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HOW WE HELP - Rolling Forecast

Rolling Forecast Implementation

  Introduction  
  Led an effort to design and implement a Continuous Planning/Rolling Forecast process.
 
  Description  
  Our client, in the pharmaceutical industry, wanted to implement a Rolling Forecast. With their previous planning process, the annual plan was finalized and essentially not referred to again during the year. At year end, a report was issued comparing plan versus actual results, but only Senior Management received the report or had interest in it. In essence, the plan became "credenza-ware". To address this, the company wanted to implement a Rolling Forecast. The team assessed both a four quarter and six quarter rolling forecast, but chose to implement the four quarter approach since the reliability and credibility of a six quarter projection for this company was doubted. Each division and functional area developed a driver model to forecasts Revenue and Costs.These models were reviewed and refined by the redesign team before going into production. Using assumptions for each driver (some of which were developed centrally) the forecasts were developed. During the last month of each quarter, the company projected the next four quarters ahead.  
  Results  
  The annual planning process was eliminated, and managers took a more vested interest in the planning process.
 



 
  SOFTWARE SELECTION
  REDESIGN
  BALANCED SCORECARD
  BUTTONWOOD VP
  ROLLING FORECAST
  SOLUTION SELECTION
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