Interim C-Level
Leadership
Go-to-market change agents that accelerate private equity value-creation plans.
Four things this report finds
From Cortado Group's interim leadership engagements with PE-backed companies.
Executive summary: a struggling portfolio company may need an Interim C-Level Leader
"Bad leadership will continue to yield the same bad results."
Within your portfolio you have a company that is not performing well and will likely not help you reach the revenue objectives of the investors. Do you:
Continue struggling with the status quo?. The company will fall far short of its potential. Bad leadership will continue to yield the same bad results.
Fire the Chief Revenue Officer, Chief Sales Officer, or Chief Marketing Officer and start searching for a replacement?. You'll spend the next six months (minimum) entrenched in a C-Level hiring search. Meanwhile there is no leadership or vision for the future in the company.
Promote a junior employee into the vacant leadership position?. You'll likely end up with someone who is not prepared for a leadership role. An inexperienced leader will be unable to make a meaningful, revenue-focused contribution to the company.
The right answer is none of the above
In all three scenarios, your revenue number will be missed, top talent could leave the organization, and the value creation plan will be derailed. Instead of choosing one of the three traditional approaches, you can choose today's best option: hire an experienced Interim C-Level Leader with a track record for rebuilding GTM engines, from teams to processes to technologies, and helping companies reach or exceed their revenue goals within a tight window of opportunity.
A few of the GTM initiatives Interim C-Level Leaders launch and manage
- Finding and fixing performance gaps in the current operation.
- Transforming sales and marketing organizations to meet evolving customer demands.
- Rapidly filling critical sales and marketing positions with A-player talent.
- Extracting (and acting upon) critical insights from organizational data.
- Opening up wider distribution channels and new market opportunities.
- Increasing operational efficiency by getting more from the existing teams.
- Transferring the new knowledge and best practices to the permanent GTM leader.
GTM Transformations
PE Interim C-Level Leaders are revenue-focused
With record levels of PE fundraising, it's no surprise that firms are paying greater attention to hiring the right C-Level Leaders. They want a leader who understands the idiosyncrasies of optimizing revenue across the GTM operation, and who knows how to build and deploy the right GTM talent, systems, and processes. But filling this role can take time. Time that PE firms cannot afford to waste.
Though sometimes the incumbent leadership is well-suited for the challenge, often they are not. Underperformers must be replaced, a process that can take three to six months to complete. To fill the C-Leader gap, many PE firms have discovered the critical link: hiring Interim C-Level Leaders to work in their C-suite for a limited period of time in roles such as I-CROs, I-CSOs, and I-CMOs. They're finding that Interim C-Leaders possess the in-depth experience, knowledge, and skill sets required to fix their GTM challenges while simultaneously delivering predictable revenue growth within a short window of time. Here are three common examples of PE firms hiring C-Level Leaders to drive performance.
Meeting revenue goals
Often PE firms want a rapid exit. But if revenue has stalled or is low, offers will come in low as well. This was the case for a SaaS company that wanted to exit in 12 to 18 months. Following a year of flat sales, an initial offer came in at a 3:1 multiple on earnings, far lower than comparable market rates. The company needed a fast and high-impact solution to meet its goal. It hired an I-CRO to rebuild its GTM operation. Thanks to a revenue surge by the end of the six-month term, with win rates doubled, the company entertained offers at 6:1 multiples and $27 million higher than before.
Filling leadership vacancies
Too often, PE firms lack the leadership they need to transform quickly. For example, the sudden departure of the head of sales nearly derailed a critical transformation from an on-premises software licensing model to SaaS. The company was left without a strong leader, with a limited prospect pipeline and revenue strategy. It hired an I-CRO to rebuild the foundation to support the product strategy transformation. This included hiring top talent, redefining sales territories and pipeline visibility, and creating a new compensation and quota model. With a 160% increase in validated opportunities, the Sales Qualified Leads (SQLs) were projected to deliver $3.2 million in incremental customer value.
Boosting lagging valuations
Missing revenue targets can dismantle a firm's long-term goals. One large industrial equipment manufacturer needed to maintain a 15% CAGR to hit its growth target of $1 billion in revenue over five years. After several booking misses, another miss would have jeopardized its goals and future valuation. To overcome these challenges, the company hired an I-CRO to deliver a consistent way of identifying and prioritizing the accounts that could deliver the greatest revenue in the shortest amount of time. The company was soon on pace to exceed its 24-month goal and gained a $1.5 billion valuation.
