The forecast that has to do three jobs

One revenue number is asked to motivate the sales team, size the delivery rota and plan the bank balance. It cannot be right for all three.

By Steve 5 min read
Abstract bridge artwork for The forecast that has to do three jobs

Most businesses under about £50m produce one forward revenue number. It goes in the board pack, it sets the sales team’s target, the operations manager uses it to decide how many people to roster, and the finance lead uses it to work out whether the payroll clears in March. One number, four readers, and no acknowledgement anywhere that they need different things from it. This is not a modelling failure. It is a design failure. The number is being asked to do three jobs that pull in opposite directions, and…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Operations

Scroll to Top