Comments on: In Search of the Mythical VP Sales & Marketing http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/ and all things software Sat, 04 Sep 2010 23:05:36 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Bruce Cleveland http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-1035 Bruce Cleveland Sat, 04 Sep 2010 23:05:36 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-1035 Tim: Your comment about M being considered overhead rings so true. Marketing has been and continues to be viewed as overhead by most CEOs and gets the axe the second revenue falls off. If we have our way with Marketo (www.marketo.com -- shameless plug for one of my investments), then the role of the CMO/Marketing will be permanently transformed from a cost center into a revenue center. One of Marketo's primary objectives is to transform industry such that it becomes standard practice for the CMO to be held accountable for accurately predicting future revenue -- revenue outside and downstream from the current period. We will know we are successful when the CEO looks to the CSO (Chief Sales Officer) for accurately predicting in period revenue and the CMO for accurately predicting downstream revenue. When companies start viewing revenue this way, in period/out of period, Marketing and Sales will hold equal power in the executive suite. Cutting Marketing (e.g. demand gen), when revenues decline is an antiquated and dangerous practice - IMHO. Tim: Your comment about M being considered overhead rings so true. Marketing has been and continues to be viewed as overhead by most CEOs and gets the axe the second revenue falls off.

If we have our way with Marketo (www.marketo.com — shameless plug for one of my investments), then the role of the CMO/Marketing will be permanently transformed from a cost center into a revenue center. One of Marketo’s primary objectives is to transform industry such that it becomes standard practice for the CMO to be held accountable for accurately predicting future revenue — revenue outside and downstream from the current period. We will know we are successful when the CEO looks to the CSO (Chief Sales Officer) for accurately predicting in period revenue and the CMO for accurately predicting downstream revenue. When companies start viewing revenue this way, in period/out of period, Marketing and Sales will hold equal power in the executive suite. Cutting Marketing (e.g. demand gen), when revenues decline is an antiquated and dangerous practice – IMHO.

]]> By: Tim Johnson http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-1009 Tim Johnson Fri, 03 Sep 2010 19:33:29 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-1009 Agree. I have seen too many where the 'little m' was 3 point font, subscript. One of the two gets sacrificed. Yes, in a startup you have to do what you have to do - been there, doing it again shortly. The metapoint is that both functions will suffer because there cannot be the attention they both require. Some companies are lucky enough to get through, many others not. Even with the argument of complete accountability, one will suffer, more than likely the M side (overhead) than the S side (revenue). Agree. I have seen too many where the ‘little m’ was 3 point font, subscript. One of the two gets sacrificed. Yes, in a startup you have to do what you have to do – been there, doing it again shortly. The metapoint is that both functions will suffer because there cannot be the attention they both require. Some companies are lucky enough to get through, many others not.

Even with the argument of complete accountability, one will suffer, more than likely the M side (overhead) than the S side (revenue).

]]> By: Linking Logs :: 2010-04-17 / Scott Hebert http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-620 Linking Logs :: 2010-04-17 / Scott Hebert Sun, 18 Apr 2010 03:03:08 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-620 [...] The Mythical VP Sales & Marketing"the CEO who makes this serious mistake hasn’t worked with someone who is an excellent Marketer and therefore discounts the role it plays." I think this sentiment can be applied to plenty of other roles in an organization, too. [...] [...] The Mythical VP Sales & Marketing"the CEO who makes this serious mistake hasn’t worked with someone who is an excellent Marketer and therefore discounts the role it plays." I think this sentiment can be applied to plenty of other roles in an organization, too. [...]

]]> By: Bruce Cleveland http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-605 Bruce Cleveland Fri, 02 Apr 2010 23:00:32 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-605 Matt: I think we are actually in agreement here. What I react to is when this isn't being done due to the fact the company needs to conserve cash, etc. but when the CEO just isn't aware that these are two fulltime jobs with different skill sets required. One of our portfolio companies is guilty of this and they are a $100M company so there is no excuse -- at least as far as I am concerned. Matt:
I think we are actually in agreement here. What I react to is when this isn’t being done due to the fact the company needs to conserve cash, etc. but when the CEO just isn’t aware that these are two fulltime jobs with different skill sets required. One of our portfolio companies is guilty of this and they are a $100M company so there is no excuse — at least as far as I am concerned.

]]> By: matt http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-600 matt Wed, 31 Mar 2010 07:15:34 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-600 It really doesn't matter much but for streamlining operations. Sales and marketing are tied as they're the key components for revenue, marketing for demand creation (providing leads), sales for execution (lead hit rate). You can break this up again to marketing going to business development (writing product specs) and marketing communications (advertising, blog, etc). Sales can be broken up into new sales vs recurring or strategic vs tactical (regional) or whatever. Discounting someone for streamlining operations without going into details is maybe a little premature. Regardless, both of these are scalable placeholder roles, especially in startup mode, where everything rides on development and the CEO should really be the main sales and marketing. At least to get initial traction, let others pick it up later once model is proven. At that point you're just balancing headcount to appropriate cost structures so what does it matter if some roles are consolidated for conservative planning costs, it's not like these are for development or anything, just management roles. It really doesn’t matter much but for streamlining operations. Sales and marketing are tied as they’re the key components for revenue, marketing for demand creation (providing leads), sales for execution (lead hit rate). You can break this up again to marketing going to business development (writing product specs) and marketing communications (advertising, blog, etc). Sales can be broken up into new sales vs recurring or strategic vs tactical (regional) or whatever.