Real-world results: SaaS company receives offers $27M higher with 6:1 multiples
A SaaS company wanted to exit in 12 to 18 months, but its revenue growth had stalled. An initial offer from a strategic buyer came in at a 3:1 multiple on earnings, much lower than market rates. The company was struggling with misaligned sales and marketing teams, a poor hiring process, an SDR team performing at one-fifth the benchmark level, a low 16% win rate, no revenue-building strategy, and a lack of clear KPIs. A Cortado Group I-CRO restructured the marketing team with top-tier talent and rewrote job descriptions, compensation programs, and the accountability system; replaced the entire SDR team and developed new systems and tools, including a playbook, sales territories, performance standards, and a compensation structure; rewrote the lead and opportunity management processes; developed a highly proficient revenue-generating process; and trained the incoming permanent leadership.
Builder vs. Runner
Interim C-Level Leaders bring a "Builder" skill set to GTM transformations
A Builder is a change agent. They bring a unique transformation-focused skill set to the table. They have the ability to find the gaps in a sales or marketing organization and close them. They achieve this by enabling the right people, systems, and processes, then optimizing them to achieve greater revenue generation, and they do it all rapidly. Their personality characteristics include being comfortable in chaos, solving complex problems, executing massive transformations, and meeting revenue objectives. Builders like to fix problems and move on to the next challenge. They are exactly what a PE firm can rely on to rescue failing investments or turbocharge a growth plan.
A Runner, on the other hand, is not a change agent. They maintain a well-oiled machine, only making incremental improvements as needed. They have a skill set ideal for managing a strong-performing GTM organization while thriving in a predictable day-to-day environment. These leaders are attracted to organizations that have "already figured out" and implemented their GTM processes and systems. They thrive in performance conditions that are considered ideal. They love the "long game" of stability. When a PE firm finds a good Runner, they need to retain them to maintain a steady glide path toward an exit.
"When your sales and marketing operation is broken, you need a builder to fix it. When your sales and marketing operation is optimized, you need a runner to keep it going. Without a C-Level leader who is a builder, there is a lot at stake, including the opportunity costs of missing out on more robust sales, better deals, and higher revenue."
Dan Bernoske, CEO, Managing Partner & Founder, Cortado Group
The opportunity cost
There is an opportunity cost of not having a strong go-to-market leader in place. For example, without a Chief Revenue Officer, the probability of making the quarterly number greatly declines. The risk is a month-to-month slip in revenue attainment. The losses compound every month.
With an interim leader, the team is held accountable, capabilities improve and revenue growth objectives are met. Without one, the team has no leader, no new capabilities are acquired and revenue growth flattens. Illustration, not drawn to scale.
Real-world results: large industrial equipment manufacturer reaches a $1.5B valuation
The company needed to maintain a 15% CAGR to hit its growth target of $1 billion in revenue over five years. After several booking misses, another miss would jeopardize its objective and future valuation. To achieve its goals, the sales organization needed a consistent way of identifying and prioritizing the accounts that could deliver the greatest revenue in the shortest amount of time. A Cortado Group I-CRO created a new territory sales model based on potential spend and workload capacity; identified, prioritized, and assigned the highest-potential accounts to the best sales resources; and calculated revenue potential by account and solution for customers and prospects across all sales channels.
This is the work we do
Cortado Group places Interim C-Level Leaders who rebuild go-to-market engines on a short-term basis. We start with a gap analysis of your current GTM operation.
Strong C-Level Leaders Needed
The PE market is "hot and competitive," say experts
"The competition to hire C-Level leaders is acute for PE. They need forward-thinking leaders who can transform and progress their business."
Diane Gilley, Partner, Odgers Berndtson (via Hunt Scanlon Media)
With growing levels of capital flowing into PE firms, fund managers know the stakes have never been higher for making the right decisions. As PE firms look to the future, they are strategically building more rigorous and mature operating models, especially when it comes to their GTM operation. Here, executive search experts share their reports from the field on the challenge of hiring C-Level Leaders.
Executive search experts see fierce competition in C-Level hiring
Human capital research firm Hunt Scanlon Media interviewed executive search experts about hiring C-Level Leaders for PE firms. The through-line is that hiring is "fiercely competitive" and "incredibly challenging." Every desirable C-Level Leader is fielding multiple offers and can be picky in their decision process.
"It is a very hot market for talent. Across industries, functions, and disciplines, strong executives are bombarded with recruiter calls. Candidates who are open to exploring new opportunities are often presented with multiple offers."
Alison Woodhead, Senior Partner, Kingsley Gate Partners
"The market is the frothiest we've ever seen in private equity, particularly for CFOs and other critical C-suite roles. Many PE firms have been focused on replacing their leaders with more nimble and agile executives who can thrive under today's pressures."
Kevin Hahn, CEO, Spectrum Search Partners
"The climate for recruiting executives in the private equity sector is incredibly challenging."
