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If the rolling forecast tells us we will do better than anticipated, we know what to do next and we know how that will impact the business. By involving front-line managers and personnel in setting expectations, key performance indicators based on those expectations, and using three performance level targets, organizations can move from the fixed performance contract of the traditional yearly budget to the relative performance contract of the rolling forecast. This 12-month rolling forecast helps to bridge the timing gap between the budget and the 10-year strategic plan, allowing the organization a certain flexibility and sensitivity to change to re-allocate resources on the fly if needed |
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