The role has one of the shortest tenures of any in the C-Suite and is often blamed for below-target growth. But recent research shows firing the CRO can cause more problems than it solves.
October 10, 2024
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Researchers determined that 62% of companies see their revenue growth rate decline or remain flat in the fiscal year following a Chief Revenue Officer change. The median rate of decline is nearly four percentage points, from an average 15.5% growth rate the year before the CRO switches out, to an average 11.7% growth rate the first full fiscal year after the CRO switches out. But standing pat may not always be an option. This article explains the implications of firing a CRO and what you should know before hiring a new one.
The average tenure of today’s chief revenue officer (CRO) is among the shortest in the C-suite, averaging just 25 months. For many companies, this duration doesn’t even equate to the duration of two sales cycles for their products.
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Bryan Kurey is the Senior Vice President of Research at SBI Growth Advisory.
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Dan Lingebach is a senior researcher at SBI Insights.
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