What does a CMO do in their average four-year tenure to ensure that they keep their job for longer?
Did you know that CMOs have the shortest average term of office of any chief in the C-suite, according to a recent report by Korn Ferry? And even more shocking is the fact that in the consumer goods industry it is even lower at just 3.6 years! So just how long have you been in your position?
A 2012 global survey by the Fournaise Marketing Group provides one possible explanation. It highlights the ongoing tensions between CEOs and CMOs. A huge 80% of CEOs don’t trust or are unimpressed with their CMOs, compared to just 10% for their CFOs and CIOs. Why is this? Perhaps it’s because CEOs don’t understand the role of a CMO or is there still an issue with the ROI of the marketing budget?
Let’s start at the beginning; marketers, what opportunities are there so that you can keep your job? Despite the short lifespan of a CMO, it’s not all bad news. While the position is plagued by high turnover, this could also be because CMOs are highly visible for promotions or a steal by the competition. Nice to feel wanted, isn’t it?
It is therefore important that a new CMO quickly makes an impact. More so than any other c-suite function, bar the CEO of course, who sometimes faces almost immediate criticism by shareholders and the financial world upon being named.
Another piece of good news for the head of the marketing function is that being on the executive board they have access to resources. The bad news is that as the CMO is a member of the EB, management expects them to make (profitable) changes fast. And even more so if they have just been hired! The board trusts the new CMO to analyse the situation, identify what needs to be done, develop the plan to do it and then take actions. And all of this in their first 3 months or so!
Are you or have you yourself been in exactly this situation? Tough isn’t it? Thats why many CMOs hire a supportive advisor or sounding board such as myself to accompany them on this stressful journey. (If you like, you can book a complementary session with me here)
In the meantime, here is what I would do if I were in the position of a new CMO, or one who is reaching their four-year breakpoint and is not ready to leave quite yet.
The latest Forbes research into the CMO function highlights three major areas where the head of marketing’s remit now goes far beyond the previous traditional, more creative areas. In the report they mention three changes that CMOs are grappling with in an effort to impact both inside and outside their organisation:
- How the relationships between brands and customers have changed. The most influential CMOs lead digital transformation with a customer-first mindset.
- How brands can offer the very best customer experience. Top CMOs are championing the voice of their customers and aligning their organizations around better customer experiences.
- How brands can become more human and approachable. CMOs are no longer afraid to raise their voice or take a stand on political and social issues – because that’s how they connect and build trust with their customers. Take a look at the Forbes list of The World’s Most Influential CMOs of 2018 to see inspiring examples of this.
The report concludes:
The world’s most influential CMOs recognize that customer experience is the new brand, and inspire marketers everywhere to ask: How can we better know and serve our customers — not as a collection of data points, but as people?
However, the most influential CMOs also recognize that their ultimate job is driving business growth. And to do that, effective CMOs play a larger role, taking on additional responsibilities in areas as diverse as internal culture, talent, IT purchasing, and customer engagement. Talk about broadening their skills!
So how should CMOs, old and new, tackle their businesses from a fresh perspective? I suggest looking at the following five areas:
1. Mission and Vision
These are the very foundation of a company and are the starting point for any employee who wants to understand their role in an organisation, not just the CMO.
For the head of marketing however, it is perhaps even more important, since it is their actions that will bring them to life for consumers. And don’t forget that this also includes developing the corporate brand as well!
The mission should be played out in every product, service and communication that is launched. If it doesn’t, then those planned actions should almost certainly be reconsidered.
Or perhaps it’s the brands in the current portfolio that are not a good fit for the company’s aspirations. If this is your case, then a brave and determined effort is needed to admit which ones are not supporting current values and make plans for moving them out. This can be done either through discontinuing them or by selling them to other organisations which have less lofty ambitions.
One example of this that was recently in the news comes from Nestle USA. Nestle has for many years had the ambition to become a nutrition, health and wellness company, not “just” a food and beverage company. This past month we saw them (finally) selling their U.S. confectionery business to Ferrero. CEO Mark Schneider said of the sale:
“This move allows Nestlé to invest and innovate across a range of categories where we see strong future growth and hold leadership positions, such as pet care, bottled water, coffee, frozen meals and infant nutrition”.
Companies that ignore making hard portfolio decisions, risk diluting their impact, their image and more importantly their equity. The various top 100 most valuable brand tables only highlight this issue. Brands appear on the leaderboard but sometimes fail to remain there.
