By: Rod Hozack
Assumptions are important because they capture the thinking about the future. Predicting the future with any degree of accuracy is very difficult and to make matters worse, the further out you want to project, the less accurate the outcomes will be. The business needs some future view to calculate the return on investment.
‘Uncertainty’ about the future is the key requirement for needing assumptions. There are however things we can predict with confidence. The issue becomes understanding what is important to your specific plans and getting granular enough to align any change in assumptions to the impact on those plans.
The first part of this two-part white paper series outlines the 10 keys of great assumptions management.