Velocity Diagnostics

When pipeline is not converting fast enough, the velocity equation tells you exactly which variable is the bottleneck. Calculate each variable independently and compare against benchmarks: your own historical averages, your industry, and your segment. The variable that is furthest below benchmark is your constraint — the one place where improvement will have the largest impact on overall velocity.

1. Calculate Current Velocity Pull the data for the last two quarters: total opportunities created, average deal value, win rate, and average sales cycle. Plug them into the equation. The output is your current pipeline velocity in dollars per month. This is your baseline.
2. Identify the Constraint Compare each variable against its benchmark. If opportunity volume is 20% below target but win rate is on target, the constraint is volume. If win rate is 30% below benchmark but volume is strong, the constraint is qualification or competitive positioning. The constraint is the variable that, if improved, would produce the largest velocity gain.
3. Model Improvement Scenarios Run sensitivity analysis: what happens to velocity if you improve the constrained variable by 10%, 20%, or 30%? What happens if you improve two variables by 10% each? The sensitivity model produces a ranked list of improvement investments by expected velocity impact. This model drives your demand gen optimization roadmap.