A weak forecasting process often displays telltale signs. We watch for these signs and use them as clues to guide our work.
Try it for yourself. Click on all statements that are true for your business, and read your score at the bottom of the page.
1. After detailed work by the forecasters, top management injects "adjustments" based on gut feel.
2. Forecasts are over-influenced by those who can talk the loudest (or the longest).
3. Your company reacts to market "signals" you know to be unreliable.
4. There is little if any contingency planning.
5. Lost demand isn't measured or factored into ensuing forecasts.
6. People privately bypass the forecasts and build secret cushions into their numbers.
7. "Top-down" and "bottom-up" forecasts are never reconciled (or one is missing).
8. There is no established procedure for reviewing accuracy of past forecasts.
9. Different groups in the company forecast based on conflicting assumptions and data.
10. Drivers of demand are not understood.
Your Score is: out of 10.
Scoring:
0 - 3:
Good. You're doing better than most companies we know.
4 - 6:
Fair. You have room for improvement.
7 - 10:
Trouble. Your forecasting system is a drag on earnings and a cause of needless chaos.
If these signs or similar ones sound familiar, you can discuss them with us and explore how our services can boost your results.
