The High-Involvement Method for Improving Financial Performance
Assuring that the time and money spent on Forward Forecasting yields greatly improved financial performance is certainly one of the primary results expected from this process. A key element of financial Forecasting success is the involvement of the right people regardless of functional area, organizational position or geography.
Here are four tips that will help make your Huddling process “financially” effective:
- Create Huddling rhythms that meet the needs of the organization. Careful attention to the design of the Huddling process will help yield the most favorable results. The Huddle must be at the right time in the business cycle, involve the correct participants, have access to accurate information and should spend 80% or more of the effort looking forward.
- Strategically configured “pre Huddles” and “post Huddles” not only create broader involvement but assure that the primary forecasting Huddle is equipped with relevant, up-to-date forecasting information.
- Although the Huddles should spend the vast majority of the time talking about the future, the process is a very good place to report and record important performance data from the prior week (overtime hours, tons produced, sales calls made, etc.).
A key point to remember is that although “ready, fire, aim” is the preferred way to get the forecast Huddling process going, over time the whole effort needs to be constantly reviewed and altered to meet the changing needs of both the attendees and the organization.