|Next

PRESENTATION TITLE
Level Planning: From
Budgeting to Forecasting|
Giovanni Allegrini & Pavel Klebanov
 |AGENDA|

Why do we Forecast?

Forecasting Logics/Methodologies

Product Demonstration

Case Study/Best practices from the field

Next: The Importance of Rolling Forecasts

Questions & Answers

 |Why do we1Forecast?|
CHAPTER TITLE
"Business, more than any other occupation, is a continual dealing with the future; it is a
continual calculation, an instinctive exercise in foresight."
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--Henry R. Luce (1898–1967), US publisher 
Source: Quoted in The Leslie Pockell 101 Greatest Business Principles of All Time (2004)

"If you have to forecast, forecast often. “

--Edgar R. Fiedler in The Three Rs of Economic Forecasting-Irrational, Irrelevant and Irreverent , June 1977.
 |Forecasting Logics|
Time horizon:
• Within the current year
• Rolling 12/18/24 months logic

Level of Granularity:
• Detailed – as granular as the initial Budget (more effective in the short term)
• Aggregated – grouped at a higher level (tend to be more accurate in the long term)
• Combination of both!

Methodology:
Actuals for the closed months + Projections for the open months
The open months could be:
• coming from the original budget or a prior version of the forecast (which we recommend)
• could be populated so that the annual total always equals the annual budget (Hold the annual total)
• could be populated to reflect the expected trend for the future, not necessarily staying within the initial budget. (Hold to-
year)
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CHAPTER TITLE
|Product Demonstration|
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 |Case Study|
1
Customer1
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• Forecast model is used to pre-populate the forecast scenario starting from the actual data and the latest
forecast on a monthly basis
• Not all the actual data is ready before the forecast is started
• Users start inserting their data after the first pre-population
• Forecast model has been defined with the «delete forecast origin» option, and scheduled to be run on a
daily basis
• This functionality allows to update the actuals data without deleting the user’s data entry, because this data
has a different origin
 |Case Study|
Customer2 1
Forecast model has been customised for this client:
CHAPTER TITLE
• The client request was to have the «annual data» option of the forecast model, but with a custom spreading
• This option is normally spreading evenly the difference between the FY Budget and YTD Actual in the
«open» months
• This client needs to spread this difference according to the previous «weights»:
 |NEXT 1STEPS|
Join Paolo CHAPTER
Angeli to LearnTITLE
more about
Rolling Forecasts just
Write here after Lunch:
a subtitle

1:30 PM – 2:20 PM
|Wave of the Future: The Importance of Rolling Forecasts|
Viger A (Lower Lobby)
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CHAPTER TITLE
|QUESTIONS & ANSWERS|
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|NAME SURNAME | |Pavel Klebanov|
Job Title Solutions Specialist
| COMPANY | | CCH Tagetik |
email@mail.com pavelklebanov@tagetik.com
P +00 123 456789 P 1(860)748-6390