Do you need a Chief Revenue Officer?

The case FOR and AGAINST a Chief Revenue Officer

Since the rise of high-growth startups, there's been a notable shift in how companies structure their C-Suite, particularly with how growth (sales, revenue, marketing) is represented at the C-suite.

Among these changes is the introduction of a new role, the Chief Revenue Officer (CRO).?As companies navigate uncharted business landscapes, many find themselves asking the question: "Should we appoint a Chief Revenue Officer?" Larger companies now too are asking just how is growth represented at the C-suite and if they too can benefit from this type of role.

In this article, I’ll explore the reasons for and against having a CRO and conclude with six key considerations for companies planning to adopt this role for the first time.

The Case AGAINST a Chief Revenue Officer

1. Overlap with Other Roles:?There's a risk of overlap and confusion between the CRO's responsibilities and those of the Chief Sales Officer (CSO) or Chief Marketing Officer (CMO). This can lead to conflict, duplication of effort, and inefficiencies.?However if these roles don’t formally exist in your organisation, then the benefit of a CRO is stronger.
2. Expanding the C-Suite:?Every new executive role increases complexity in decision-making and communication.?Adding a CRO might add another layer of bureaucracy, potentially slowing down agility and responsiveness.
3. Not a One-Size-Fits-All Solution:?Smaller companies or those with a more straightforward sales process may not need a CRO.?In such situations, the responsibilities of a CRO can be efficiently managed by existing roles.
4. Resistance to Change:?Introducing a new executive role can be met with resistance from existing team members. This can be especially true if the CRO is seen as a threat to existing power structures.
5. Be clear on the Why:? Following the trend or what others are doing may seem good for a fleeting moment but you should be clear on the ‘why’ a CRO would benefit your leadership team.

The Case FOR a Chief Revenue Officer

1. Holistic Revenue Focus: ?A CRO's primary role is to align and optimise all revenue-related functions, including sales, marketing, and customer success. This ensures a seamless, integrated approach to revenue growth, eliminating departmental silos that can harm the customer experience and impede sales effectiveness.
2. Increased Accountability:? With a CRO in place, there's a single point of responsibility for revenue generation. This increased accountability often leads to improved forecasting accuracy, clearer growth strategies, and more effective performance measurement.
3. Strategic Oversight:? A CRO brings a strategic, big-picture perspective, identifying new revenue streams, crafting go-to-market strategies, and guiding the organisation towards long-term growth objectives.
4. Focus on the Bottom Line:? A CRO is focused on revenue growth, which means they are always looking for ways to increase profits. This can help a company stay focused on the bottom line and make decisions that will ultimately lead to increased revenue.
5. Strategic Planning:? A CRO can help a company develop and execute a strategic plan for revenue growth. By having one person responsible for all revenue-generating functions, a company can ensure that its revenue goals are aligned with its overall business strategy.

Top 6 Considerations When Planning the CRO Role

When considering the introduction of a CRO role, these six considerations can guide your decision:

1. Organisational Structure:? Analyse your current structure and determine if there are silos that could be broken down by introducing a CRO.
2. Revenue Complexity:? If your company has multiple revenue streams, a CRO can bring cohesion and focus to ensure all streams are optimised and aligned.
3. Current Performance:? Evaluate your current sales and revenue performance. If your revenue growth is stagnant or declining, a CRO could be instrumental in driving a turnaround.
4. Strategic Alignment: ?Does your company struggle to align sales, marketing, and customer success strategies? A CRO can bridge these functions to create a more coherent and effective growth strategy.
5. Clarity of Roles:?Be clear about the distinction between the CRO and other roles, particularly the Chief Customer Officer, to avoid conflict and confusion.
6. Right Talent:? Lastly, finding the right person for the role is critical. Look for candidates with a proven track record in revenue growth, strategic thinking, leadership, and cross-functional collaboration.

The introduction of a CRO role isn't a decision to be taken lightly. But when done right, it can become a catalyst for growth and strategic alignment, providing a holistic approach to revenue generation and creating a customer experience that ultimately drives long-term success. It's a significant consideration for companies looking to accelerate their growth in today's competitive and ever-evolving business landscape.