Extending the CMO Influence

The CMO craze hit companies pretty quickly in the late ‘90s. They were falling all over themselves to give the ‘top’ marketing person a fancy new title and keep pace with their competitors and peers. I don’t perceive that much really changed as a result of this trend, other than a few thousand folks now being paid more for C-Level roles, yet performing essentially the same functions.

It has been my observation that the quality, role and value of marketing were not dramatically advanced by this wave of activity. Don’t get me wrong, I fully support the idea of marketing being at the very core of planning and operations for a business; equal to that of finance, logistics, HR & legal. If companies are expected to fulfill customer needs and wants, how can it not be?

The problem is that many CMOs still go no further than those areas they have been comfortable with and are typically part of their domain: advertising, brand & identity, direct marketing and maybe PR. So, after they are elevated or hired the CMO announces new marketing objectives, launches an agency search and rolls out a new ad campaign. Voila! Case closed, done deal.

Not so fast…in my view the CMO has the potential of much farther reaching and important roles that can add real value to the business. Most fall far short of their potential. The CMO should be the keeper of the BE (brand essence & brand experience) flame and the biggest advocate – externally and internally. They have to ensure that all touch points that shape the BE are doing so in the desired manner. This makes an already big job, huge and truly deserving of C-Level accountability and reward.

If we think broadly and with a blank sheet, many of the customer interactions with a company are not defined as ‘marketing’ (and under the CMO control). None the less, each and everyone has the potential to build, reinforce or hurt the BE, especially since many have deep and far reaching impact.

The CMO already has responsibility and input to many of them – advertising, digital/web, Mar-com, PR, store promotion, etc. What we commonly think of as the outbound communication. But what about all the other brand interactions that do occur as your customer buys, uses and services your product or service, most of which are far removed from the CMO? – billing statements, accounts receivable/payable staff, product packaging, sales, sales channel partners, customer service, technical service, company vehicles, product documentation, employee communication & training, HR Recruiting, etc.

How often does the CMO or staff interact with and input on these, other than on logo or brand identity? Not very often. Going further, what about the communications or interactions that don’t directly involve your customer, but still shape the BE – corporate aviation, investor relations, industry analysts, manufacturing, procurement, philanthropy and real estate.

I think it is fair to assign the CMO with ownership of the BE company-wide, regardless of who and how it is delivered and to what audience. This sets up some interesting organization design and reporting issues that will challenge traditional thinking, but must be addressed. The CMO will have to be involved in areas and ways that they never dreamed or desired previously, to maximize BE and shareholder value.

Don’t think manufacturing can impact your BE? Suppose you’re a new CMO who has embraced Green as a central theme. You develop a product that is environmentally sensitive, ensure all marketing materials are recyclable; you develop an environmental cause component. A week after your launch it is reported that your contract manufacturer in Asia has been illegally dumping toxic materials for years. You got it, you are dead!

The core of my argument is that the CMO should NOT be satisfied to be the uber ad director and should not be involved on a daily basis with hands on tactical activity.

They have to lead the charge to understand, embrace and evangelize the BE. This will require a very different orientation; spending much more time with customers, channel partners and employees – helping to discern the BE and ensuring that ALL employees (not just marketing) deeply understands and internalizes it. Every employee has to be part of the BE delivery mechanism, for some groups it will take many repeated discussions before they can be brand advocates.

I don’t expect this is something a majority of CMOs will want to take on. It will be hard work, scary as they probe deep murky areas of the business, all while trying to not step on toes. But the role of change agent has always been a lonely one. How many companies have started down a path, only to discover how difficult it is, only to abandon it, leaving the anointed one under the bus?

For those companies shrewd enough to adopt this broadest view of BE and manage the organization and structural challenges, the upside is great. The CMO (or CBO - Chief Brand Officer) who accept this opportunity have the potential to shape the brand and impact customers in the greatest way possible. They truly can become marketing superstars.

How many are willing to step up?