Why is GTM Exec Turnover so high?
The average tenure for a VP of Sales is ~18-24 months. But why?
Is the problem that the leaders being hired aren’t the right people? Or is it that these leaders are being asked to succeed within a broken GTM system?
The average tenure for a VP of Sales is ~18-24 months. It’s only slightly longer for a CRO. Those are some depressing numbers.
I know there isn’t just one reason for this, but in my experience, there’s often a strong correlation between companies that struggle to find the “right” sales leader and the overall health of their GTM system.
Which begs the question: Is the problem that the leaders being hired aren’t the right people? Or is it that these leaders are being asked to succeed within a broken GTM system?
It’s hard for any leader to be successful if the system is broken, no matter how good they are.
Here are a few things that I find consistently separate a healthy GTM system from one that isn’t functioning well:
Data-Driven Decision Making
If you want to make informed decisions, you need to prioritize data. “You can’t manage what you don’t measure” (nod to Cassie Young on that). That means tracking the right data accurately to set a solid data foundation and ensuring that leaders are using the right metrics to make strategic decisions and guide the business. Healthy systems don’t rely on gut feelings or intuition—no matter how many years of experience a leader has. And a mountain of data and complex spreadsheets does not mean you are data-driven if you can’t extract the insights needed to understand what’s working and what isn’t.
A Systems Mindset & Integration Across Revenue Functions
Systems are interconnected, and changes in one part of the system can affect other parts—often in unexpected ways. The behavior of the system as a whole results from the interactions of its components, rather than the individual parts in isolation. A great Marketing team, and great Sales team, and great CS team don’t automatically result in a great system. You must design the system so that these teams share goals, integrate their processes, maintain open communication, and have tools and systems that interoperate well.
Repeatable Processes
A healthy system provides predictability. You put something into the front end of the system, and you know what you’ll get at the back end. You monitor the output and shift the inputs or what is happening in the middle as needed. The system will only work this way, however, if you first take the time to learn what actions drive what outcomes, and understand what skills it takes to execute them well. Roles, responsibilities, and workflows are all captured through this process and clearly defined.
If you’ve struggled to find GTM Execs that are the “right fit,” and find yourself replacing Heads of Sales, Marketing, or CS every year or two, consider taking a look at your GTM system before hiring again. Compare it against the key points above.
If you THINK there might be a system issue, may I suggest that we chat before you go through the cost and effort of recruiting another leader who would face the same challenges? Honestly, there is a better (and far less expensive & frustrating!) way. 😀
4 Key Tips for Healthy GTM Systems
It all begins with an idea.
Our world moves FAST. And when you're moving fast it can be easy to skip steps or do things without realizing it.
Consider some common phrases we use without thinking. We talk about "top of the funnel" despite the fact that the funnel is a flawed way to model our recurring revenue business (it literally doesn't capture the "recurring revenue" part at all!). Or we focus on "closing the deal" even though the initial contract is really only the start of the relationship - and not even the part where most of the revenue is generated.
When we say and do things without thinking, there's a chance it may be affecting how you think about your company, your job, or how you consider the roles of other teams.
All too often, especially when a company is scaling, things go off the rails simply because no one was paying attention.
Instead, stay on track by consciously prioritizing a few core things and continually checking in to make sure they stay top of mind.
Attention to these early and often will help you avoid common challenges so you can keep focus on ongoing optimization - not on crisis management.
1. Align Everyone on How You Model Your Business:
If one team is thinking of the business as a funnel and someone else as a circle, chances are a lot of other things may be misaligned. Ensure all teams have the same understanding of the revenue journey that drives your business, and that they understand each part of it.
2. Track. Your. Data.
You can't possibly know what parts of your organization are working and which aren't if you don't measure how prospects and customers move along the model, step by step. Set a clear, reliable source of truth for your data - with a talented RevOps person at the helm - and track everything ongoing so you can catch issues early, and do more of what works.
3. Align on language.
When an AE says "MQL" and a CSM says "MQL, are they defining it the same way? Is one rep using MEDDIC & one using SPIN? What is an "Account"? Is it the same thing as a "Customer"? These may seem like silly questions to ask - but I'm shocked by how often there is misalignment on common terms across a company.
4. Don't Forget - It's a SYSTEM.
We can get so focused on the parts that we forget the whole. Teams should pursue OKRs and goals, but not at the expense of the system. And don't forget the fact that in a system, a small change in one part of it can have consequences - not always intended ones - in other parts.