Interim CRO (Chief Revenue Officer): example of an assignment in the automotive sector

To ensure the smooth running of a strategic transformation with major challenges, the financial expertise of the CRO (Chief Revenue Officer) is decisive. What is their role in implementing a business transformation and when should they call on their know-how? Focus on a transition mission of a CRO commissioned by WAYDEN for a player in the sector automobile.

CRO: role and missions

The CRO (Chief Revenue Officer) is responsible for setting up a company’s financial strategy.

In close collaboration with the management, he carries out several missions of a financial, accounting or legal nature. He assesses and manages the company’s financial risks, ensures compliance with financial and tax regulations, oversees the company’s accounting and financial management…

Regardless of the sector of activity, the CRO thus plays a key role in ensuring the financial health and continued growth of the company and ensuring the success of financial and administrative operations.

When to call on an interim CRO?

When the company does not have the necessary internal skills or hindsight to manage a transformation, it can then outsource the CRO function to an interim manager, who intervenes within the company for a period ranging from 6 to 18 months in order to respond to a targeted problem.

Calling on an interim Chief Revenue Officer (CRO) can meet several objectives, such as:

• Optimize the company’s financial performance;
• Carry out regulatory compliance;
• Managing a financial crisis ;
• Manage disputes in the event of litigation with the tax authorities;
• Lead a period of change or a strategic transformation project (financial restructuring ; mergers and acquisitions; Flipping; site closure; internationalization project…) ;
• Implement new financial strategies;
• …

Thanks to their specialized skills, their outside perspective, their ability to analyze in-depth, their hindsight, their pragmatism and their operational excellence, the interim CRO is able to effectively meet the specific needs of the company, whatever they may be.

 

Example of a transition assignment with a CRO for the automotive sector

At WAYDEN, we worked with a joint venture operating in the highly technical electric vehicle battery industry.

Established in 2020, the company aims to be agile in R&D, industrialization, mechanical design, and testing. With With an investment of €7 billion, it aspires to establish itself globally, with the help of an international network of R&D partners, manufacturers and suppliers, starting with the North American market (USA and CANADA).

As part of this internationalization project, WAYDEN offered the expertise of an interim manager Versatile, whose professional background perfectly met the client’s needs. Financial auditor for 4 years, the CFO commissioned by WAYDEN also worked as a Financial controller and Business developer within an automotive supplier, then as Administrative and Financial Director in the supply of lithium batteries responsible for the introduction of this high value-added product on the stock market.

The transitional CRO was responsible for developing a solid business plan, finding investors, and exploring local grant opportunities for the North American market. It was to draw up the operating account for the project, but also to analyse the financing needs (including investments for the expansion of battery production, and working capital requirements – WCR).

The North American electric mobility market was estimated to be worth $15.7 billion in 2020 and is growing rapidly (Source: BloombergNEF). The transitional CRO therefore had to Conduct agile financial management, adapted to this constantly evolving sector. During his mission, he was also required to:

• Implement an annual cash flow plan (with a monthly view for the first year), in order to effectively manage cash flow in an ever-changing environment;
• Implement project profitability indicators to evaluate financial performance;
• Prepare the asset-liability balance sheet of the project;
• Perform a sensitivity analysis of the project’s profitability taking into account key factors, such as fluctuations in the North American automotive market;
• Explore the options needed to increase the overall profitability of the company, in this rapidly expanding market.

A follow-up with the interim manager and the client was set up during the mission, in order to maintain agile communication between the various project stakeholders.

We benefit from a vast network of executives and interim managers carefully selected for their expertise and their unparalleled know-how. WAYDEN is able to offer you an interim CFO specialized in your sector of activity as soon as possible. The latter will be able to provide a personalized response to all your problems, for a successful business transformation.