Are CMOs The New Owner Of The Data And Technology Around Which Companies Should Organize?

Are CMOs The New Owner Of The Data And Technology Around Which Companies Should Organize?

Thank you Steve Olenski!

5/25/2017

Let’s cut right to the chase here, kids. The answer to the question posed in the title is “largely yes” according to Alicia Hatch, CMO of Deloitte Digital. She cites the 2016 Gartner Spend Survey which found that CMOs had one of the highest technology spends of any C-suite member and is on track to overtake CIOs in 2017.

GML_CMO Tech Spend_Infographic Gartner Marketers 2017

To further support her belief one can point to Forrester’s report C-Suite Tech Purchasing Patterns which predicts that by 2018 about 36% of all marketing technology-related new project spending will be fully controlled by CMOs.

Andrew Bartels, Forrester Research analyst and lead author of the report is quick to point out, however, that while the “growing tech-saaviness of business leaders and the wider availability of cloud solutions does mean that business leaders are playing a bigger role in the front end of this process… the persistence of licensed software, the growing adoption of cloud as a replacement for licensed software, and challenges of implementing and optimizing solutions mean that CIOs and tech management teams still play a dominant role in overall tech purchases by businesses.”

Mix and Match With Hatch

When I spoke with Alicia, in addition to getting her thoughts on CMOs becoming the new owner of the data and technology around which companies should organize, I wanted to picked her brain on a few other topics including recent changes she’s witnessed, what the difference between data-driven and data-informed campaigns is and more.

Steve Olenski: What have been the biggest changes in marketing you’ve seen over the past 6 months?

Alicia Hatch: Marketing leaders across verticals and industries are intensely focused on marketing technology, attempting to build the most perfect stacks for gaining the most precise customer insights. There are higher expectations of CMOs than ever before, and increased pressure to do more with fewer resources.

These shifts have also happened against a backdrop of a bit of digital disillusionment, spurred by brand safety concerns. While marketers work around the clock to ensure their brands are well-regarded via the distribution of consistent, powerful messaging, there is an increased awareness to the fact that brands cannot control every piece of digital content that may influence how a consumer or company views a particular brand. Companies are becoming more cautious when selecting where to run advertisements, for example, knowing that their ad could run alongside an offensive message or one that simply does not align with the character of the brand they represent.

Olenski: I read that you believe the evolution of the CMO has driven the rise of martech. Can you elaborate on that? Why do you believe this is the case?

Hatch: Marketing technology originated from the need for marketers to better understand their customers and create more thoughtful, personalized and simultaneously automated campaigns that help build brand identity.

As the role of CMO has evolved from being a pure brand ambassador to a central growth driver of the business, modern CMOs have become intensely data-driven. We must demonstrate we can be predictable revenue drivers with highly optimized spend. In order to do this, we must architect our marketing technology around critical data flows and not just capabilities. We must create data-driven cultures by designing workflows around these data flows.

To effectively act on these imperatives, the martech industry had to rapidly advance to catch up with the needs of the sophisticated modern CMO. Innovation in predictive analytics is now being driven by the new marketing imperative to not only demonstrate business impact but to continuously optimize it.

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The CMO Is Evolving Into New Species With Vastly Broader Range

The CMO Is Evolving Into New Species With Vastly Broader Range

Big Data and Digital Demand Expertise in Both New and Traditional Areas of Marketing

By , . Published on January 15, 2014. 4

Seeking insight into how marketing is changing, we had conversations with dozens of CMOs and other C-suite executives, mined our firm’s ongoing study of marketing leadership trends, and tapped the direct observations of consultants across our global CMO practice. We found that the demands on marketing are growing far more eclectic, stretching marketing organizations and their leaders between divergent poles. The stretch is occurring across five critical axes:

Sophisticated Strategist vs. Entrepreneurial Trailblazer. Stable, mature markets offer large, reliable revenue streams, but competition tends to be fierce and growth potential is limited. Marketers must rely on intricate consumer insights and sophisticated strategies to eke out marginal gains. Emerging markets, in contrast, offer far less data to guide marketers, but far greater growth potential. The Entrepreneurial Trailblazer works creatively with what is available. In Africa, for example, more people have mobile phones than have access to electricity, and so mobile devices must be basic in design, to provide long battery life. As millions of Africans access the internet on a 2-inch cellphone screen, in black and white and text-only, marketers are skipping traditional TV advertising to move into the uncharted territory of advertising according to those parameters.

