In my first blog I talked about the importance of having good data that is coherent across teams and departments. While it’s inevitable that groups will choose reporting periods that show them in the best possible light, senior execs need a single view of the truth.
But what about planning? It is easy to create forward projections that are more optimistic than realistic, particularly in the current financial climate. While can be difficult to predict buying behaviours with any certainty, however, it should be more straightforward to present sensible worst-case scenarios. But is it?
A long time ago, when I was an idealistic young marketing exec, I prepared a detailed business plan for one if my managers. He looked it through and threw it back at me. “That's no good,” he said, “I need a better worst case scenario.” In other words, one which wasn’t quite as bad. At the time I thought that was the craziest expression I...