Many organizations spend months preparing annual budgets, just to spend more time revising that budget or preparing forecasts to give executives their year-end view. However, changes or problems that affect the business must to be noted earlier and often. But many organizations are poor at forecasting.
The rolling forecast has largely been regarded as one of the most effective ways to improve accuracy for organizations, but achieving that effectiveness is nearly impossible for organizations whose hands are tied by cumbersome, complex processes caused by manual processes and spreadsheets.
When these manual processes get in the way of effective forecasting—due to either errors or inefficiencies in compiling data—organizations fail to capture opportunities available to them or worse, make the wrong decisions.
“How many orders in the next twelve months?”
“How will changes in this line item affect the results in that one?”
“What will things look like in a quarter? Two quarters? A year?”
All of these questions must be answered quickly and more importantly accurately.
So what does it take to get the rolling forecast process correct? Technology, understanding, and strategy to name a few. Among the best practices in rolling forecasts, the following ten come to mind.
- Ditch Excel: Excel is a personal productivity tool, not an advanced business planning, analysis, and forecasting software.
- Understand Objectives and KPIs
- Identify the Duration
- Identify the Forecast Comparison Periods
- Understand and Analyze the Dynamics of Revenue and Expense in your Business and Related Drivers
- Plan Capital and Strategic Projects Separately from Rolling Forecast
- Start with a small select group of key department/operations managers, plan on increasing the scope over time and plan on continual improvement over time.
- Consider a Rolling Forecast as a Baseline Plan.
- Tie Rolling Forecasts into Strategic Plan
- Analyze and Understand How External Conditions Impact Your Performance
Looking to learn more?
Best Practices in Rolling Forecasts: December 9, 2015
Join Brittenford Systems and Host Analytics on December 9, 2015 for Best Practices in Rolling Forecasts, in which experts will share real-world examples of how to make rolling forecasts work for your organization, as well as demo the enterprise performance management platform receiving top grades from both Gartner and Ventana.
Join us and get answers to the following questions:
- Are you spending too much time preparing annual budgets?
- What are problems with the current budgeting process?
- What are the advantages of rolling forecasts?
- How do you create and properly report a rolling forecast?
- How does the rolling forecast environment change when modeling for the future?
If you want to learn more about rolling forecasts and how they can take your business into a future of better and more strategic decision making, join us for this free webcast on Wednesday December 9, 2015 at 1:00 ET.
- Date: Wednesday, December 9, 2015
- Time: 1:00 PM to 2:00 PM EST