Ten Prescriptions For Forecasting Sucess

TEN PRESCRIPTIONS FOR FORECASTING SUCCESS By Mark J. Lawless Forecasts that are easiest to be accepted are those which fit with the management goals ... it is important to match the forecasting model not only to the data or situation but also to the culture of the organization for which forecasts are being prepared ... forecasters are now entering into new areas of exploration where both uncertainty and risk are high. Since the demand for forecast services is a derived demand, it is important that forecasters understand and adapt to the changing need of those who create the demand. In order to understand and adapt, it is wise to consider the factors which are changing the expectations for performance of those who use the forecast. Forecasts are used as a part of the management decision and control processes, which in turn are a part of the larger effort (and responsibility) of the management to create value for the shareholders or other constituent groups. More than ever before, managers are being measured and rewarded based upon their ability to create acceptable business returns for their investors, and continue to add value in a market environment which is becoming more ...