In the Brand Finance list Amazon took over the top spot from Google this year. And Apple then pushed them into third place. What makes Amazon more valuable than Google? Customer understanding and building a relationship based on solutions. Beyond being an online retailer, Amazon includes a cloud infrastructure, electronics, music and video streaming. Compare this to Google’s search and cloud technology; pretty limiting if you ask me.
Now it is true that Google’s parent company Alphabet does dabble in other sectors such as smart-home technology, self-driving cars, aging research and more, but almost all these new developments are losing money. Identifying and responding to customers’ needs is clearly one of Amazon’s real strengths and has allowed them to expand into distant industries far from their origins of the simple online bookstore they were just 25 years ago.
In Forbes’ Worlds Most Valuable Brands list, Apple leads ahead of Google and Microsoft, with Google in fifth position. The Forbes list is dominated by tech companies because I believe they are more in line with consumers needs today. These companies are also relatively new and thus have missions and values which are closely aligned with our new-age world. However even this list highlights the struggle Google is having to increase its value in the same way as Amazon or Apple. I wonder how their CMOs are planning to correct this. (and if they’d like my help!)
The vision and mission of an organisation can sometimes be difficult to live up to, but isn’t that the case for anything of value? This is why I see it as the first thing for a new CMO to get their head around and fully embrace – updating comes later when the EB trusts them enough to allow them to suggest changes.
2. Talking to (more) People
Once the (new) CMO understands the company’s mission and vision, it is important for them to evaluate how well these are integrated into the daily working of all employees.
This means gathering qualitative information from key players from the board on downwards, at global, regional and market level. Including market heads, business unit heads, marketing heads, brand managers, sales heads, operations, innovation, R&D, market research and insight provides a good overview. The more diversity in perspectives gathered the better, so the head of marketing should aim to talk to people from different departments, categories, levels and geographies (where relevant).
Have you noticed how most consultants that start working within a company will usually commence their audits by speaking with many people internally? They then come back and share a multitude of findings and information that we should probably already have known! Frustrating perhaps, but a useful pointer at what all CMOs should be doing – regularly – in order to be up-to-date with the organisation and ensuring they add value everywhere.
I don’t know how many times I have heard a new client say to me “If only we knew what we know.” That’s why we external consultants have it relatively “easy.” We can ask the naive questions that perhaps a new CMO is too shy to pose and a longer-serving CMO is afraid to admit they don’t know.
Well, why not change this by taking the decision to ask the naive questions you have about your business – even if you are not new to your job? You can make your fact-finding less formal by doing it over a simple coffee or lunch. This way your colleague is unlikely to see that you are actually drilling them for information! A definite win-win as you will be building your reputation and internal relationships at the same time.
“Dare to ask the naive questions you have about your business. You have everything to gain.”
3. Analysing (more) Information
After the qualitative information gathering, and having identified any possible issues and opportunities the business has, based on the interviews and their own analysis of the situation, it’s time to put some metrics against them.
Some organisations are very rich in terms of data and know it. But many more are rich and don’t know it, as previously mentioned.
The information you need will depend upon the business you’re in, but there are some basics that all companies have or should have, ideally with the trends of them too:
- Market size, in total and by geography.
- Category size, shares.
- Consumer (customer, client) profiles.
- Brand image and equity.
- Segmentation results.
- Customer lifetime value.
- Communications’ awareness and performance
- Website / SEO performance
The analysis of these metrics and especially their trends will help identify the facts from the feelings. Not to say the latter are unimportant, but they will need addressing separately. With this analysis done, the CMO can start defining strategies and prioritising actions.
One exciting improvement to information analysis that is now available to any business is the use of AI and machine learning. A recent article from Bain & Co explores the opportunities that it brings to marketing mix optimisation in particular. They call it MMO 3.0. The article makes a great read, but their conclusion suffices for here. They end by summarising the major elements of analysis that CMOs should keep in mind:
“Stay practical and in control of your data. Use balanced analytic approaches. Don’t let analysis get too far beyond action. Cultivate analytic marketers. And focus on incrementally better insights and predictions that you understand, rather than big-bang black boxes you don’t.”
I believe that that these points are valid and valuable for all marketers to remember. As AI and machine learning distance us all from the data sources, we are at risk of losing the means to make sense of it all. And we are all so overwhelmed by the data tsunami, that we often forget to keep it simple – so KISS your analytics and look for small, steady advances in your information learnings.
