How to Select Forecasting Performance Incentives

Published On:
March 31, 2021
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Organizations tend to share the reasonable and simple goals of staying on budget and generating accurate forecasts. But translating those goals into performance measures for finance requires more nuance. Organizations should carefully approach how goals are incentivized so that performance is focused on meeting specific objectives, rather than creating conflicts of interest, encouraging overly idealistic/conservative scenarios, or shifting focus to meeting budgets over excelling in the marketplace.

Excerpted from APQC’s Blueprint for Success: Planning, Budgeting, and Forecasting, this article details how finance can appropriately incentivize performance and includes a real-world example of setting performance goals.