How do you coordinate and work cross functionally with the demand generation team to create commonly shared KPIs?

The org structure I mentioned really lends itself to working cross functionally. Our marketing ops folks are embedded on the marketing team and work together to create and cascade down quarterly OKRs and KPIs. The quarterly roadmap and project plans are built collaboratively and team goals and metrics roll-up to our larger company level OKRs. We have several ongoing synchronous meetings and async updates with key stakeholders (one on leads, one on pipeline, one on SDR work, etc.) as well as quarterly planning sessions to ensure everyone is aligned. For the most part, the rev ops OKRs directly support those of revenue marketing / demand gen (e.g. the marketing team is tasked with a field pipeline target, the ops team is responsible for orchestrating the campaigns, tracking and the reporting that help the field hit that target so they both share the KPI).

It's crucial to recognize that the demand generation team is a critical stakeholder in revenue operations, just like sales, and customer success. Effective cross-functional collaboration begins with taking the time to understand the demand generation strategy—how it has evolved and where its leaders envision it heading.

1. Building Trust and Understanding:

• The first step in working effectively with the demand generation team is to establish trust and demonstrate that you comprehend their vision, challenges, and goals. This partnership is built on trust and confidence that you're aligned with their objectives.

2. Revenue Operations as the Connective Tissue:

• Revenue operations plays a unique role as the bridge between marketing and sales. It provides a platform for establishing common language and understanding around key metrics such as lead flow, conversion rates, pipeline attribution, target audiences, Ideal Customer Profile (ICP), and qualified opportunities.

3. Shared Business Objectives:

• Commonly shared KPIs should be rooted in shared business objectives. Begin by identifying the least common denominator among cross-functional go-to-market teams and expand from there.

• For example, start with the Marketing Qualified Lead (MQL) and define its purpose, measurement criteria, and expectations for its progression into a Sales Qualified Lead (SQL) and eventually an opportunity. Clarify what constitutes a Sales Qualified Opportunity (SQO) and how to quantify its value.

4. Alignment on Expectations:

• The challenge often lies in aligning the expectations of each team to meet the shared KPIs. To address this:

  • Involve your marketing partners early and consistently in the planning process. Avoid presenting KPIs as a final decision without their input.

  • Collaborate during fiscal year planning and quarterly target evaluations. Engage demand generation leaders to assess assumptions, expectations, and business needs at every step.

Ensuring that demand generation leaders have a seat at the table when defining KPIs and aligning on targets is paramount. It allows for a more thorough examination of assumptions and promotes a uniformly aligned approach to achieving common goals.

In my view, this involves orchestrating a process of 4 steps: (1) understanding the purchase funnel, (2) align on a common taxonomy, (3) define key metrics and CRM activities and (4) create a funnel view reporting.

First, work closely with customer-facing teams to gain deep insights into the purchase funnel and the entire acquisition cycle across all channels. This understanding lays the groundwork for developing meaningful and relevant KPIs that reflect the entire customer journey (and potentially making demand-gen reallocation decisions). Second, collaborate early with Marketing, Demand Generation, and Sales Development to establish a common language and definition of success at each stage of every channel. This ensures consistent standards and facilitates a shared baseline for performance assessment. Third, identify key metrics that impact business outcomes and align with organizational goals. Map these to corresponding CRM activities to promote data accountability and ensure data hygiene across teams. This alignment also fosters a culture of data-driven decision-making. Lastly, develop a comprehensive reporting wireframe along the funnel that visualizes the customer journey from initial engagement to conversion. Collaborate with acquisition teams to set realistic and measurable targets for KPIs at critical funnel stages. This approach encourages cross-functional collaboration and accountability towards shared objectives.