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.