A projection should come with a range, not a single cell
Claudius Mutevhe, Cipher Labs ·
A single cell in a forecast looks like certainty. It is usually a guess with the doubt stripped out. We state a range instead, and list the assumptions a decision-maker can question.
That is slower to write than one number. It is faster to use, because the conversation starts from what could move the result, not from a false sense that the future is already known.
The same habit applies beyond forecasts. Any number that will be used to decide should be open to questions. A black box is not a read.
Cash, six months out
R’000
- Debtor days hold between 45 and 60
- Stock build stops by December
- No new capital spend before March