MANAGEMENT
pany has achieved CRO readiness. For any CEO already tasked with an overwhelming role, the notion of building a CRO-ready organiza- tion can seem insurmountable. Many CEOs who succeed at it do so with the help of an outside fractional CRO advisor whose role is to provide expert guidance and blueprints de- signed to help wrangle the organiza- tion into a proper state for a perma- nent CRO to step in.
3. IDENTIFY, HIRE, DEPLOY, AND SUPPORT THE RIGHT CRO Now that you understand why you really need a CRO – and also how to build a CRO-ready organization – the critical next step is to identify and hire a good CRO.
A good CRO is one who comes equipped with a unique and special- ized multi-disciplinary skillset. This person must not only possess the distinct nuances of leading a sales organization, but also have expertise in all aspects of marketing – par- ticularly from a data and analytical perspective – and an understanding of how the customer success function is impacted by both. Most importantly, this expert must understand how all three of these functions need to work together and possess the competence needed to lead them to form a unified revenue operation that scales and increases customer engagement, sales, and profitability. Resultist Consulting, a leading
organizational revenue research or- ganization, describes a qualified CRO as: “a corporate officer (executive) responsible for all revenue generation processes in an organization. In this role, a CRO is accountable for driving better integration and alignment be- tween all revenue-related functions, including marketing, sales, customer support, pricing, and revenue man- agement. In short, a CRO is respon- sible for all activities that generate revenue. In most companies, the CRO is tasked with primary or shared responsibility for operations, sales,
corporate development, marketing, pricing, and revenue management.” CROs with these unique qualifica-
tions are very difficult to find. As we shared in the first section, the vast majority of CROs are hired up from sales organizations or previous sales roles. While doing this is understand- able, our analysis clearly shows that a successful CRO needs to come equipped with a more comprehensive skillset than just sales. Key for the CEO is first to clearly
identify and articulate the specific skills, areas of expertise, and combina- tion of qualifications needed for the CRO candidates. Second, the CEO must be able to vet CRO candidates effectively to determine if/how they can seamlessly integrate and lead the newly formed CRO-ready organization- al structure that has been put in place. The key takeaway here is to en-
sure the winning candidate comes equipped with the proper multi-disci- plinary profile required to lead the on- going alignment of a sales, marketing, and customer success organization. Here are a few key personal and
professional attributes that define a successful chief revenue officer: • Market maker: A CRO works closely with the executive team and others to craft and commu- nicate the company’s vision and then transform that vision into a long-term strategy for pioneering new markets and opportunities.
• Wise organizational builder and leader: The best CROs under- stand and embrace the differenc- es between marketing and sales, while having a strong customer- oriented perspective on the business as a whole. At the same time, the CRO must establish pro- cesses to ensure their coordina- tion across the full revenue cycle to ensure the greatest revenue growth possible.
• Leading from the front: A CRO must be able to see and clearly communicate the company vision and the revenue strategy across all relevant functions and ensure the
12 | NOVEMBER/DECEMBER 2021 SELLING POWER © 2021 SELLING POWER. CALL 1-800-752-7355 FOR REPRINT PERMISSION.
right goals are defined and met.
• Business acumen: As a business leader first, a CRO must regularly measure and analyze productivity and effectiveness, form strategic product road maps, create market positioning and competitive ad- vantages, and determine budget trade-offs with a goal of continu- ally improving and developing sustainable results.
• Data-driven/metrics-driven: The right CRO creates a culture of accountability by setting the right metrics and tying company performance, compensation, and promotions to tangible results.
• Results-oriented: A CRO as- sumes a long-term, integrated perspective while also striving to drive quarterly revenue results. He or she commits to short-term results, forecasts future revenue, and takes accountability for both short-term success and longer- term strategy.
When a company has matured to
the point where a CRO is the clear next addition, CEOs must have a clear and strategic understanding of how this role will impact critical business functions. While making this key appointment hastily comes with risks, these risks can be mitigated by clearly understanding what a CRO really does, applying a multi- disciplinary approach to functional alignment, and finding the right CRO who is suited for success.
Warren Zenna is founder and CEO of The CRO Collective. The mission of The CRO Collective is to develop the best CROs in the world and help B2B companies negate the crippling misalignment issue they face when they fail to correctly appoint and implement the CRO role. To fulfill this mission, The CRO Collective offers proprietary training and development for current CROs and aspiring CROs, a consulting practice for B2B CEOs currently looking to appoint a CRO, a member-only CRO community, and a CRO placement platform to help match companies with qualified CROs.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39
