Three reasons sales forecasting is more important than you think.

As a sales leader, you know the importance of forecasting.  Management needs to know how much revenue you will attain in the next week, month, quarter or year.  But, my guess is that it’s more important than you think.  Here are three reasons why it’s probably more important than you think. Your reputation and your credibility.  When you make a forecast and you share it with your management team, it is your reputation on the line.  You are committing to the company a certain amount of dollars of revenue, units of shipment, etc.  Others on the management team will then use your numbers to hire or fire, get more inventory, or divest of inventory.  Marketing may use your numbers to decide on sales or promotions.  What you need to understand it that it is YOU they are banking on.  When you lose credibility with the management team, you are in real trouble.One of my clients, the VP of Sales for an IT services company was spot on in 2011 for eight straight months.  He had credibility and consequently the company started hiring because because they had confidence that they would meet their growth targets.  Then in the last few months of the year things started to slip and he missed two months in a row.  The 2012 planning session was extremely difficult because the VP Sales had lost all credibility with the rest of the management team.   It was ugly. The reputation of your people.  Whether you manage a very large team or a small sales team, each person is under the microscope.  This is especially true in sales...