Long Term Forecasting

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Long-Term Monthly Forecasting
The objective of monthly forecasting is to give the operations “directionally correct” information. What does that mean?

Well, it means you don’t spend a year trying to build a super-accurate forecast. You can get there over time. Instead, you focus on what you can, build quickly and provide some insights into how many Full Time Equivalents (FTEs) you need compared to how many FTEs you have or plan to have.

An FTE is the equivalent of one person working full time. The actual number of hours may vary by region. In the US, an FTE is 40 hours per week. The gap between what you have and need is what the operations needs to solve for.

Your monthly forecast should drive your hiring and staffing plan. This is the goal of this process. If your monthly forecast doesn’t ultimately position you to feed into a hiring plan, then it’s missing the mark.