4 Steps to a Bankable Forecast

Forecasts are a true management challenge for almost every Chief Revenue Officer.

One reason is that salespeople know that their lives are more enjoyable when the forecast dollars are increasing…whether that is an accurate forecast or not.  This deceptive approach creates forecast bloat.  This bloat can be a actual loss to manufacturing companies that build their products based on the sales department’s forecast.

So how to fix this issue?  I provide 4 steps that will transform your data into a bankable forecast in this classic article in Upsize Magazine.  Briefly, the 4 steps:

1. Define what CAN go on the forecast.
2. Build an audit trail.
3. Use an up or out model.
4. Give Incentives for forecast accuracy.

Each of the 4 items is built out in more detail within the article.  As they say, I recommend you read the entire thing.

Top 10 Signs Your Revenue System Needs Upgrading

1. Discounting is our primary closing strategy

2. All sales and marketing related promotional materials are feature / benefit focused.

3. Every sales presentation starts and ends with the company plaque in the lobby promoting the company’s on-going commitment to quality, service and support.

4. Forecast updates only require moving out the projected close dates.

5. New account business is on everyone’s goal sheet but we are not closing any new accounts.

6. Sales expense is the only number above plan.

7. Everyone in sales works a 40 hr. week as an account manager.

8. Reps say the sales cycle is getting longer due to all the new technology they have to explain first.

9. The names change on the forecast but the bottom line numbers don’t.

10. The only turnover in sales is with existing accounts.