SaaStr 789: What to Expect from a New CRO with Kathy Lord, CRO at Zensai and Jason Lemkin, SaaStr CEO and Founder
Jan 22, 2025
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In this engaging conversation, Kathy Lord, the CRO at Zensai and former leader at Intacct, teams up with Jason Lemkin, SaaStr's CEO. They dive into what to expect in a CRO's first 90 days, emphasizing the value of a structured onboarding plan. Kathy shares insights on aligning CEO and CRO expectations, the critical differences between a CRO and VP of Sales, and pitfalls to avoid in executive hiring. Tune in for practical strategies and fresh perspectives on scaling SaaS companies effectively!
The first 90 days are crucial for a new CRO to build credibility and align with organizational goals through deep engagement and actionable planning.
Strong alignment between the CEO's expectations and the CRO's skills is essential to avoid miscommunications and drive successful growth in scaling organizations.
Deep dives
Ownership of Demand Generation
In startup organizations, the Chief Revenue Officer (CRO) may take ownership of Demand Generation in early stages, particularly when annual revenue is under $20 million. However, it is essential for the CRO to have a skilled individual contributor focused on this area, as many CROs lack sufficient expertise in demand generation strategies. The role of the CRO should primarily focus on closing deals, while Demand Generation requires a dedicated team to handle complexities and cultural shifts. As companies scale, it becomes crucial to separate the functions of sales and demand generation to maintain focus on revenue generation.
Expectations for the First 90 Days
The first 90 days of a new CRO's role are pivotal for establishing credibility and alignment with the organization's goals. It is vital for a CRO to engage deeply with the team, assessing the existing pipeline, processes, and metrics while fostering relationships across departments. Effective onboarding includes direct communication with customers and stakeholders, allowing the CRO to gain insights that data alone cannot provide. Establishing a clear, actionable plan during this period is critical to prioritize necessary changes and improvements for future scaling.
Bridging Reality Gaps in Leadership
Alignment between the CEO's expectations and the capabilities of the new CRO is crucial for success. Understanding the specific needs of an organization at different growth stages affects the clarity of roles and goals. The hiring process should ensure that the CRO has the right experience and pattern recognition to guide the company towards its targets, while also promoting strong collaboration among all executive functions. This alignment helps to mitigate frustrations and miscommunications between the CEO and the new revenue leader.
Empowerment for Transformational Leadership
Empowering the new CRO is essential to drive meaningful organizational change and transformation. CEOs must avoid becoming bottlenecks by allowing the new leader the autonomy to make decisions and learn from their mistakes. Establishing a culture of learning and flexibility enables quicker recovery from failures and fosters innovation. By providing an environment where decision-making is trusted, organizations can cultivate a level of agility that facilitates sustained growth and improvement.
SaaStr 789: What to Expect from a New CRO with Kathy Lord, CRO at Zensai and Jason Lemkin, SaaStr CEO and Founder
SaaStr CEO and Founder Jason Lemkin sat down with Kathy Lord, CRO of Zensai (and formerly of Intacct), to talk about what CEOs and CROs should really expect from one another, especially in those critical first 90 days.
Kathy shares her journey and insights, and together they discuss the critical aspects CEOs and founders should align on when hiring a CRO or VP of Sales, the importance of having a real 90-day plan, and the differences in expectations between a CRO and a VP of Sales. Kathy provides actionable takeaways for ensuring alignment and setting realistic goals while addressing common pitfalls in hiring executive sales roles. This episode is packed with valuable strategies and real-world examples, making it a must-listen for anyone involved in scaling up SaaS companies.
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