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Planning and Forecasting

Five Steps to Set Stretch Targets for your Budgeting Process

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

A few days ago I was looking through some blogs on LinkedIn when I came across a comment that suggested the purpose of budgeting was to set stretch targets. A number of people seemed to support this idea, although I personally have to disagree for two key reasons.

What is a stretch target?

First of all, what is actually meant by a stretch target. This can differ depending on where you sit. As the budget holder of a sales division, this may mean setting sales targets that are higher than what would normally be expected. For production, this may mean producing more goods for less while marketing may see this as attracting more inquiries than last year....

Rolling Forecast – Case Study: A Review Of Management

By: Richard Reinderhoff, Freelance Consultant Strategy & Operations

A rolling forecast is not only about seeing the future unravel, but a constant evaluation of the management team to see if they are able to adjust their operations on time. Without it, any form of strategic planning becomes useless. Below you find a real-life case. Step-by-step each question will be briefly discussed. It is about a foreign business unit, which was part of a large European corporation, on the brink of a crisis.

The four phases of Integrated Business Planning

By Niels Van Hove, Mental Toughness Coach & Supply Chain Consultant 

Integrated Business Planning (IBP) is often seen as a natural progression from Sales and Operations Planning (S&OP), which came to life in the 80’s to align sales and operations. As S&OP found its origin in the supply chain, IBP is often biased with supply chain terminology and reasoning. It can be argued that current IBP development is still driven with a supply chain bias. With this lack of divers thinking, IBP innovation runs the risk of being not truly ‘integrated’.

 

A Pragmatic Approach to Achieving Integrated Business Planning Once and for All

​By Michael J. Huthwaite, Founder and CEO of FinanceSeer LLC 

Integrated Business Planning (IBP) is a coordinated approach to planning that is designed to achieve greater alignment between the Strategic, Financial and Operational levels within an organization.
Since the birth of Enterprise Performance Management (EPM/CPM), Integrated Business Planning has always been touted as the ultimate “future state” environment that all organizations should aspire to.  

Navigating in Turbulent Times: The secret of effective forecasting and how to use it to make your business more agile

By Steve Morlidge, Business Forecasting thought leader, author of "Future Ready: How to Master Business Forecasting" and  "The Little Book of Beyond Budgeting" 

In this article, Steve Morlidge, author of "Future Ready: How to Master Business Forecasting"argues that the quality of business forecasting – used to steer an organisation – is unacceptably poor. He goes on to present six simple principles that will help executives significantly improve the performance of their forecast processes. More reliable forecasts speed up decision making and so help make businesses more agile.

 

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