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Rolling forecasts are great for internal management reporting. However, what do you present to the board of directors? (Webinar Attendee Question)

This question was asked by an attendee during the Proformative webinar "New Ways of Looking into the Future - Rolling Forecasts" held on December 4, 2012.

A video of the webinar can be viewed here: https://www.proformative.com/resources/webinar-video-new-ways-looking-future-rolling-forecasts

Answers

Rick Odom
Title: Manager, FP&A
Company: Welch Allyn, Inc
(Manager, FP&A, Welch Allyn, Inc) |

Our Board is presented with the latest forecast when it meets each quarter as part of their overall financial package.

Topic Expert
Patrick Dunne
Title: Chief Financial Officer
Company: Milk Source
(Chief Financial Officer, Milk Source) |

We do use it to present 3 and 5 year plans, but it does get modified if we feel it doesn't properly represent the business.

Bryan Dehmler-Buckley
Title: Director, Product Management
Company: Host Analytics
(Director, Product Management, Host Analytics) |

This is an evolving area. I have seen companies present the Budget for the first month/quarter after the budget is prepared (depending upon frequency of meetings iwth the Board) and then moving forward the forecasts are presented, sometimes with comparisons to the original budget and sometimes not, depending upon the company/BOD's expectations. The trend I see is that more and more companies are moving towards the rolling forecasting approach and even to perpetual forecasting such that there really isn't a true Budget, except in cases where compensation plans necessitate this and companies will designate a plan as the basis for these calculations (this could be a Budget in the strict sense or a forecast designated as the baseline).

Steve Player
Title: Program Director
Company: Beyond Budgeting Round Table
(Program Director, Beyond Budgeting Round Table) |

We see more and more companies moving Beyond Budgeting. The use the rolling forecast with their Board, their bankers, and their management teams. For more see two CFO magazine cover stories from May 2011 "Let It Roll: Why More Companies are Abandoning Budgets in Favor of Rolling Forecasts" at

http://www.cfo.com/article.cfm/14570220

and the follow-up cover story from Sept. 2012 called "Freed from the Budget" at

http://www.cfo.com/article.cfm/14658946

Both articles are by Russ Banham. Additional resources are available at the Beyond Budgeting Round Table site at BBRT.org

Topic Expert
Barrett Peterson
Title: Senior Manager, Actg Stnds & Analysis
Company: TTX
(Senior Manager, Actg Stnds & Analysis, TTX) |

We present our Plan [budget] in December each year, and further present quarterly [updated] forecasts to the board at their quarterly meetings.

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Annual Budget at the beginning of the year (and variance from long term plan)
Periodic results + Amended forecast with variance from budget.

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