WHICH IS BETTER? – ROLLING FORECASTS OR FORECASTING 4 TIMES A YEAR?
FSN’s latest research infographic provides compelling evidence that rolling forecasts are better than simply re-forecasting four times a year.
In fact, when we compared the performance of organisations that use rolling forecasts, with those that reforecast quarterly, we find that rolling forecasters outperform their contemporaries in every category. Rolling Forecasters are able to forecast quicker, more accurately, further out on the time horizon, and are able to respond with more agility to changing market conditions.
So, are you considering rolling forecasts? If you use rolling forecasts, what has your experience been?
The FSN Modern Finance Forum discusses this in depth here.
Kornel Cajka shares his views, quote taken from the LinkedIn forum
“Definitely I opt for rolling forecast. There is also the aspect of acceptance of the process itself in the organization to be considered. Doing it quarterly, it may be perceived like “disturbance” with some level of resistance, where rolling forecast will become and organic routine with much higher level of engagement by all functions…”
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?