Business Leader vs. Marketing Guru. Companies increasingly require a CMO to be much more than a marketing star. Today’s CMOs are expected to help the CEO shape overall business strategy and guide how resources are allocated across the business. Metrics are a key driver of this shift. Historically, measures of marketing effectiveness could demonstrate only that marketing investments had created potential for the business to succeed. Today’s metrics can quantify marketing’s contributions to the top and bottom line. This is accelerating the trend toward assigning chief marketers broad business responsibilities.

Joseph Tripodi, executive VP and chief marketing and commercial officer of Coca-Cola, is a prime example. Just look at his official company bio: “Mr. Tripodi leads the global Marketing, Customer Management and Commercial Leadership efforts of the Company to develop and leverage its capabilities, brands and properties to meet the needs of consumers and customers worldwide to drive profitable growth.”

When Avon announced the appointment of Patricia Perez-Ayala as senior VP, CMO and global brand and category president, it noted: “Ms. Perez-Ayala will be responsible for global management of Avon’s brand and marketing, including consumer insights, commercial marketing, digital marketing, and also have oversight of Avon research & development, new product development and packaging, and the Liz Earle business.” Avon chose a proven general manager, with marketing at her core, to be its CMO.

We foresee more companies seeking top marketing officers with general management experience, as well as impeccable marketing credentials. The bar is being set ever higher.

Sector Specialist vs. Versatile Partner. Companies have often presumed that a CMO must rise within their own industry or one closely related. But many CEOs now want CMOs to be a versatile partner who can help make sense of all that is unfolding in the wider world, not just within one sector. For example, Citi’s chief brand officer, Dermot Boden, had never marketed in the financial sector, having formerly served as global chief marketing officer at LG Electronics and in marketing roles with Pfizer and Johnson & Johnson. Greg Revelle, senior VP and CMO at AutoNation, is a similar story. Prior to joining America’s largest automotive retailer, Revelle was VP of global online marketing for the travel platform Expedia.com. Earlier in his career, he was an investment banking analyst at Credit Suisse. Boden and Revelle each bring functional knowledge and abilities that are valued as more strategically essential, in a rapidly transforming marketplace, than deep industry knowledge.

Innovation Champion vs. Shopper Expert. Some organizations divide the role of the CMO into two areas of responsibility: an innovation champion focused on developing the pipeline for the future, three to five years out, and a shopper expert focused on delivering a P&L today. The logic is sound, given that each role demands different strengths. The innovation champion makes the organization a wellspring of ideas and ensures that new ideas are protected. The shopper expert builds deep, nuanced understanding of shopper behavior to deliver trial and repeat purchasing. Most CMOs are far more skilled at one or the other. But current and aspiring CMOs will need to acquire enough knowledge and experience outside their expertise to effectively lead both dimensions.

Digital Expert vs. Marketing Traditionalist. The power of big data and digital marketing has created a rush to infuse traditional marketing teams with digital talent. The danger is that freshly recruited experts in social media, SEO, analytics and other digital disciplines will fail to mesh with the traditional operation, with its expertise in areas like branding, promotion and product management. In effect, this creates two marketing functions that work in proximity, but not fully together. CMOs will be increasingly challenged to ensure that marketing is integrated and cohesive as its resident expertise grows markedly more diverse.

ABOUT THE AUTHOR
Dick Patton co-leads the global chief marketing officers practice at Egon Zehnder and Rory Finlay leads the global consumer products practice.

Peter Drucker On Leadership

 
 

Ideas
Peter Drucker On Leadership
Rich Karlgaard, 11.19.04, 6:00 AM ET

NEW YORK – Peter F. Drucker was born 95 years ago today–can it be possible?–in Vienna. The universally known writer, thinker and lecturer now is nearly deaf and doesn’t get around like he used to. He stopped giving media interviews about a year ago. But in late October, Drucker granted an exception to Forbes.com at the urging of Dr. Rick Warren, the founder and head of the Christian evangelical Saddleback Community Church in Lake Forest, Calif.

