Modern Revenue at 2025 Value Creation Summit

Why are we still talking about GTM-Finance alignment?

Cloud Ratings Value Creation Summit July 16, 2025, 1:00PM ET

Presenter: Jaap Westrik Founder, Modern Revenue LLC

modernrevenue.com

Does your company have any of the following pain points?

Revenue planning and forecasting

are siloed, inefficient, infrequent, late, and routinely off by 10% or more.

GTM resource allocation

is a CRO-CMO-CFO budget negotiation without a data-backed investment trade-off rationale.

Sales quotas

have unrealistic territory opportunity and sales productivity expectations baked in.

isn't driving the sales behaviors and strategic outcomes both the CRO and the CFO had in mind. Sales compensation

Your company may have a GTM-Finance misalignment problem—and you're not alone

The problem ● An uncertain market environment has renewed the focus on driving efficient growth

85% of sales leaders struggle to get budget for headcount

● While this calls for tight GTM-Finance collaboration, the relationship often suffers from friction ● A lack of cross-functional orchestration frequently contributes to insufficient planning, inaccurate quota setting, and misaligned incentives—resulting in unreliable forecasts, unrealistic plans, and missed plans

Salesforce State of Sales Survey

Less than 50% of sales leaders and sellers have high confidence in sales forecasting accuracy

Gartner Research

The root cause ● Lack of common goals —While CROs look to maximize growth, CFOs holds the line on spend/ROI ● Lack of common language —Parallel data and metric definitions; KPIs are unlinked to company strategy ● Isolated viewpoints —Finance hasn’t been in the GTM trenches, while GTM lacks finance know-how Why we’re still talking about it ● Silo problems, siloed solutions —Lack of cross-functional skill sets and tactical delivery expertise ● No blueprint —If there is collaborative intent, there’s a lack of connected data and planning processes ● Avoidance —Whether sales are good or bad, there’s a reluctance to rock the boat with new approaches

94% of B2B companies missed their first-day quarterly forecast by 10% or more in 2021

Forrester Research

Most sales and finance leaders see continuous planning as a key advantage, but over 60% are unable to do it effectively due to a lack of standardized data and processes

CFO Research & Salesforce Survey

GTM-Finance misalignment carries deep costs

● Missed opportunities : Misalignment between GTM and finance leadership commonly results in less forecasting accuracy, lower revenue growth, and cost inefficiencies ● Higher turnover : Unrealistic quotas and uncompetitive compensation remain key drivers of sales team attrition, increasing hiring, training, and sales costs—while further reducing sales growth ● Less job security: As CROs are routinely blamed first for a forecast miss, their average job tenure is less than two years—the shortest in the C-suite

Sales team turnover

Missed opportunities

Job security in the C-suite Average tenure in years

Top reasons why sales professionals want to leave their job:

A majority of CFOs believe that a lack of alignment between sales and finance leadership is resulting in at least :

3.9

3.5

3.3

2.0 _

Unrealistic targets Uncompetitive pay

5% lower sales growth 5% higher sales costs

CEO

CFO

CMO

CRO

Salesforce State of Sales Report

CFO Research Survey

Datarails Survey; 6sense Survey; Salesforce Research

Solution: Build trust and drive efficient growth with an end-to-end Revenue Operating System

CMO

CRO

CFO

Strategic Finance

Marketing

Sales

Service

Accounting

FP&A

GTM Revenue Operations

End-to-end Revenue Operating System

Pipeline Management

Rev Rec

Liquidity Management

Forecasting/ Budgeting

Sales Performance Management (SPM)

MarTech

CRM

CPQ

HRIS

Billing/AR

ERP

Planning

Standardized revenue language, data model, and metric definitions—from MarTech to Pipeline to ARR to GAAP/IFRS accounting

Drive efficient growth with strategic and data-led RevOps capabilities

Strategic/data-led RevOps capabilities Most common RevOps capabilities

Layer

Capabilities

KPI design

Opportunity modeling

Org design

Capacity modeling

Quota setting

Comp design

X-functional planning

FP&A liaison

Strategic

Reporting (daily/weekly)

