In many companies, forecasting in sales is implemented on an Excel basis or with the help of specialized isolated solutions. Data preparation is laborious. The same applies to forecasting data collection and reporting. No wonder forecasting has a bad rap. In addition, the large amount of work often means that quality and accuracy suffer.
Undetected sandbagging and hockey stick effects in the estimates and commitments of sales staff are the result. Deal closings are either held back (pessimistic forecasts), or there is too much optimism about closings towards the end of a period (overoptimistic forecasts).
Regular realistic forecasts are crucial to know your current status. Are the defined plans and goals being achieved? And if not, where is the problem? Management also repeatedly asks for forecasts, and often not just one, but several for best-case, worst-case and most likely scenarios. So, what to do?