 
Peter F. Drucker at his home in California
 

The Drucker-Warren relationship may surprise many readers, but it goes back two decades, to when the young minister came to Drucker for advice. Under Drucker’s tutelage, Warren’s own success as a spiritual entrepreneur has been considerable. Saddleback has grown to 15,000 members and has helped start another 60 churches throughout the world. Warren’s 2001 book, The Purpose-Driven Life, is this decade’s best seller with 19.5 million copies sold so far and compiling at the rate of 500,000 per month.

Warren and I met at Drucker’s surprisingly spartan home in Claremont, Calif., on a cloudy Tuesday morning. We were greeted by Drucker’s wife, Doris, and ushered into the den for what developed into a two-hour conversation. During the first 30 minutes, Drucker–a religious man himself, albeit of a more muted Episcopalian type as compared to Warren’s exuberant brand of Southern Baptist–advised Warren on the challenges of ministry and church building. This consultation is one Drucker and Warren have engaged in twice yearly for two decades. For the last 90 minutes we moved to broader topics. Below are Drucker’s thoughts on leadership. (Click here for Drucker’s official biography.)

What Needs to Be Done

Successful leaders don’t start out asking, “What do I want to do?” They ask, “What needs to be done?” Then they ask, “Of those things that would make a difference, which are right for me?” They don’t tackle things they aren’t good at. They make sure other necessities get done, but not by them. Successful leaders make sure that they succeed! They are not afraid of strength in others. Andrew Carnegie wanted to put on his gravestone, “Here lies a man who knew how to put into his service more able men than he was himself.”

Check Your Performance

Effective leaders check their performance. They write down, “What do I hope to achieve if I take on this assignment?” They put away their goals for six months and then come back and check their performance against goals. This way, they find out what they do well and what they do poorly. They also find out whether they picked the truly important things to do. I’ve seen a great many people who are exceedingly good at execution, but exceedingly poor at picking the important things. They are magnificent at getting the unimportant things done. They have an impressive record of achievement on trivial matters.

Mission Driven

Leaders communicate in the sense that people around them know what they are trying to do. They are purpose driven–yes, mission driven. They know how to establish a mission. And another thing, they know how to say no. The pressure on leaders to do 984 different things is unbearable, so the effective ones learn how to say no and stick with it. They don’t suffocate themselves as a result. Too many leaders try to do a little bit of 25 things and get nothing done. They are very popular because they always say yes. But they get nothing done.

Creative Abandonment

A critical question for leaders is, “When do you stop pouring resources into things that have achieved their purpose?” The most dangerous traps for a leader are those near-successes where everybody says that if you just give it another big push it will go over the top. One tries it once. One tries it twice. One tries it a third time. But, by then it should be obvious this will be very hard to do. So, I always advise my friend Rick Warren, “Don’t tell me what you’re doing, Rick. Tell me what you stopped doing.”

The Rise of the Modern Multinational

The modern multinational corporation was invented in 1859. Siemens invented it because the English Siemens company had grown faster than the German parent. Before the Second World War, IBM was a small maker, not of computers, but of adding machines. They had one branch in England, which was very typical for the era. In the 1920s, General Motors bought a German and English and then Australian automobile manufacturer. The first time somebody from Detroit actually visited the European subsidiaries was in 1950. A trip to Europe was a big trip. You were gone three months. I still remember the excitement when the then head of GM went to Europe in the 1920s to buy the European properties. He never went back.

21st Century Organizations

Let me give you one example. This happens to be a consulting firm headquartered in Boston. Each morning, between 8 A.M. and 9 A.M. Boston time, which is 5 A.M. in the morning here in California and 11 P.M. in Tokyo, the firm conducts a one-hour management meeting on the Internet. That would have been inconceivable a few years back when you couldn’t have done it physically. And for a few years, I worked with this firm closely and I had rented a room in a nearby motel and put in a videoconferencing screen. Once a week, I participated in this Internet meeting and we could do it quite easily, successfully. As a result of which, that consulting firm is not organized around localities but around clients.

How To Lead a 21st Century Organization

Don’t travel so much. Organize your travel. It is important that you see people and that you are seen by people maybe once or twice a year. Otherwise, don’t travel. Make them come to see you. Use technology–it is cheaper than traveling. I don’t know anybody who can work while traveling. Do you? The second thing to say is make sure that your subsidiaries and foreign offices take up the responsibility to keep you informed. So, ask them twice a year, “What activities do you need to report to me?” Also ask them, “What about my activity and my plans do you need to know from me?” The second question is just as important.

