CFO Leadership & GovernanceStart with the decision
Clarify the choice facing management, the available options and the constraints. Build analysis around that decision rather than around a standard reporting template.
Make assumptions visible
Explain the revenue, cost, cash-flow and risk assumptions behind each option. Use scenarios to show which assumptions could change the recommendation.
Close the loop
Record the decision, owner and expected outcome. Compare actual results with the original assumptions to improve future decisions.
A practical starting point
Take one management decision and prepare a concise decision brief. Explain the objective, alternatives, assumptions, cash impact, main risks and the point at which management should reconsider. The financial model should support the brief rather than replace it.
Practical checklist
- State the decision and accountable owner.
- Compare credible alternatives on consistent assumptions.
- Show cash implications and downside scenarios.
- Set a review date and monitor the assumptions.
