CROs Could Be Going Out Of Business... There's a New Sheriff in Town
Shock, horror... the definition of a Chief Revenue Officer role is pretty blurry in the market right now, but does it need to be? The short answer is no... but have you heard of the newest title tipped to sweep the C-suite? Say hello to the Chief Go-To-Market Officer.
The Chief Revenue Officer position emerged from a necessity to have unified oversight of various revenue-generating functions within an organization, including sales, marketing, and customer success. This role became more prominent with the rise of hyper-growth startups, particularly in Silicon Valley, as companies sought to integrate these functions under one leadership to drive revenue more effectively.
Why did companies seek to integrate the Go-To-Market (GTM) functions more closely?
Revenue misalignment costs B2B organizations 10% of revenue each year.
The CRO role was expected to be the one ring to rule all GTM functions and fix the revenue misalignment problem. So why is there a new role in the market essentially there to do the same thing?
Some Immediate Thinking...
Most CRO roles are not proper CRO roles—they're heads of sales roles with elevated titles. This is because few CEOs deeply understand the CRO role itself, which is proven by 75% of companies not currently having a CRO.
A lot of CROs don't have the breadth of blended expertise to do the real job. Most CROs come from a sales leadership background, so even in the truest of CRO roles, they tend to have limited experience in the marketing, CS, and the operational components required to be successful. This is likely evidenced by the average CRO tenure being 18 months or less.
So What's the Remedy?
Should we allow a new role to come in and promise the same, or is now the time to fix the definition of a Chief Revenue Officer once and for all?
I BELIEVE IT IS! So, how can we do it?
It is essential to define the CRO role as a strategic revenue leadership position that oversees all revenue functions, including marketing, sales, customer success, and strategic partnerships. A well-defined CRO role is crucial for aligning organizational goals and driving sustainable growth.
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Challenges in the CRO-CEO Relationship
A strong partnership between CROs and CEOs is essential for success. Misunderstandings or misalignments can lead to significant challenges, both for the CRO and the organization as a whole. It is also important for CROs to be involved in board presentations and have a clear understanding of the organization's strategic objectives. Building a relationship with the board, even if the CRO is not a board member, can enhance alignment and support for revenue strategies.
Become Well-Rounded in All Components of GTM
Whether you're a sales leader turned CRO, a marketing leader turned CRO, a CS leader turned CRO, or a Rev Ops leader turned CRO, you need to speak the language and understand the precise capability each of these functions adds to your GTM machine.
A common challenge we see, especially for sales leaders turned CROs, is that they simply see marketing as a demand gen engine and then the fluffy stuff. If you're a CRO from sales leadership, learn about brand and its impact on pricing power, PR, product marketing, and all of the other disciplines within a well-oiled marketing function.
One interesting observation is that lately, we've seen more CROs being hired from a rev ops background because of their analytical capability and birds-eye view of the holistic GTM.
The Path Forward
As organizations continue to evolve, the role of the CRO will likely expand and adapt. It is essential for organizations to clearly define the CRO role, align it with strategic objectives, and ensure it is supported by the CEO and the board. Ultimately, the success of a CRO hinges on their ability to lead with vision, engage with key stakeholders, and drive revenue growth through a customer-centric approach. By embracing these principles, organizations can unlock the full potential of their CROs and achieve sustainable success.
Join the CRO Connected Community
Are you ready to tackle the trillion-dollar revenue alignment problem head-on? Join the CRO Connected Community and be part of a transformative movement. By curating insights from world-class GTM Leaders, we ensure together we have the blended capability to create global market leaders
As a member, you'll gain access to a network of industry leaders, exclusive resources, and collaborative opportunities that empower you to lead with confidence and vision. Together, we can unlock the full potential of the CRO role and ensure it remains a vital component of the C-suite.
Don't miss out on the chance to shape the future of revenue leadership. Become a part of the CRO Connected Community today and contribute to a new era of strategic excellence.
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Chief Revenue Officer , General Manager, Senior Vice President Sales
1 个月Great post Josh. One of the biggest issues for the CRO role is the organisational silos and measurements that frustrate the ability to execute in an markwt aligned model. The other top factor is a lack of capabilities and experience to operate in the CRO role as it should be defined. It has levels of complexity much greater than a sales leadership function
Constantly Curious. Never Happier Than On The Fells
2 个月Great article Joshua Smith and strong parallels with what happened in the CX gold rush when people promoted operational service leaders into CX & Customer roles.. and all they did was change the title. No cross functional remit, very often no board place/credibility, usually no training or investment in the teams around them.. ergo little benefit delivered due to the organisation assuming the role change would be the silver bullet required. It is good that through initiatives that people like you support, the CRO community has a chance to learn from and not repeat these mistakes!
PR and Marketing at AdaCore
2 个月Great article, Joshua Smith - I think that it's really important that each company is very, very clear on what their CRO position entails, as it really varies depending on the size of the company and the other C Suite executives/ board members' past experiences and expertise. You are quite right that the CEO and CRO need to be a solid team - a real partnership that is aligned in every way. I always maintain that if someone is going to lead the GTM team (and this is usually the CRO) if they come from a sales background it is very useful for them to really spend time in the marketing office and get some experience of what is involved in every stage. Equally I think that all marketers could benefit from some time in a sales role to learn (I'm kind of biased as that's where I came from into marketing - but it's a bloody good grounding). I view the CRO role as the 'anti silo officer' - that one person who can take the CEO's vision and make certain that the company work TOGETHER towards that vision.