“Ability To Forecast Results” Is #1 Concern of CFOs
So says the April, 2009 CFO magazine. I guess this is not shocking news, given the economic and financial turmoil we have been through in the last year. And anecdotal evidence from suppliers of scenario planning services indicate demand is on the rise. People specializing in predictive analytics and predictive modeling are certainly in big demand.
Uncertainty, above all, is weighing on CFOs and financial markets alike. The ability to forecast results ranks as finance chiefs’ number-one concern about their own companies. Unsure about the economy, the strength of their own customer bases, and their ability to access capital, many finance executives are putting all investment plans on hold.
And what are companies doing about uncertainty and low visibility?
Schrader, too, says that his management team is reevaluating some aspects of the business. “We’re having more-frequent internal meetings with senior management and operating heads, discussing whether we should be developing some early-warning metrics and whether we are adequately anticipating potential risks to the business.
“…discussing whether we should be developing some early-warning metrics…”
Sounds like a good application for a prediction market. If the company had a 1) independent, 2) diverse, and 3) decentralized workforce, I would recommend a wisdom of the crowds approach. So how about using the market inside the organization? It’s like getting returns from a hidden asset (your people), using a muscle you didn’t know you had.
