Predictability is a key element of effective sales planning, but trying to achieve it can be a tedious task for many sales organizations. How much work are you as a sales leader having to put forth to make sure you have that line-of-sight predictability when it comes to your revenue numbers?
According to research at SiriusDecisions, each sales rep and manager spend at least 2.5 hours managing the forecast. Multiply that by the number of people within your sales organization and that’s valuable time not spent selling. Even with all of that time focused on the forecast, SiriusDecisions found that only 1 out of 5 companies achieves at least 90% forecast accuracy.
Consider these questions about your own organization:
- How do you determine the health of a forecast?
- What factors do you use to determine accuracy of the forecast?
- How do you ensure that the most critical opportunities are fully qualified?
- How do you minimize risk in the forecast?
- What steps do you have in place for driving accountability?
- What coaching or guidance do you provide to help your sellers eliminate risk in their forecasts?
Your ability to make consistent, accurate predictions mean the difference between building revenue through achievement of higher conversion rates and just spinning your wheels due to uncertainty, lack of focus and inadequate resources. When predictions are off the mark, investments falter and performance suffers.
Research from Aberdeen shows that best-in-class sales organizations prioritize the creation of a “unified view of current and predicted sales strategies,” (see page 8). That unified view creates predictability. A repeatable sales planning process avoids the pitfalls of inaccuracy by improving coverage of territories and accounts. The result is a better balance between new account sales and existing account up-sells and cross-sells. To effectively lead a sales organization, managers need a repeatable rhythm that guides the sales planning and execution processes.
Your company's ability to develop its Management Operating Rhythm®, or MOR, will help model the consistency and behavior necessary to drive strategy. As a sales leader, your sales planning and execution process needs to be an integral part of your operating rhythm, providing you with consistent processes, tools and benchmarks to help maximize performance and revenue. Read more about our approach to effective sales planning, by downloading our Sales Leader Action Guide
