Why does each key account manager on my team forecast a different way?

Why does each key account manager on my team forecast a different way?

When each key account manager (KAM) forecasts their own way, the team's number is built with different rulers. One process, the same data sources, the same definitions and the same cadence let you add the numbers up and trust the total.

Five questions to see if your team can do this job today:

1. Does every KAM on your team use the same forecasting process?
2. Do they pull from the same data sources?
3. Do they use the same definitions, such as what counts as committed, likely or upside?
4. Do they forecast on the same cadence?
5. Does your team review the pipeline a month before the forecast is due?

Two or more no's, and you may be adding up numbers that mean different things.

I've run a team of 50 or more account managers on one account. Each year, we spent a considerable amount of time on forecasting, and each time felt different. Sometimes that was due to an evolving process. Other times it was because new team members knew less about the side of the customer they supported. When we finally standardized our approach and built a good system, we got it done in less time with better results.

A good forecast is a good theory about what causes revenue to increase or decrease. Over time, the theory is proven or disproven. So we set out to get better at creating good theories. That means everyone can contribute and think of questions we should answer to test our theory against where we stand today, what it will take to hit the forecast, and what could change tomorrow that would change our theory.

Your team can start by agreeing on one process and the questions every KAM answers before a number goes in.

Our system, the Vitality Index, shows your key account teams where they stand today, the work it takes to level up, and how to do it, until they reach a vital partnership that lasts.

If you asked three of your KAMs what "committed" means, would you get the same answer?

We built a free, 4-minute Key Account Risk Assessment. It gives you a risk score for your key accounts across team alignment, account planning, account transitions, and visibility. Link in the comments.