Strategic Forecas�ng FAQs
1 . What is Strategic Forecas�ng ? Strategic Forecas�ng is the process of looking into the future and iden�fying trends and issues against which to align organiza�onal priori�es . The goal of this type of forecas�ng is to analyze all relevant data regarding what will take place if a par�cular strategy is implemented . This typically means aligning resources to the overall higher-level strategy dictated by the most favorable outcomes forecasted .
One a very small scale , here is an example of what that might look like : if there is consensus that a trend away from the use of lead aprons and thyroid collars will con�nue , then PDA might consider assessing whether that could lead to a substan�al need for lead disposal solu�ons and allocate resources accordingly . Conversely , PDA might also avoid alloca�ng resources to a proposed partnership with a supply company whose reputa�on had been built on the sales of lead aprons and thyroid collars .
( Note : A specific strategy may not emerge from every trend or issue forecasted . And generally , the strategies employed by an organiza�on would primarily be applied to more essen�al func�ons that involve more substan�al resources than in this example . But the underlying approach illustrated by this small-scale example would s�ll apply .)
2 . How is strategic forecas�ng different from strategic planning ? To some degree , strategic forecas�ng can be thought of as a different approach to strategic planning . The primary dis�nc�ons are : a . Strategic forecas�ng involves developing a strategy based on a projec�on of how things like markets , economics , technology , demographics , etc . are likely to look in the future . The “ forecast ,” including how different strategies and tac�cs might affect it , drives the decision to employ strategies that appear op�mal given the forecast . This is different from tradi�onal strategic planning that tends to base strategies on past performance or a snapshot of the present situa�on . b . Strategic forecas�ng generally is an ongoing process . Regular / con�nued collec�on and analysis of the same sorts of data collected and analyzed to develop a forecast allows for regular upda�ng of that forecast and , as necessary , the strategies developed from it .
3 . What types of data and analysis are used to forecast ? In general , there are two approaches : quan�ta�ve and qualita�ve . When the quan�ta�ve data are available , forecas�ng is a litle more straigh�orward . One can simply take the exis�ng numerical data and predict a trend based on a straight-line con�nua�on , a moving average , linear regression , or similar techniques . For instance , if registra�on for a con�nuing educa�on event has , overall , increased by an average of 5 % per year , one could simply forecast that to