Sales Capacity Model | Annual Planning (Part 2)

This article provides a comprehensive guide to building sales capacity plans during annual planning, emphasizing the critical importance of aligning on definitions (capacity, productivity, quota), validating assumptions around productive capacity and rep attrition, and avoiding common modeling mistakes. The author breaks down a four-step process: setting revenue goals, adjusting assumptions, calculating current capacity, and determining hiring needs—while stressing that sales capacity planning is both art and science, not just Excel modeling.