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Rolling Forecast

Three Stages of Rolling Forecast Maturity

By Larysa Melnychuk, Managing Director at FP&A Trends group

Rolling Forecasts  are an essential tool for financial planning and analysis (FP&A), with a potential to radically transform corporates’ traditional budgeting process.
The London FP&A Board of senior practitioners’ most recent meeting focused on why Rolling Forecasts  are ideal for financial planning and analysis (FP&A) professionals. It also discussed best practice and the ‘Three Stages of Rolling Forecast Maturity’ model, summarised in this article.

The latest meeting was again jointly sponsored by Metapraxis, the consultancy, analytics for financial professionals and software provider and Michael Page, the global specialist recruitment firm.

London FP&A Board: Rolling Forecast – The Maersk Group Case Study

By Neil Ainger, published first at GTNews

The financial planning and analysis (FP&A Board) Board of senior practitioners recently met in London, UK, to discuss the pros and cons of rolling forecasts, how best to introduce it, and to hear a case study from Maersk Group about how the shipping, transport, and oil firm has benefitted.

“We’ve abolished the annual budget completely and only use rolling forecasting (RF) now,” said Matthijs Schot, head of performance & analysis at AP Moller Maersk, as he shared his company’s implementation four years ago of an RF process and the lessons they’ve learnt.

Speaking to the 20 members of the financial planning and analysis (FP&A) Board gathered at the Holborn, central London offices of the sponsor Michael Page Finance on 18 May, with the other sponsor Metapraxis also in attendance, Schot added that: “Maersk is a very asset-heavy company so has a strong need for forecasting”. After all, it takes a lot to build a huge cargo vessel or oil terminal so effective predictions of costs, future revenues and market movements are essential.

Best practices in Rolling Forecasts

By Elena Kiristova, CFO Russia and CIS at Groupon

Everyone wants a crystal ball to be able to peer into the future. For businesses, that desire becomes a necessity because having a vision of the future allows for better and more strategic decision-making in the present.

A rolling forecast simply means that each quarter or month, a company projects four to six quarters or twelve to eighteen months ahead.

This allows executives and key decision makers to see both a financial and operational vision of the future. It also helps them assess next steps in their execution of their plan, understand critical pivot points in the plan and better judge the impact the economy may have on their plan.

I have seen rolling forecasts replace annual planning cycles with a continual planning process that results in more regular business reviews that look to the future. These reviews enable managers to understand problems, challenges and trends sooner and improve their proactive approach to those problems, challenges and trends.

Modern FP&A: Some Important Techniques, Methods and Concepts

By Larysa Melnychuk, Managing Director at FP&A Trends group

The world of financial planning and analysis has observed changes of such magnitude that they cannot be described by our traditional statistical and analytical models. In this age of frequent Black Swan events, the traditional business approach to operating on an annual budget and forecast is no longer effective. In order to deliver a competitive advantage to a company, modern FP&A function needs to be flexible and dynamic, be based on sophisticated analytics, examine life-time values of the products and services and encourage business partnering. This significant change in the role of FP&A function requires big cultural shift and modern change management techniques....

Rolling Forecast: 7 Factors for Success

By Larysa Melnychuk, Managing Director at FP&A Trends group

The concept of a Rolling Forecast is a hot topic in FP&A at the moment. Many companies attempt to implement it, but not all of them are successful. Statistics suggest that one in five of the organisations that implemented rolling forecasts recently have since abandoned them, because they proved to be more complex than initially expected. Additionally, they didn’t find enough value in this tool to continue using it.

However, a Rolling Forecast can be a powerful tool for FP&A if used correctly..

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