THE CMO SOLUTION GUIDE FOR BUILDING A MODERN
THE CMO SOLUTION GUIDE FORBUILDING AMODERN MARKETINGORGANIZATIONPRESENTED BYIN PARTNERSHIPWITH
WITH SPECIAL THANKS TO CONTRIBUTORS:PATRICK ADAMSNIKHIL BEHLKATHY BUTTON-BELLJOHN COSTELLOCMO, PayPalCMO, FICOCMO, EmersonPresident, Global Marketing andInnovation, Dunkin’ BrandsRISHI DAVESNEHAL DESAIEVAN GREENEALIX HARTCMO, Dun & BradstreetGlobal Business Director, Dow Water &Process Solutions, Dow ChemicalCMO, The Recording Academy(The GRAMMYs)VP Global Brand, Digital, andAdvertising Acting CMO, SymantecPETER HORSTSTEVE IRELANDGRANT JOHNSONJILL KOURICMO, The Hershey CompanySVP/MD, JPMorgan ChaseSVP of Enterprise SoftwareMarketing, LexmarkCMO, JLLSUSAN LINTONSMITHRICHARD MARNELLHEIDI MELINMARILYN MERSEREAUCMO, QuiznosSVP Marketing,Viking River CruisesCMO, Plex SystemsCMO, PlantronicsJEANNIEY MULLENCHRIS PADGETTKAREN QUINTOSRAJA RAJAMANNARVP of Marketing, NOOK byBarnes & NobleVP Digital Marketing,Nestlé USACMO, DellCMO, MasterCardCLIVE SIRKINMARTY ST. GEORGETONY WELLSCMO, Kimberly-ClarkEVP, Commercial and Planning,JetBlue AirwaysSVP Marketing, North America,Schneider Electric
3The CMO Solution Guide for Building a Modern Marketing OrganizationTHE CHALLENGETHE URGENCY FOR TRANSFORMING MARKETING DEPARTMENTS HAS NEVER BEEN HIGHER.Pressure from the board to deliver business results is mounting. Technology adoption by consumers isaccelerating changes in their buying behavior and dramatically increasing their desire for more personalizedexperiences. And channels of communications are proliferating at an increasing rate, making seamlessbrand communications more challenging than ever. At the same time, innovative new tools for marketingsmarter and engaging customers more effectively are being delivered at a pace never before encountered bymarketing professionals.contentplanninganalyticsmodel innovation communicationscorporatecustomer databrandworkpredictivemodern marketingaccountability global alignment digitalorganization personalizationtoolsbusiness ogycmoAll of these factors make it clear that organizations designed for marketing in the past must modernize fortoday’s environment. Whether you call it 21st century marketing, next-gen marketing, marketing in the digitalage or simply modern marketing, it’s time to transform your marketing organization to use data, technologyand content to deliver more meaningful customer experiences at every touch point along the decision andusage journeys.To help CMOs like you to navigate the organizational decisions you face, we talked with over 20 progressiveCMOs and senior digital marketing executives about the changes they have been making to build moreeffective marketing teams. This paper will share recommendations based on in-depth interviews with thesemarketing leaders and help you answer key capability-building questions that you may have.
4The CMO Solution Guide for Building a Modern Marketing OrganizationEXECUTIVE SUMMARYAs you might expect, there is no organizational model thatfits every company universally. Since structure follows strategyand every company’s strategy is unique, it would follow thatevery marketing organization is structured and staffed to fitits specific context. However, we discovered four key themesthat informed the organizational decisions that CMOs make.1ACUMEN 2ALIGNMENT There are new skills the teamAs customers engage withmust incorporate to becomebrands across an increasingeffective modern marketers.number of touch points —We’ll explore the Top 10each managed by separatecapabilities that leadingdepartments — aligningcompanies are building intothe organization from top totheir organizations.bottom and across all functionshas become more essentialthan ever. We’ll review howCMOs are establishing newprocesses, roles and culturesof collaboration to better aligntheir organizations.3AGILITY 4ACCOUNTABILITY The pace of change is fasterAt the end of the day, CMOsthan the typical annualand every member of theirplanning cycle of mostteams must contribute to thecorporations. We’ll share howsuccess of their companies.CMOs are adjusting the wayWe’ll highlight how thethey operate to create moreprinciple of accountability isagile ways of doing business.being practiced at differentcompanies.At the conclusion of this paperwe’ll share four prototypesfor marketing organizationstructures and how specificfunctions are organized withinthem. These include:1. Marketing in a multinationalcorporation that controlsmultiple brands (consumer).2. M arketing in a multinationalcorporation with diverse andindependent business units(BtoB).3. Marketing in a mid-sizecompany with one majorbrand (consumer).4. Marketing in a mid-sizecompany with one majorbrand (BtoB).
