PE-301e · Module 2

Dynamic Coverage Targets

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Coverage targets should change as the quarter progresses. At the start of Q1, you need full coverage because nothing has closed yet. By mid-quarter, some deals have closed, reducing the remaining target — and some pipeline has been lost, reducing the available coverage. Dynamic coverage recalculates the required ratio weekly based on remaining target and remaining pipeline, providing an accurate real-time view of whether you are on track.

  1. Remaining Target Calculation Remaining Target = Quota - Closed-Won To Date. At the start of Q1, remaining target equals quota. By week 8 of a 13-week quarter, if $600K of a $1M target is closed, remaining target is $400K. The coverage ratio should be recalculated against this remaining target, not the original quota.
  2. Remaining Pipeline Assessment Remaining Pipeline = Open deals with close dates in the quarter, adjusted for expected slippage and loss. Some deals from the start-of-quarter pipeline have already been lost. New deals have entered. The remaining pipeline reflects the current, not original, opportunity set.
  3. Weekly Coverage Tracking Calculate coverage ratio every week: remaining pipeline divided by remaining target. A healthy trajectory shows coverage staying above the required ratio (or decreasing at a rate consistent with wins being booked). A declining trajectory — where coverage falls faster than the target decreases — indicates the quarter is at risk.