๐๐ž๐ซ๐ฆ๐ข๐ง๐ž๐ ๐ž๐ฏ๐ž๐ซ๐ฒ ๐๐š๐ฒ by the ease with which the past is explained.โ€

โœจ Forecast with humility. Operate with clarity.
๐Ÿ’ฌ How does your team challenge its assumptions?

Tags:

No responses yet

Leave a Reply

Your email address will not be published. Required fields are marked *