The CMO Solution Guide for Building a Modern Marketing Organization51 ACUMEN 1ACUMENEnhancing the skillset of the marketingorganization has becomea top priority for today’sCMOs. Our research hasshown that CMOs pay agreat deal of attentionto these 10 capabilitiesto modernize theiroperations.“1. CUSTOMER INSIGHTSThis function, which historically has been the center for managing primary andsecondary research, is going through significant change. There is an increasingdesire among CMOs to use documented customer decision journeys as foundationalplanning tools for marketing. Customer insights specialists must become adept atmining data, asking consumers new questions and seeing patterns of behavior thatinform the development of the CDJ maps.“ I think in an ideal state there is a dedicated consumer insights team,but a team that doesn’t work in its own little silo. A team that isinteractive not only with the marketing team but also the productteam, as well as with others who touch the customer technology. Theyhave to understand the full circle of customers’ curiosities so they canput together a real, robust view for those who need it.— PATRICK ADAMS, CMO, PayPal Using the customer decision journey [is] an underlying principleand process for us. We’ve defined the journey, the customermindset and the problems customers look to security partnersto [help] solve, through all the different stages of the journeyat different levels of the organization. It was a lot of processmapping up front. I cannot tell you how much it unlockedhow we approached the types of content we produce, the types of stories we talkabout, no matter where someone is [on the CDJ] and how they’re thinking. Beingprescriptive and mapping those personas and those journeys has really opened upthe creativity.— ALIX HART, VP Global Brand, Digital, and Advertising Acting CMO, Symantec
6The CMO Solution Guide for Building a Modern Marketing Organization1 ACUMEN 2. DIGITAL MARKETINGEngaging customers through websites, mobile apps, digital ads, email and other digitalmeans is no longer simply an “extension” of the broadcast campaign. Creating digitalexperiences is now a central part of any marketing plan. This has shifted the need fordigital marketing expertise to be contained in a center of excellence (COE) to havingdigital expertise ingrained in the skills portfolios of line marketing and brand managers.The role of the digital COE is shifting from “doing” to “enabling” and focuses onassessing new digital tools and enhancing the skills of the line-marketing teams.We found that there are three stagesof development for social mediamarketing:1. Social media COE as the“doing” organization“ I lead a team that supports the marketing function at Nestlé USAin developing the digital component of overall brand strategy andplans and programs for our brands. The digital COE owns all the bestpractice work, working with our strategic partners in a digital world.We’re also responsible for the portfolio-level plays. We’re in the phasenow of helping the marketers build that muscle that they don’t have.— CHRIS PADGETT, VP Digital Marketing, Nestlé USA2. Social media capabilitiesembedded into line marketingwith the help of the socialmedia COE“ We needed to structure ourselves to attack the marketplace in amuch more modern and efficient manner. What we ended up doingwas creating a digital team, something that never really existedbefore. Underneath that digital team we put in things like thewebsite, paid advertising, search engine optimization, social anddirect marketing capabilities.— NIKHIL BEHL, CMO, FICO3. SOCIAL MEDIA3. Social selling distributedthrough the sales and marketingorganization with the help of thesocial media COEThe unprecedented popularity of social media platforms such as Facebook,LinkedIn, Twitter, Instagram and Pinterest over the past five years has had asignificant impact on the marketing plans of most companies. As with other digitalmarketing activities mentioned above, there is a need to build the acumen forleveraging social media platforms within the broader marketing organization.“ have a term we call Go Social, and it uses a social selling platformWewhere we have a variety of content creators and we curate content. Wehave 500 participants. You simply log on to the portal and select therelevant content and the avenues, whether it’s LinkedIn or Facebook orTwitter, that you want then push one button. That push goes to yournetwork. It helps you be a valuable resource to engage with customersand prospects rather than just being a mouthpiece. We’ve had socialselling specialized training for sales so that they can engage more effectively with prospects.The two people that led it were the VP of Sales Enablement and my Senior Director of DigitalMarketing. We agreed that a) we wanted to do this, b) it was a priority, c) it had a timeframe and d)we were going to measure and report on the increase in network and influence.— GRANT JOHNSON, SVP of Enterprise Software Marketing, Lexmark
