Publication | BRG CFO Solutions
Insight of the Week: Forecast Accuracy Scorecard
We’ve previously addressed forecast accuracy as an important area to evaluate. Once you know it’s an issue, how do you go about fixing it?
The scorecard not only allowed efforts to focus on areas that mattered most, but helped to set expectations, establish confidence intervals, and identify variance drivers to inform decision making.
Once this client identified an issue with its forecast accuracy , each business unit was evaluated by line item and region to pinpoint the cause of the variances and determine next steps.
Moreover, understanding forecasting effectiveness can also help better align forecasting processes and drive data/systems thinking to tighten data standards.