How do you break down responsibilities and KPIs between revenue operations and demand generation?

It should be a very close partnership, and the best revenue operations leaders have experience in demand generation or are deeply familiar with the KPIs, tactics, and levers to pull. The clearest line I can draw is that RevOps isn't necessarily responsible for execution, but the middle of the Venn diagram here includes tactical strategy, recommendations on campaign/Marketing decisions, and even Marketing resource allocation.

For example, I have a deep background in paid media and top-of-funnel acquisition, so I work closely with our Marketing leaders to identify opportunities for optimization and investment on a week-to-week basis. From a RevOps perspective, our job is to tie Marketing performance to other orgs that rely on Marketing (Sales is a big one of course), and help drive Marketing strategy to ensure we're maximizing leverage across the business.

If we think about the revenue flow in terms of a funnel, demand generation would be at the top and revenue or bookings at the bottom.

KPI definition should follow roles & responsibilities. Along each step of the funnel, it is critical to first define:

- Which function owns that step?

- What are the activities and expectations for that step?

- What a good handoff looks like to the function owning the following step?

After those questions are answered, defining KPIs and targets becomes natural, in the sense that they should manifest how effective the company is both within each step and across the whole funnel.

For a "new business" funnel, common roles and responsibilities and KPIs across each step of the funnel are:

•  Top of the funnel: typically owned by Marketing. Common KPIs: lead volume by channel and type
•  Middle of the funnel: typically owned by Sales Development. Common KPIs: volume of opportunity creation 
•  Bottom of the funnel: typically owned by the Account Executive. Common KPIs: bookings, conversion rate, average selling price (ASP)

A good understanding of the funnel requires the different functions owning the funnel to be in lock steps, and in some organizations (including LinkedIn) Revenue Operations (aka GTM Operations) also own Planning & Performance for Demand Generation.