When this topic matters
Pipeline is the backbone of sales process. Poorly designed pipeline leads to wrong decisions because data does not match reality.
If you feel your CRM lies, or that salespeople "fill in boxes" without meaning, the problem is probably in pipeline design.
What happens in practice
Typical problems: 1) Too many stages (nobody knows where deal belongs). 2) Too few stages (everything is "in discussion"). 3) Unclear definitions (what is "qualified meeting"?). 4) Missing exit criteria (when deal "dies").
Result: pipeline that looks full but does not bring revenue. And nobody knows where the problem is.
Why it fails
Pipeline fails when stages do not match real customer decision process. Or when definitions are so vague that everyone interprets them differently.
Also fails without exit criteria — deals never "die", just accumulate and distort reporting.
How to think about it
Design pipeline according to customer decision process, not your internal process.
For each stage define: 1) Entry criteria (what must be met). 2) Exit criteria (when it moves or drops). 3) Timeout (how long it can stay).
- Stage = milestone in customer decision
- Entry = what must be met for entry
- Exit = what moves or drops it
- Timeout = maximum time in stage
What you gain and what you lose
Clean pipeline: accurate forecasting, clear problem identification, better coaching. But requires discipline and setup time.
Vague pipeline: less setup work, more flexibility. But inaccurate forecasting and harder problem diagnosis.
When to apply
Always when you have more than 2-3 salespeople. For individual it is discipline. For team it is system.
Especially important during: scaling, onboarding, or when forecasting does not make sense.
Design pipeline according to customer decision process. For each stage define entry, exit and timeout. Without that you have just visualization, not a system.