How to Stress Accurate Forecasts to Your Teams

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Jan 19, 2025

Discover the art of accurate forecasting and its impact on sales success. Jim Kelliher shares how sandbagging can harm organizations and emphasizes the need for a supportive, educational culture. The discussion highlights the role of leadership in fostering accountability and addressing variances mid-quarter. Learn how a leader's connection with their team reflects through forecasting accuracy, ultimately driving better decision-making and consistent growth.

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ADVICE

Building a Positive Forecasting Culture

Educate sellers on the importance of accurate forecasting and its impact on company decisions.
Create a supportive culture that values accuracy and avoids excessive pressure or compliance-driven approaches.

INSIGHT

The Downside of Low Forecasting

Consistently low forecasting is just as harmful as high forecasting and missing.
Continuously exceeding forecasts by a large margin indicates poor forecasting skills, not exceptional performance.

INSIGHT

Forecasting as a Measure of Intimacy

Accurate forecasting demonstrates a sales leader's deep understanding of their team and client accounts.
Inaccurate forecasting suggests a lack of intimacy and connection with sales activities.

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In this short segment of the Revenue Builders Podcast, John McMahon and John Kaplan are joined by veteran CFO Jim Kelliher, known for his leadership roles at companies like Drift and LogMeIn. The conversation dives into the critical importance of forecasting accuracy at the sales rep level and how it impacts broader organizational success. Jim shares insights into overcoming cultural challenges, improving seller education, and fostering accountability without fear. Learn how accurate forecasting strengthens relationships, enhances decision-making, and empowers teams to achieve consistent growth

KEY TAKEAWAYS

[00:00:49] The Problem with Sandbagging: Why forecasting low (or high) can harm the organization and how it’s often rooted in fear or lack of understanding.
[00:01:47] Educating Sellers on Forecasting Accuracy: How organizations can foster a positive forecasting culture that balances accountability with support.
[00:02:42] Forecasting and Leadership Intimacy: How forecasting accuracy reflects a leader’s connection to their team and customer accounts.
[00:03:28] Adjusting for Variances: Strategies for identifying and addressing forecasting shortfalls mid-quarter.

QUOTES

[00:01:20] "Forecasting low can be just as negative as forecasting high and missing."
[00:02:08] "Being 150% of your forecast three quarters in a row signals you're not doing a good job forecasting."
[00:02:42] "Accurate forecasting tells me how intimate you are with your people and the accounts they're calling on."
[00:03:28] "If you're intimate enough with your deals, you can figure out how to push one this quarter and make up the difference."

Listen to the full conversation with Jim Kelliher through the link below.
https://revenue-builders.simplecast.com/episodes/a-peek-inside-the-mind-of-a-cfo-with-jim-kelliher

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Hosted by five-time CRO John McMahon and Force Management Co-Founder John Kaplan, the Revenue Builders podcast goes behind the scenes with the sales leaders who have been there, done that, and seen the results.

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