2 Mandates for the Chief Revenue Officer

There is only ONE thing that assures a business will survive long enough to thrive over the decades.  That ONE thing is to continuously produce more profitable revenue.

Once an organization stops producing more profitable revenue, it becomes insignificant and then goes out of business.  Just ask Blockbuster, American Motors, TWA, Sun Microsystems and many others.

To continuously produce more profitable revenue is dependent on two things:

1. successfully applying “Revenue Science™”
2. the Revenue Resources Required and available

“Revenue Science™” will make it clear if what a company plans to monetized will survive or thrive in the market and what the Revenue Resources Required are to achieve that outcome.

If survival requires continually producing more profitable revenue and that depends on applying “Revenue Science™” with the Revenue Resources Required and available, then there needs to be someone who is certified in “Revenue Science™” and deploying based on those Revenue Resources Required and available.

That person is a CRO (Chief Revenue Officer).

The CRO delivers on these mandates by first pulling the organization’s business and operational leadership together to develop and deploy a science based Revenue Strategy.

The Revenue Strategy requires the total organization’s alignment (to the Revenue Strategy) and execution.  Since the only predictor of success is producing more profitable revenue there is NO other effort for the total organization that is more important.

The second thing the CRO is responsible for is the highest leveraged use of resources by the total organization.  Every dollar in the organizations budget produces a leveraged impact (plus or minus) on the growth of profitable revenue and it is the CRO’s mandate to help the organization increase the leverage of every and all dollars.

The CRO’s work, like that of a CFO and CIO, increases based on industry, size, stage of an organization and the long-term goals for growth.  All of these roles are expensive and a CRO who can deliver these mandates is likely to be more than $300,000.00 per year for a full-time person.

Most organizations do not require any of these roles to be full time until certain situations present themselves from either strategic goals or outside pressures.  Until those situations are present a Fractional CRO is both highly effective and a good use of those Revenue Resources Required and available.

Fractional CRO’s normally spend between 2 and 8 days per month to fulfil the mandates and cost between $5,000.00 and $20,000.00 per month on a Fractional Contract vs almost twice that for a hired CRO.

Another reason for a Fractional CRO is that CROs like a CFO have sweet spots where they add the most value.  Some of the CROs add the most value with new organizations, some with complex B2B and some with B2C vender environments.  With a Fractional CRO contract there is a time to consider a CRO that is today’s exact fit.

Any organization without a CRO who is fractional or on payroll is taking a big risk that is more expensive that the cost of a certified CRO.