In today’s dynamic business landscape, a static annual budget simply doesn’t cut it. Businesses need agility and the ability to adapt to changing market conditions. Enter rolling forecasts – a continuous planning process that allows you to stay ahead of the curve. This blog post will explore how to leverage Workday Adaptive Planning to build effective rolling forecasts, maximising the benefits for your organisation.
Table of Contents
Building a Solid Foundation
Workday Adaptive Planning streamlines the process of creating rolling forecasts, but a strong foundation is crucial. Here’s what to keep in mind:
- Leverage Existing Structures: Start by utilising your current budget’s structure, accounts, and formulas. This provides a solid base for your rolling forecast.
- Review Assumptions and Drivers: Revisit the assumptions and drivers built into your budget. Ensure they’re relevant for the extended timeframe of your rolling forecast, particularly regarding personnel taxes and on-costs.
- Accounting for Time: When creating forecasts, consider period measurements like working days and public holidays to ensure accurate projections throughout the year.
- Identify Data Sources: Pinpoint the modelled sheets you’ll rely on for your rolling forecast. Verify that the source data feeding these sheets is up-to-date.
- Automate Updates: Utilise Workday Adaptive Planning’s integration loaders to automate data updates for key sheets like Personnel and CRM information. This reduces errors and saves valuable time.
- Version Control: Maintain distinct versions of your rolling forecasts for accurate comparisons and what-if analysis. This allows you to track changes and assess the impact of different scenarios.
- Versioning for Transparency: Create a copy of your current forecast to act as the base for the next version. Maintain separate versions for each forecasting cycle to track changes and identify trends clearly.
Unlocking the Benefits of Rolling Forecasts
Rolling forecasts offer a multitude of advantages over traditional budgeting approaches:
- Enhanced Business Agility: Rolling forecasts provide greater transparency into emerging trends, both positive and negative. This allows businesses to react swiftly to opportunities and mitigate potential risks.
- Continuous Planning & Adaptation: With rolling forecasts, you can continuously plan, forecast, and adapt to changing market conditions. This ensures your strategies remain relevant, keeping your organisation ahead of the competition.
- Improved Resource & Cost Management: Rolling forecasts enable ongoing analysis of your financial position, facilitating more effective resource allocation and cost optimisation. This ensures you make the most of your resources without unnecessary expenditures.
Choosing the Right Rolling Forecast Approach
Workday Adaptive Planning allows you to build rolling forecasts customised to your needs. Here are two primary approaches to consider:
- Current Financial Year Model: This approach focuses solely on the remaining months of your current financial year. It’s ideal for scenarios with less emphasis on long-term planning.
- Continual Rolling Forecast: This method extends your forecast into the following financial year, providing greater visibility for long-term planning.
- Combined Approach: The most common approach combines the current financial year model with continuous rolling forecasts. This offers a balance between immediate needs and long-range vision.
Conclusion
Building rolling forecasts with Workday Adaptive Planning empowers your organisation with agility and adaptability in a dynamic market. By leveraging the key considerations outlined above and selecting the most suitable approach, you can gain valuable insights to make informed decisions that drive success.
