Revenue operations team structure
A revenue operations team is concerned with overseeing all of the revenue-generating aspects of a business. Typically this means revenue operations responsibilities can be divided into four groups: operations management, sales enablement, analysis and insights, and operations technology. It is important to note that while large companies may need a dedicated RevOps team and external hires, smaller companies can still implement a RevOps structure by using existing employees.
Read more below.
It's time for accurate sales forecasting
The most powerful forecasting tool from the world’s largest network of sales professionals.
- Dramatically improve forecast accuracy
- AI-driven forecasting
- Increase accountability across selling teams
- Eliminate inaccurate CRM data
Automated daily sales forecasting
Updated daily based on your data and external network factors that influence your sale.
- Faster predictions
- Reduce sales cycles and analyze scenarios in minutes
- Real-time, buyer-specific selling recommendations
- Increase deal velocity
Eliminate spreadsheets. Automate your CRM.
Eliminate spreadsheets. Eliminate opinions. Get data-driven results with little to no effort.
- Automated data capture
- AI-driven forecasting
- Network enrichment of contacts
- Networked intelligence - unlock external factors that matter
Revenue operations team structure
Revenue operations (RevOps) is a relatively new business process — one that’s seeing huge growth. A 2021 study by Forrester found that the use of centralized RevOps teams has grown from 15% in 2019 to 40% in 2021, a significant shift. Another 2021 study by Gartner predicts that by 2025, 75% of the highest-growth companies will use a RevOps model. Clearly, it’s a business practice that’s not going away anytime soon.
RevOps is poised to generate huge amounts of growth for companies that put in the time and effort required to develop a solid team. A 2019 study by Forrester indicated that publicly traded companies with revenue operations teams had a 71% higher stock value than those that didn’t. The first step for companies that want to reap these benefits is to understand the root of revenue operations and to develop a RevOps team that can effectively break down silos to boost revenue. This article will explore revenue operations responsibilities and how to build a revenue operations team for companies of all sizes.
What do revenue operations do?
In short, the revenue operations meaning is a business process that is designed to maximize a company’s revenue potential by aligning the work of all of the revenue-generating departments so each is aware of what is being done by the others. These departments typically include sales, marketing, and customer success. The ultimate goal of RevOps is to break down the silos of traditional business structures to drive better accountability and alignment across the entirety of a company.
Revenue operations is an increasingly important process, especially as more B2B and service companies move to subscription models. According to Gartner, nearly one-third of businesses prefer software subscriptions that are a year long. That puts more pressure on customer success teams to provide excellent service to companies who are up for renewal. In other words, sales is no longer the team generating all — or even most — of a company’s revenue. Hence the importance of RevOps: It’s crucial, and lucrative, to develop and align strategies to maintain happy customers — and the subscriptions they pay for. And that means uniting sales, marketing, and customer success as one cohesive team.
For companies of all sizes, a RevOps team may efficiently address workflow issues resulting from a lack of communication, understand unique needs or challenges across departments, and identify — and eliminate — other barriers to revenue growth. This will pay off not only in increased revenue but also in improved departmental communication and collaboration.
What is a revenue operations team?
A revenue operations team is concerned with overseeing all of the revenue-generating aspects of a business. Typically this means revenue operations responsibilities can be divided into four groups: operations management, sales enablement, analysis and insights, and operations technology. It is important to note that while large companies may need a dedicated RevOps team and external hires, smaller companies can still implement a RevOps structure by using existing employees. Keep reading to find a brief description of each revenue operations group as well as existing jobs that may be associated with each one.
The operations management group is tasked with big-picture strategic planning in addition to team-specific daily processes. In essence, it helps to strategize business operations across teams so that every single customer interaction, no matter what department is handling it, is better aligned with overall company goals. Additionally, it heads strategic program management and the allocation of resources.
Common jobs include project management, marketing operations, and sales operations.
Enablement, a fairly common practice on sales teams, is designed to give sellers the tools and training they need to remove friction or barriers from their sales. It’s a useful practice in sales, but revenue operations also brings enablement to other departments such as marketing or customer success so they too can help a company sell its products or services more efficiently.
Common jobs include learning management, sales enablement, and performance management.
Analysis and insights
Most people in a company handle data on a regular basis. However, it’s the task of the analysis and insights group to review data regularly (both internal and external data) and report to stakeholders, department heads, and departmental employees about which strategies are working, which aren’t, and how to achieve better overall results.
Common jobs include data scientist, business analyst, and database developer.
In today’s technologically driven world, sales, marketing, and customer success teams have myriad options for top-performing tools. The operations technology group is responsible for choosing new technology solutions (such as CRMs, sales forecasting tools, and social selling tools), integrating the solutions with any current systems, and maintaining all the technology to ensure everyone can readily access the information they need.
Common jobs include systems administrator, software developer, and quality assurance tester.
What are examples of a revenue operations job description?
In addition to the already-existing jobs listed in the previous section, there are some RevOps-specific jobs, especially for larger companies that have the resources to dedicate entire members to RevOps. Some of these revenue operations job titles include:
- Revenue accountant job description: An accountant who monitors a company’s income as well as any outstanding invoices it is owed by customers. The accountant tracks payments, creates invoices, maintains records, and more.
- Revenue operations analyst job description: A specific type of analyst who is tasked with tracking a company’s revenue stream and finding ways to improve it. This includes sharing data-driven insights to cut costs, finding new revenue sources, and more.
- Revenue operations manager job description: A manager who drives revenue growth by creating and implementing processes throughout the revenue-generating departments. This person is also responsible for collecting and evaluating sales information to better maximize productivity. Revenue operations managers may be especially interested in tools such as Collective[i]’s Intelligent WritebackTM, which automates CRM data entry to free up valuable time for sales staff to sell.
