Four Frameworks For forecasting

four-frameworks-for-forecasting

Jason Jordan (pictured) is without doubt the preeminent thought leader on sales management and I was privileged to meet him in Melbourne at a sales leadership conference recently where we were both keynote speakers. Jason delivered a riveting presentation highlighting the absurdity of most forecasting practices within corporations and the huge amount of wasted time in revisiting forecasts (in some organizations a daily practice!) instead of coaching on opportunities.

Jason is writing a new book and it will contain insights and frameworks for forecasting. He outlined his pipeline and forecasting principles as follows:

1. Sales management to select the right framework:
• Opportunity-based. For longer sales-cycles where deals go through stages
• Account-based. Where accounts have historical stable revenue performance
• Territory-based. For geographic or portfolio based with predicable yields
• Call-based. For transactional selling where results link directly to activities

2. Sales management then applies a formula to the framework based on market conditions, projected growth, anticipated churn, etc.

3. Individual sales people then document [historical] facts and assumptions to rationally provide a worst case, probable and best case forecast

Here is an article published by The Sales Management Association which goes in to greater depth and a must read.

Follow Jason Jordan online and also read Cracking The Sales Management Codewhich is without doubt the best book ever written on sales management.

*************

Tony Hughes is ranked as the #1 influencer on professional selling in Asia-Pacific and is a keynote speaker and best selling author. This article was originally published in LinkedIn where you can also follow Tony’s award winning blog. Also visit Tony’s keynote speaker website at www.TonyHughes.com.au or his sales methodology website at http://www.rsvpselling.com/.

*************

Please Share: If you valued this article, please  share via your Twitter, LinkedIn, Google+ and Facebook social media platforms. We encourage you to join the conversation or ask questions. So feel free to add a comment on this post below.

Your Invitation: We invite you to subscribe to this blog. Subscription is free and it allows you to get access to all our subscriber only content and our periodic newsletter.

Tony is ranked the #1 influencer on professional selling by Top Sales World Magazine and is a best selling author and international keynote speaker. He helps business-to-business (B2B) sales teams modernise the way they sell by 'leading with why' and then embracing social media platforms such as LinkedIn to build strong personal brands capable of creating pipeline and setting an agenda of insight and value. Tony seeks to elevate leadership and professional selling for a Better Business World and has over 60,000 followers of his award winning blog within LinkedIn (https://www.linkedin.com/today/posts/hughestony). Tony's methodologies for creating sales pipeline and managing complex enterprise opportunities have deliver hundreds of millions of revenue for his clients who include Oracle, Orange Business Services, BOC Gases, Nufarm, Peer 1, and many others. Whether your revenue issues stem from strategy or execution, process or methodology, skills or discipline; Tony can help enable the transformation of sales people and results with a modernised approach to creating pipeline and managing the complex sale.

Your Turn To Talk