Our CEO, Rami Cassis, recently wrote an article for Business Reporter setting out why missed forecasts should be treated as a red flag of a CEO’s competence.
Rami’s position is that if a CEO misses their forecasts by 5%, ‘they do not have the foresight, precision, and skill set necessary to helm the business through challenging periods’. He deliberately applies this tight threshold to his own portfolio companies.
To him, forecasting is not an administrative exercise but evidence of how well a leader reads their own market. The discipline of building the forecast is what surfaces problems early enough to act on them.
Boards and investors should treat repeated misses as a governance issue, not a rounding error, with the tolerance for imprecision narrowing further in volatile conditions. In a stable market, a miss can be absorbed. In a volatile one, it compounds.
Read the full article at Business Reporter here.
Featured image courtesy of iStockPhoto.com and simon2579.
