McKinsey details 5 ways CMOs can spearhead business leadership

CMOs are the next natural CEOs within their organisations thanks to digital disruption and customer centricity

CMOs are the next natural CEOs within their organisations, according to McKinsey and Co.

Speaking at the ADMA Global Forum in Sydney, McKinsey & Co partner, Milosh Milisavljevic, claimed the reasons for why marketers should be the next leaders of businesses are stacking up. The biggest of these, unsurprisingly, is that organisations need to be much more customer and market-oriented to cope with digital disruption.

“The landscape in which organisations operate is much more demanding and fast moving, and partnerships are becoming more important,” he commented. “Who better to lead the organisation through these times than the CMO?”

Milisavljevic pointed out marketing is shifting from a standalone unit to being integrated across the whole business in multiple teams, initiatives, strategies and execution.

“That cuts across being the leader of an integrated customer strategy, as well as being able to coordinate touchpoints across the organisation and deliver consistent insights and data from those,” he said. “The other internal change is moving from a more promotional style to being engagement-led.”

From an external perspective, organisations are also getting more granular in the way they think of, identify and treat customers, Milisavljevic said.

“We’re thinking about the micro segments across channels and products, and what a customer’s needs are as they go through their own customer journey,” he said. “It’s also about looking at trigger points and events that act as turning points in the customer experience, then responding to those in a real-time and relevant way.

“Lastly, it’s a deep level of personalisation across all touchpoints.”

Underpinning these capabilities is a bedrock of data analytics, which is getting increasingly pervasive, Milisavljevic continued. He pointed to recent McKinsey & Co research, which found companies using analytics extensively outperformed their peers on profit, sales, growth and ROI.

“The other thing with analytics is it’s getting much more detailed,” he said. “You have a much more ready understanding of how customers move through digital touchpoints, what the drivers of the experiences are and what the final experiences are for each customer.”

Related: 8 ways to get on top of data analytics

Milisavljevic delivered five key imperatives CMOs should focus on to cement their leadership and business position. The first is thinking about the customer, not customers, and focusing on the individual in terms of experience and interactions.

His second piece of advice was to “fix everything”.

“This is about not thinking what you have to optimise in terms of a trade-off,” Milisavljevic said. “In this new world of engagement, teams need to simultaneously fix everything at the same time…There are no more excuses for not fixing it all in a sustainable way.”

The third imperative was to “compete with your bricks”. Milisavljevic argued the role of the multi-channel experience often continues to be overlooked.

“In the world of digital disruptions, being able to use the strategic advantage of a physical presence and channel is important,” he said.

Maximising marketing spend is another important focus, and Milisavljevic advised CMOs to learn the “digital dollars” game.

“This is going to the heart of the changes to the marketing channels mix, how we think about digital, and how that translates into this more pervasive role of marketing,” he said. “Secondly, it’s about understanding clearly how your digital channels are performing; lastly, it’s about looking at whether you’re spending too much for what you’re getting.

“These are all in response to the paradigm shifts we’re seeing from a few channels to multi-channel; a sales funnel to a buying loop; customer details to big data; and perceived benefits to actual benefits. This is also about the fact that marketing budgets aren’t going up and you need to do more with less.”

The fifth imperative is for CMOs to buddy up with their CEO. To do this, Milisavljevic outlined five musts for the CMO role:

  • Sitting at the executive table;
  • Becoming the bonding agent that connects the organisation. This is particularly critical for cross-channel and cross-functional experience. “The CMO is one of, if not the logical role for leading that engagement,” he said;
  • Ensuring the CEO becomes an active marketer and connects to the customer;
  • Developing and sticking to a marketing blueprint. “There are a lot of organisations who have a detailed marketing plan of what marketing is going to do,” he said. “A lot less have a plan for marketing itself. That is a real indicator of how marketing is supporting the organisation, its strategic priorities, and how CMOs support the specific outcomes of other parts of the organisation”;
  • Expand marketing’s influence across the organisation. Be increasingly involved in driving and have a meaningful role across all parts of the business.

Related: Marketers must transform their story to meet the new customer paradigm: McKinsey

Photo courtesy of The Corner Studio

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or
Error: Please check your email address.
Show Comments

Blog Posts

Social purpose: Oxygen for your brand health vitals

If trust is the new currency, then we’re in deep trouble. Here's why.

Carolyn Butler-Madden

Founder and CEO, Sunday Lunch

Customer experience disruption: Healthcare faces a bitter pill

Over the past decade, disruptors such as Amazon, Apple and Australia’s Atlassian have delivered technology enhanced customer experiences, which for the most part, have improved customers’ lives and delivered unparalleled growth. Can they do the same for healthcare?

Alex Allwood

Principal, All Work Together

How can a brand remain human in a digital world?

Some commentators estimate that by 2020, 85 per cent of buyer-seller interactions will happen online through social media and video*. That’s only two years away, and pertinent for any marketer.

James Kyd

Global head of brand strategy and marketing, Xero

https://bit.ly/2qLgzmR Transform your life a proven digital blueprint

Okitoi Steven

How this banking group tackled a digital marketing transformation

Read more

Its great to hear that companies including JCDecaux, oOh!media, Omnicom and Posterscope Australia have all partnered with Seedooh inorder...

Blue Mushroom Infozone Pvt Ltd

Out of home advertising companies strive for greater metrics and transparency

Read more

Much ado about nothingAnother fluff piece around what it could possibly do rather than what it is doing

gve

How AMP is using AI to create effortless ‘experiences’

Read more

is it true that Consumer expectations are also changing as a result. If we trust someone with our data there is also an expectation that ...

Sunita Madan

Society will decide where digital marketing takes us next: Oracle

Read more

This Blog is Very interesting to read and thank you for sharing the valuable information about Machine Learning. The information you prov...

johny blaze

What machine learning has done for the Virgin Velocity program

Read more

Latest Podcast

More podcasts

Sign in