Sales Requirements Planning™ (SRP)

A methodology used for sales forecasting that predicts revenue, sales pipeline activities, sales productivity, sales staffing levels, selling expenses, and commission expenses with precision

The Genesis of Sales Requirements Planning™ (SRP)

Is your company revenue forecast commitment to owners/investors disconnected from sales operational reality?  Is your CFO wasting time on elaborate formulas to weight and adjust sales forecasts to make them more accurate?  Are you experiencing friction-filled discussions on sales forecasting between your CFO and Chief Sales Leader™?

After years of wasting time, money, and morale on inaccurate sales forecasts we set out to create a tool that would establish an accurate cause-and-effect forecasting relationship between:

  1. Revenue commitments to owners/investors
  2. Sales opportunities – – new customer acquisition, renewal/retention
  3. Sales pipeline activities – – volume, cycle time, close ratios
  4. Sales productivity – – productive time, non-productive time
  5. Sales staffing levels – – full-time, part-time 
  6. Selling expenses – – labor, materials, outside services
  7. Commission expenses – – new customer acquisition, renewal/retention

After looking at many forecasting models and accounting academic concepts we found insight and inspiration from manufacturing requirements planning or MRP.  In simple terms, this model addresses all of the cause-and-effect inputs and outputs that are required to link revenue commitments to owners with sales operational reality.  

Check out our solutions

  1. Test Operational Viability of CFO Forecast
  2. Scenario Planning Forecast
  3. Pro Forma Forecast
  4. Re-forecast
  5. Process Improvement Identification

We Use Sales Requirements Planning

To create sales forecasts that are precise – – effective, efficient, predictable, and accurate