Buyer segmentation

Coverage model

Journey mapping

Process design

Pipeline management

Enablement resources

Talent development

Operational

System architecture

Vendor selection

System implementation

System configuration

System administration

Technology

Data mining

Data strategy

Data architecture

Data definitions

Data model

Data preparation

Data

Empower Finance with bottom-up, forward-looking GTM legibility to drive organic growth

Strategic Finance Has continuous, data-driven insight into GTM operating mechanics and performance drivers, collaborates closely with GTM on capital allocation, and proactively supports the needs of an evolving revenue organization to drive organic growth

Shape the future

Organic growth

Funding/M&A

Accounting Collaborates with GTM on billing, revenue recognition, ERP, GAAP/IFRS reporting, and tax/audit compliance FP&A Collaborates with GTM on analyzing performance metrics, annual planning, budgeting, and revenue/opex forecasting

Analysis & insights

Model the future

Budgeting & forecasting

Report the past

Reporting & compliance

Transaction processing

Snowflake: Exhibit A of what effective GTM-Finance alignment looks like

● CFO proactively supports GTM's evolving needs ● CRO has clear expectations on driving efficient growth ● End-to-end integrated data drive joint trade-off decisions ● Confidence to disclose ARR guidance five years out ● CRO job tenure of 10+ years

● Cross-functional GTM-Finance teams analyze productivity, plan capacity, allocate quotas, and structure compensation ● RevOps is accountable to both the CRO and the CFO ● FP&A data science capabilities dynamically forecast ARR ● Sales productivity dictates new sales investment

Record CRO job tenure

Sales productivity dictates new sales investment Sales productivity = ( Net new ACV in $mm / AE headcount at fiscal year-end)

10+ years

1.0x threshold for new sales investment

1.1x

0.9x

2 years

Industry average

Snowflake

FY21

FY22

FY23

Salesforce Research

Snowflake 2023 Investor Day Presentation

Methodology: Cross-functional GTM legibility, planning, and operational execution

Company Strategy

GTM Strategy

GTM Structure

GTM Execution

Buyer segments

Buyer journeys

Coverage model

CRO lens

Growth

Org

Capacity

Talent

Quotas

Compensation

Black box

Efficiency

Forecasting

CFO lens

Pay/performance

Productivity

Black box

Driver-based territory opportunity modeling TAM stress test White space analysis

Top-down and bottom-up quota configuration

Link compensation plans to job design & company objectives

Data-driven org design and driver-based capacity planning

Define the buyer journey in finance terms

Translate the funnel into a data model

Efficient growth

Common lens

Rule of 40/X CAC ratio GRR/NRR

Common data Common KPIs

Sales stage/ cycle duration

Sales ramp, tenure, and turnover drivers

Pipeline coverage, quota attainment distribution, and sales compensation ROI

Conversion rates

● Orchestrate efficient growth by aligning GTM and Finance on a common data language , data model, operating plan, and efficient operational execution ● Drive efficiency and repeatability with expert integration of end-to-end revenue operating models—from CRM to RevOps to GAAP/IFRS accounting ● Establish real-time, granular visibility by streamlining pipeline forecasting and management across all sources of revenue

Starting point: Unsilo sales capacity, quota, and compensation planning

● Lay a unified data foundation for connecting the three most critical cross-functional GTM planning initiatives

● Integrate finance rigor with a real-world understanding of what it takes to motivate a GTM people organization

Data & strategy diagnostic

Model revenue & capacity

Configure quotas

Structure compensation

● Set common goals and priorities ● Structure and normalize data ● Define shared metrics ● Link KPIs to company strategy ● Analyze historical performance ● Interview stakeholders ● Align on findings and objectives

● Invest in the right strategies based on clean GTM data ● Allocate resources through a common operating lens ● Target performance upside by tracking common KPIs ● Align on risk/reward trade-offs around opex, pipeline and sales capacity

● Foster organizational buy-in through collaborative , data-driven quota planning ● Align performance targets top-down and bottom-up ● Forecast sales results and and revenue growth with increased confidence

