The role of a Chief Revenue Officer is a daunting one – essentially, as a CRO, you are responsible for all the processes that generate revenue for the company – and in turn, are responsible for the success or failure of the organization.
Seem overwhelming? It can be – and there isn’t much room for error. However, if you know the common mistakes CROs tend to make, you can look out for them, and correct them before they impact your company’s performance. Read on for the first four of seven common mistakes CROs make, and how to overcome them:
1. Allow the CEO to relinquish his role of sales driver for the company because of ego or fear of performance or exposure
As the CRO, you must garner and leverage all necessary resources to achieve revenue targets and other sales driven key indicators. Focusing on abundance and putting ego aside, all CRO should continuously involve the CEO and other executives in driving the revenue engine. It is all about results, not about ego.
2. Manage tasks and activities, instead of processes and skills
An individual sales professional does and accomplishes sales tasks. A district manager does the same but with a measure of empowering his/her people to succeed as well. It is not “do as I do”, but rather “here is what and why I do this or that in this circumstance, so learn the skill and implement the best practice”. The CRO is all about managing the process of selling, not the tasks- not the situation but the process. Hence in most cases, a great individual producer, unless trained in the process of selling, will fail at managing sales.
3. Forget to incorporate the HOW in his one and three years sales plan
It is never enough to say, present, or defend WHAT to do in sales. It is as, if not more important to show HOW it is or can be done. HOW is all that matters. HOW is tactic. HOW is action. HOW is result.
4. Believe that segmentation and focus on coverage modeling for territories, channels, and account types, or product segmentation is not important
Segmentation, and sales analytics of all types, have become critical in allowing sales professionals and CRO to drive better activities and decisions. Pretending it is not important is both shortsighted and simply wrong.
Next week, we will look at the remaining 3 common mistakes Chief Revenue Officers make. In the meantime, what are the most common mistakes you have seen in your company regarding CROs? Any that are not on this list?