This figure, revealed recently in an international study conducted by ‘Proudfoot International Consultancy’, also labelled most firms ‘hopeless at selling Such strong condemnation is uncommon even within International surveys and investigations.

So how does your organisation stack up? Do you know the productivity of your selling person or team? Are you happy with it? Can it be improved?

The answers are probably………Well, er……Well, not really…….No, not really………and ……….How?

The answer to the last question is  - ” By using the best sales forecasting methodology”

Modern Selling methodologies, of which there are many, subscribe to a selling process, which reacts to defined stages of the customer’s demand. Forecasting systems, which are used to plan resources necessary to discharge these orders or contracts, tend to be driven by a company’s desire for orders. These two processes are often difficult to synchronise and the situation is made worse when management desire for orders results in unfocussed pressure on the salesperson or team. Such pressure leads to inappropriate attention to large value prospects; unjustified optimism of closing specific deals; creative and optimistic forecasting; frenetic but unfocussed sales activity and wishful thinking. The net result is an unrealised sales forecast – yet again. In large organisations with layers of management between the field sales person and the MD, creative interpretation of the sales person’s original forecast are passed up the management chain resulting in an almost inevitable failure to perform against forecast. Over performance, resulting in wide cyclical swings in order cover are also bad news to the manufacturing or service portions of an organisation as they plunge from feast to famine. For quoted companies the stock market requires accurate predictions of performance above all else. Indeed all who maintain a financial interest in an organisation wish to see predicted performance achieved rather than optimism not realised.

So what is the most effective forecasting methodology and how does it help?

The answer is:

1. Forecast regularly
2. Track the customers buying cycle
3. Categorise your prospects
4. Progress your prospects via defined activity gates
5. Hold forecasts at full value
6. Do not factor or attribute percentages to forecast values
7. Ensure your salesperson owns the forecast
8. Support your salesperson via his/her forecast.

Short courses coaching in this methodology are available and the system is captured in a user-friendly software suite for larger companies (with 8 or more sales persons.