FORECASTING SHOULD BE…

• Forecasting should be an instrument and basis for planning, starting with strategic planning
• Forecasting should be system supported, BU’s should get system access and clear deadlines should be defined
• Flexible scope of details and frequency should be possible according to requests
• Clear responsibilities of business areas should be defined
• Quarterly forecasts combined with well-founded strategic planning should be the basis for mid-term planning and to steer the business operatively
• The forecast should be harmonized with all other planning activities (strategic planning, budget and similar) and serve as a basis for their derivation
• Forecasting should be done no more than 4 times a year , which should fit to all other planning delivery requirements, both locally and from corporate group.
• The frequency of forecasting must not become an undesirable routine leading to reduced quality, therefore reduced degree of detail within a forecast is essential for its acceptance
• Forecasting should be driver based bottom-up planning which ensures that dependencies between plan models are automatically respected
• In case of unintended deviations between the original plan and the actual development, the forecast must help to initiate actions in order to steer against at an early stage
• Forecasting reporting should be based and updated with actual figures