How to Align?

Step 1: Structure

1. Reporting Structure

  • Ensure both sales and marketing leaders report to the same individual (not the CEO) such as a Chief Revenue Officer (CRO) or Chief Operating Officer (COO) responsible for all revenue.

  • This unifies decision-making and avoids feuds between department leaders seeking CEO approval.

2. Decision-Making Authority

  • Determine who drives decision-making based on your business model:

  • Sales-led growth motion: Sales team leads decision-making, especially regarding go-to-market or revenue strategy.

  • Product-led or high-velocity sales environment: Marketing team may have more influence due to revenue driven by marketing efforts.

3. Operations Team Reporting

  • Avoid misalignment by ensuring sales and marketing operations teams report to the same individual (CRO or CMO) to prevent conflicting systems and data reporting.

Step 2: The Right People

1. Interviewing Sales/Marketing Leaders

  • Gauge if candidates see themselves as part of a cohesive team by asking about the performance of the opposite department at their previous companies.

  • Look for a tone of respect and shared responsibility, rather than blame-shifting.

Step 3: Clearly Defined Go-To-Market Processes

1. Data Definitions and Processes

  • Misalignment often arises from differing data definitions and handoff processes.

  • Ensure both teams have a clear understanding of key terms like "sales qualified lead."

  • Define routing and handoff procedures for various lead sources.

Step 4: Incentive Structure

1. Goal Alignment

  • Incentives drive behavior, so align incentives with desired outcomes.

  • Common misalignment occurs when marketing's lead generation goal differs from sales' ideal customer profile.

  • Consider tying marketing compensation to closed deals or making pipeline generation part of sales goals.

  • Offer bonuses for driving testimonials or case studies valuable to marketing.

Step 5: Tools and Technology

1. Transparent Goal Tracking

  • Implement visible and transparent goal tracking, preferably within your CRM (e.g., Salesforce, HubSpot).

  • Consider more sophisticated BI or pipeline sales management solutions like Looker, Heap, or Funnel Source for complex needs.

  • A shared, accurate view of progress fosters collaboration and alignment.

2. Routing and Handoff Optimization

  • Use tools like LeanData or Chili Piper to optimize routing and handoffs between sales and marketing, ensuring efficient processes.

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