Matthew Shore, President, StevenDouglas
"As companies emerge or pivot to react to changing market demands, they need visionaries who can usher in strategic change. Thus, go-to-market positions like CEOs, division presidents, heads of sales, heads of marketing, or hybrid roles are in high demand."
Richard Pooley, Partner, Odgers Berndtson
The takeaway
Finding the right permanent CRO, CSO, and CMO can take longer than normal in a competitive marketplace. But that doesn't mean a GTM operation can sit idle while a PE firm searches for the right C-Level Leader. Hiring an Interim C-Leader can fill the gap and rebuild the GTM operation into a revenue-generating machine, then hand over the keys when a permanent C-Leader steps in.
Real-world results: healthcare technology leader gains a 78% increase across all businesses
This healthcare technology company needed to reposition its GTM strategy, build a business case for funding, enable substantial revenue growth, and expand its marketing department. The organization retained a Cortado Group I-CRO to guide the new CRO and help build the foundation for an effective lead generation engine. The I-CRO transitioned the GTM model to a solution selling process; restructured the sales organization, sales plays, and compensation plans; designed and launched a persona-based nurturing campaign strategy targeted at key leads; and integrated HubSpot with Salesforce to refine and optimize the lead management processes.
Interim Leadership Sprints
The phases of an Interim C-Leader engagement
Interim C-Leader engagements are designed with a minimum three to four month duration, the minimum amount of time required to make meaningful changes to GTM organizations. Over the course of their term, Interim C-Leaders drive two parallel paths: building a best-in-class GTM engine and managing the team to deliver results. These objectives are executed during a four-sprint process that includes multiple deliverables, while an optional fifth phase provides ongoing support.
Sprint 1: Discover and design
To build an effective GTM engine, the Interim C-Leader needs to research the current state of the operation. This phase includes executive, field, customer, and competitive reviews of how the company can improve. The process includes a gap analysis of the talent, processes, and tools needed to maximize outcomes. Though discovery and design can continue throughout the engagement, most of this occurs within the first month.
Sprint 2: Build
Here, the Interim C-Leader executes the changes required for the revitalized GTM organization. They establish the proper governance for all team functions, and assign roles and responsibilities to optimize the new strategy. Then they deliver quick wins around pipeline lead generation. Building continues until the final day of an engagement.
Sprint 3: Operate
This phase involves the execution of the agreed-upon strategy and process elements that are critical to the company's short- and long-term success. At this stage, an Interim C-Level Leader transitions from working on the business to working in the business. This includes 1:1 coaching calls, pipeline and forecast management, execution of campaigns, and several additional tactical initiatives. The C-Level Leader must achieve the revenue-related outcomes for which they are accountable.
Sprint 4: Transfer
The Interim Leader is responsible for developing a forward-looking plan to mentor and advise a permanent C-Leader on the new GTM strategy and processes. A newly hired C-Leader will be rapidly onboarded and oriented to the GTM engine the Interim Leader has built.
Ongoing support (optional)
Following the four sprints, an Interim C-Level Leader's contract can be extended to include additional oversight, based on a mutually agreed action plan.
"We know what needs to happen and in what sequence, so we can bring together the critical pieces of a revenue-focused GTM program quickly, from the tech stack to data scientists."
George de los Reyes, CRO, Managing Partner, Cortado Group
Real-world results: real estate firm gains 10.7% sales growth
A real estate software and services company was experiencing stagnant growth and declining sales performance. Unpredictable revenue attrition and customer churn were compounding the problem. This client wanted to understand what was going wrong and turn sales performance around to regain its market position. It wanted an Interim C-Leader who could implement strategic initiatives to generate revenue growth quickly. A Cortado Group I-CMO identified the source of customer churn risk on an account-by-account basis; redesigned territories, compensation, and quotas for the sales team; created a central BI dashboard for the sales and marketing team; sharpened market segmentation, cross-sell synergies, and pricing models; and moved compensation plans toward multi-year deals that reduced future churn risk.
This is the work we do
Cortado Group places Interim C-Level Leaders who rebuild go-to-market engines on a short-term basis. We start with a gap analysis of your current GTM operation.
Interim C-Leader Initiatives
What's missing from your GTM C-Level leadership?
Building a stronger GTM strategy requires bringing together several critical disciplines and initiatives. An experienced Interim C-Level Leader with a Builder mindset executes everything required to create a powerful strategy that sets a course for rapid growth. The table below outlines the high-level capabilities that Interim CSOs and Interim CMOs deliver during their four to six month tenure with a company. Interim CROs tackle both columns.
Interim CSOs oversee everything from creating a revenue-focused sales strategy to hiring the right team to mapping sales plays and deal strategies. Interim CMOs oversee everything from creating a revenue-focused campaign to hiring to executing a lead management strategy.
