| Most financial executives use some form of rolling | | | | The survey also showed that two-thirds of |
| forecast to guide their financial planning and budgeting | | | | respondents who use rolling forecasts utilize a basic |
| efforts, but do so in rudimentary fashion, employing | | | | 12-month time horizon, when 15 months or more is |
| mostly manual business performance management | | | | actually preferred. And nearly one-half of respondents |
| processes and spreadsheets that inevitably fail to | | | | use only spreadsheets for financial forecasting, while |
| deliver the accuracy and manageability they are | | | | an additional 21 percent use custom applications built |
| seeking. | | | | around spreadsheets. Less than one-fourth use a |
| A recent survey of more than 320 senior finance | | | | dedicated financial planning, budgeting and forecasting |
| executives in North America and Europe showed that | | | | application, such as Cartesis Planning, or a fully |
| over 68% of companies have developed and | | | | integrated business performance management |
| deployed rolling forecasts. However, most of these | | | | software solution, such as Cartesis 10.Steps to Better |
| executives still feel they need to improve the accuracy | | | | Budgeting and Rolling Forecasts |
| of their financial forecasts as well as the time it takes | | | | In order to help companies address the financial |
| them to produce these forecasts. | | | | forecasting and budgeting challenges discussed above, |
| The study, conducted in September 2006 by CFO | | | | Cartesis recommends a pragmatic approach. The |
| Research Services (Boston, MA) and Cartesis also | | | | approach ensures that early wins will save time and |
| showed that: | | | | money, which can be later "spent" on additional |
| - Companies need better forecasting methods, which | | | | improvements that create long-term value. |
| solutions such as Cartesis Business Performance | | | | Quick wins through automation -- The use of planning |
| Management software can provide. These solutions | | | | and forecasting applications, such as Cartesis Planning, |
| allow the expanded use of operational drivers, better | | | | enables companies to automate processes and |
| what-if scenario creation and increased collaboration | | | | reduce reliance on spreadsheets for immediate |
| throughout the forecasting process | | | | benefits. |
| - Finance executives -- hampered by a shortage of | | | | Ease of use as a priority -- Rolling forecasts are |
| time and resources -- endorse an incremental | | | | simple to create, even for multi-year horizons; forecast |
| approach to changes in their forecasting technology | | | | templates adjust to each business unit; and |
| and business processes | | | | benchmarking and what-if analysis are easy, enabling |
| Forecasting With a Moving Horizon | | | | managers to better predict and measure business |
| The manner in which a company forecasts its financial | | | | performance. |
| and operational activities is a key factor in how | | | | Collaboration with flexibility and control -- Collaboration, |
| efficiently and effectively that company can allocate | | | | made easier with workflow management, results in |
| its resources, make investments, guide shareholders | | | | forecasts that are more accurate and aligned with the |
| and achieve and measure results. Finance executives | | | | corporate strategy. |
| in the survey agreed that better forecasting would | | | | Adaptive financial planning for continuous change -- |
| lead to tangible benefits, such as reduced risk and | | | | Adaptive planning involves continuously improving the |
| increased profitability. | | | | planning process to capitalize on previous gains. |