Prisoner of Your Own Organization

When you are the chief executive, you’re the prisoner of your organization. The moment you’re in the office, everybody comes to you and wants something, and it is useless to lock the door. They’ll break in. So, you have to get outside the office. But still, that isn’t traveling. That’s being at home or having a secret office elsewhere. When you’re alone, in your secret office, ask the question, “What needs to be done?” Develop your priorities and don’t have more than two. I don’t know anybody who can do three things at the same time and do them well. Do one task at a time or two tasks at a time. That’s it. OK, two works better for most. Most people need the change of pace. But, when you are finished with two jobs or reach the point where it’s futile, make the list again. Don’t go back to priority three. At that point, it’s obsolete.

How Organizations Fall Down

Make sure the people with whom you work understand your priorities. Where organizations fall down is when they have to guess at what the boss is working at, and they invariably guess wrong. So the CEO needs to say, “This is what I am focusing on.” Then the CEO needs to ask of his associates, “What are you focusing on?” Ask your associates, “You put this on top of your priority list–why?” The reason may be the right one, but it may also be that this associate of yours is a salesman who persuades you that his priorities are correct when they are not. So, make sure that you understand your associates’ priorities and make sure that after you have that conversation, you sit down and drop them a two-page note–“This is what I think we discussed. This is what I think we decided. This is what I think you committed yourself to within what time frame.” Finally, ask them, “What do you expect from me as you seek to achieve your goals?”

The Transition from Entrepreneur to Large Company CEO

Again, let’s start out discussing what not to do. Don’t try to be somebody else. By now you have your style. This is how you get things done. Don’t take on things you don’t believe in and that you yourself are not good at. Learn to say no. Effective leaders match the objective needs of their company with the subjective competencies. As a result, they get an enormous amount of things done fast.

How Capable Leaders Blow It

One of the ablest men I’ve worked with, and this is a long time back, was Germany’s last pre-World War II democratic chancellor, Dr. Heinrich Bruning. He had an incredible ability to see the heart of a problem. But he was very weak on financial matters. He should have delegated but he wasted endless hours on budgets and performed poorly. This was a terrible failing during a Depression and it led to Hitler. Never try to be an expert if you are not. Build on your strengths and find strong people to do the other necessary tasks.

The Danger Of Charisma

You know, I was the first one to talk about leadership 50 years ago, but there is too much talk, too much emphasis on it today and not enough on effectiveness. The only thing you can say about a leader is that a leader is somebody who has followers. The most charismatic leaders of the last century were called Hitler, Stalin, Mao and Mussolini. They were mis-leaders! Charismatic leadership by itself certainly is greatly overstated. Look, one of the most effective American presidents of the last 100 years was Harry Truman. He didn’t have an ounce of charisma. Truman was as bland as a dead mackerel. Everybody who worked for him worshiped him because he was absolutely trustworthy. If Truman said no, it was no, and if he said yes, it was yes. And he didn’t say no to one person and yes to the next one on the same issue. The other effective president of the last 100 years was Ronald Reagan. His great strength was not charisma, as is commonly thought, but that he knew exactly what he could do and what he could not do.

How To Reinvigorate People

Within organizations there are people who, typically in their 40s, hit a midlife crisis when they realize that they won’t make it to the top or discover that they are not yet first-rate. This happens to engineers and accountants and technicians. The worst midlife crisis is that of physicians, as you know. They all have a severe midlife crisis. Basically, their work becomes awfully boring. Just imagine seeing nothing for 30 years but people with a skin rash. They have a midlife crisis, and that’s when they take to the bottle. How do you save these people? Give them a parallel challenge. Without that, they’ll soon take to drinking or to sleeping around. In a coeducational college, they sleep around and drink. The two things are not incompatible, alas! Encourage people facing a midlife crisis to apply their skills in the non-profit sector.

Character Development

We have talked a lot about executive development. We have been mostly talking about developing people’s strength and giving them experiences. Character is not developed that way. That is developed inside and not outside. I think churches and synagogues and the 12-step recovery programs are the main development agents of character today.

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15 CMO’s say what’s on their mind for digital marketing in 2013

Posted on December 23, 2012 by Rob Petersen

inShare 96

 

“Half the money I spend on advertising is wasted. The trouble is I don’t know which half,” said department store magnet, John Wanamaker, in 1902.

