Benchmarking forecasting practicesin Corporate America

BENCHMARKING FORECASTING PRACTICES IN CORPORATE AMERICA By Chaman L. Jain, St. John’s University Starting in 2002, we have been updating the forecasting practices in corporate America annually. This is the fourth update. Benchmarks are basically averages — average forecast error, average salary in the forecasting profession, average background of a typical forecaster, and so on. Benchmarks can help in two important ways. First, a benchmark encourages you to find out where your company stands and, second, you can see how it compares with other companies. If your company is doing below other companies, then the mission is clear. Something has to be done to bring your forecasting up to the industry level. If it is at par with other companies or above them, then you may like to raise the bar. Benchmarks given in this issue are based on the survey conducted by the Institute of Business Forecasting (IBF) at the five forecasting conferences and tutorials held in 2005 in the United States. The participants who attended the forecasting conferences and tutorials were forecasters or had plans to become one. Of these participants, 67% of them came from companies with sales revenue of $500 ...