Gartner Group Europe: An Excel Sales Forecasting System Rolled Out Globally
Wiseworth Financial Modelling and Advisory designed, built and deployed an Excel-based sales forecasting system for Gartner Group Europe. It replaced a manual process that took a fortnight to consolidate up to region and country level. The system improved the accuracy, detail, speed and frequency of European sales forecasting, and was subsequently rolled out globally.
FAST FACTS
Client: Gartner Group Europe
Location: London, United Kingdom
Services: Sales forecasting system design, build and deployment
Built in: Excel and Visual Basic for Applications
Outcome: Improved forecasting accuracy, detail, speed and frequency, followed by global rollout.
ABOUT THE CLIENT
The Gartner Group is a global technology research and consulting firm with a strong presence in Europe.
THE CHALLENGE
Gartner had a large sales force, but it was inhibited by a manual sales forecasting system that took a fortnight to consolidate up to region and country level.
A two-week consolidation cycle sets a hard limit on how a business can be run. By the time the numbers reach the people making decisions, they describe a position that has already moved. Forecasting can only happen as often as consolidation allows, so the reporting cadence, rather than the business, decides how current the view is.
Gartner needed a consistent and accurate view of potential sales and revenue across the fiscal year, delivered in a form the sales organisation would actually use.
WHAT WISEWORTH BUILT
Wiseworth was engaged to design, build and deploy an Excel-based global sales forecasting system, implemented using Microsoft Excel and Visual Basic for Applications.
The design work came before the build. Mark Jeanes had to rapidly gain a detailed knowledge of Gartner's business model and how best to report it in a meaningful manner. As Alister Christopher, Group Vice President, put it, the value was less in the Excel and VBA capability than in the ability to understand and interpret business requirements, question them in the first instance, and then design the system to meet them.
That sequence matters on a project of this kind. A forecasting system built to a stated requirement automates whatever process already exists, including its faults. Questioning the requirement first is what allows the system to fix the underlying problem rather than accelerate it.
THE RESULT
The system improved the accuracy, detail, speed and frequency of Gartner's European sales forecasting processes, allowing upper management to make better-informed business decisions.
It was successful enough that Gartner rolled it out globally.
The consolidation cycle was reduced to two days, against the original fortnight, significantly reducing administration costs and increasing business responsiveness.
IN THE CLIENT'S WORDS
"Mark undertook a project to help Gartner Group Europe define and then implement a business forecasting model, with the objective of providing us with a consistent and accurate view of our potential sales and revenue over our fiscal year.
In order for the project to be a success, he had to rapidly gain a detailed knowledge of our business model, and how to best report this in a meaningful manner.
It became apparent very quickly that he not only had a very good understanding of Excel and VBA, but, far more importantly to us, he had great ability to understand and interpret business requirements in such a way as to question them in the first instance, and then design the system to meet, and often exceed, our expectations."
Alister Christopher, Group Vice President, Gartner Group Europe
FREQUENTLY ASKED QUESTIONS
What is a sales forecasting system?
A sales forecasting system collects forecast inputs from a sales organisation and consolidates them into a single view, usually by territory, region and country. It answers what the business expects to sell across a defined period, and how confident it is in that number.
Can Excel support forecasting across a large sales force?
Yes. The Gartner system was built in Excel and Visual Basic for Applications, deployed across a large European sales force, and later rolled out globally.
How does a forecasting system improve on manual consolidation?
Manual consolidation sets the reporting cycle, so the business can only forecast as often as it can consolidate. Automating the consolidation shortens that cycle, which allows more frequent forecasting and a more current view for the people making decisions.
What is the difference between a forecasting system and a financial model?
A financial model projects the financial position of a business from a set of assumptions. A forecasting system collects and consolidates forecast inputs from across an organisation. Some engagements need one, some the other, and some both.
Who builds the model?
Mark Jeanes builds every Wiseworth model personally, from the first assumptions sheet to the last balance check. He spent 20 years at NAB, ANZ, Banque Paribas and Deutsche Bank before founding Wiseworth.
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