How well does your organization forecast its cash flow needs? We look at cashflow forecast accuracy from the project level, and aggregate spends and forecast data up to the portfolio. Grouping and the filtering the data across business units or divisions and project types to leads to better understand the forecasting capability of the organization and to identify causes or unanticipated spends.

1. Capital Projects Efficiency
Capital Expense Forecasting
Accuracy

2. 2
Capital Expense
Forecasting
Accuracy
How well does your organization forecast its cash flow needs? We
look at cashflow forecast accuracy from the project level, and
aggregate spends and forecast data up to the portfolio.
Grouping and the filtering the data across business units or divisions
and project types to leads to better understand the forecasting
capability of the organization and to identify causes or unanticipated
spends.

3. Capital Expense
Forecasting
Accuracy
In some cases, these metrics are developed as an instantaneous
snapshot of a company’s capital program. The process is insightful and
helps to identify gaps in a how a capital program operates and
recommendations to close those gaps.
While helpful, an even greater value can be derived from a metrics
program that uses recurring snapshots to build trend profiles on the
metrics over time.
This gives an organization a strategic opportunity to evaluate the
impact of performance improvement initiatives as well as a tactical
opportunity to anticipate and address unfavorable conditions and
mitigate against lapses in capital efficiency.

4. 4
Capital Expense Forecasting Accuracy

5. About the author
Michael Goggin is a Director at Enstoa. His passion for analysis is grounded
in data and aims to uncover actionable intelligence in Capital Programs.
Connect with Michael here.
Read Key Metrics & Predictors for more insights.
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