inside the mind of the chief marketing officer...the chief marketing officer (cmo) profile has...
TRANSCRIPT
Inside the Mind of the Chief Marketing OfficerStrong personalities take on the growth challenge
Russell Reynolds Associates’ Inside the Mind of … series addresses the leadership and behavioral attributes of various groups of executives.
Contents
Inside the Mind of the CMO: Change agents at a crossroads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
CMO overview: An extreme profile in thinking and action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
As their role grows and changes, CMOs increasingly look to the CEO role—with mixed results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
CMOs contrast strongly with CIOs/CTOs on certain core traits … and even more dramatically with CFOs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
CMOs and chief digital officers: Birds of a feather? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
As the CMO role splinters, different psychological attributes may come to the fore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
What’s next for CMOs? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3
Inside the Mind of the CMO: Change agents at a crossroads
METHODOLOGY
The Russell Reynolds Associates database—unique in that it contains more than 5,000 data points from the top ranks of corporations worldwide—allows us to make statistically driven observations about the characteristics possessed by leaders in a particular field.
Our methodology was straightforward: We compared 36 CMOs from companies totaling more than $1.5 trillion in market capitalization with our broader database of executives (as well as with chief executive officers (CEO) and other C-suite figures) on 60 psychometric scales from well-validated leadership assessments to understand on which scales the CMOs showed statistical differences from the other populations.
ɳ
EXECUTIVE SUMMARY
Growth is firmly at the top of most companies’ agenda, yet few have a dedicated chief growth officer. Consumers now demand targeted messages, delivered across multiple platforms, at a time and place of their choosing.
The chief marketing officer (CMO) profile has evolved to respond to the growth agenda. CMOs have developed strong characteristics around innovative, pioneering and influential behavior.
These extreme behavioral characteristics are a double-edged sword. The traits that help to succeed in the CMO role may set up clashes with other C-suite members and also may be a hindrance in CMOs’ onward career trajectory.
When creating digital change, though, this group is well-positioned. CMOs share many attributes with chief digital officers (CDO) that facilitate strong change and partnership relationships.
Will this polarizing personality type be the CMO model going forward? The future of the CMO may well be a full splintering of the role into subtypes that are driven both by particular business needs and a more tightly articulated psychological profile.
4
Inside the Mind of the CMOCMO overview:
An extreme profile in thinking and action
Compared with other C-suite figures, CMOs have a markedly extreme leadership and behavioral profile. They differ from the overall executive population across a large number of attributes and to a significant degree on several of those attributes.
The first set of attributes centers on CMOs’ innovative, pioneering spirit—they act unconventionally, test limits and are not beholden to structures. These traits conform well to a conventional mental picture of a CMO.
The second set of attributes provides a welcome explanation as to how these innovators are successful in action—they use their strong social orientation and persuasive tactics to operate in a remarkably active and productive fashion.
CMOs vs. other executivesStatistically Significant Percentage Differences in Attribute Scores
Persuasive
Inclusive
Bold
Lead from the front
INFLUENTIAL
11%Persistent
Decisive
Seek high levels of activity
Open to new ideas
16%18%
19%
PIONEERING
Seek to understand people
Adapt to different audiences
Outgoing
17%22%
30%
34%34%
37%
10%16%
22%29%
SOCIALLY ENGAGED
Not beholden to structures and guidelines
Take initiative and test limits
Unconventional
ACTIVE AND PRODUCTIVE
21%21%
49%
Abstract thinking style
Generate innovative solutions
Imaginative
INNOVATIVE
Percentages represent the degree
to which CMOs manifest a trait more strongly than
other executives. For instance, their score on
being imaginative is almost 50% higher than the average
executive’s.
How they conceptualize
How they operationalize
5
CMOs aspiring to the CEO role can bring a uniquely innovative sensibility to that role. We found that chief marketing officers differ significantly from chief executive officers on nine psychometric attributes. CMOs hoping to become a CEO will find these traits may potentially help or hinder their forward career path.
Inside the Mind of the CMOAs their role grows and changes, CMOs increasingly look
to the CEO role—with mixed results
ɳ Be in the right place. Faster- moving or more transformational industries, in particular, are better suited to the CMO leadership style, as are companies in the midst of change or innovation programs. CMOs may struggle as a CEO in more heavily regulated industries.
ɳ CMOs need to moderate how they display some of their more extreme attributes. CMOs test limits, are bold and are upfront in their influencing style. CEOs seek to understand different perspec-tives and involve others in deci-sions but do not overanalyze. They achieve success through others yet remain tough minded.
ɳ Make sure others are on board. The CMO leadership style can be unconventional, colorful and flashy. CEOs exhibit measured emotion. CEOs excel at calculated—not careless— risk taking. They display intensity but maintain control.
