Can a Sketch Work Better Than a Financial Forecast? [SUBSCRIBERS-ONLY]

Business, financial, and operational professionals love concepts related to financial forecasts. It is our way to view an abstract complicated plan in terms of dollars and the impact on resources both positive (surpluses – add to resources) and negative (deficits – use of resources). But outside our inner circle, forecasts are often viewed with misunderstanding, trepidation, and sometimes even fear. Taking a “sketch” approach can help people to embrace financial forecasts, enhance engagement, and be more confident with planning for new projects and efforts.

At a basic level, a financial forecast is a fiscal and financial management tool that attempts to model future financial outcomes. A financial forecast can be prepared for almost anything, such as planning for a new small project, a general growing of operations, or adding major strategic partnerships, or just to prepare multi-year budgets for different scenarios to see how potential future efforts will impact financial resources.

This sounds straightforward, but people have a general anxiety of numbers, and a forecast sounds like numbers on steroids. To address these anxieties, consider taking a sketch approach, replacing the word forecast with the word sketch.