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Intentional bias

As explained in Demand Forecasting Best Practices

An intentional bias is a systematic distortion introduced deliberately or strategically because incentives or objectives influence a forecasting judgment.

Intentional bias is a systematic distortion in a forecast introduced deliberately or strategically when incentives are misaligned. A demand forecast should estimate unconstrained future demand—not become a financial budget, sales target, or supply plan. section 16.2

Figure 16.2 Sources of judgmental biases

Use the bias map to distinguish intentional bias from cognitive bias and biased forecasting processes. section 16.2

Reduce intentional bias by improving the conditions around forecast judgment:

  • Align forecasters’ and demand planners’ objectives so no participant benefits from pushing the forecast in a particular direction. section 16.4
  • Review the baseline forecast with people who bring different mindsets, backgrounds, and information sources. section 16.4
  • Let participants work independently before discussion to limit social pressure, conformity, and anchoring. section 16.4
  • Discuss assumptions and resulting impacts rather than focusing only on the final numbers. section 17.0

When incentives distort a forecast

If a sales target or supply plan influences the demand estimate, the forecast can be deliberately pushed toward the organization’s preferred outcome. Keeping those objectives separate protects the estimate of unconstrained demand. section 16.2

How Demand Forecasting Best Practices covers it

How deep it goes
Explains incentive misalignment, distinguishes intentional from cognitive and process bias, and prescribes alignment and review practices.
Examples
Uses sales targets, supply plans, baseline reviews, stakeholder influence, and assumption-based forecast discussions as concrete contexts.
What it assumes
Distinguishes unconstrained demand forecasts from financial budgets, sales targets, and production or supply plans.
What you can do after
Diagnose incentive-driven distortions and reduce them by aligning objectives, diversifying reviewers, and separating assumptions from outcomes.
How it connects
Connects intentional bias with judgmental forecasting, cognitive bias, biased forecasting processes, demand forecasts, and demand planning.

Related concepts

This explainer was generated by Manning's knowledge graph from the text of Demand Forecasting Best Practices. The section links point to the parts of the book it draws on.