Luminary Group’s Post

Interesting, Klajdi! At some point, I believe the problem isn't necessarily with the CCO, nor with the COO, CHRO, CSO, or CFO, but rather with the CEO who may reach his/her level of incompetence and would protect him/herself by pushing out or aside his/her closest collaborators, who were praised when things were going well. Private equity firms generally have a limited understanding of the reality of the business and the organization to be set up, and often have a simplistic view that changing LT people by expensive mercenaries will make an unrealistic business plan happen. It takes years to successfully execute an LBO by intelligently aligning M&A plan, commercial strategy, solutions development and operational execution in a stable environment to gain new customers and their trust; and sometimes it only takes a few strategic and organizational mistakes combined with an autocratic style of leadership under the EBITDA-driven pressure of certain PE funds to derail everything in a few months.

Thanks for sharing your insights Klajdi Bega! I am observing the same. The real question may be related to whether leadership teams, PE and investors have adapted expectations to the market reality and unpredictability of growth cycles. It's super important for CCOs who are navigating market "whiplash" and uncertainty to communicate early, often and transparently, provide real-time market intelligence and impact to key stakeholders, especially the CEO and CFO. I suspect EQ issue comes into play as an outcome of the intensity and weight of the new normal. Regular scenario planning as an ELT is critical.

Klajdi, Interesting, some of the observations from CCO's are reinforcing some of the observations of founders, boards & investors. Here are a few of my observations, especially over the last 24 months, as to why there would be increase in CCO turnover: i) the belief that B2B is different to B2C - this totally ignores that your B2B clients, just as you, are bombarded by B2C messaging all day! Understand these principles so use and apply them. ii) no client insights - I have seen too often decisions made on the basis of internal discussions/ideas/navel gazing without external validation. You do not decide what is a good idea, the market does - so test & validate before you invest resources. iii) across CDMO's & other service providers there is little differentiation - the WHY! - so price is the only tool left & client know this - so the power dynamic shifts significantly to the client.

I would say that the market and CCO role is changing dramatically. As the technology is evolving fast, the "commercial" role is should transform into an industry expert and advisor. It is not enough to repeat the company USP's and attend events but anyone in commercial roles needs to understand the market, understand the clients / prospects and only propose services that are serving clients needs. This transformation takes time and more importantly requires willingness to change. Would disagree with the CCO statement that there is "no ability to change of influence the culture". CCO's have all the arguments to be a change driver as they're the 1st contact of the company with the clients. This is the most important aspect to be conveyed in the company: client needs have to drive company operations & offering. If an company is stubborn and deaf to the client needs, will end to exist.