- 1). Align the process used to develop business forecasts with the realistic, rational business risks and current market dynamics. Use market research and analyst reports to make decisions about when certain forecast milestones will be met.
- 2). Set up a rolling forecast, instead of using a static one. Rolling sales forecasts are adjusted as market dynamics change. It's important that business forecasting methods are driven by operational activities and not just numbers in the accounting department.
- 3). Work with your sales, marketing and financial team to set accuracy targets for the forecasts. Instead of setting goals that define failure or success, focus on reaching certain ranges in the forecast, and use those ranges to define its success. This helps change the behavior of the forecasters and can help make them more optimistic.
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