2 min read

The Revenue Room™: One Company Pillar

Featured Image

The Revenue Room One Company

The One Company Revenue Room Pillar

Success with The Revenue Room™ model depends on the CEO. She or he has to support and execute on the vision of an aligned organization in which the product development, sales, marketing and customer success teams contribute to a common goal—revenue. Getting there requires a shift in organizational culture and a commitment to maintaining a new structure, performance metrics and incentives.

The Revenue Room Pillars Chart

Create a Culture of Alignment

In most organizations, collaboration is additive. The product team passes off its new offering to marketing, which develops leads for sales, which delivers newly minted clients to the customer success team. Each department executes independently, layering on its secret sauce until the business posts revenue, and the linear process starts anew.

In contrast, The Revenue Room views collaboration as a collective process. Product development leverages input from marketing, sales, and customer success to design and modify offerings. The departments frequently meet to align their tactics, listen in on sales pitches, review customer feedback, and share wins and failures. The march toward revenue is interdependent, participatory and informed.

Culture of Alignment Row Boat

Implement a New Organization Chart

The organizational chart in a company or trade association that adopts The Revenue Room model is different from the structure of a traditional enterprise (see below). In the former, everyone in every revenue-adjacent department reports to or aligns with the Chief Revenue Officer (CRO). The CRO holds them accountable for revenue and works to promote collectivity. In addition, it is critical that the CRO has a direct line to product. Without that line, product will not receive the direct and ongoing customer feedback required to deliver a superior customer experience and accelerate product innovation. 

The Revenue Room Organizational Model

Change the Success Metrics

Success in The Revenue Room is measured differently as well. Everyone across product development, marketing, sales and customer success shares some key productivity indicators (KPIs), including:

  • Overall revenue
  • Closed sales
  • Customer retention
  • Customer satisfaction
  • Speed to market
  • Speed to customer
  • Collaboration

​In other words, it’s not enough to develop a product, if customers don’t buy it. Marketing can run a uber-creative campaign, but if it doesn’t help close sales, it’s a Revenue Room dud. The sales team can be off the charts productive, but revenue will become increasingly harder to earn if customers never come back. Sharing accountability also inspires collaboration.

Let Everyone Win

In The Revenue Room model, collective sharing of the revenue-creation responsibility also leads to communal sharing of the gains. A bonus for the organization is that shared incentives also tend to promote listening, foster discussion and enhance relationships between teams. For instance, if the organization rewards marketers for closed sales, they will engage more with the salesforce to see what’s working.
Business Team High Five
Transition to The Revenue Room

The evolution from a traditional operation to The Revenue Room model not only takes time but requires leadership. It can feel uncomfortable, at first, to seasoned employees accustomed to more conventional divisions of responsibility, incentives and even scapegoating (sales blaming marketing for its low close rate, for example). The CEO’s job is crucial for defining the vision, implementing the change and keeping the commitment.

Interested in learning more about how The Revenue Room can help you transform your sales results? 
Contact Us
H2K Partners owns the trademark to The Revenue Room.