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Blog · Forecast and pipeline

Pipeline stage definitions: exit criteria that make a weighted forecast mean something

Why a stage-weighted forecast is only as good as the stage definitions, what an exit criterion is, five stages with criteria a rep can verify and a manager can audit, how to check from the CRM that deals in a stage actually meet its criteria, the stage probabilities derived from the team's own history rather than set in a workshop, and the versioning that keeps last year's pipeline comparable.

The short answerA stage-weighted forecast multiplies deal values by stage probabilities, and both are meaningless if a deal can be in a stage without meeting a definition. An exit criterion is a fact a rep can verify and a manager can audit: a named economic buyer, a written proposal sent, a signed order form. Five stages with criteria, checked against the CRM's own fields, and probabilities derived from the team's historical conversion by stage rather than set in a workshop, are what make the weighted forecast a measure. Versioned, so that a change in criteria does not silently restate the pipeline.

A stage-weighted forecast looks rigorous: values times probabilities, summed. Its rigour depends entirely on what a stage means, and at most teams a stage means whatever the rep clicked. This guide sets out exit criteria that can be verified, the CRM audit that checks them, probabilities from history, and the versioning.

What an exit criterion is

A fact, not a judgement:

Stage Exit criterion to enter Verifiable by
Qualified Need, budget owner and timeframe recorded Three fields populated
Discovery complete Economic buyer identified as a contact with role; requirements documented Contact role field; attached document
Proposal sent Written proposal delivered, dated Attached document with date, or logged activity of type proposal
Negotiation Customer has responded to the proposal in writing Logged activity of type customer response, dated after proposal
Closed won Signed order form or contract Document status signed

"Customer is very interested" is not a criterion. "Proposal document attached, dated" is.

The audit

Weekly, per deal:

In stage S and criterion field for S is empty → fails audit

Per rep: share of deals failing, and the weighted value they carry. A deal that fails is not moved automatically; it is listed, and the rep either populates the field or moves the deal back.

Probabilities from history

Per stage, per quarter, from outcomes:

Probability = deals that reached closed won ÷ deals that were in the stage at the same point in past quarters

Stage Workshop probability Historical conversion Difference on $10m in stage
Qualified 10% 8% −$200,000
Discovery complete 25% 19% −$600,000
Proposal sent 50% 32% −$1.8m
Negotiation 75% 61% −$1.4m

The workshop forecast was four million dollars high on the same pipeline.

The rows you need

  • Pipeline snapshots: opportunity, stage, value, criterion fields, week.
  • Outcomes: opportunity, won or lost, date.
  • Stage definitions: stage, criterion, field, version, effective date.

Opportunity identifiers only.

Versioning

When a criterion changes, the definition version changes, and the pipeline before the change is reported under the old version. A stage whose criterion tightened in April will show fewer deals from April, and that is not a pipeline decline; the version on the report says so.

The identity

Σ deals in stages = open pipeline, per snapshot every deal in exactly one stage with its criterion fields recorded

Where it goes wrong

Criteria as judgements. Every deal meets them.

No audit. Criteria written, never checked, forgotten by the second quarter.

Workshop probabilities. Confident, round, wrong.

Criteria changed silently. The pipeline drops and nobody knows it was the definition.

Every week, the audit; every quarter, the probabilities

Mapped once, the pipeline snapshots, the outcomes and the versioned definitions produce the stage audit per rep, the historical probabilities and the weighted forecast under both every week. Covirage builds this from the exports as they are. The metrics governance solution describes the setup, and the forecasting methods guide covers where the stage-weighted method sits among the others.

Questions people ask

How many stages?

As few as have distinct exit criteria and distinct conversion rates. Five is common: qualified, discovery complete, proposal sent, negotiation, closed. Eight stages with three that convert at the same rate are three stages with extra clicks.

How are criteria checked from the CRM?

Each criterion maps to a field: economic buyer to a contact with a role; proposal sent to an attached document or a dated activity; order form to a document status. A deal in a stage whose criterion field is empty fails the audit and is listed. The audit runs weekly and is the measure of stage hygiene.

Why derive probabilities rather than set them?

Because a workshop sets proposal at 50 percent and the team's history says 32. The weighted forecast at 50 is wrong by the difference on every proposal-stage deal. Historical conversion per stage, from outcomes, is what the probability actually is, and it is recomputed each quarter.