Welcome back to Blame It On Marketing! In our latest episode, we had the pleasure of diving deep into the ever-evolving role of the Chief Revenue Officer (CRO) with our returning guest, Timi, the CRO at Charlie HR. If you've ever wondered whether the CRO position is just a glorified sales role or something more strategic, you're in for a treat.
Timi's journey to becoming a CRO is anything but conventional. Starting his career as a journalist and then transitioning through roles like copywriter and marketer, Timi brings a unique perspective to his current position. This diverse background, he believes, offers both advantages and challenges in the CRO landscape.
"Becoming a CRO is and should be a transformative step where you're not just doing more of what you used to do. You think more of what you used to think, but better."
One of the biggest misconceptions about the CRO role is that it's merely a senior sales position. Ruta shared her frustration on LinkedIn, lamenting that many CROs seem like "senior salespeople who don't care about the rest of the funnel."
Timi wholeheartedly agrees, pointing out that the default perception is often skewed towards a sales mindset.
"The default is a kind of sales mindset... they’re not interested in strategic thinking."
This narrow view limits the potential of the CRO role, restricting it to just meeting sales targets rather than driving comprehensive revenue strategies.
Timi emphasizes that being a CRO goes beyond just managing the sales team. It's about strategic thinking at the highest levels, considering enterprise value, market conditions, competitive strategies, and economic factors.
"It is an executive role where you have to think strategically at the highest level. You’re thinking from the level of enterprise value, market conditions, competitive strategy."
He warns against the trap of viewing sales numbers as the ultimate goal. Instead, revenue should be seen as a byproduct of a well-thought-out strategy that aligns all functional areas towards delivering value.
For a CRO to be effective, integration with other departments is crucial. At Charlie HR, Timi ensures that marketing, sales, product, and customer success teams work cohesively under a unified mission.
"The core imperative as a business is to understand who you're trying to serve, what they need from you, and how you serve them."
He highlights the importance of strong relationships and communication among leadership to prevent siloed thinking and binary approaches like "sales-led" or "product-led" strategies.
Traditional metrics like the number of leads or deals closed are often the primary focus. However, Timi advocates for a more nuanced approach that prioritizes the quality of opportunities and customer value.
"The number is a side effect. It is a side effect of how well you understand the game you're playing relative to the market."
By developing metrics that correlate with or predict revenue generation, the CRO can address issues proactively rather than reacting to lagging indicators.
When hiring a CRO, it's essential to look beyond the resume and assess whether the candidate has the strategic mindset required to elevate the company's revenue operations.
"Understand that you are not hiring a functional leader if you're hiring a CRO. You are hiring something much closer to a CEO just with an extreme focus on your commercial functions."
Timi advises companies to introspect and clearly define what they expect from a CRO. It's not just about having a strong sales background but about having a visionary who can integrate different functions towards a common goal.
The CRO role is evolving from being a senior sales position to a pivotal strategic leadership role that influences the entire revenue ecosystem of a company. By focusing on quality, strategic integration, and value-driven metrics, CROs can drive sustainable growth and enterprise value.
As Timi aptly puts it, "Understand that the money that comes in is a proxy for value." It's about creating and delivering that value consistently across all customer touchpoints.
So, whether you're a CEO looking to hire the next CRO or an aspiring CRO aiming to make an impact, remember that it's the strategic vision and integrated approach that will truly set you apart.