The Pipeline Problem: A First-Principles Approach to Understanding Pipeline Challenges
"We don’t have enough pipeline" is the number one GTM challenge I hear.
Companies struggle to generate sufficient qualified leads and quality opportunities to support AEs and SDRs in hitting revenue targets. When the pipeline falls short, the typical reaction is to increase the volume—more leads, more outbound, more marketing spend.
But what if the problem isn’t how much pipeline we have, but how we think about pipeline itself? We've all been taught to believe certain things about pipeline generation. But what if those beliefs are holding us back?
Could we take a first-principles approach to understanding pipeline generation?
Pipeline generation isn’t a siloed marketing function—it’s a complex, interconnected system with multiple inputs, outputs, and interdependencies. Let's strip away the assumptions and rebuild our strategies based on what we know to be true. Help me explore what actually drives revenue rather than what has been historically accepted as best practice.
Here are five common pipeline myths that are potentially hurting your business:
More Leads = More Revenue: This classic assumption often leads to inefficient spending on lead generation tactics that prioritize volume over value. The flaw: Pipeline health is about quality, not just quantity.
The "Linear Funnel" Myth: Many conventional approaches rely on a linear funnel model, assuming that all leads progress through the same stages in the same way. The flaw: Modern buyers enter the funnel at different points and move non-linearly. Buyers self-educate before talking to Sales and consuming content on their own time.
Over-Reliance on MQLs: Marketing Qualified Leads are often treated as the primary metric for pipeline generation success. The flaw: MQL-based scoring usually rewards low-intent behavior.
Attribution as the Holy Grail: Many companies invest heavily in complex attribution models, assuming that understanding the exact touchpoints that lead to a sale will solve their pipeline problems. The flaw: Attribution models don't capture the full buying process.
Neglecting Sales and Marketing Alignment: Many companies operate with siloed sales and marketing teams, assuming each department can function independently. The flaw: Misalignment creates pipeline leakage.
Which of these assumptions is the biggest culprit behind poor pipeline execution?
Do you disagree? Do you believe any of these assumptions represent a best practice for your team?
P.S. I’ve shared an image of Winning by Design's Data Model because the framework is an excellent way to discuss where pipeline optimization can occur within your organization.
#firstprinciples, #GTMexecution, #WinningbyDesign
