Forecasting is a critical aspect of portfolio management, and accurate forecasting can help ensure that your project is completed on time and within budget. Developers and project owners often struggle to forecast costs and timelines for a single project; it’s very difficult to forecast across a portfolio of developments.
Here are some best practices for improving forecast accuracy:
- Use historical data: Use historical data from previous projects to create a baseline for forecasting future projects. Incorporate external factors: Incorporate external factors, such as market conditions, economic indicators, and weather patterns into your forecast to account for potential changes in the project environment. Incorporate external factors, such as market conditions, economic indicators, and weather patterns into your forecast to account for potential changes in the project environment.
- Use technology to create a common data environment: A common data environment is a centralized location for using and managing all project information, leading to improved collaboration, traceability, and efficiencies.
- Create a portfolio dashboard: See project updates and documentation in one location. Readily access project KPIs and key information.
- Continuously monitor and update: Continuously monitor and update your forecasts as new data becomes available. Make adjustments as necessary to ensure that your forecasts remain accurate.
- Communicate with stakeholders: Communicate with stakeholders, including contractors, engineers and funders to ensure that they understand the forecast and any potential risks or challenges.
- Use expert judgment: Use expert judgment to supplement your forecasts, by involving key stakeholders and domain experts to provide their insights and knowledge.
By following these best practices, you can improve your forecast accuracy and make better-informed decisions about your project.