● Drive performance with best-in-class incentive plans ● Infuse metric design with statistical insights on sales history, motivation, capacity, ramp, and tenure ● Incent the right behaviors and drive desired outcomes

Next level: Optimize GTM capital allocation via end-to-end revenue planning

Company Strategy

GTM Strategy

GTM Structure

GTM Execution

Org design

Capacity planning

Sales compensation

Buyer journeys

Coverage model

Quota allocation

Strategic objectives

Buyer segments

Structure sales incentives and compensation mechanics

Quantify sales capacity/FTE requirements

Determine productivity expectations

Define sales roles and sales effort/contribution 5

Measure sales stages, conversion rates, and sales cycle length

Design sales responsibilities and cross-functional engagement frameworks

Model growth sources and sales units (i.e. new logos, workloads, deals, contract values)

Align on revenue growth and sales efficiency goals 1

A custom-built methodology at every stage of growth

SMB/start-up Revenue: $5-20mm Employees: 20-100

Rapid growth Revenue: $20-100mm Employees: 100-500

Managed growth Revenue: $100-500mm Employees: 500-1,000

Mature growth Revenue: >$500mm Employees: >1,000

M&A

IPO

Build your initial Sales and Marketing engine from scratch while

Add new GTM functions , enter new segments , deploy new motions , or build out RevOps capabilities

Maximize productivity , achieve profitability , and drive GTM predictability as the company scales and complexity grows

Transform your GTM organization, deploy new revenue models , conduct M&A due diligence , or drive post-M&A integration across customer-facing functions

laying a scalable data foundation

Stage

Enabled client outcomes

● 15% higher NRR by directing investments in new Lead Gen and Expansion capabilities ✅ after directing investments in new Lead Gen and Expansion capabilities

● 20% higher ARR target after aligning C-suite and Board on GTM investments ✅

● $23mm in ARR upside identification by globally unsiloing Sales and Marketing teams ✅ from globally unsiloing Sales and Marketing teams

● 10% higher logo retention by realigning CSM resource deployment ✅ after realigning CSM resource deployment

✅

● PE-acquired for $2B+ with a perpetual-to-subscription (TCV-to-ACV) blueprint for a 125 FTE Federal and CSP sales force

● 105% premium M&A after restructuring and augmenting GTM functions ✅ 45% premium M&A after restructuring and augmenting GTM functions

✅

● Scaled an outbound team from 0-20 FTE in 18 months while implementing a proper unit economics model Helped scale a new outbound team from 0-20 FTE in 18 months by implementing a proper unit economics model

Trusted by 30+ B2B software, hardware, fintech, and services companies globally

Founder

Jaap Westrik is the founder of Modern Revenue. He launched the New York-based growth consulting firm after recognizing an underserved need for aligning B2B GTM and Finance functions on a common business language, data model, and operating plan. As a cross-functional Strategic Finance and Revenue Operations leader, Jaap brings 15+ years of experience unsiloing GTM and Finance functions at B2B companies across all stages of growth. He is an expert integrator of end-to-end revenue growth operating systems—from CRM to RevOps to GAAP/IFRS accounting. He serves as a strategic advisor and financial thought leader for optimizing GTM resource investments across Sales , Channel , and Marketing in SMB , Enterprise , and Public Sector buyer segments in North America, EMEA, and APJ. Before founding Modern Revenue, Jaap was a managing director at Winning by Design, a Silicon Valley-based boutique consulting firm that works with technology companies to drive recurring revenue growth . While at Winning by Design, he built a GTM Finance consulting practice from the ground up. Jaap began his career at J.P. Morgan in New York in 2008, where he held roles in the Investment Bank and firm’s Executive Office . He has an MS from Georgetown University’s School of Foreign Service and a BA from the HES Amsterdam School of Business. He has been serving on the Board of Advisors of Georgetown’s Foreign Service Graduate Program since 2013.

