Hi all

I need to submit targets for forecast KPI's and was wondering what other's might have (if you don't mind sharing) in this regard? The frequency is broken down to weekly, monthly and annual. I have managed other teams where a overall % was target (eg 5% daily), and others where there is a % of intervals that need to be less than the target (eg 90% of 15 min intervals less than 5% variance). Any thoughts?

Cheers
Soph

Sophie, the targets for forecast variance should be focussed on business strategy, but should include a measure at all levels of detail to promote accuracy.
Be aware that your targets should reflect the number of calls you receive... a 5% variance is easily achievable at 1m calls per week, but nearly impossible at 100...

Companies like O2 work on a daily variance of 5%, whereas Nuance Communications work to 10% weekly.

What is going to drive the right behaviours in your business?

Its advised to use MAPE of 5% as forecasting threshhold(which is stringent). I suggest to use 3 different thresholds such 5%, 10% and 15%. Forecasting accuracy threshold is also based on how much can be achived using the given factors. If the factors are uncontrollable then no point in keeping a stringent target.

I would always use 3 thresholds to gauge the performance and push for better one everytime.