Glossary
Pipeline coverage
Pipeline coverage divides open opportunity value by the sales target, so three times coverage means three dollars in play for every dollar needed. Most teams want three to four times, though the honest multiple is your own win rate turned upside down. It is a leading number and one of the few money rows that works weekly.
01
Setting the coverage multiple from your own win rate
This makes a good weekly Scorecard row, because it moves when the sales team works and it warns about a quarter that is already lost while there is still time to do something. Pair it with proposals sent, so coverage cannot be propped up by old opportunities nobody has touched. Set the multiple from your trailing thirteen weeks.
Coverage is the most inflated figure in most pipelines, because nothing forces a stale opportunity out of the list. A deal that has not moved in ninety days is not coverage, it is decoration. Add a rule that opportunities age out, and expect the number to drop by a third the first time you apply it. The rule is what makes the row worth reading.
Worked example: A commercial furniture dealer ran at five times coverage and kept missing quarters anyway. Filtering to opportunities with a scheduled next step inside the following fortnight cut it to one and eight tenths. Nothing about the business had changed, but the meeting stopped running on optimism and the team started requalifying instead of adding.
Sources: klipfolio.com/kpis/sales; kpi.org/kpi-basics
Win rate
Win rate is deals won divided by deals decided in the same period, counting the wins and the losses and leaving out everything still open.
02Sales cycle length
Sales cycle length is the median number of days between a defined starting point, usually qualification, and a deal closing either way.
03Leading indicator
A leading indicator measures the activity that produces a result, early enough that what your team does this week still shows up in the number.
04KPI examples by department: sales, ops, finance, HR
Concrete KPI examples for each department in a small company, tagged leading or lagging and weekly or monthly, to help you build a Scorecard that works.
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