Sales forecasts are the perennial problem for sales managers, and reps for that matter, Its strange how the C Suite understands cash and profit forecasts are just that – best guesses about what will happen – but seem to think sales forecasts are guarantees. I guess the sales manager is an easy target. Bosses seem to think the job is paid to take the heat. That was certainly the case with some I worked for.
Did you ever get forecasts right? – for a year, a quarter, a month or even a single deal? It’s never happened to me. In thirty years of selling I’ve never made an accurate sales forecast. Not as a rep, a manager or even a VP.
You might be different (in which case I’d love to know your secret) but I never met anybody who found a way of getting this stuff right – time, spec, terms, price – either.
Given the success of ourforecasts it’s a wonder anybody bothers, but we all have to do it – the bean counters insist.
The accountant thinks selling is like adding up a ledger. Do it right and the books balance. But of course those books don’t have minds of their own, or competition, or prospects who change the rules mid way through the 4th quarter. That’s why his life can be predictable.
I’ve decided the best approach is trying to apply some book keeping principles to sales forecasting (no doubt my accountancy training showing through). Having a process, a set of rules, a way of measuring progress, is the best way for me to calculate my forecast.
Even when the sales forecasts turn out to be wrong I can always explain my process. Doesn’t make me a commission check but it does shut up the bean counter.
How do you do it?
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