Do you practice UPOD ?

UPOD primarily refers to the concept of under-promising and over-delivering. Organizations forecast growth for upcoming quarters and years. When the actual ‘sare reported, the magnitude and the direction of the variance between the actual results and expected results play an important role in determining how the firm’s stock will perform. One way to perform consistently is to promise realistically and set external targets that can be achieved. The internal targets can be more aggressive than the external targets. If a firm can achieve the internal targets then the external targets will be a cake and the firm can blow past the estimates. The key behind this technique is called as UPOD.

Firms should note that analysts will smell the UPOD technique at work and the whisper numbers may indicate that the expected targets may be higher than the promised targets. The firms leadership will face the challenge of managing the analysts expectation to normalize the expectation.

The technique of UPOD is visible at multiple levels like the program level, the project level and at the operational level.

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