eThesis - Kauppakorkeakoulun sähköiset gradut

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Objective of the Study

The objective of the study was to examine the role of internal communication in the rolling forecast process. The study analysed the role of internal communication through four research questions: 1) What communication practices are connected with the rolling forecast process? 2) Which organisational attributes influence the internal communication climate in the rolling forecast process? 3) How is management and strategic communication incorporated in the rolling forecast process? and 4) How does the rolling forecast process influence the communication lines in the organisation?

Methodology and Theoretical Framework

The qualitative case study was chosen as the research strategy. The data consisted of eight theme interviews conducted in four companies with business professionals involved in financial forecasting process. The data collection and analysis concentrated on key themes, which emerged from existing literature. The starting point for the theoretical framework was a management steering model created by Hope, Fraser and Åkerberg (1999). The model is based on forecasts, performance reviews and strategy evaluation that are carried out on a rolling basis. The theoretical framework consists of four core elements: internal communication practices, organisational context, strategic planning and management approach.

Findings and Conclusions

The findings of the study show that efficient internal communication is one of the prerequisites of a well-designed rolling forecast process. Internal communication in general has a multifaceted role in the rolling forecast process. The communication practices were case-specific and unstructured among the case organisations. History, organisational structure and organisational culture were considered as the most significant organisational attributes that influence internal communication climate. Interviewees highlighted the importance of management communication especially during the implementation of the rolling forecast process whereas the incorporation of strategic communication in the rolling forecast process was dependent on how the entire business planning process is organized in the company. As a conclusion, the key elements of functional internal communication in the rolling forecast process consists of coordinated communication framework and practices, adaptable communication climate and management endorsement. Moreover, findings indicate that the rolling forecast process calls for open and cooperative communication but the process itself can also spur communication across the organisation.