In the article “Does CEO-CMO Alignment Go Far Enough for Business Growth?” published by the Content Marketing Institute, it is highlighted that despite the mutual understanding that strong marketing leads to business growth, the alignment between CEOs and CMOs remains divided. McKinsey research reveals that CEOs and CMOs have conflicting perspectives on the role of marketing in their companies, particularly in areas such as customer experience, salesforce enablement, and customer relationships. The limited marketing experience among Fortune 250 CEOs exacerbates this misalignment. For effective growth, McKinsey suggests that CMOs and CEOs must clarify marketing’s role, agree on measurement frameworks, and foster communication and education. However, CMI’s chief strategy advisor, Robert Rose, emphasizes that the responsibility lies not just with the CMO and CEO, but also with mid-level team leads who must collaborate and align their goals to truly integrate marketing planning and drive business growth.
Table of Contents
Does CEO-CMO Alignment Go Far Enough for Business Growth?
Introduction
In today’s competitive business landscape, CEOs and CMOs play crucial roles in driving growth and success. However, achieving alignment between these two executives is often easier said than done. While both parties recognize the importance of marketing in driving business growth, their understanding of marketing’s role can significantly differ. The Content Marketing Institute’s recent research suggests that a shared definition of marketing’s role is crucial for achieving business growth. This article explores the challenges associated with blurring marketing’s role, the lack of marketing experience among CEOs, and the need for CMOs to clarify and educate. Additionally, it emphasizes the involvement of mid-level team leads and the importance of revisiting integrated marketing planning. By aligning CEO and CMO expectations and objectives, businesses can set themselves up for success and drive sustainable growth.
Shared Definition of Marketing Role Correlates to Business Growth
The relationship between the CEO and CMO and their shared understanding of marketing’s role is essential for driving business growth. Research conducted by the McKinsey consulting firm reveals that companies in which CEOs and CMOs agree on marketing’s purpose and objectives tend to outperform their competitors. This correlation highlights the importance of aligning these two key leaders in establishing a clear vision for Marketing strategy and its contribution to overall business success.
However, the research also highlights certain challenges associated with marketing’s evolving scope. Traditionally, marketing encompassed the “4Ps” (product, price, place, and promotion), but it has now expanded to cover broader areas beyond mere promotion. This expansion has led to the creation of various marketing-adjacent roles within organizations, such as chief customer officers and chief revenue officers. Consequently, marketing’s role becomes fragmented, making it challenging for the CMO to have a holistic view of marketing strategy and execution.
Challenges with Blurring Marketing’s Role
The fragmentation of marketing’s role poses challenges for CEOs, CMOs, and the overall business. One of the main obstacles is that many CEOs lack marketing experience, which limits their understanding of the technical and data-driven nature of modern marketing. This disconnect often leads to a discrepancy in CEOs and CMOs’ perception of marketing’s primary role within the company.
To bridge this gap, McKinsey suggests that CMOs should take the lead in clarifying and educating CEOs about marketing’s role. By jointly defining marketing’s remit and agreeing on measurement frameworks and innovative marketing strategies, CEOs and CMOs can align their expectations and work towards shared goals. However, this alignment cannot be achieved solely at the CEO-CMO level.
Involvement of Mid-Level Team Leads
While CEO-CMO alignment is undoubtedly crucial, it is equally important to involve mid-level team leads in the process. Modern CEOs and CMOs, particularly in larger organizations, are less directly involved in the day-to-day details of marketing operations. Instead, they rely on their functional or line-of-business leaders to create marketing plans and strategies.
To foster alignment and collaboration, mid-level team leads must work together and stop competing for the same audiences. This requires a deep understanding of how the organization’s big-picture objectives align and complement each other. In some initiatives, a particular team may serve as a lever, supporting the broader objectives, while in others, their role may be reversed. By recognizing this interdependence, mid-level team leads can contribute to integrated marketing planning and ensure all efforts are aligned towards shared goals.
Revisiting Integrated Marketing Planning
The McKinsey report emphasizes the importance of revisiting integrated marketing planning, which may have become a lost art in many businesses. Integrated marketing planning involves aligning marketing objectives, strategies, and tactics across different functional areas to create a cohesive and synergistic approach. This approach ensures that all marketing efforts work together harmoniously, supporting overall business growth.
By revisiting integrated marketing planning, businesses can overcome the siloed nature of marketing functions and foster collaboration across departments. It allows for a holistic view of marketing’s role, where different functions work in harmony to drive desired outcomes. This approach not only enhances efficiency and effectiveness but also promotes a shared understanding of marketing’s strategic role within the organization.
Asking for Outcomes, Not Activities
Lastly, the article highlights the importance of CEOs asking for outcomes rather than focusing on specific activities. By clearly defining desired outcomes, CEOs can make informed decisions about marketing strategies and resource allocation. Similarly, CMOs should reflect on these outcomes and work with their teams to identify the best levers to achieve them.
When CEOs and CMOs align on outcome-driven objectives, it allows for a more productive and fruitful partnership. It avoids unreasonable expectations or underutilization of marketing resources. By focusing on outcomes, both parties can engage in strategic discussions that lead to more effective marketing strategies and better overall business growth.
Conclusion
In conclusion, achieving CEO-CMO alignment is essential for driving business growth. However, true alignment goes beyond a mere agreement on marketing’s importance. It requires a shared definition of marketing’s role, clear communication, and education for CEOs who may lack marketing experience. Additionally, involving mid-level team leads and revisiting integrated marketing planning can foster collaboration and alignment across the organization. By focusing on outcomes rather than specific activities, CEOs and CMOs can work together to achieve sustainable business growth.