The CMO Solution Guide for Building a Modern Marketing Organization71 ACUMEN The last stage of development — distributed social selling — is occurring in a fewprogressive companies, most often BtoB marketers that have direct relationshipswith their customers and prospects. Companies invest in training their expandedorganizations, develop or curate content that is easily shared and implement toolsthat simplify the social sharing process.4. INTEGRATED ENGAGEMENT PLANNINGDriving Integrated CustomerExperiencesInsights from Oracle MarketingCloud’s Modern MarketingEssentials Guide: Cross-ChannelMarketing1. Data is in the driver’s seatCreating seamless experiences for customers across all touch points has becomean increasing challenge for marketers, as has developing plans that effectivelyincorporate emerging digital, social and data-driven capabilities. Brand managersat consumer packaged goods (CPG) companies who were well schooled intelevision-centered advertising need to broaden their expertise, and skill-enhancinginitiatives are underway at many of those companies. Other organizations that havemanaged their marketing communications activities through siloed departments arebeginning to structure new roles for integrated planning. And in smaller marketingorganizations the CMO fulfills this responsibility.“ The global brand design team is accountable for defining the2. Attribution is riding shotgunbrand profile, the brand story, the brand experience, blueprints andtranslating that into how you experience the brand at every touch point.3. The experience is the engine— CLIVE SIRKIN, CMO, Kimberly-Clark“ Ultimately [integrated planning] is a function that’s run through themarketing team. We establish the brand voice and try to create andimplement consistency across all of our efforts, all of our communicationschannels and all of our internal divisions/business units.— EVAN GREENE, CMO, The Recording Academy (The GRAMMYs)5. CONTENT DEVELOPMENTMarketers are learning that content that consumers and business decision makersfind interesting, relevant or entertaining will be engaged with and shared morefrequently than general messages broadcast at them. This has led to the rapidgrowth of content marketing and the investment in content creators. Sometimesthe content is produced in collaboration with outside agency partners. At othertimes it is produced with newly formed internal content development teams. Ineither case, content is being produced with the explicit intent to be used acrossmultiple touch points.“ We have a dedicated team that’s focused on content strategy and oncreating what I call the content supply chain, mapping out where allthe sources of content come from. Do we have the content already?How do we create new content? Who creates the content? It may beinternal, it may be external. What format does that content take? Then,how do we work with the appropriate teams to get that content in market?— RISHI DAVE, CMO, Dun & Bradstreet
The CMO Solution Guide for Building a Modern Marketing Organization1 ACUMEN “ [Our] internally developed content is limited. Most content we generatethrough external support. We have licenses for content from some otherentities, and we have some agencies that create new content.— RAJA RAJAMANNAR, CMO, MasterCard“ We have two content production teams that report to marketing. Onedoes a lot of industry-facing, institutional-based content. The other isresponsible for our branded content, our marketing-based content.— EVAN GREENE, CMO, The Recording Academy (The GRAMMYs)6. EVALUATIVE ANALYTICSAll CMOs want to get a better handle on how their investments are performing. Byhaving marketing analysts in an independent marketing operations function, rare datascience competencies can be leveraged across multiple brands and business units.These analysts can also bring a degree of autonomy from the program managerswho have a vested interest making their activities look as good as possible. Whilean understanding of data science is important, the best analysts can also drawimplications from the data and recommend appropriate business actions.“ There are two ways you can approach content. You can create it or you cancurate it — and Viking is taking both approaches.We have an extensive library of videos inspired by the fascinatingdestinations to which we sail, which are a primary focus of the [original]content produced by our brand.We are also associating ourselves with the great content of others. We have an emailcampaign called the “Cultural Calendar.” We select a local cultural luminary in [a] citythen collect and package their recommendations for cultural events.We’re connecting our global brand to local domestic markets and reminding our gueststhat. Viking is a lifestyle brand for the various forms of exploration that inspire each andevery one of us every single day of the year.— RICHARD MARNELL, CMO, Viking River Cruises8
