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	<title>Comments on: Forecasting – Why VP of Sales is the Most Fired Position in Corporate America</title>
	<atom:link href="http://prairieskygroup.com/2010/12/12/forecasting-why-vp-of-sales-is-the-most-fired-position-in-corporate-america/feed/" rel="self" type="application/rss+xml" />
	<link>http://prairieskygroup.com/2010/12/12/forecasting-why-vp-of-sales-is-the-most-fired-position-in-corporate-america/</link>
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		<title>By: Prairie Sky Group</title>
		<link>http://prairieskygroup.com/2010/12/12/forecasting-why-vp-of-sales-is-the-most-fired-position-in-corporate-america/#comment-34</link>
		<dc:creator><![CDATA[Prairie Sky Group]]></dc:creator>
		<pubDate>Thu, 30 Dec 2010 21:08:20 +0000</pubDate>
		<guid isPermaLink="false">http://prairieskygroup.com/?p=547#comment-34</guid>
		<description><![CDATA[You are spot on when talking about using objective criteria for forecasting as well as a mutually defined &#039;evaluation plan&#039;.  I also find very few sales organizations use either of these approachs.  The question is why?

One possibility is that it&#039;s difficult to work through a mutual plan if one is not listening to the customer, but telling them what they need.  Of course not many will admit to this behavior]]></description>
		<content:encoded><![CDATA[<p>You are spot on when talking about using objective criteria for forecasting as well as a mutually defined &#8216;evaluation plan&#8217;.  I also find very few sales organizations use either of these approachs.  The question is why?</p>
<p>One possibility is that it&#8217;s difficult to work through a mutual plan if one is not listening to the customer, but telling them what they need.  Of course not many will admit to this behavior</p>
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		<title>By: Dan Lemke</title>
		<link>http://prairieskygroup.com/2010/12/12/forecasting-why-vp-of-sales-is-the-most-fired-position-in-corporate-america/#comment-33</link>
		<dc:creator><![CDATA[Dan Lemke]]></dc:creator>
		<pubDate>Sat, 25 Dec 2010 17:19:55 +0000</pubDate>
		<guid isPermaLink="false">http://prairieskygroup.com/?p=547#comment-33</guid>
		<description><![CDATA[Excellent Blog Lee! I agree whole heartedly on the concepts you mention and the reality of forecasting in many many corporations.

There are some answers to this problem in addition to trusting your people.

Here are some thoughts on providing an accurate forecast to yourself (sales person, manager, executive).


Challenge: 
Our pipeline is more like a “sewer line”.

Providing more objective pipeline forecasts

By defining a mutually agreed upon ‘evaluation plan’ with prospects or customers about what they and you need to know to buy your products and services provides clarity to opportunities in the pipeline. These &#039;evaluation plans&#039; include decision points or milestones that when completed in a mutually satisfactory manner, can result in moving an opportunity towards a successful conclusion for both parties.

This &#039;evaluation plan&#039;, when negotiated with objective measurement of each decision point or milestone, allows the determination of a statistically valid assessment of the quality of the individual sales territory pipeline. The cumulative sales pipeline of all individuals allows sales managers an ability to determine not only the current month’s revenue forecast, but also the quality of the sales pipeline with sufficient notification to allow corrective action. 

Accordingly, senior management is then allowed the capability to determine the size, quality, and needed corrective action to ensure successful revenue generation on a continuing basis. 

Unfortunately, though few organizations have &#039;objective&#039; milestones to measure sales opportunities, thus, they are forced to come up with multiple views of the forecast:

Stretch, Expected, Most Likely,.......and on and on!]]></description>
		<content:encoded><![CDATA[<p>Excellent Blog Lee! I agree whole heartedly on the concepts you mention and the reality of forecasting in many many corporations.</p>
<p>There are some answers to this problem in addition to trusting your people.</p>
<p>Here are some thoughts on providing an accurate forecast to yourself (sales person, manager, executive).</p>
<p>Challenge:<br />
Our pipeline is more like a “sewer line”.</p>
<p>Providing more objective pipeline forecasts</p>
<p>By defining a mutually agreed upon ‘evaluation plan’ with prospects or customers about what they and you need to know to buy your products and services provides clarity to opportunities in the pipeline. These &#8216;evaluation plans&#8217; include decision points or milestones that when completed in a mutually satisfactory manner, can result in moving an opportunity towards a successful conclusion for both parties.</p>
<p>This &#8216;evaluation plan&#8217;, when negotiated with objective measurement of each decision point or milestone, allows the determination of a statistically valid assessment of the quality of the individual sales territory pipeline. The cumulative sales pipeline of all individuals allows sales managers an ability to determine not only the current month’s revenue forecast, but also the quality of the sales pipeline with sufficient notification to allow corrective action. </p>
<p>Accordingly, senior management is then allowed the capability to determine the size, quality, and needed corrective action to ensure successful revenue generation on a continuing basis. </p>
<p>Unfortunately, though few organizations have &#8216;objective&#8217; milestones to measure sales opportunities, thus, they are forced to come up with multiple views of the forecast:</p>
<p>Stretch, Expected, Most Likely,&#8230;&#8230;.and on and on!</p>
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