Yelling at the numbers won’t help

I know my CFO colleagues are shaking their heads in agreement with that “yep” side-eye glance right now. Consider this post the cathartic, post-budget approval stiff drink we all had.

Depending on your company’s cycle, many of you are on the other side of your planning and budgeting cycle. For many, it was a nail-biting, hair-raising experience. And then there was yelling at those numbers.

But there shouldn’t be. Yelling at the numbers comes when people expect you to magically make them different (read "much better").? And not having the exact numbers everyone wants doesn’t mean your company is not successfully tracking to the correct outcome.

That’s not how it works.?

The numbers are a reflection of a million moving pieces. Some you control, some you don’t.

As a former paratrooper, let me say it like this:? You’ve got a range, a target for where you should land. The unrealistic range is outside that target. You can’t make your landing range vastly different.?

So, plan your landing. Staying within range typically means choosing growth or profitability, not doubling down on both (even though that’s usually what everyone wants). As you refine your budget, like approaching the earth's surface, your options will narrow.?

Early on, you might have some flexibility.?

But then the pressure to hit your target is added when you discover a wicked cross-wind (Google algo update), the drop zone has obstacles (cost of revenue escalating), and the landing is opposed (low returns on your marketing campaigns)?

But that’s your job as the CFO. You need to anticipate unexpected elements along with what's known in your forecast to land within your target range. (Feet and knees together!) The job of your board and investors is to trust in your ability to navigate the uncertainty mid-flight.

If you want your budget approved, give them the background - the real story about potential cross-winds and shifting targets that could impact your landing. Sharing your approach and the trade-offs will give them confidence in your landing.

It’s impossible to make everyone happy - that’s just a reality. And remember, you’re working in the best interest of all stakeholders. That includes founders, employees, customers, the environment, AND investors.?