Fix Your Mediocre Pipeline for Accurate Sales Forecasts

Posted by Dave Kurlan on Mon, Jan 26, 2015 @ 13:01 PM

Most salespeople don't pay too much attention to this.  Even though we perform a pipeline analysis and restage the pipeline with every individual sales evaluation and comprehensive sales force evaluation we conduct, we typically discuss this exclusively at the executive level.  So imagine my surprise when a salesperson sent along his lessons learned from a session on closing deals and included this...

He said, "I went back to your evaluation to see exactly how you restaged my pipeline...You said the quality of my pipeline opportunities was:
U-Toronto - Medium 
Mt. Sinai - High
New York Genome - Medium 
Columbia - Low

If this is how your method determined the order - then it was spot on...On both the low and high ends. Columbia has fallen completely off the radar while Mt. Sinai has progressed to the proposal and closable stage.  U-Toronto and NY Genome are still progressing forward slowly - with additional presentations required and much more qualifying work needed by me. 
I staged the pipeline today and:
Columbia is a only a suspect
U-Toronto is a prospect  
New York Genome is qualified and
Mt. Sinai is closable" 
So what exactly took place?  Two months ago, this salesperson answered 19 questions about each of 4 late stage opportunities that were - and this is the key - considered to be proposal ready and closable.  After we analyzed the data, we rated the quality of those 4 opportunities as you saw above, and then restaged them as you can see below.  Keep in mind that if they were truly late stage - proposal ready and closable - his pipeline would have looked like an umbrella stand base:
pipeline1-1
However, based on what we learned from our analysis of his answers, instead of his pipeline looking like an umbrella stand base, it looked more like a top!  The image below is what his supposedly late stage pipeline really should have looked like:
pipeline2-2
Obviously, that's quite a difference!
The ability to place your opportunities in the proper stage of the pipeline is the key to a predictive pipeline and accurate forecast.  Gerhard Gschwandtner of Selling Power Magazine recently interviewed me about this very topic and you can watch the 5-minute video right here.
"Is your pipeline a reliable predictor of future revenue?" is just one of 19 important questions we answer when we evaluate a sales force.  And while it's quite helpful to see the actual quality and restaging of your pipeline, the additional 18 questions/answers/insights are usually even more important to most clients.  You can learn more about a sales force evaluation by clicking the image below.
evals .

Topics: Dave Kurlan, sales force evaluation, sales pipeline, sales assessments, objective management group, sales forecast

View All 1,600 Articles

About Dave

Best-Selling Author, Keynote Speaker and Sales Thought Leader.  Dave Kurlan's Understanding the Sales Force Blog has earned a medal for the Top Sales & Marketing Blog award for six consecutive years.  Dave's Blog earned a Bronze Medal in 2016 and this article earned a Bronze Medal for Top Sales Blog post in 2016. Read more about Dave.

Email Dave

View Dave Kurlan's LinkedIn profile View Dave Kurlan's profile

Subscribe 

Receive new articles via email
Subscribe
 to the Blog on your Kindle 

Search the site

 

Audio Book
Top 30 on Kindle
Top 100 on Amazon

Awards

 2016 Top Sales & Marketing Individual Blog - Bronze

2016 Top Sales & Marketing Blog Post - Bronze

2016 Top Sales & Marketing Assessment Tool - Gold

Top Sales & Marketing Awards 2015 -  Bronze - Thought Leader

2016 Top Sales & Marketing Podcast - Gold

2016 Top Sales & Marketing Webinar - Gold

Top Sales & Marketing Awards 2015 - Bronze - eBook/White Paper

Dave Kurlan Top 50 Sales Influencer 2015

Sales Pro Insider Blog

Top 50 most innovative sales bloggers

Top100Strategic

Top100SalesInfluencersOnTwitter

Sales & Marketing Hall of Fame Inductee

Hubspot Top 25 Blogs

 

Free Tools

Sales Process Grader

Sales Candidate Assessment Free Trial

Sales Ghost Calculator

Sales Force Grader

Sales Hiring Mistake Calculator

FREE Recruiting Process Grader

Other Great Sites

top sales world

Evan Elite Promotion New

 alltop