All models are wrong, but some are useful– George Box
I heard this quote recently and loved it. As many of you know, I love to see the projections and models of our business. We’ve been creating models for quite some time thanks to our Data Science and Financial teams. We use these models to help us think of ways to grow our business or to plan for certain scenarios.
These models and projections are meant to point us in the right direction and help us determine what we need to achieve the right numbers. Around budget season in November and December, we get ourselves twisted in the process. When this happens, we need to step back and remind ourselves that the budget is going to be out of date by the time it’s completed. We’re not always trying to predict what is going to happen, but we are trying to determine which direction we should pivot.
We’ve found that our models are never exactly right – that’s not the point. At the end of the day, we are confident we are going to achieve the main goal, but our way of getting there may be different than we think. Our models at Service Express help us measure our successes and adjust when necessary.
Right now, we’re scenario planning for several different models. This helps us be prepared and ready. The point of analyzing projections and models is that they adapt and change over time. Think of your business the same way. I believe we will come out of this stronger together. Stay home and be safe!