The Great Game of Business Blog

Serious about Forward Forecasting

Written by The Great Game™ Team | Aug 4, 2010 1:58:32 PM

 

 

 

 

At The Great Game of Business we have the opportunity to meet lots of interesting and passionate people.  Some time ago I had the opportunity to have a conversation with someone interested in Open-Book Management in a very unique business: outfitting new museums and airports with their final architectural finishes.

After learning more about his business it was clear to me that Joel really understood the power and need for forward forecasting in business.  Forward forecasting – actually using your knowledge about the history of your business, what’s happening with your customers and in the marketplace, to predict future financial outcomes is something many organizations struggle with when opening the books.

In Joel’s business, contracts are locked in five years in advance and their work actually begins in year five.  That’s serious forward forecasting.

Every business is different and many businesses have less concrete visibility on their future.  Joel’s story has stuck with me all these years because it was so different and because he was such a passionate person.  I think as you get to know more people in the Great Game Community you will see the same thing.

Does your organization practice forward forecasting? What benefits and challenges do you see?