jaap@modernrevenue.com +1 929.420.1330

Recent LinkedIn publications

Accounting for AE ramp & turnover in sales capacity planning

Link to post

A commonly overlooked cause of missing sales targets : Failing to account for AE ramp and turnover in sales capacity planning. I see this happen at companies at every stage of growth—from Series A to Enterprise . To illustrate how AE ramp and turnover impact sales capacity, let's look at this math example based on an Enterprise sales team of 10 AEs . To keep it simple, we're only looking at AE sales capacity here; we're ignoring quota capacity and sales productivity for now. Assumptions ● 8 existing AE roles; 2 newly created AE roles

● 2 months AE recruiting/hiring timeframe ● 6 months AE ramp to 100% capacity ● 25% AE turnover during the year Individual AE roles ● AE1 : Tenured reps at 100% capacity ● AE2 : Leaves in April; backfill joins in July ● AE3: Tenured reps at 100% capacity ● AE4 : Leaves in January; backfill joins in April ● AE5: Tenured reps at 100% capacity ● AE6 : Left in the prior year; backfill joins in February ● AE7 : Leaves in June; backfill joins in September ● AE8: Tenured reps at 100% capacity ● AE9 : Newly created position, joins in March ● AE10 : Newly created position, delayed start in July Takeaways

● The total AE team is at 70% average sales capacity for the year (bottom right corner) ● An AE departure cuts the role's annual sales capacity nearly in half (from 100% to 54%) ● This AE team is under 100% capacity during every month of the year (bottom row)

Quantifying the impact of sales enablement investment

Link to post

We also need to account for 4 months of full productivity of 10 new AEs under the existing ramp program of 8 months. Using the same math as above, 10 new AEs x 2 deals x $100k ACV = $2mm in projected revenue . Adding this to $18mm in bookings from 30 tenured AEs makes $20mm in projected revenue before reflecting the impact of accelerated ramp. How much % revenue impact can you expect from accelerating AE ramp from 8 to 6 months? The nimble good enough answer: $1mm in incremental revenue / $20mm in projected revenue = 5% incremental revenue growth .

We know that AEs close 1 deal every 2 months, so accelerating ramp by 2 months enables an AE to close 1 incremental $100k new logo deal during their first year with the company. Because you're backfilling 10 AE roles throughout the year, the impact is 10 AEs x $100k ACV = $1mm in incremental revenue . We expect 30 of 40 AEs won't leave the company this year. If fully ramped, they will generate $18mm in projected revenue (30 AEs x $600k).

Measuring the impact of new GTM investments can be a real challenge. Sales Enablement is a good example of this. When a CRO makes the case for additional investment in sales onboarding and training resources with their CFO, they often struggle to quantify the expected ROI . You'll never be exactly right, nor do you have to be. But there's always a way to use finance frameworks and logic to make a reasonable estimate. As an example, let's say you're running an Enterprise SaaS sales team with 40 AEs . About 25% of your AEs leave during the year, so you'll need to hire 10 backfill AEs . (For simplicity, we assume no new AE positions will be created.) Fully-ramped AEs carry an annual bookings quota of $1.2mm . Due to persistent market headwinds, you expect quota attainment to average 50% this year, which implies a fully-ramped productivity per AE of $600k in bookings. (For simplicity, we assume that bookings = revenue.) The average deal size is $100k , which means a typical AE closes 6 deals per year or 1 deal every 2 months. The time it takes to ramp AEs to 100% productivity has expanded to 8 months in recent years. By improving onboarding and training, you expect AE ramp can be compressed from 8 to 6 months , roughly equal to the average sales cycle length. Compressing ramp by 2 months increases AE productivity by 33% (from 4 to 6 months). While this is a one-off increase for each new AE in their first year of employment (new hires only ramp once), the impact will repeat itself each time you onboard a new AE in the current or future years.

