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<\/p>\nIn this post we\u2019ll be looking at forecasting. We\u2019re not talking about big three-year financial forecasts. We\u2019re talking about operational forecasting. We\u2019re talking about understanding what\u2019s coming up in terms of workforce demand, because whether that\u2019s the next six weeks or the next six months, forecasting is key to ensuring consistent service delivery for your customers.<\/p>\n
A business delivering competitive advantage will have an excellent operation with the skills, knowledge and the discipline to be able to add value for commercial gain whilst delivering exceptional customer experience \u2013 forecasting is a critical component in achieving this.<\/p>\n
If you\u2019re not producing regular forecasts, your operation will most likely be in a reactive position with a continual short-term outlook. It\u2019s likely you\u2019ll be facing sudden and varied challenges as demand for work fluctuates, and you may find the operational journey ahead challenging, with a fair degree of pain and frustration along the way.<\/p>\n
Forecasting is about the control and marshalling of resources within your operation. Forecasting \u00a0enables managers to develop meaningful plans and so reduce the level of uncertainty and negative impact around future demand . Managers need to match workload demand with supply of skilled resources, so it\u2019s essential for them to have accurate insight. Forecasting is a critical component of an effective, cost-efficient and customer focused operation.<\/p>\n
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Demand needs to be understood at the true end to end process levels and the activities that it consists of at a granular level based on task level received volumes. Then be clear on the drivers, what is really causing your demand to arrive.\u00a0Then its clarity and control of resources. This typically manifests itself as a disparity between teams in terms of their resourcing. We\u2019ve seen teams with ten people doing two people\u2019s work, while next door there\u2019s a team of three struggling with the workload of eight.<\/p>\n
The old adage of the right tool for the right job is very apt. For effective forecasting, you need a powerful and flexible software tool which forms the data foundation of your operational decision-making. You need a software system that enables you to build forecasting models based on historical data, and to develop longer range forecasts to allocate resource in line with projected new business volumes. You need to be able to heat map to quickly identify resourcing issues and re-allocate for the short term. These are just some of the features you should be looking for in a forecasting software solution.<\/p>\n
However, before implementing a new software solution you must first understand your operation and your teams. Gaining clarity on resourcing and processes is essential if you\u2019re to customise software so that it fits neatly into your operation. For effective forecasting, you can\u2019t just have any old tool \u2013 you need the right tool with ownership held with the team managers who should be undertaking this activity and reporting so the senior management team have transparency.<\/p>\n
![](\"https:\/\/dhp.co.uk\/wp-content\/uploads\/2019\/04\/Operational-forecasting-software.jpg\")
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To forecast effectively, you must be in control of your operation, and that\u2019s exactly where you must start. Analyse how work comes in, how it\u2019s measured, and how it\u2019s completed . Explore how resources are aligned with demand, and gain clarity of the fundamental drivers and levers within your operation. Only when you understand all this, can you successfully implement a software system that will produce accurate, consistent forecasts that give you the confidence to make sound decisions. Software is a critical part of the solution, but is not a solution by itself. Be wary of providers who promise that a piece of technology on its own is the solution to your forecasting challenges.<\/p>\n
Most CEOs will be accustomed to forecasting around growth and profitability. Yet these financial forecasts need to be underpinned by operational forecasts, otherwise you won\u2019t know whether you have the operational capacity to deliver your financial goals. So operational forecasting plays a key part in supporting a business\u2019 financial goals as well as providing increased confidence that your operation can support your ambition.<\/p>\n
If you\u2019re driving along the road to growth and profitability, you need to be clear on the route you\u2019re taking, and totally focused on the road ahead. For most of us, sat navs have simplified journeys enormously. They re-plan our route if we make a wrong turn, they provide updates on traffic hotspots and they let us know the fastest route to our destination.<\/p>\n
Forecasting is your business\u2019s sat nav \u2013 planning the best route, providing a timely warning of any obstacles ahead, and giving you the flexibility to quickly and efficiently change your route if you\u2019re objective shifts. Yet to be certain that the route you\u2019re taking is the right one, you need to take a more holistic approach by ensuring that your financial forecast is underpinned by your operational forecast.<\/p>\n","protected":false},"excerpt":{"rendered":"
In this post we\u2019ll be looking at forecasting. We\u2019re not talking about big three-year financial forecasts. We\u2019re talking about operational forecasting. We\u2019re talking about understanding what\u2019s coming up in terms […]<\/p>\n","protected":false},"author":2,"featured_media":2365,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[200],"tags":[56],"yoast_head":"\n