A playbook for rebuilding an unreliable revenue forecast
The sequence we use when a forecast has been consistently missing, in either direction.
Audit the forecast's actual inputs first — is it built bottom-up from stage-conversion history, or anchored to a target the business wants to hit? A target-anchored forecast is the most common root cause of a persistently inaccurate one.
Rebuild the forecast from historical stage-conversion rates specific to the organization's own pipeline, not an industry benchmark, and test it against several recent closed quarters before trusting it going forward.
Separate the forecast (an honest expectation) from the target (what the organization wants to achieve) explicitly, so the two stop getting conflated in reporting and planning.
More from playbooks
Not sure this is the right fit yet?
Request an executive consultation and we'll tell you plainly what an honest diagnosis would find.
Request an executive consultation