Real-world results: fire protection and life safety company grows revenue 3.6x in two years
A commercial fire protection and life safety company lacked a stable and predictable source of revenue growth. It hired a Cortado Group I-CRO to build a new sales and marketing GTM strategy while it conducted a broad search for a new permanent sales leader. The I-CRO created a multi-pronged marketing approach, including social media, paid ads, and campaigns; hired a GTM team that included both industry experts and tenured sales professionals; built rigor around the CRM to create predictable revenue projections; customized a five-step process for opportunity management; and introduced a coaching cadence.
"To thrive in the next wave of private equity, firms must reimagine business strategies and operating models."
EY
Interim C-Level Leader Skill Set
Seven traits of transformation-leading Interim C-Level Leaders
Knowing what to look for before hiring an Interim C-Level Leader is essential to finding the best person to transform your GTM operation. These seven skill sets are essential for an Interim C-Leader who can identify and fix the gaps in your performance, maximize your strengths, and accelerate your revenue growth, so you can enjoy a stronger exit.
C-Level experience
Only a seasoned executive with C-Level experience will understand what's required to successfully lead a GTM sales or marketing transformation. It's critical that an Interim C-Leader has real-world experience executing high-level initiatives in the field, and has worked within the company's industry and operational scale. An ideal C-Level Leader also has a deep understanding of the PE environment, including how to work with a Board of Directors.
Data driven
The best C-Level Leaders understand the critical nature of data and analytics. Without keen, real-time insight, companies can't make informed decisions that deliver high-impact results. When organizations are data driven, they have a thorough understanding of everything, from budgets to forecasts to operating plans, all of which are critical when PE firms are looking for a rapid exit with high multiples.
Digital change expert
Undergoing a digital transformation goes hand-in-hand with building a data- and revenue-driven organization. Companies today need a tech stack that supports their digital direction and a C-Level Leader who understands exactly how to execute the transformation.
Visionary
Interim C-Leaders need the ability to see two steps ahead in every critical area, including steps that may seem high risk to others but are essential in meeting goals. In other words, they need to know which actions will move the PE firm and its portfolio company into a stronger competitive position.
Execution-focused
Vision isn't enough. C-Leaders must be willing to roll up their sleeves and make things happen. You don't need a placeholder. You need someone who is willing and able to get things done, from focusing on key initiatives, to prioritizing high-value projects, to taking decisive action. Interim C-Leaders must also be skilled in overcoming organizational inertia and avoiding distractions that slow down timeframes and delay deliverables.
Growth marketer
Being successful at marketing and sales means being able to think outside of the proverbial box. This includes being innovative and growth focused when it comes to customer acquisition, engagement, and retention. Successful growth marketers don't fly blind, however. They depend on advanced analytics and robust data to support their out-of-the-box ideas.
Customer champion
A significant key to the success of a GTM plan is keeping the customers front and center. This means understanding them deeply with buyer personas and ideal customer profiles. With that insight in hand, Interim C-Leaders can design marketing and sales strategies that deliver maximum impact.
"We take a hard look at an organization, find what's missing, and put the right pieces in place. We break glass when necessary and replace non-performing talent, systems, and processes with the right tools, technologies, and people to create revenue generating machines."
Bill Piacitelli, Partner, Cortado Group
Real-world results: cybersecurity company doubles lead funnel conversions, from 4.8% to 9.9%
The cybersecurity company's lead generation efforts were not yielding results, and a large budget was not effectively allocated. After the head of marketing left, the challenges continued to mount, including three CEO and two CRO changes, along with the sudden resignation of the SDR manager. After two marketing team members quit, the department had just three employees. Board members exerted increased pressure to overcome lagging revenue and regain lost ground. A Cortado Group I-CMO developed and launched a new corporate identity standard and brand messaging; removed underperforming agencies and eliminated budget waste; implemented lead scoring and weekly nurture campaigns; and restructured sales pricing and territories.
Conclusion: Transform Your GTM Operation
Interim C-Leaders bring the right skills, personality, and experience to the job
Cortado Group is a collective of process-driven, data-driven, and revenue-focused professionals with deep and wide backgrounds in sales, marketing, and revenue leadership. They identify growth levers to drive topline revenue and accelerate companies' value creation. By leveraging emerging best practices, they help build optimal performance conditions in GTM sales and marketing functions in ways that enable companies to thrive and outperform their competitors.
Our experienced Interim C-Level Leaders support clients across a broad range of industries and business goals, helping build and execute GTM transformations rapidly. They have access to a robust support team of process- and data-driven sales, marketing, and operations experts. Get the process started with a gap analysis of your current GTM operation.
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