The CMO Solution Guide for Building a Modern Marketing Organization91 ACUMEN “ We set up this analytics center of excellence. At the same time we“Analytics are important; equallyimportant is knowing where todedicate your time and effort.”Dunkin’ Brands’ John Costelloadvises CMOs to “spend more timelooking through the windshieldthan the rearview mirror. While it’simportant to analyze the past, areyou really on top of the trends?”did the same thing in sales and the same thing in finance so thatwe could create more integrated capabilities in order to drive muchmore consistency and connections of our data. Not too long ago welaunched a marketing analytic workbench. Now we can take all thisinformation from various platforms and put it in one place and analyzeit and make real-time decisions about how our multichannel customerengagements are performing and make adjustments.— KAREN QUINTOS, CMO, Dell7. PREDICTIVE ANALYTICSProgressive marketers are not only using data to evaluate the past but to predictthe future, to direct their actions and resources where they can have the biggestimpact. Common scenarios include predicting those customers who are at risk ofchurning, identifying customers who are most likely to respond to a new product ora special offer and identifying which happy customers may be open to becomingvocal advocates. Since many of these scenarios are integral to line-marketingdepartments responsible for customer acquisition, lead nurture or customerretention, at larger companies predictive analysts are often embedded in theseoperating departments.“ There are so many different perspectives and thought processes thatgo into choosing a book that readers feel is perfect for them. Wedon’t pretend to know the answers, but we do work diligently with oursearch and discovery team, which is not part of marketing, to developpersonalized algorithms and recommendation streams so that we cancraft effective messages around that that support it. For the benefitof people who unfortunately have become disinterested in readingfor one reason or another — they’ve gotten too busy or they’re nottraveling as much as they used to — we use reactivation programs.Reactivation programs come from a combination of work between themerchandising teams and the marketing teams (which is where CRMsits). We’re evaluating a lot of analysis for what I call The Yellow BrickRoad, which is identifying which task or journey our best customersare taking and looking for opportunities to extend that task or journeyand use it to reengage the disinterested consumer and bring themback and get them excited about the brand and about the [reading]experience again.— JEANNIEY MULLEN, VP of Marketing, NOOK by Barnes & Noble
The CMO Solution Guide for Building a Modern Marketing Organization101 ACUMEN 8. CUSTOMER DATA MANAGEMENTIn order to deliver personalized customer experiences that are synchronized across touch points, it is essential that all relevantinformation about a customer is connected and available for use in real time. Companies are plagued with data silos today asdatabases have been associated with specific channels of communications (email, websites, social media, etc.) or specificlines of business (in a banking scenario, for example, checking account, mortgage, auto loan). Bringing all the appropriate datatogether securely while protecting privacy rights can be a major undertaking. It requires funding that spans business units,marketing and IT. And it requires project leadership from someone who possesses technical acumen, marketing savvy andproject management wizardry.“ We’re building a centralized marketing profile that is at the customer level and becomes the common definitionused by marketing teams across the organization to drive their campaigns. Getting the data house in order, makingit real time and managing it at the attribute level is what’s important. As is making sure that the experts who arereally close to the products have the ability to control what’s most important to them in that profile. This allowsus to federate it out and take a much more efficient view across the organization, rather than be a big centralizedbehemoth that is too slow and ultimately doesn’t work.— STEVE IRELAND, SVP/MD, JPMorgan Chase9. MARKETING TECHNOLOGY PLANNING AND IMPLEMENTATIONTo deliver personalized customer experiences at scale, to manage and mine overwhelming amounts of data and to improvethe operational effectiveness of your team, marketing technology is absolutely essential. CMOs realize that they can’t simplywait for their IT partners to show up with a crystal ball and divine a solution. This has led to the appointment of a chief digitalofficer, a chief marketing technology officer or a director of marketing operations to lead martech planning and to work incollaboration with the company’s IT organization to implement new tools.“ I created a new role to have a marketing technology leader on my team. She is bridging the gap that had existedbetween marketing and IT. Marketing, digital and our IT teams are working extremely closely on any number ofinitiatives. I feel like there has been a step change from what I heard had existed in years prior to where we aretoday, whereby our CIO and I are operating in lockstep.”— JILL KOURI, CMO, JLL10. INNOVATION PLANNINGMany companies find it difficult to focus both on the day-to-day business to drive in-quarter results while simultaneouslylooking at the horizon to prepare for the future. CMOs are finding they must dedicate talent to focus on “what’s next.” Marketingmust also innovate at the executional level. This requires new methods for testing and learning, experimenting without fear offailure and adopting agile prototyping methodologies. We’ll discuss this more in the section on agility.“ You’ve got to have people who are focused on innovation, which includesoffline, online, branding, direct — the whole nine yards. You need people whothink creatively and out of the box, who are always looking to try new ways tointerest customers.— JEANNIEY MULLEN, VP of Marketing, NOOK by Barnes & Noble
