If the answer is no, then you need to gather more information. The tornado chart is one of the most useful and easy-to-understand methods to assess confidence in a forecast.
Using a tornado chart, you can assess how much the forecast might change if things go better or worse than anticipated.
You can also assess which uncertainties have the greatest impact on the forecast —those are the very inputs you should research further if the forecast precision needs to be tightened up.
In this ebook we cover the following topics:
- What is a tornado chart?
- Why build a tornado chart?
- How to build a tornado chart
- The tips and pitfalls when building a tornado chart
- How to build a crossover tornado chart
This ebook comes with example Excel files of a completed tornado chart and crossover tornado chart.