The health of the CEO-CRO relationship can be measured by communication frequency. If weeks go by without a substantive conversation, the alignment is broken, indicating a dysfunctional dynamic that needs immediate correction.
To avoid unproductive, subjective disagreements, the CEO and CRO must center their interactions on shared, objective data. This data-first approach fosters alignment and ensures conversations are focused on performance, not personal opinions.
New CROs often fail by immediately imposing new processes. The priority should be to integrate, understand the existing system, and earn trust by speaking in terms of "we" and "us." Using language like "they" or "you" is a sign of a short tenure.
A new CRO will encounter three factions: staunch naysayers, eager champions, and a large, uncertain middle. The key to successful change management is to ignore the naysayers and generate quick wins with the champions, which will sway the undecided middle and isolate the detractors.
Many new CROs hesitate to challenge the CEO on company strategy. This is a mistake. A CRO's value is providing their unique market perspective as a peer on the executive team, even when it creates friction. This candor is essential for the company's success.
While assessing people and process is important, a new CRO is ultimately hired to deliver a number. Their immediate priority must be to dig into the pipeline, understand the deals, and take ownership of the sales forecast. Missing the first forecast is a critical, often unrecoverable, mistake.
Executive teams often set too many objectives, leading to diluted effort and a lack of clear priorities. A more effective approach is for the CEO and CRO to align on a consumable number of goals, typically four to six, to ensure focus and execution.
Don't dilute a CRO's value—leadership, hiring, and customer-facing skills—by bogging them down with data analysis. Supplement their strengths with a dedicated RevOps person who manages the data, allowing the CRO to focus on high-leverage activities.
When a new CRO is hired as a change agent, disgruntled employees with long-standing CEO relationships will often try to undermine them. A successful transition requires the CEO to recognize this dynamic and redirect those employees back to the CRO, reinforcing the new leadership structure.
Unlike VC-backed firms focused on growth at all costs, private equity environments prioritize sales efficiency—the relationship between GTM spend and new bookings. A CRO entering this world must be prepared to manage this critical, EBITDA-linked metric.
Don't rely solely on board-mandated growth targets. A credible plan must reconcile the top-down vision with a bottoms-up analysis of sales capacity, conversion rates, and historical performance. The intersection of these two approaches creates a realistic, achievable budget.
Static, single-quarter metrics are misleading. A "Five Quarter Report" tracking key KPIs like CAC and NRR over time reveals crucial trends—whether you're improving or declining. This historical context is essential for making informed decisions and managing up to the board.