11The CMO Solution Guide for Building a Modern Marketing Organization2 ALIGNMENT 2ALIGNMENTTo optimize business performance and to meet today’scustomers’ expectations that all their interactions with brandswill be highly synchronized, modern marketers are realizingtheir organizations must be more aligned than ever. This hasled to the development of new roles and processes intendedto improve collaboration across various departments insideand outside the CMO’s domain. Here are some actionsCMOs are taking.“Five Keys for CollaborativeOrganizations Alignmenthappens at multiple levels. First, you’ve got to alignon what your model is and then be true to it. Pick one and do itproperly and continue to talk about how to improve that modelversus pretending you’re picking one yet trying to do another.Align the top 25 people in your organization with that and havethem talk consistently about it. The second level of alignmentis the foundation tools. Let’s get aligned on what the brandstands for and how to express it at a high level. The third levelof alignment is strategic alignment. Let’s agree on what thestrategic plan is, and as a consequence of P&L, what the KPIsare for the brands and the business units globally. The fourthlevel of alignment is what the brand plan looks like and whatthe programs are going to be in each market for each brand.The last level of alignment is how our teams are going to worktogether as one team to execute on that plan. You can imagineif you are off at any one of these levels the further you are intothe organization, the greater the gap is. So we try to talk as anorganization about the impact of what we are doing, even as tohow that impacts you four levels into the organization.— CLIVE SIRKIN, CMO, Kimberly-ClarkAlignment happens more often inorganizations that are collaborative.To build more collaborativerelationships within your company,try asking these five questions:1. Are we aligned on expectations?2. Do we dependably fulfill thoseexpectations?3. D o we share common vocabularyand information?4. Do we communicate frequentlyand honestly enough?5. Do we treat each other withrespect?
The CMO Solution Guide for Building a Modern Marketing Organization122 ALIGNMENT Are modern marketing organizationsmore like symphony orchestras orjazz bands?Keeping a marketing organizationaligned is frequently referred toas orchestration. The analogyis appropriate. In symphonies,a composer writes the sheetmusic, a conductor conducts theperformance, and musicians playtheir instruments. Who are thecomposers and conductors in yourorganization?Or should your organization be morelike an improvisational jazz band?In a jazz band, there is a chartthat outlines the basic melody butmusicians improvise what they playand riff off of each other. There isa band leader but the process ismore dynamic based on real-timeadjustments of each player.1. Develop a clear company mission and consistent values that unify everyone inthe organization.“ Alignment is extremely important. We use this phrase: EverythingSpeaks. Every customer touch point is an opportunity either to showconsistency or misalignment. One thing I think is great about the wayJetBlue works is the company is heavily based on mission and values.Everybody knows the mission, everybody knows the values.— MARTY ST. GEORGE, EVP Commercial and Planning, Jet Blue2. Align company executives around a common business model and ensure linemarketers are executing to that model.3. Define planning and alignment calendars and determine who orchestratesthe process.“ Brand marketing leads the process, but they involve the otherfunctional areas, like consumer engagement, operations, training, IT,etc. As we execute new programs in monthly ‘windows.’ We also havea process called VP Connect where the marketing VPs meet monthlywith their counterparts in the other functions to sort out issues andgain alignment. This results in better execution all around.— JOHN COSTELLO, President, Global Marketing and Innovation, Dunkin’ Brands4. Develop and implement planning tools that facilitate alignment, and use thetools to bring the organization together around common goals.“ I have a tool that I’ve used forever called the Marketing StrategyFramework, and it aligns corporate objectives with key marketingstrategies for a period of time.— HEIDI MELIN, CMO, Plex Systems5. Tightly connect the marketing and sales teams to align activities at the individualprospect or customer level.“ I think in modern marketing we shouldn’t even call it marketing andsales anymore, we should just call it Go To Market and realize thatthere’s a fluid transition between one to the other, and that it’s oneprocess. Otherwise, it’s always an us versus them scenario and ‘you’re notfollowing up on the leads’ or ‘you don’t give me the right kind of leads.’— MARILYN MERSEREAU, CMO, Plantronics6. Model collaborative behavior at the executive level and assure that thecollaboration continues at the executional levels of the organization.