- Director of revenue operations job description: A director who is responsible for overseeing the effectiveness and productivity of the operations management, sales enablement, analysis and insights, and operations technology teams. This person delivers projects, solutions, and processes to all revenue-generating teams so they all have what they need to be successful.
- VP of revenue operations job description: A senior-level professional who provides big-picture leadership for RevOps teams. The VP drives revenue by creating and implementing trackable processes to improve sales, marketing, and customer success.
- Chief revenue officer (CRO) job description: A C-suite executive in charge of a business’s revenue streams. Often skilled in aspects of sales, marketing, and customer success, the CRO is responsible for aligning all the revenue-generating departments to drive revenue growth and build strategic partnerships across divisions. Both VPs and CROs may be interested in products such as Collective[i]’s Intelligent ForecastTM, which uses artificial intelligence (AI) to remove error and bias from forecasting, leading to better, more accurate results.
While some companies may find a need for all of these positions — and more — to support their RevOps departments, others may find that they only have a need for a couple of the jobs listed above, at least at first. Revenue team structure should ultimately be driven by a company’s needs.
How to build a revenue operations team
Building a RevOps team depends upon several factors, including company size, the budget for hiring new personnel, and the complexity of the business model. A company should also consider its current gaps and what goals are in place around closing those gaps. Once a company identifies its budget and existing gaps, the next step is to think through which RevOps group could help the most. For example:
- Operations management hires can assist in gaps related to sales structuring, territory models, or aligning sales and marketing more cohesively.
- Sales enablement hires can assist in mending inconsistent sales pipelines, developing better sales tactics, or creating learning opportunities for RevOps teams.
- Analysis and insights hires are essential to using data to understand the gaps or issues that do exist. If a company can’t find where improvement is needed, analysis and insights hires can help.
- Operations technology hires are particularly useful when businesses are trying to streamline the use of tools or adopt new solutions to connect teams or assist them in moving customers along the sales journey.
With all these considerations in mind, one of the most common ways to go about structuring a revenue operations team is based on company size. Let’s explore revenue operations team structure models for small, mid-sized, and large companies.
For most small companies of fewer than 100 employees, a dedicated RevOps team with several employees is likely out of the question — and also probably unnecessary since small teams likely have an easier time communicating, collaborating, and breaking down silos than larger teams do.
To start, very small companies may consider creating a RevOps committee with one or two people from each of the sales, marketing, and customer success departments. They can meet regularly to check in, create shared goals, and streamline processes. They may also find it useful to use tools such as Collective[i]’s Virtual DealRoomsTM — digital spaces for collaboration across multidisciplinary teams that enable collaborative selling and simplify workloads — so each team can follow a sale from start to finish to better understand each other’s unique role.
Slightly larger small businesses, or those with a bigger budget, may consider building out a more formal RevOps division by promoting someone internally or hiring a revenue operations generalist to oversee the sales, marketing, and customer success teams. This person should have the skills to effectively manage the four revenue operations groups and oversee big-picture strategies and goals of the RevOps committee. This employee is generally on the leadership team and may have the title of CRO, VP of revenue operations, or director of revenue operations.
Mid-sized companies — with between 100 and 999 employees — generally have more flexibility than smaller companies because of larger team structures and bigger budgets. However, that also means that there’s a bigger need for RevOps team members to break down silos.
It’s recommended that mid-sized companies hire at least two dedicated revenue operations team members and begin to restructure the company to accommodate them. For example, it’s fairly common for one person to handle operations management and sales enablement and another to handle analysis and insights and operations technology. These RevOps groups share enough commonalities that it’s possible to find hires with expertise in both. These two hires may be directors that report to a VP of revenue operations or a CRO, depending upon the existing company structure.
For mid-sized companies with more complex structures or greater budgets, hiring one person to manage each of the groups is an excellent way to ensure that the RevOps members are dedicated to their core group and don’t have too much on their plate.
Large companies, those with more than 1,000 employees, typically have the resources available to afford an entire RevOps unit. They may choose to restructure the sales, marketing, and customer success teams under one RevOps umbrella or add a new C-suite executive (a CRO) to oversee the RevOps division as another unit alongside sales, marketing, and customer success.
Either way, within this model, there is often a CRO in charge of the RevOps unit. This person is tasked with big-picture strategy. Under the CRO, a RevOps VP oversees each of the four groups; then, there are directors of operations, sales enablement, analysis and insights, and operations technology to help guide and oversee the day-to-day processes. Very large companies may employ managers or analysts under each group, too.
Who should revenue operations report to?
Although there are many different ways to structure a revenue operations org chart based on company size and the other variables discussed above, there are some commonalities between all structures. For most companies, the revenue operations unit should report to a CRO. For companies without a CRO, chief financial officers (CFO) or chief operating officers (COOs) may also be a good option, depending on their roles and responsibilities within the organization.
Companies without a thoroughly developed C-suite may appoint a VP of revenue operations or a director of revenue operations to lead the RevOps division. Most important, roles and responsibilities should be divided in a way that makes sense for a company and doesn’t put too much responsibility on any one person.
At the end of the day, RevOps is a framework and business practice to better align customer-facing divisions. What works best for one company may not be the right solution for another. It’s important to analyze company needs, gaps, strengths, and resources to decide which RevOps team structure is the right move.
RevOps has the power to transform companies, break down silos between teams, and create better revenue streams. Empower revenue operations teams with the tools they need to succeed with Collective[i]. Get started today to unlock powerful insights and new revenue streams to revolutionize the way you do business every day.