The dreaded weekly pipeline call. Sales people are notorious at having a bloated pipeline filled with Opps that will never close. Why? Because most sales reps think when it comes to pipeline, size matters...which it does. A rep typically needs 3X their quota in actual pipeline to hit their numbers. However, a bloated pipeline, filled with non qualified deals. Opps that have been lingering forever and pushed and pushed, is counterintuitive.
In a previous blog (found here), I discussed pipeline management and how largely ineffective teams are at it.
The VP or Director of Sales has to review the pipeline with each rep weekly. Both parties being aggravated is almost a given. The VP is annoyed because they’ve beat their heads against the wall explaining what they consider an Opp and what isn’t. The sales rep has every excuse to keep Opps alive, because it makes them feel good and for a short time, looks good too.
I am no stranger to this scenario.
So when I was a sales rep, I decided to buck the system and kept a clean pipeline, 2 -3 deals forecasted per month vs. my peers that had 8, 9 and 10. I caught a rash of shit in the beginning, being told my pipeline wasn’t big enough, I wasn’t working hard enough, I was not making enough phone calls, etc.
The difference was I closed 4 deals that month, the three forecasted in that month and pulled one forward from next month. And my peers closed 1 or none, and pushed the other 8,9, 10 Opps. Pushed some to next month, pushed some to 12/31, etc.
So what would you rather have?
When I became a sales manager, I decided I wanted the team I managed to do what did, rather than what the typical sales rep (my peers) did. Your pipeline is the ultimate to-do list. There should be a cadence of how, when and why your touching Opps in your pipeline. The sooner the close date, the further down the funnel and the more interaction. For example, an Opp forecasted to close this month, should be in your last stage before closed won. Also, you should be speaking to and emailing your main contact multiple times per day. Why? Because you are nearing the closing and both parties need things done, legal review, tech diligence, PO assignment, implementation dates, kick off call scheduling. NOW, let me make something clear, Opps will slip, shit happens, and therefore that Opp close date may need to be pushed to next month. OK! That is the exception, not the rule.
Below is a link to a doc I have used at a couple of companies when I was head of sales. I wanted to align everyone with what was expected and how this was accomplished. I presented this to the sales team and had a thorough conversation about it and I explained my logic, I would then present an abridged version every few weeks and reinforce this process on all team and individual calls. It still took some time and a lot of coaching to get everyone on the same page, but it works.
Pipeline Management Guide
Sales pipeline got cleaner from an individual basis, their activities were more focused on revenue generating tasks and closing imminent deals. The overall forecast was tighter and more manageable, which in turn I was able to use with Sr. Management to confidently commit to monthly, quarterly and yearly revenue attainment.
It’s a process! It’s a process! Get your process down pat, educate everyone involved and be relentless in the compliance of it.
Make those weekly pipeline calls more effective! Have fun!