13The CMO Solution Guide for Building a Modern Marketing Organization3 AGILITY 3AGILITYThe days of setting an annual plan in motion and lettingit play out with few adjustments are gone. Technologyinnovations give consumers new tools almost every month.The ability to communicate with them based on real-timeinformation sets an expectation that you will. Competitorsare moving more quickly than they have in the past, whichmay change your planning assumptions and requireimmediate actions. These conditions make it imperativethat marketing organizations are more agile than they havebeen in the past.“ You have to be able to movevery, very quickly, use the latestinformation and go. You can’t beslow because your competitors aremoving too fast.— SUSAN LINTONSMITH, CMO, QuiznosCMOs have gotten the message and are doing severalthings to aid the nimbleness of their teams.“ Change is so important that it comes with agility. If you aren’t able to move quickly and be a firstmover and then iterate from there I think you’re going to be flat-footed, you’re going to be disrupted,and you’re going to be last to market. The ideas of real time and agility started in manufacturing,but this idea of just-in-time applies equally to the marketing space, because we just don’t have theluxury any more of overanalyzing and beating something to death. We just did a digital fieldtrip toseveral technology partners for all of our business units. I purposely didn’t select the BU marketingleaders from all the BUs. I went down deeper into the organization for some more junior folks whoare younger, more digital savvy. We came back from that and I told the team, ‘In two weeks I wanta proposal from you about how you would use some funding. I want you to let your BU leaderknow, but I want to move quickly on this.’ So this idea is of pushing decision making down, gettingpeople information quicker and letting them decide how it best meets the needs of our business.Empowering them is a fundamental of agile marketing.— TONY WELLS, SVP Marketing, North America, Schneider Electric
The CMO Solution Guide for Building a Modern Marketing Organization143 AGILITY 1. Establish funds for experimentation.2. Form empowered cross-functional teams.“ We have a big cross-functional team of analytic folks as well ascontent and asset creators huddled up in team rooms every daylooking at the performance of the content that we put in market forthe Future Ready campaign. They are trying to use agile approachesto make real-time changes.— KAREN QUINTOS, CMO, Dell3. Develop “test-and-learn” programs.“ Pilot is my favorite word — trying something new with the intention oflearning and knowing it may fail. People are more willing to support apilot than to completely change the way we are doing things today.— SNEHAL DESAI, Global Business Director, Dow Water & Process Solutions, Dow Chemical4. Model decisive behavior.“ We’ve had a playbook that has been well honed, very effective,time proven; but we recognize that the world is changingand the consumer is changing. And effective as this mightstill be, is it sufficiently following the consumer? So how dowe evolve our playbook and recognize the changing world?— PETER HORST, CMO, The Hershey Company
The CMO Solution Guide for Building a Modern Marketing Organization154 ACCOUNTABILITY 4ACCOUNTABILITYBeing on the hook to produceresults is nothing new forCMOs. But the bar is beingraised. “The transparency ofthe world is unfolding insidecompanies as much asoutside. It’s pretty clear whois carrying the meat up thehill. I don’t think it used tobe that obvious,” says KathyButton-Bell. The analyticstools available today havecreated an expectation thatunderstanding how results arebeing produced, or not, willbe more easily determinedthan in the past. Thisexpectation is being pusheddown to every level in themarketing organization.As a result, CMOs are instillingthe sense of accountability innew ways.1. Keep everyone focused on the top-level goals by using appropriate information.“ Accountability is becoming more important because the CEO and thehead of sales demand it.
“ The global brand design team is accountable for defining the brand profile, the brand story, the brand experience, blueprints and translating that into how you experience the brand at every touch point. —CLIVE SIRKIN, CMO, Kimberly-Clark “ Ultimately [integrated planning] is a
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