Forecasting Practices in US Corporations: Survey Results

By surveying current forecasting practices at 500 US corporations, we explored the reasons managers rely heavily on judgmental forecasting methods and attempted to identify what needs of practitioners are not met with current procedures. Although managers are more familiar with quantitative forecasting methods than in the past, the level of usage has not increased. Practitioners continue to rely largely on judgmental forecasting methods. The major obstacles cited to the use of formal forecasting are lack of relevant data and low organizational support. Further, when quantitative forecasting methods are used, they frequently are judgmentally adjusted. Most practitioners prefer a bias in the forecast that is related to the organizational reward system.