If you are looking to acquire a company, or sell your existing company, Quality-of-Earnings (QoE) provides a detailed analysis of all the components of your company's revenue and expenses. A key objective of a QoE report is to assess the sustainability and accuracy of historical earnings as well as the achievability of future projections.  

 

Past performance is not indicative of future results

 

QoE, even with its adherence to GAAP, does have a major blind spot in that it does not validate the quality of a company’s existing pipeline and forecast.  If you have concerns about the trust (quality and accuracy) of an existing pipeline, Quick Start Strategies (QSS) has created a tech-enabled service to provide visibility into the quality of the existing pipeline.  

 

While QoE focuses on core financials, it has little relevance into future sales performance, predictability and insights. Determining what is real in the company’s overall pipeline and near-term forecast requires another level of assessment.  

 

Enter Quality-of-Pipeline (QoP)

Establishing the quality of the existing pipeline, and a 9-monthrolling forecast, requires a structured analysis of a company’s past sales performance. Here are the steps to delivering QoP:

 

Step 1. Determine the company’s Optimal Opportunity Profile (OOP)

Every company has a unique OOP that is established by looking at the unique blend of market segmentation, product attributes, and performance & behavioral metrics that are directly attributable to winning an opportunity. Filter each data element as having high, medium or low impact in winning or losing an opportunity.

 

Step 2: Apply the unique OOP to determine the company’s Quality-of-Pipeline

Once the company’s unique OOP has been established it is then applied to the current pipeline to determine those opportunities that are aligned, or misaligned, to winning. In addition, OOP will identify those opportunities that are mis-aligned based on bad, inconsistent or missing data. Regardless of the cause for misalignment, your OOP provides the framework to analyze and define those best corrective actions by opportunity to optimize your probability to close opportunities as forecasted.

 

Step 3: Leveraging QoP to determine the true value of the pipeline

QoP is a proven tech-enabled service that applies a company’s unique OOP to their existing pipeline to determine near-term sales performance and longer-term revenue predictability. The company’s QoP will be delivered within 48 to 72 hours after being provided the required historical and current pipeline and opportunity data. Upon competition QSS will deliver a detailed report explaining the overall health of a company’s pipeline and revenue forecast.  

 

Finally, if you chose to invest in the company, or sell your company, the QoP findings can be leveraged to increase the value of the company. Additionally, the findings will provide a clear roadmap for executives, management, and sales to optimize the pipeline to drive sustainable revenue growth.