Without the right information, decision makers risk disasterous consequences. CEOs have a very special role in that they must orchestrate many different elements of the business and plan years into the future. In any budgeting equasion, it is critical to understand how much money is coming in, and when. A CEO needs to understand the sales funnel so that they can plan into the future and adaquately
A good CEO keeps his eyes at 1-3 years into the future. Looking at the top of the sales funnel should be able to accurately give revenue numbers as far reaching as the sales cycle is long. It is with these numbers that allows the CEO is able to make decisions about the correct course of action.
Looking out for the wellbeing of the company, the CEO is faced with investment decisions on a daily basis. Investments are made consistently in staffing, lead generation, R&D, and many more key areas based on the expected revenue from the sales department. If the revenue number is not accurate, the investment potential is greatly restricted, hurting the growth of the company.
Importance of Accuracy
The CEO wants a better valuation for the company, and is looking for companies or strategic products/services to maximize growth. The CEO is trying to grow, spending money on enablement and optimization.
CEOs make a lot of promises on performance, and they look like idiots if the number is way off. They don’t like that. Instead, they want to be able to predict with confidence. The sales proverb says, “it’s not a sin to lose a deal, it’s a sin to not know where you are.” For the CEO, “it’s not a sin to have small growth, it’s a sin to not know what’s going on.”
Sales Funnel Help
If your forecast is not accurate, it is time for a change. Understanding the sales funnel will result in dependable forecasts that allow the CEO to make new investments with confidence. If you need help with your sales funnel, the sales consultants at SRi would be happy to help.