The statement is as relevant today as over 100 years ago only to more media channels. Because, according to 2012 State of Marketing report from the Chief Marketing Officer Council, 27% said TV was the most impactful medium where 44% said search was the superior vehicle.

The report also said executives were particularly enthused by search and social media but not satisfied with their current digital marketing performance. Roughly 50% said digital strategy was one of the most important challenges for the the New Year.

What else do they say? Is it the same as John? Here what 15 CMO’s say is on their mind for digital marketing in 2013.

  1. Cloud computing will merge with big data and dashboard tools into something that truly offers marketers a more holistic view of all their consumer touch points. – Lisa Archambault , Manager, Display Marketing, Zappos Development, Inc.
  2. More companies will start to address the challenge of integrating digital platforms into their overall customer experience. – Mike Ashton , Managing Director ABCG
  3. B2B commerce is going to be a trend in 2013 because direct-to-business sellers are realizing that there’s a huge opportunity to meet the business buyer’s consumer sensibilities and are leveraging some of the best practices acquired from the B2C world. – Sean Cook , CEO, Shop Visible
  4. Few businesses have yet to embrace the power of video. Video offers greater retention and up to five times greater recall than print, according to TubeMogul. – Stacey Coopes , CEO, Ford Direct
  5. I think we’ll see a tighter link between sales and marketing systems, which will lead to a bigger focus on personalized experiences for both inbound and outbound marketing. – Eduardo Conrado , Chief Marketing Officer, Motorala
  6. Thanks to digital marketing, marketers are flooded with highly accountable data of online behavior. Conversion data is all tracked accurately, just waiting for ROI calculations. – Gabe Delporta , CMO, Lending Tree
  7. I fully expect the joint industry effort Making Measurement Make Sense to establish the digital Gross Ratings Point (GRP) as the prevailing metric for premium digital media transactions. – Patrick Dolan , EVP and COO, IAB
  8. It’s less about technology and more about content, messaging and integration into a marketing-communications campaign. – Susan Helstab , VP-Marketing, Four Season
  9. CIOs and CMOs need to work together on major initiatives like a master data management strategy, social media, and building these systems of engagement so we can reach customers through the channel or device of their choice. CIOs and CMOs will be the co-designers of their company’s total customer experience. – Jon Iwate , SVP, Marketing and Communication – IBM
  10. Relevance of message is clearly better achieved through digital and social, as well as the ability to have a conversation. … [You] can have folks give you immediate feedback”. – Alfredo Martell , Senior VP, Marketing and Product Management, Caribou Coffee
  11. CMO’s are charging into Big Data. Data and web analytics are going to be big hiring priorities for marketing departments,”  “It’s a directive from the top. The CEO is saying to the CMO, ‘Listen, customer preference is controlling the switch, so come to me with accurate measurement, give me visibility into the marketing spend.” – Liz Miller, VP of the CMO Council
  12. In the coming year, successful CMOs will figure out how to reintegrate great brand storytelling (a priority of old) with innovative analytical marketing to provide an emotional connection that resonates with consumers who are becoming increasingly immune to sharper-edged analytical marketing tactics, like retargeting and couponing. – Deborah Op den Kamp , Executive Director, CMO, and Digital Consumer Practices, Russell Reynolds Associates
  13. This concept of social, local, mobile — SoLoMo, as we like to say — I think becomes a tool not only for us to get our point across from a marketing standpoint but for a lot of our vendors who are our best partners to get their point across.” – Stephen Quinn , CMO, Walmart
  14. Dollars follow eyeballs online. IAB reported a 23% year-over-year increase in online spending for the first quarter. We are experiencing the continuing trend of consumers wanting to live online, not just transact online. – Josh Shatkin-Margolis , CEO, Magnet
  15. We don’t believe in digital marketing. We believe in marketing in a digital world, and there’s a huge difference.” – Clive Sirkin , Senior Vice President, Kimberly-Clark

Like these CMO’s, if digital marketing is one of your most important challenges in 2013, you might want to consider Biznology Jumpstart Workshops . If you’re like 44% of CMO’s who believe search marketing is a superior vehicle, there’s On-Site Search Marketing Training  available now to jumpstart your business early rather than later in the coming year.

Are the challenges these CMO’s are facing similar to those at your company? What would be John Wanamaker’s biggest challenge if he was still with us, today?