02 — Capability · BC-220.20
Forecasting
Predict the period's outcome while there is still time to change it, updating the view on a rolling cadence from the drivers that actually move the business.
- Rolling Forecast
- Outlook
In scope
- Driver-based forecast models
- Rolling and in-quarter forecast updates
- Scenario and sensitivity analysis
Out of scope
- Demand forecasting for supply planning (see BC-610)
- Cash position forecasting (see BC-230)
Realized by · 2
Used in · 1
Build it · 0
- Nothing in the library points here yet.
Decomposes into · 4
- BC-220.20.10Driver-Based ModelingExpress revenue and cost as functions of a small number of operational drivers, so a change in volume or rate flows through the forecast automatically.
- BC-220.20.20Rolling ForecastRefresh the outlook on a fixed rhythm that always looks the same distance ahead, instead of counting down to a fiscal year-end.
- BC-220.20.30Scenario & Sensitivity AnalysisShow how the outcome shifts under alternative assumptions, and which assumptions matter most, before leadership commits to one of them.
- BC-220.20.40Headcount & Workforce Cost PlanningForecast people cost from positions, rates and timing, since for most organizations it is the largest line and the slowest to change.