Number of AE positions (FTE)

AE turnover per year

25%

Number of AE backfill hires per year

Annual ramped AE quota

$1,200,000

Average ramped AE quota attainment

50%

Productivity per ramped AE

$600,000

New logo ACV (average deal size) Deal closings per ramped AE per year

$100,000

6.0 0.5

Average deal closings per ramped AE per month

Current AE ramp time

8 months 6 months

Accelerated AE ramp time

Incremental AE capacity in year 1

+2 months

Incremental AE deal closings

1.0

Incremental productivity per ramped AE

$100,000

Incremental ACV bookings from 10 backfill AEs

$1,000,000

Current aggregate ACV bookings (from all 40 AEs) Incremental revenue growth from faster AE ramp

$20,000,000

AE compensation: A faster path to higher pay rates with a multi-year booking uplift

Link to post

A common challenge in sales compensation design is solving for competing goals at once.

Multi-year booking uplift resulting in accelerated quota retirement Uplift-enabled incremental earning upside above 100% of quota

Compensation is ultimately about behaviors : what outcomes are you trying to drive? Therefore, as a starting point, you have to work backward from the business goals . Simplicity in the plan is crucial—but it’s a destination, not a starting point. If the math and behavioral incentives are off, the cracks will surface well before fiscal year-end. Consider this example: you want to drive multi-year deal volume while also accelerating net new logo growth . One effective approach, without introducing misalignment: apply a quota credit uplift for multi-year contracts.

100% of quota

125%

100%

First, a few design ground rules: 1. The company pays on bookings 2. Pay is tied directly to performance 3. Overperformance earns upside 4. Compensation is earned and paid in-year

Next, a simplified AE performance scenario: ● Quota: $1mm in annual net new ACV bookings ● Upside: 2.0x pay rate on bookings >100% of quota ● Attainment: The AE books $750k in ACV and receives $250k in quota credit uplift tied to multi-year contracts; that gets them to 100% attainment What does this do? ● Reduces ACV bookings required to retire quota from $1mm to $750k (25% acceleration) ● Unlocks earlier access to the 2.0x pay rate; an incremental $250k in quota credit (ACV or uplift) now qualifies for double commission ● The slope of the pay curve (orange line) remains the same, but it shifts forward ● The pay/performance relationship holds: 100% attainment earns 100% of target variable, with or without uplift; 200% attainment earns 300% of target variable

$750

$1,000

Net new ACV bookings quota credit ($’000)

Why does a quota credit uplift work better than alternatives? ● It preserves the core linkage between pay and performance ● Other options—like SPIFFs or deferred/out-year commissions—may seem easier to implement but introduce misalignment. They decouple earnings from attainment and dilute the behavioral signal ● This uplift model takes more effort to build and sell—but when done right, and with quotas that have realistic bottoms-up opportunity and productivity assumptions baked in, it’s far more effective

Sales efficiency at Snowflake: Productivity dictates investment

Link to post

Snowflake's Investor Day presentation this week was a great showcase of how CRO-CFO alignment is crucial in driving company strategy. The session had plenty of evidence of effective collaboration between the Sales and Finance teams . For example, Snowflake's FY2025 sales compensation redesign is directly tied to the company's strategic objectives to drive logo and consumption growth. This is impossible for a CRO or CFO to achieve alone ; they have to do it together. My favorite piece of evidence of Snowflake's CRO-CFO alignment is the chart on the right (from last year's deck), which shows how sales productivity dictates new sales investment. Sales productivity is defined as (x) net new ACV in $ millions divided by (y) AE headcount at fiscal year-end. The 1.0x threshold metric means the company will only invest in new sales headcount when AEs on average close at least $1 million in net new ACV annually. In other words, as long as Finance sees the productivity , Sales will get more budget to hire more reps. This defines accountabilities and rules of engagement: The CFO proactively supports the CRO's evolving needs, and the CRO has clear expectations about driving efficient growth. This chart is easy to put on a slide, but achieving the level of alignment required for a common CRO-CFO definition of "sales productivity" is very difficult. Few companies succeed at this , but Snowflake shows it can be done.

What makes Snowflake different ? Here's a hint: The previous CEO used to call himself " Frank (Anti-Silo) Slootman " on his LinkedIn profile.

That tells you everything you need to know: CRO-CFO alignment starts with the CEO (not with the tech stack).

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