A Culture of Projections: The Many Benefits of Looking Ahead, Not Calculating Ahead

A Culture of Projections: The Many Benefits of Looking Ahead, Not Calculating Ahead

Business Operations December 7, 2015 By: A. Michael Gellman, CPA, CGMA

A better projection and budgeting process for your association will engage the employees closest to day-to-day decisions: program and project managers. Here's how you can get staff in the habit of actively looking ahead and sharing planning information with each other.

When it comes to projections and forecasts, accountants too often fall into the trap of formula heaven. We passionately believe that data mining is the key, that somewhere buried in the numbers a magic trend will surface if we can just find the perfect formula, graphically present historical data, or create the perfect program to sort data, and all the problems of humankind will be solved. These tools can be valuable but do not replace good old-fashioned thinking. The trap is that we tend to over-rely on these tools as a substitute for interactive management....