Revenue Builders

How to Stress Accurate Forecasts to Your Teams

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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Quick takeaways

Accurate forecasting at the sales rep level is vital, as it directly influences strategic management decisions and overall business success.

Fostering a culture of accountability and education among sales teams mitigates sandbagging behaviors and enhances forecasting accuracy for better outcomes.

Deep dives

The Importance of Accurate Forecasting

Accurate forecasting at the sales representative level is crucial for overall business success, as it directly influences management decisions regarding resource allocation and strategy. Many young sellers tend to underreport their potential sales figures, a behavior commonly known as sandbagging, due to fear of missing their targets. This not only creates a culture of compliance without education but also leads to management difficulties when they must make significant corrections based on inaccurate forecasts. It’s essential for sales teams to understand that consistently forecasting too low can be just as detrimental as forecasting too high, highlighting the need for developing a culture that fosters accurate and confident forecasting.

The Impact of Forecasting Culture on Sales Performance

2min

Building a Culture of Accurate Forecasting in Sales

2min

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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