Assumption-based planning: Difference between revisions

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=== Implicit and explicit assumptions ===
[[RAND]] defines an assumption as “an assertion about some characteristic of the future that underlies the current operations or plans of an organization.” There are several types of assumption. Include implicit and explicit assumptions, and primary and secondary assumptions, an important aspect of [[Critical assumption planning]]. The two classifications are not mutually exclusive; an assumption can be both explicit and primary.
Assumptions according to Wikipedia are “[[proposition]]s that are assumed, i.e., treated within the context of a discussion as if it were known to be true or false”. But although the Wikipedia definition of an assumption is correct, a better definition of assumptions in the context of business planning and ABP is given by [[RAND]].
 
Explicit assumptions are assumptions of which the intention that is fully revealed or expressed without vagueness, implication or ambiguity. However, asexplicit youstatements canin reada inplan theoften nexthave sectionhidden “Primaryimplicit andassumptions. DerivateImplicit Assumptions”,assumptions explicitare statementsassumptions inthat aare plannot oftenexpressed haveand underlyingmay go undetected. If (implicit) assumptions prove to be wrong, this can damage projects.
“An assumption is an assertion about some characteristic of the future that underlies the current operations or plans of an organization”
 
There are multiple types of assumptions. The most known derivation is between implicit and explicit assumptions. Another classification used in ABP is the derivation between primary and secondary assumptions. This latter categorization is discussed in the [[Critical assumption planning]] Wiki. The two classifications are not mutually exclusive; this means that an assumption can be both an explicit and a primary assumption, while another assumption can be implicitly derived.
 
Explicit assumptions are assumptions of which the intention that is fully revealed or expressed without vagueness, implication or ambiguity. However, as you can read in the next section “Primary and Derivate Assumptions”, explicit statements in a plan often have underlying (implicit) assumptions.
Explicit assumptions are often not hard to find, since they are explicitly stated in the business plan. Examples of parts in the business plan full of explicit assumptions are the financial forecast and the business system and organization.
 
Implicit assumptions are assumptions that are capable of being understood from something else though they are not expressed. The problem is that some important implicit assumptions in a plan go undetected. And if no precautions are taken for a scenario where implicit assumptions prove to be wrong, this might lead to unpleasant surprises. Callout 1 lists ten dangerous implicit assumptions often made in business plans. It is important to identify both the implicit and explicit assumptions made in plan.
 
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|+ CalloutExamples 1of Someimplicit Dangerous Implicit Assumptionsassumptions:<ref>McGrath, R. G. and I. C. MacMillan (1995). ''Discovery-Driven Planning''. Harvard Business Review.</ref>
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