When a Deal Slips, the Number Doesn't Disappear

A slipped deal does more than change a CRM date. Once revenue is embedded in the forecast, the commercial gap remains and leadership has to manage the consequences.

When a Deal Slips, the Number Doesn't Disappear

Once revenue enters the forecast, a missed deal becomes a business problem.

One of the harder lessons I learned in sales leadership was that when a deal slipped, the number didn't disappear with it.

I couldn't simply move the close date into the next quarter, update the CRM, and consider the issue resolved.

The revenue had already travelled.

It had moved from my forecast into the sector forecast. From there, it could work its way into country expectations, executive commitments, resource plans and broader financial assumptions.

So when a meaningful opportunity slipped, the conversation wasn't just:

“What happened to the deal?”

It was also:

“What are you going to do about the number?”

That changes the way you think about pipeline management.

At one point in my career, I was carrying a significant portion of a large annual revenue plan. Every week, we reviewed target, forecast and the gap between the two.

If something I had forecasted suddenly moved out, the gap didn't politely move with it.

The target stayed exactly where it was.

Now I had to determine whether another opportunity could be accelerated.

Could several smaller deals compensate?

Was there expansion available somewhere else in the account base?

Did we have enough qualified pipeline underneath the forecast to absorb the miss?

Or had something more fundamental changed that meant the forecast itself needed to come down?

None of those are particularly comfortable conversations.

But they are necessary ones.

I think organizations sometimes treat deal slippage as an opportunity-management problem when it is really two problems.

The first is obvious:

Why did the opportunity slip?

Was the compelling case weaker than we thought?

Did the customer lose urgency?

Did procurement delay?

Did a competitor gain ground?

Did funding disappear?

Did we misunderstand the decision process?

That is the deal problem.

The second problem is commercial:

What does the slip now do to the revenue plan?

Those two questions require different actions.

You may need to keep working the original opportunity.

But at the same time, somebody has to manage the hole it just created.

That's why I have always been skeptical of pipeline conversations that end with:

“We've moved the close date.”

Fine.

But what happened to the forecast?

And if the forecast changed, what happened to the plan?

And if the plan is now at risk, what intervention starts today?

A good pipeline management system should make those questions unavoidable.

Not because leaders want to punish somebody for missing a deal.

Deals slip. Customers change priorities. Budgets disappear. Decisions get delayed. Competitors surprise you.

That's sales.

The management discipline is what happens next.

The earlier the organization sees the gap, the more options it has.

You can accelerate another opportunity.

You can mobilize executive support.

You can focus resources on a winnable set of deals.

You can develop incremental pipeline.

You can reset expectations while there is still time to manage the consequences.

What you cannot do is pretend the missing revenue vanished when someone changed a date in the CRM.

The deal may have moved.

The number didn't.

And once that number has been built into the expectations of the business, somebody still has to manage it.

Read more...

Loved it? Follow me.

About the Author

Imad Lodhi

Founder IMADLODHI.COM | Partner | Global Sales & Delivery Executive | Strategy & Innovation Leader | Delivery Excellence/Analytics Leader | DWS Leader | Author

ABOUT IMAD

Imad Lodhi

Sales & Delivery Transformation Executive focused on the management systems, mindsets and behaviours that turn strategy into measurable outcomes.

Continue the conversation

Stay in the conversation.

Awesome sauce!

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form :(