Rethinking Financial Forecasting: Why Agility Beats Accuracy in an Uncertain World
Gideon Struwig,
Engagement Lead at Decision Inc.
Why Traditional Forecasting Just Doesn’t Cut It Anymore
Let’s be honest – old-school financial forecasting just isn’t built for today’s pace of business. Relying on spreadsheets and rigid processes, locked away in finance, doesn’t help when you’re trying to respond to unexpected shifts or make smart calls on the fly.
CFOs and finance leaders are feeling the heat. They’re being asked to spot risks earlier, adapt faster, and guide their companies through constant uncertainty. But forecasting today isn’t just about “getting the numbers right”- it’s about enabling better, faster decisions across the entire business.
At Decision Inc., we see forecasting as something that needs a reframe. It should move away from obsessing over historical accuracy and instead become a forward-focused capability rooted in agility, teamwork, and real business impact. That’s what extended planning and analysis (xP&A) is all about.
The Forecasting Trap: Accuracy versus Agility
Many organisations fall into a trap of chasing the “perfect” forecast. Long hours are spent reconciling data, validating assumptions, and building complex models, only for the results to be rendered outdated by the time they are presented.
In a world of supply chain disruptions, regulatory shifts, and rapid market changes, late insight cost is greater than the cost of being a little bit off.
Today’s forecasting should be iterative, scenario-based, and intimately tied to operational drivers. The aim is not a perfect prediction but a timely, informed view that helps leaders pivot quickly and allocate resources effectively.
From Finance-Owned to Business-Driven
The most forward-looking finance teams now assume a genuine business-partnering stance. Forecasting can no longer be undertaken by Finance alone-it has to become a joint effort among Sales, Operations, HR, and Supply Chain.
With xP&A, we assist our clients in building integrated planning processes that unite financial and operational data in one platform, enabling teams across the business to participate in the forecast, build consensus around common assumptions, simulate the decision impact, and evaluate alternatives prior to actual decision making.
Enabling the Shift: Three Key Changes for Modern Finance
1. Real-Time Data and Technology:
Imagine if your finance team could stop chasing down spreadsheets and start focusing on what really matters. With cloud-based planning tools like Workday Adaptive Planning and Board, that’s now possible. These platforms let you forecast in real time, so you spend less time gathering data and more time understanding what the numbers actually mean for your business.
2. Scenario Modelling:
Today’s top companies aren’t just asking, “What will happen?” They’re asking, “What could happen?” Scenario planning lets you explore all kinds of possibilities, from best-case growth to unexpected downturns, so you can make decisions with greater confidence, no matter what the future holds.
3. Rolling Forecasts Over Annual Budgets:
The days of setting a budget once a year and hoping for the best are fading. More and more, organisations are moving to rolling forecasts that update every month or quarter. This approach means your financial plans can adapt as your business evolves, keeping you aligned with what’s actually happening on the ground.
Forecasting: Your Secret Weapon, Not Just a Finance Task
At Decision Inc., we believe forecasting shouldn’t just be something the finance team does behind closed doors; it should be a powerful, strategic tool that drives your whole business forward. We work alongside CFOs and finance teams to make forecasting a strategic capability, one that supports smarter decisions, fosters collaboration, and gives leaders the confidence to act fast when it matters most.
What does that look like? It means making sure your planning cycles fit your business strategy, giving leaders real-time insights so they can make smarter choices, and building a culture where flexibility and adaptability matter more than sticking to old routines.
Put simply, forecasting is no longer just a finance checkbox. It’s a real business advantage. The companies that embrace agile, connected, and insight-driven forecasting aren’t just keeping up, they’re setting themselves up to thrive, no matter what tomorrow brings.
Let’s Rethink Forecasting Together.
If you’re ready to shift from reactive forecasting to something more strategic and forward-looking, we’re here to help. As trusted partners for Workday Adaptive Planning and Board, we’ve helped organisations across industries unlock the full potential of xP&A. Let’s connect-we’d love to show you what’s possible.
