There’s little question that chief advertising and marketing officers are beneath extra stress than at any time for the reason that CMO position first formed within the Nineteen Fifties round TV and print promoting. Immediately they must play a recreation of 3D chess that’s as a lot about know-how, knowledge and enterprise transformation as it’s about artistic and media.
Consequently, it’s no shock the tenure of the CMO gets shorter with every year’s Spencer Stuart research (its 18th iteration got here out in April). However what components might help the CMO carry out extra efficiently, and be aligned extra successfully with the CEO of their firm?
John Connors, founder and CEO of Boston-based company Boathouse, has made understanding the CMO a mission of kinds, and he’s not been shy about sharing his ideas. Connors and Boathouse on Wednesday revealed the primary of what he hopes shall be an annual survey of CMOs, The CMO Performance Study, which incorporates inspecting the connection between the CEO and CMO by the eyes of the CEO.
“We added two core key elements to [the study]: one was the grading of CMOs, in order that we will see trigger and impact,” mentioned Connors. “And two, we requested CEOs extra questions on their very own complexity in order that we will really see each side of the equation. We will additionally see what about CEOs is making CMOs loopy, and vice versa.”
If there’s one huge takeaway, it’s that the CEO wants the CMO to shoulder extra of the complicated burden of main. Listed below are some topline findings from the research:
- The research spoke with CEOs from 150 corporations with base revenues of at the very least $250 million, a 3rd of which had been over $1 billion, and 70 p.c of which employed greater than 1,000 folks. Two-thirds had been CEOs of personal corporations.
- Whereas the grade that CEOs handed to their CMOs most frequently was a B, the connection and belief felt by the CEO towards the CMO delivered essentially the most A grades (39 p.c). The place the CMO obtained the fewest As (16 p.c) was in capacity to drive firm development and innovation/producing new concepts (19 p.c As).
- General, just one out of 4 CEOs mentioned their CMO’s decision-making capacity was above common; 63 p.c mentioned it was common.
- Likewise, solely 27 p.c of CEOs felt their CMO is “enjoying it huge,” as expressed by inspiring different members of the C-suite, whereas 51 p.c felt the CMO “performs it protected.”
- And shockingly, nearly half (47 p.c) don’t imagine their CMO understands the corporate’s revenue and loss or steadiness sheet knowledge.
- When cross-referencing a few of the scores and grades, the research discovered a halo impact round when a CEO feels he/she has the loyalty of the CMO; scores round aligning with firm objectives, “enjoying huge” and contributing to robust choices went up between 17 and 19 p.c.
“What’s so intriguing is, I don’t assume [CEOs are] saying, ‘Your solely job is to get me efficiency.’ It’s really, ‘Please assist me handle all this complexity,’” mentioned Connors. “If I [the CEO] personally belief that you’re managing all these variables for me, your numbers go up by huge numbers. If I don’t, once I assume you’re simply managing technical features of [the job], the connection’s not going to final.”
Boathouse’s findings dovetail largely with different analysts of CMO efficiency. “Alignment between the advertising and marketing chief and the operators (usually the CEO and/or enterprise unit presidents) is totally crucial,” defined Richard Sanderson, advertising and marketing, gross sales and communications follow chief at Spencer Stuart. “Fairly merely, the nearer the advertising and marketing chief is to influencing the income line of their enterprise, the extra seemingly they’re to have significant and lasting affect on the enterprise.”
“As a lot as issues change, they continue to be the identical,” Chris Ross, an analyst with Gartner Group, mentioned in an internal Q&A. “The middle of the bullseye for the overwhelming majority of CMOs is development, which CEOs look to CMOs and their groups to drive. For all the opposite issues CMOs have to handle, they need to by no means take their eyes off that ball.”