4. Evaluating New Team Skills
Most CMOs will join an existing team, so I will not speak about how to create a dream marketing team. (However I would be happy to jump on a Skype if that is your situation) It will therefore be necessary to review and evaluate the members of your inherited team.
Hold off the temptation to immediately start hiring colleagues from your previous company for at least six months and ideally a year or more. Give yourself and your team the necessary time to get comfortable working together. This will also enable you to correctly identify any missing skills; sometimes good people are just in the wrong jobs.
As a recent article in The Marketing Journal mentions:
“The war for marketing talent is escalating as companies demand people skilled both in the art and the science of marketing, and who understand the emerging realities of empowered customers in a social media universe.”
Despite what the people who attended the Cannes Lions in the South of France last week may think, creativity alone is no longer enough. Marketers need a whole list of other skills.
I came across an interesting list (thanks to @ValaAfshar from Salesforce) of the 20 talents that the ideal team should have. I think it pretty much covers the needs of the modern marketing department but you be the judge:
|1 storyteller||11 entertainer|
|2 designer||12 alchemist|
|3 builder||13 connector|
|4 magician||14 negotiator|
|5 stabilizer||15 teacher|
|6 fighter||16 juggler|
|7 explorer||17 scientist|
|8 dreamer||18 futurist|
|9 mentor||19 mathematician|
|10 recruiter||20 journalist|
Now clearly many of you reading this article don’t have such a large team that you can include all these positions in addition to brand and communications staff. Nor do you have the possibility to hire more members to a smaller one, so you will have to think creatively. However as everyone has far more talents than the one for which they were hired, I am sure you will find people in your current group who can fulfil all or most of these positions. (How about a storytelling scientist?)
5. Improving Processes
All organisations have ways of working and hopefully many of them have been developed into processes. I believe these processes are what make a company more or less successful. This is because the methods used and any information collected is consistent, which makes product and service management that much easier. It also makes results comparable and the process repeatable over time.
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”Will Durant – not Aristotle!
As for the CMO, their process is their whole job. It involves reviewing the information mentioned earlier and then taking the following steps:
- Prioritize: Every position will uncover more tasks to do than can be handled in the average working day. That’s why priority setting is so important. For the CMO this will mean identifying the tasks that will support the company’s objectives as well as its mission and vision.
- Strategise: Next they will build strategies to meet these objectives in the most resourceful way. With such emphasis on ROI for marketing, this will include paying attention to the budget split and people allocation. I would highly recommend reading this article by Smart Insights’ cofounder Dave Chaffey on the differences between strategy and tactics – with some useful examples included.
- Structure: As already mentioned having a range of skills in any team is important, as is talent development. CMOs must ensure they are surrounded by a capable team able to implement their strategies with appropriate tactics and actions.
- Motivate: Every job has its set of challenges and with marketing being challenged to prove its ROI, motivation can take a hit. The CMO’s task is to motivate both their team and internal peers to the opportunities provided by marketing to impact and grow the business. No man is an island and the CMO needs the support of the c-suite, and especially the CIO and CFO to support their plans.
- Excite: Marketing excites me, but I know not everyone feels the same. The function can be seen as having too much fun and not being that serious, especially at the Cannes Lions time of the year. However since marketing will impact most other functions within an organisation, it is essential for the CMO to excite other departments to support their carefully laid-out plans.
- Lead: This is often one of the most difficult things for a CMO to do – really! Since they are usually the most experienced professional in the marketing group, it can be tempting to end up doing a lot of the work that should be handled by the team. Yes it can always be done better, but if the CMO manages all the above steps then they will not need to get personally involved in the day-to-day tactics and actions. If you are still doing everything from planning to sweeping the office floor (ladies, you know what I mean don’t you?) then it’s time to check which of the above steps you need to improve – and yes I’m actually referring to all female c-suite members and managers in general here!
Of course, the CMO also has a lot of other processes that they lead, such as for communications development, innovation and scenario planning. However, for this post I wanted to concentrate on the role of a new CMO and how they can quickly make their mark. If they get through their first 90 days and then 3+ years, they will have plenty of time to address these other very specific processes. Other C3Centricity posts on these topics will certainly help them.
So marketers, have I answered your question about how to keep your job? Are these five steps sufficient to make a difference? Personally I think so – but only if they are followed with real actions and change. After all making an impact is the name of the game in any profession but especially for one that previously relied on creative juices alone. Do you agree? What changes are you making or would you like to see made in your own organisations?