Zansa › Answers › Forecasting and data science
How do I explain a forecast to non-technical managers?
Lead with the decision it supports, give a single expected number plus a plausible range, state the main assumptions in plain words, and show how accurate the method has been on past periods. Avoid jargon. Managers need to know what to do, how confident to be and what would change the answer.
Helpful habits:
- Use a chart of history, forecast and range rather than tables of numbers.
- Express accuracy in business terms, such as typically within 10 percent per week.
- Name the biggest drivers, like a planned promotion.
- Show a worst-case and best-case scenario.
- Be upfront about what the model cannot know, such as a new competitor.
Invite challenge. A manager who knows of an upcoming event can improve the forecast.
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