Scenario Charts plot a company's actual results between a Stretch Budget and a 📝Base Budget, together with the updated forecast, so performance can be read against both plans at a glance.
The two budgets set the boundaries of the chart: the Stretch Budget above and the Base Budget below. Actuals are plotted between them as they come in, and the updated forecast extends the line forward, showing where the business is headed relative to each scenario. The forecast comes from the company's 📝Integrated Financial Model (IFM), described in 📝Overview - Forecasting with the IFM.
We like to set a Stretch Budget and a Base Budget and then plot actuals between them with the updated forecast. This is a very simple chart to read.