1. Best Practices in
implementing a Rolling
Forecast
Speaker Name
Speaker Role, Company Name
© 2009 IBM Corporation

2. Session Objectives
In today’s session we will:
Review the need for solid
forecasting practices
Learn about the rolling forecast
philosophy
Discuss three best practices for
implementing a rolling forecast

3. „Expect the Unexpected.“
David Axson

4. Forecasting a critical business
process in turbulent times.

5. What is a forecast?
Forward Looking
Fact-based Flexible
Focused on Risks & Opportunities

6. „The end result ... is not an
accurate picture of tomorrow,
but better decisions about
the future.“
Peter Schwartz, The Art of the Long View

7. Good forecasting practices create value
Career
Perform
n ance
Reputatio

8. The traditional approach...
J F M A M J J A S O N D

9. The traditional template

10. Static forecasts do not
provide the necessary
visibility in turbulent
times.

11. It shows...

12. Rolling Forecasts.
An effective approach.
© 2009 IBM Corporation

13. What is a Rolling forecast
J F M A M J J A S O N D J F M A M J
Q1 Forecast
Traditional Q2
forecast
Q3
Q1 Forecast
Rolling
forecast

14. Why are rolling forecasts attractive?
Increased visibility
Consistent time horizon
Less reliance on budget
Solid baseline for new plans

15. Rolling Forecasts speed up the budgeting process
Source: The Hackett Group, 2008

16. Not only time is saved. Satisfaction increases.
Source: The Hackett Group, 2008

17. Some elements of a successful forecast
Time Horizon & Process
Update Frequency Management
Agile Models

18. Time Horizon & Process
Update Frequency Management
Agile Models

19. Rolling Forecast = 12 month quartely?
No. It depends on your business!

20. Match the time horizon to the rhythm of your business
Short cycles Long cycles
Industry
Consumer electronics Oil exploration
Retailing Pharma development
Investment banking Infrastructure investment
Plant construction
Function
Advertising
Cash flow Infrastructure investment
Overtime Research & development

21. „Best practice companies
move towards more
frequent & event-driven
updates.“

22. Time Horizon & Process
Update Frequency Management
Agile Models

23. Remember this template?

24. „Simplicity is the ultimate
sophistication.“
Leonardo da Vinci

25. Less is more! Simplify your models

26. Utilize drivers – the language of business
Opportunities
Pipeline
Number of employees
VS. Customer Satisfaction
634172 – Revenue (New Accts)
665891 – Office Supplies (Paper)
665892 – Office Supplies (Pens)
677199 – Gifts, Misc.

27. Revenue?

28. Time Horizon & Process
Update Frequency Management
Agile Models

29. Process management is critical
Wow...there are a
lot of moving parts!
We need to make a
critical decision
quickly!

30. SAP
HR
DW
Update Distribute Aggregate What-if &
Models Models data Optimize
New Load Collect Report &
version Actuals Data Analyze

31. Management Decision
Meetings
Making!

32. Critical elements of the process
Aim for repeatability
Measure the quality
Set strict goals

33. And measure & monitor your process
Forecast Accuracy
Cycle Time
Confidence Levels

34. Summary: Some elements of a successful forecast
Time Horizon & Process
Update Frequency Management
Agile Models

35. Demo goes here

36. Rolling Forecasts – a silver bullet?
No one-size-fits-all approach
Agile models & process required
Technology as enabler
Forecast culture required

37. Next Steps
Analyze your processes
Download our white papers & blueprints
Join the Cognos Innovation Center
Web: www.ibm.com/cognos/innovation-center
Twitter: @ibmcognosicemea

38. Session Summary
The current business environment requires solid
forecasting practices that the traditional approaches do not
provide
Rolling forecasts provide a proven approach for gaining
better business insight in today’s volatile business climate
IBM provides best practices and solutions for implementing
a better forecasting approach