Discounting someone for streamlining operations without going into details is maybe a little premature. Regardless, both of these are scalable placeholder roles, especially in startup mode, where everything rides on development and the CEO should really be the main sales and marketing. At least to get initial traction, let others pick it up later once model is proven.

At that point you’re just balancing headcount to appropriate cost structures so what does it matter if some roles are consolidated for conservative planning costs, it’s not like these are for development or anything, just management roles.

]]> By: Bruce Cleveland http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-593 Bruce Cleveland Thu, 25 Mar 2010 15:25:54 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-593 Maureen: Great article on the differences between the roles. Thanks for sharing. Maureen:
Great article on the differences between the roles. Thanks for sharing.

]]> By: Maureen Shaffer http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-592 Maureen Shaffer Thu, 25 Mar 2010 14:09:33 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-592 Bruce, I completely agree with you. Early in my career, everyone was a VP of Sales and Marketing -- either a sales person who picked up Marketing or a marketing person who picked up Sales. In all instances, one function was promoted to the detriment of the other. As a VP of Marketing in my previous companies, I worked in close concert with the VP of Sales and found the two personalities different but complementary as well as creating a necessary push-pull between short-term tactical and long-term strategic thinking. Also, your blog reminded me of an article from De Novo ventures, a well-respected Life Sciences VC, that I thought this group may enjoy. http://www.denovovc.com/articles/should_i_hire.pdf Best, Maureen Bruce,

I completely agree with you. Early in my career, everyone was a VP of Sales and Marketing — either a sales person who picked up Marketing or a marketing person who picked up Sales. In all instances, one function was promoted to the detriment of the other. As a VP of Marketing in my previous companies, I worked in close concert with the VP of Sales and found the two personalities different but complementary as well as creating a necessary push-pull between short-term tactical and long-term strategic thinking.

Also, your blog reminded me of an article from De Novo ventures, a well-respected Life Sciences VC, that I thought this group may enjoy.

http://www.denovovc.com/articles/should_i_hire.pdf

Best,

Maureen

]]> By: George Roberts http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-578 George Roberts Mon, 15 Mar 2010 16:20:41 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-578 Bruce, Good insight and I could not agree more... granted as the one gentleman indicates there are times when you might have to wear multiple hats in the beginning but the sooner you divide and conquer with the right skill sets in the right management roles the sooner you will really start to scale your company... All the best! G Bruce,

Good insight and I could not agree more… granted as the one gentleman indicates there are times when you might have to wear multiple hats in the beginning but the sooner you divide and conquer with the right skill sets in the right management roles the sooner you will really start to scale your company…

All the best!

G

]]> By: It’s the conversation, stupid « Founder’s View http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-577 It’s the conversation, stupid « Founder’s View Mon, 15 Mar 2010 14:02:27 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-577 [...] the same time, I had to think of a blog entry by Bruce Cleveland of InterWest Partners on the Mythical VP Sales & Marketing. The rationale of the article was that there are very few great VPs of Sales & Marketing in the [...] [...] the same time, I had to think of a blog entry by Bruce Cleveland of InterWest Partners on the Mythical VP Sales & Marketing. The rationale of the article was that there are very few great VPs of Sales & Marketing in the [...]

]]> By: Bruce Cleveland http://www.interwest.com/software-as-a-service/marketing/in-search-of-the-mythical-vp-sales-marketing/comment-page-1/#comment-573 Bruce Cleveland Fri, 12 Mar 2010 22:53:26 +0000 http://www.interwest.com/software-as-a-service/?p=443#comment-573 Bill: Sorry. I may be polemical and doctrinaire but it comes after 30 years of operating success personally helping to build multi-billion $ software companies (e.g. Oracle/Siebel) from early to late stage and sitting on the BOD of others. I respect your success with other companies, but I fundamentally don't believe there are plenty of execs capable of managing both functions - especially simultaneously. If you're focused on driving short term revenue, how can you possibly be creating a comprehensive product/positioning strategy, writing the press releases, designing the campaigns, etc? There isn't enough time in a day/week. If you put someone in who is "little M", you are discounting the function -- by definition, the 'little M' is doing the work but isn't a 'senior exec'. These are both huge jobs that are incredibly important and while as a very small company you may need to 'make do' by wearing multiple hats, it should be temporal at best. If you take this approach, you might make a company successful but you are crippling your company's ability to become a global market leader -- which puts it in the category of an Oracle, Google, etc. That is why we didn't do this at Siebel and we didn't do it at Oracle..or any other company I've been involved with or in. Nor will we. Bill: Sorry. I may be polemical and doctrinaire but it comes after 30 years of operating success personally helping to build multi-billion $ software companies (e.g. Oracle/Siebel) from early to late stage and sitting on the BOD of others. I respect your success with other companies, but I fundamentally don’t believe there are plenty of execs capable of managing both functions – especially simultaneously. If you’re focused on driving short term revenue, how can you possibly be creating a comprehensive product/positioning strategy, writing the press releases, designing the campaigns, etc? There isn’t enough time in a day/week. If you put someone in who is “little M”, you are discounting the function — by definition, the ‘little M’ is doing the work but isn’t a ‘senior exec’. These are both huge jobs that are incredibly important and while as a very small company you may need to ‘make do’ by wearing multiple hats, it should be temporal at best. If you take this approach, you might make a company successful but you are crippling your company’s ability to become a global market leader — which puts it in the category of an Oracle, Google, etc. That is why we didn’t do this at Siebel and we didn’t do it at Oracle..or any other company I’ve been involved with or in. Nor will we.

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