What are the key components of a successful rolling forecast?

1 Purpose and scope

Before you start your rolling forecast, you need to define its purpose and scope. What are the main objectives and outcomes you want to achieve with your forecast? How often will you update it and for how long? What are the key drivers and assumptions that will influence your forecast? How will you measure and monitor your progress and results? These questions will help you set the direction and scope of your forecast and align it with your strategic plan and vision.

2 Data and models

The next component of a successful rolling forecast is the data and models you use to generate and analyze your projections. You need to ensure that your data is accurate, reliable, and consistent across different sources and systems. You also need to choose the right models and methods that suit your business context and needs. For example, you can use top-down or bottom-up approaches, or a combination of both, depending on the level of detail and granularity you require. You can also use different scenarios and sensitivity analysis to test your assumptions and explore various outcomes.

3 Tools and technology

Another component of a successful rolling forecast is the tools and technology you use to support and streamline your process. You need to have the right software and platforms that can automate and integrate your data collection, consolidation, and reporting. You also need to have the right tools and features that can enable you to create and modify your forecast easily and quickly, such as dashboards, charts, and templates. You also need to have the right tools and capabilities that can facilitate your collaboration and communication with your stakeholders, such as cloud-based solutions, alerts, and comments.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?