Pipeline coverage

Pipeline coverage tells you whether there are enough open deals to reach the target. Add up the value of open deals expected to close in the period and divide it by the target for the same period. A result of 2 means the open deals add up to twice the target. The number shows a gap weeks before the month ends, while there is still time to act.

Both parts come from the CRM. Open pipeline value is the sum of the amounts of active deals whose decision date falls inside the period; won and lost deals stay out. A deal with no amount or no decision date cannot be counted. List those deals separately and get them filled in. The target is the number you agreed with the owner for the same period and the same team, in the same currency.

Use the same period for the pipeline and for the target.

Read coverage at the start of the weekly meeting, for the team and for each seller. A low number for one seller shows a thin list weeks before it shows in their sales. The owner sees it in your weekly report, because it answers the question they ask most often: will we make the month?

Read it next to win rate. If the team wins about one in three deals that customers decide on, start with roughly three times the target. Example (invented numbers): a win rate of 30% and a target of $40,000 give about $133,000 of open pipeline as the level to test.

It decides where the team spends the next two weeks. Low coverage with a normal win rate means you need more inquiries. High coverage with a low win rate means qualification and a clean pipeline review come first. If your sales cycle runs longer than a month, check next month's coverage too.

• Mixing periods. A quarter of pipeline over a month of target looks comfortable and means nothing. Filter both by the same dates.
• Counting dead deals. Deals with no next step, or with no contact for weeks, inflate coverage. Close or fix them at the pipeline review before you read the number.
• Treating one coverage level as a norm. A level that works for one team fails for another with a different win rate. Derive your own level from your win rate and test it for a quarter.
• Moving decision dates to make the number look better. When sellers pull dates into the current month, coverage goes up and the forecast breaks. Ask for the reason every time a date moves.

By Friday, the head of sales filters the CRM for active deals with a decision date this month and adds up their amounts. Divide the total by this month’s target and write the result down with today's date. Then list the deals with no amount or no decision date, and give each seller their own list. Next Monday, once the gaps are filled, calculate coverage again and compare the two numbers.

Which numbers to check every week, with one definition for the whole team.