Planning with 97% accuracy
Many best in class companies can forecast with 97% accuracy. This isn’t because they have a simple businesses, smarter people or luck on their side.
Their operational plans are aligned to the business strategy. Their success comes from forecasts built from the ground up by teams from all parts of the business – Marketing; Operations; HR; Finance; Logistics etc.
Their individual plans are integrated with shared drivers and assumptions to achieve a common view of the expected volumes, rates and mix of business coming towards them. Changes in one plan flow effortlessly through to other plans.
The information becomes easy to analyse and executives can play with different what-if scenarios until they find the forecast that maximises their margins and growth – at the acceptable level of risk.
Without this way of working, your budgets will become meaningless by month 4 of the financial year. You will remain a reactive fire-fighting business