Accurate forecasting helps high performing businesses get predictability into their process. It improves team performance and helps create pride in the company.
Here are a few questions to ask yourself about your own forecasting and to get you thinking about some areas that might need improving.
Do you track forecast accuracy?
It is one thing to have a forecast, but its accuracy is even more important. Based on your last 30, 60 and 90 days, how accurate was the forecast you had? When you understand your forecast accuracy you can start to understand what might be causing any inaccuracy.
What is your team 30 day forecast accuracy?
Ask yourself do your team know what their individual forecast accuracy is? If not why not? By breaking down your forecast accuracy by teams you start to give people a sense of ownership. If forecast accuracy only sits with the leaders there is too much pressure on areas they can't control and no accountability to keep your forecast accurate.
Do your people care about it?
You have to relate forecast accuracy to the whole team so they can take pride in it. Results should be visible to everyone and there should be a system of accountability accompanying those results. This can help shift mindsets from everyone doing their own thing to doing what's best for the team.
Is there integrity at each stage of your sales process?
To ensure sales forecast accuracy, you have to have a stringent set of rules and questions at each step of the sales process to determine the likelihood of success. Any deal in your CRM should be questioned, as a team, to make sure it hits the requirements for being on there.