Jul 30 2021
Sales Forecasts – Part 2. More About Evaluation
The lively response to last week’s post on this topic prompted me to dig deeper. First, I take a shot at clarifying the distinction between point forecasts and probability forecasts. Second, I present the idea behind the accuracy metric for probability forecasts that Stefan de Kok recommends as an alternative to the WSPL. Finally, I summarize a few points raised in discussions on LinkedIn and in this blog.
All of this is about evaluating forecasts. We still need methods to generate them. There are many well-known, published methods for point forecasts but not for probability forecasts, particularly for sales. This is a topic for another post.
Jul 31 2021
Follett in 1924: Use Operators’ Knowledge
Almost 100 years ago, Mary Parker Follett wrote: “And our aim in the […] organization of industry should be […] so to organize the plant that the workmen’s experience can be added to that of the expert; we must see just where their experience will be a plus matter, and we must plan to have the workmen learn more and more of the industry as a whole.”
Source: Follett, M. P. (2013 reprint). Creative Experience. United States: Martino Fine Books. (p. 20)
Michel Baudin‘s comments: Today, we would say “manufacturing” rather than “industry,” and “operator” rather than “workmen.” This is the earliest text I have seen that recommends engaging shop floor operators in improvement activities and training them to understand the broader picture.
Taylor wanted to control operators so that they couldn’t collude to curtail output. The Gilbreths wanted to make their work easier. Follett wants to tap into their knowledge and combine it with the experts’ in order to achieve better outcomes. And she also believes in their ability to learn.
In these few words, she showed more respect for the humanity of the operators than I recall seeing from her immediate precursors and contemporaries.
#maryparkerfollett, #respectforhumanity, #traceyrichardson
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By Michel Baudin • Press clippings • 5 • Tags: Respect for Humanity, Respect for People