For decades, companies have insisted upon forecasting as a method of planning for almost every department. New research reveals that could be costing companies more than it’s earning them.
A new study, conducted by the Institute of Business Forecasting and Planning, found the margin of error for companies that forecast and plan for marketing, inventory, sales leads and other core competencies a month in advance is approximately 16%-28%. What’s more? The average company that forecasts a quarter in advance generally experiences a 50% error rate, and the curve only gets worse from there.