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.

Mature driver-based planning models are an essential component of effective rolling forecast processes in complex, global organizations.  They provide the foundation for profitable growth by enabling strategy and cost structures to quickly self adjust to changing business objectives and market conditions.

Increasingly, managers are now looking to change the corporate planning process and replace the traditional annual budget with rolling forecasts, 12, 13 or 15 months ahead. What is the reason for this development?

This is the second part of a three-part series that focuses on the business value that data science & analytics can provide to enterprises.
 

Rolling Forecasts are an essential tool for financial planning and analysis (FP&A), with the potential to radically transform the traditional corporate budgeting process. If implemented properly, a rolling forecast expands planning horizons, reduces planning cycles, and helps in executing organizational strategies.

For organisations looking to get the most out of their Driver based planning and Rolling Forecasting initiatives, it is critical to realise that these terms apply in both Strategic and Tactical planning. Yet the people, processes and technology applied to these two domains are quite unique.