Pipeline & Forecasting

Pipeline is the leading indicator of revenue and must be measured by quality, not just value. Coverage, velocity and concentration are the levers.

Pipeline is the leading indicator of revenue and it must be measured by quality, not just value. Coverage is the ratio of qualified pipeline value to quota (typically 3-4x). Velocity is the rate at which deals move through stages. Concentration risk arises when too much pipeline value is held by too few deals or one segment.

Forecasting categories (commit, best case, pipeline, omitted) should be defined precisely and applied consistently. The role of the revenue leader is to instil discipline in stage definitions, exit criteria and inspection cadence so that the forecast becomes a tool for decision-making rather than a guess.