what makes a powerful cmo? · the cmo’s resources (h.i.r.o) human skills and expertise...

11/2/2018

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W H A T M A K E S A

P O W E R F U L C M O ?

P R AV I N N AT H

2 0 1 8 P I N N AC L E E X P E R I E N C E

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MARKETING’S SEAT AT THE STRATEGY TABLE

• CMO = marketing executive in the top management team

• 40% of (public) firms have a CMO

• CMOs face a fast-revolving door

A VICIOUS CIRCLEFOR THE CMO POSITION

Presence

Performance vs.

Expectations Turnover

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BREAKING THE VICIOUS CIRCLEA CASE FOR CMO POWER

Increase Prevalence

Deliver Performance &

Manage Expectations

Withstand Turnover

Power

WHAT EXPLAINS CMO POWER?

Effectiveness of CMO/CMO’s

Resources

Centrality of CMO/CMO’s

Resources

Criticality of CMO/CMO’s

Resources

Control over CMO/CMO’s

Resources

Indispensability of CMO/CMO’s

Resources

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A CLASSIFICATION OF THE CMO’S RESOURCES (H.I.R.O)

HumanSkills and expertise

(education, experience)

InformationalKnowledge about

(potential) customers, competition, and

market

RelationalNetworks (with

customers, service providers)

OrganizationalMarketing Capabilities (e.g., outside-in, brand

equity, etc.)

INCREASING CRITICALITYOF THE CMO’S RESOURCES


Resources


Resources


Resources


Resources


Resources

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• Being the Voice of the Customer/Market (in Strategy Formulation)


•

• In Strategy Implementation

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•

• Aligning the Brand with Customer Experience (in Implementation)

Brand

Customer Experience


•


– How do customers (and their customers) experience your brand?

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•


–

– Service-mindset: value is defined by and co-created with the consumer rather than embedded in output


•


–

–

– Beyond storytelling: “Our strategy is to not tell stories but to enable consumers to make stories they tell their friends and family; to create and curate story material” (Raja Rajamannar, CMO, Mastercard)

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•


– How do customers (and their customers) experience your brand?

– Service-mindset: value is defined by and co-created with the consumer rather than embedded in output

– Beyond storytelling: “Our strategy is to not tell stories but to enable consumers to make stories they tell their friends and family; to create and curate story material” (Raja Rajamannar, CMO, Mastercard)


Value Creation

Zone

CMO’s Resources

Company Needs

•

•

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• Being the Voice of the Customer/Market (in Strategy Formulation) &


• Within the Context of the Company’s Needs

Value Creation

Zone

CMO’s Resources

Company Needs

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It’s hard to move a business unless you convince the CFO or the CEO that what you do matters. So we’re creating a unified model that combines on and offline media effectiveness with the creative effectiveness stuff, with measures of brand equity, creating a sort of Net Promoter Score for marketing effectiveness.

Dan BurdettChief Marketing Innovation Officer EMEA, eBay


•

•


– Measurable Impact or Financial Accountability

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•

•



• Sales growth a stronger determinant of CMO turnover than profitability

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•

•



•

• How can your resources create and deliver meaningful metrics?


Which of the following Content Types Drive Revenue for you?

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Lead Generation

Revenue Generation


•

•


–

•

•

– New initiatives

• Marketing and Firm Innovativeness are related to greater CMO power

•

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•

•


–

•

•

– New initiatives

•

• How can your resources enable (contributions to) innovativeness?


• Being the Voice of the Customer/Market (in Strategy Formulation) &



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DISCUSSION: INCREASING CRITICALITY OF THE CMO’S RESOURCES

• Which [h.i.r.o] resources are the most critical in enabling your power, or your ability to influence the CEO and other leaders in your firm?

– What are some instances when your resources have been critical?

• Have there been situations where you felt empowered representing the voice of the customer/market, aligning the brand with customer experience, or being innovative?

– Are there other ways to increase criticality in formulation & implementation?

• What are some of the challenges in increasing the criticality of your resources?– Within the context of your company’s/CEO’s needs?

INCREASING CENTRALITYOF THE CMO’S RESOURCES


Resources


Resources


Resources


Resources


Resources

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Customer/Market

Operations Sales

Design/R&D

ITService

Finance

Marketing

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• Inter-functionality

– We need resources of those who don’t report to us (power gap)

– Service-mindset: value is defined by and co-created with other actors in the service ecosystem


• Create opportunities for exchange of resources

– Inspirational customer and employee stories

– Informative white papers, case studies, and newsletters

– Inculcate employee advocacy

– Interactional and empathetic conversations

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DISCUSSION: INCREASING CENTRALITYOF THE CMO’S RESOURCES

• What would you like to change or improve about the interactions that you and your marketing employees have with other functional leaders and their departments?

• Which [h.i.r.o] resources are the ones that would allow increased centrality, or more frequent and deep interactions?

• Have there been situations or contexts where you were able to occupy a central role at the strategy table?

INCREASING EFFECTIVENESSOF THE CMO’S RESOURCES


Resources


Resources


Resources


Resources


Resources

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• Expertise fills the Gap of Skills


Overall quality of your company’s marketing knowledge resources (1=poor, 7=excellent)

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• Expertise fills the Gap of Skills

– (Digital) marketing technology is changing rapidly

– You will never know as much as you need to know


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ProduceSell

ConnectCreate/

Invent

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• Emotional Labor fills the Gap of Passion

– Work is a chance to do art and an artist takes it personally

– An artist is someone who uses bravery, insight, creativity, and boldness to challenge the status quo and art is never defect-free

– Art is a personal gift that changes the recipient


• Culture

– Formalization vs. Independence

– Centralization vs. Delegation

– Satisficing vs. Excellence

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• Metrics

– Short-term vs. Long-term

– Soft vs. Hard (Marketing vs. Financial)

DISCUSSION: INCREASING EFFECTIVENESSOF THE CMO’S RESOURCES

• What steps are you taking to ensure that the marketing function is preparing for the future skills gap?

• Do you see any challenges in raising work to the level of art?

• How do you manage the delicate balances required in the culture and metrics adopted by you and the marketing function?

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CONTROL OVER RESOURCESAND CMO INDISPENSABILITY

• Control: Reducing the Trust gap

– Most of your work is about the future

– You will always encounter doubters and naysayers

– Control and resource criticality, centrality, and effectiveness share a two-way relationship


• Indispensability

– When it is time for layoffs, the safest job belongs to the artist, the linchpin, the one who can’t be easily outsourced or replaced

– Indispensability and resource control, criticality, centrality, and effectiveness share a two-way relationship

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THOUGHTS? COMMENTS?


Resources


Resources


Resources


Resources


Resources

what makes a powerful cmo? · the cmo’s resources (h.i.r.o) human skills and expertise...

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