Business forecasting has always been challenging. Amid the fallout from COVID-19, it has become even more difficult—and critical. To set strategy and retain the support of shareholders and other stakeholders, CFOs must be able to see through the fog, determine where their business is heading, and chart a plausible path through the current economic situation.
Already, many finance executives are finding their existing tools, processes, and capabilities inadequate for the task—too slow, too cumbersome, and too inward focused. They simply aren’t set up to rapidly account for the many new external factors and data points that must be factored into their forecasts—variables that didn’t exist at the start of this year but have suddenly become indispensable for determining what COVID-19, and its massive slowing of the global economy, will mean for their organization in the weeks and months ahead. But there is a clear way forward.