Do you trust your forecasts enough to act on them early or do they mostly explain what already happened? Whatβs missing to make predictive planning actually usable for your team?
I have very strong opinions about this. We have been implementing predictive models for forecasting and pipeline management for over 10 years. Things have not changed that much. Success comes from: a) Using it as a carrot, not a stick b) Change management c) Process What's less important: How good the model's predictive score is. Our models have had >90% precision, but that's not what have made them successful
Love this question Nikhat I.. Damian O. has it right. It's not about the accuracy. There is feedback between the forecast and the outcome. It's not like forecasting the weather. Accuracy is the wrong goal. All a sales forecast can do is to estimate what will happen if things keep going as they have been going. The value in the forecast then is in quantifying the effects on estimated sales of things you control and that affect the outcome in a positive way. For instance:
Generate more new opps.
Increase your win rates
Advance specific deals...
Hope this helps.
This is such a good distinction. Iβve found forecasts only become useful when they help teams understand which levers they can pull and the expected impact, rather than just predict an outcome. Forecasting as a decision tool vs. a report is the real shift.
