HAVE WE SACRIFICED FINANCIAL PLANNING AND ANALYSIS ACCURACY IN FAVOUR OF SPEED?
The second infographic from our “Agility in Planning, Budgeting and Forecasting” research shows that forecast accuracy is getting worse – this despite many organisations forecasting more quickly.
So, do we place too much importance on process automation and neglect forecasting accuracy? And why do you think improving forecasting accuracy is so difficult?
The FSN Modern Finance Forum discusses this in depth here.
Martin Naughalty B.Sc. FCMA CGMA shares his views, quoted below.
Quote taken from the LinkedIn Forum
“The considerations will be different if the forecast is for external investor consumption rather internal operational management but I have never forgotten the words of my first FD when I was a young graduate trainee, back when “Noah was a lad”: “Give me something that’s 95% correct but early enough for us to use the information, rather than a theorectically 100% accurate forecast too late” In some industries, the business environment is more complex today but current tools should enable more accurate forecasts in the same short timescales.”
Related Infographics in the Agility in Planning, Budgeting & Forecasting Series
HOW AGILE IS YOUR FORECASTING PROCESS? In this first infographic we explore how responsive or agile the PBF (Planning, Budgeting and Forecasting) process is to change against a series of FSN stress tests. The research finds that changing reports and reporting structures (hierarchies) remains a challenge.
HAVE WE SACRIFICED FP&A ACCURACY IN FAVOUR OF SPEED? The second infographic from our “Agility in Planning, Budgeting & Forecasting” research shows that forecast accuracy is getting worse – this despite many organisations forecasting more quickly.
WHICH IS BETTER? – ROLLING FORECASTS OR FORECASTING 4 TIMES A YEAR? The third infographic from our “Agility in Planning, Budgeting and Forecasting” research demonstrates that Rolling forecasts imbue PBF with agility.
THE CHARACTERISTICS OF THOSE USING ROLLING FORECASTS The research find that in essence if you are spreadsheet-bound, have not mastered your data and are not using specialist software, then rolling forecasts are technically out of reach.
Related Discussions in the Agility in Planning, Budgeting & Forecasting Series
HOW RESPONSIVE IS YOUR FORECASTING PROCESS? 60% of organizations can reforecast in under a week, yet just 40% are able to forecast with any real degree of accuracy and only 20% can forecast a year ahead with confidence. How come?
HAVE WE SACRIFICED FP&A ACCURACY IN FAVOUR OF SPEED? The second infographic from our “Agility in Planning, Budgeting & Forecasting” research in this forum shows that forecast accuracy is getting worse – this despite many organisations forecasting more quickly.
WHICH IS BETTER? – ROLLING FORECASTS OR FORECASTING 4 TIMES A YEAR? Are you considering rolling forecasts? If you use rolling forecasts, what has your experience been?
JUST 19% OF ORGANISATIONS LEVERAGE THE POWER OF ROLLING FORECASTS. WHY? So, what is stopping you implementing rolling forecasts and how can you bring about the change?