Do Great Sales VPs Make Great CROs?

In the course of helping clients find their ideal CROs, I hear the gamut of perspectives from both the client side and the executive side on the role of Sales Head and the Chief Revenue Officer. The terms and roles are often used interchangeably, and the definitions of each role vary widely. 

Many companies make the mistake of promoting their top salesperson to the position of CRO under the assumption that a great head-of-sales will automatically make a great CRO. But this is not necessarily the case. While sales heads are undoubtedly important to the success of any business, they may not have the broader skillset required to be an effective CRO.

Great sales heads are focused on driving revenue and closing deals. They are often driven by quotas and are comfortable working in a high-pressure environment. A CRO, on the other hand, is responsible for the entire revenue function of a company, including sales, marketing, customer success, revenue operations, and occasionally other functions as well. They must have a holistic view of the business and be able to create and execute a revenue strategy that aligns with the overall company vision.

To be an effective CRO, one must have a deep understanding of the market, the competitive landscape, and the customer. They must be able to build and maintain relationships with key stakeholders, including investors, customers, and partners. A great CRO must also be able to analyze data and make strategic decisions based on insights derived from that data.

While a great sales VP may excel at closing deals and driving revenue in the short term, they may struggle with the strategic thinking required to be an effective CRO. They may also struggle to manage and lead teams outside of the sales function, such as marketing and customer success. Additionally, they may not have the financial acumen required to make informed decisions about pricing, margins, and investments in new revenue streams.

Another important consideration is that a great sales head may not have the temperament required to be an effective CRO. Sales VPs are often very competitive and driven, which can sometimes lead to a focus on short-term wins at the expense of long-term growth. A CRO must be able to balance the need for short-term results with the need for sustainable, long-term growth.

To be clear, this is not to say that a great sales VP cannot become a great CRO. Rather, it is to say that the skills required to be a great head-of-sales are not the same as the skills required to be a great CRO. Companies must be careful not to assume that success in one role automatically translates to success in another.

Bottom line: great sales heads may not make great Chief Revenue Officers. While leading a sales team is certainly an important part of the revenue function, a CRO must have a broader skillset that includes strategic thinking, financial acumen, and the ability to lead and manage teams outside of the sales function.

Companies must be careful to evaluate candidates for the CRO role based on these broader skills, rather than assuming that success as a sales VP automatically translates to success in the CRO role.

Reach out if you want to discuss this topic or any other related to leadership capital.