FOR CMOs WHO WANT TO BE A CEO …
33% more UNCONVENTIONAL
36% more IMAGINATIVE
32% more likely to ESCHEW STRUCTURES AND GUIDELINES
32% more likely to ADAPT TO DIFFERENT AUDIENCES
29% more likely to DISPLAY FLASHY LEADERSHIP
32% more likely to TAKE INITIATIVE AND TEST LIMITS
Statistically significant differences from CEOs that
HINDERCMOs as they seek the CEO role
Statistically significant differences from CEOs that might
HELP orHINDERCMOs as they seek the CEO role
Statistically significant differences from CEOs that
HELPCMOs as they seek the CEO role
21% more OUTGOING
21% more ABSTRACT THINKING STYLE
22% more BOLD
6
CMOs and chief information officers/chief technology officers (CIO/CTO) are increasingly being challenged to work closely together, and this partnership can be fruitful but rocky. One possible driver of this effect is the extreme personality of CMOs across four core traits. Compared with CIOs/CTOs, CMOs are far more unconventional, innovative, imaginative and willing to test limits.
Additionally, when we compare CMOs with chief financial officers (CFO), we see even greater gaps across these attributes. This reflects both the extreme personality of the CMO and the strong contrast we generally observe between CFOs and their other C-suite peers, reflecting the role CFOs play in managing risk by counterbalancing their colleagues’ more boundary-pushing traits.
Inside the Mind of the CMOCMOs contrast strongly with CIOs/CTOs on certain core traits …
and even more dramatically with CFOs
ɳ Embrace stylistic differentiation within the C-suite. As the notion of “diversity of mindset” becomes an ever more desirable element of company culture, organizations should view a non-uniform C-suite as an asset, not a liability. By fending off groupthink, the sharp personality differences between CMOs and CIOs/CTOs or CFOs in fact drive creativity and enhance risk management.
ɳ Let CMOs be innovation engines on a scale broader than traditional Marketing’s turf. Because CMOs’ “imagination DNA” is so much stronger than other C-suite members’, CMOs can be usefully deployed to help solve problems innovatively across any number of areas—not just the typical Marketing remit.
HOW CAN ORGANIZATIONS LEVERAGE THESE TENSIONS PRODUCTIVELY?
ɳ
CMOs vs. CIOs/CTOs and CFOsStatistically Significant Percentage Differences in Attribute Scores from Overall Executive Population
COMPARED WITH CIOs/CTOs, CMOs ARE ...
29% more unconventional
13% more innovative
32% more imaginative
21% more willing to test limits
COMPARED WITH CFOs, CMOs ARE ...
40% more unconventional
29% more innovative
60% more imaginative
30% more willing to test limits
UNCONVENTIONAL
INNOVATIVE
IMAGINATIVE
TEST LIMITS
7
CMOs and CDOs
Attributes on Which CMOs and CDOs Are Statistically Significantly Different from Overall Executive Population
*Indicates extreme trait—more than 20% difference from overall executive population for CMOs or CDOs
OVERT INFLUENCERS
DISRUPTIVE CHALLENGERS
• Bold*• Inclusive• Outgoing*• Persistent• Persuasive• Unconventional*
• Abstract thinking style*• Adapt to different audiences*• Decisive• Generate innovative solutions*• Lead from the front*• Not beholden to structures
and guidelines*• Open to new ideas*• Seek high levels of activity• Take initiative and test limits*• Think “outside the box”*
• Achievement oriented• Challenge traditional
approaches• Entrepreneurial spirit*• Go against the grain*• Identify limitations*• Independent minded*• Inquisitive*• Optimistic• Socially confident*• Willing to take
calculated risks*
CHIEF MARKETING OFFICERS Attributes in common CHIEF DIGITAL OFFICERS
Inside the Mind of the CMOCMOs and chief digital officers:
Birds of a feather?
CMOs and chief digital officers are extreme personality types with a good deal of “leadership DNA” in common. Both groups show innovative thinking, intellectual openness and the ability to adapt their message across audiences.
However, while CDOs focus on disruption—leveraging their contemplative nature to engineer new ways to push the envelope—CMOs, true to their functional role, are far more focused on straightforward selling. They are change agents up to a point but then prioritize persuasion, whereas CDOs would choose to break down barriers.
CMOs ɳ Communicate and influence the board and CEO to
help drive the company’s digital understanding and engagement.
ɳ Ensure that digital efforts are highly contextualized to overall company strategy.
CDOs ɳ Concretely drive digital transformation efforts. ɳ Serve as organizational provocateur on digital
topics—continually open up new areas of inquiry.
HOW CAN ORGANIZATIONS BEST DEPLOY CMOs AND CDOs TO EFFECT DIGITAL CHANGE?
8
Inside the Mind of the CMOAs the CMO role splinters, different
psychological attributes may come to the fore
Perhaps even more fascinating than the psychological picture of CMOs today is the potential schism within the role going forward. On one hand, companies seeking greater disruption than what today’s CMOs can provide are appointing a chief digital officer or chief innovation officer. On the other hand, companies seeking to harness the CMO role to more growth-oriented business goals are creating a chief customer/experience officer or chief growth officer position.
Behavioral and Leadership Trait Spectrum of New Roles
CHIEF DIGITAL OFFICER
Executives in this role are charged with leading large-scale digital transformation efforts within an established, complex organization.
CHIEF INNOVATION OFFICER
Born out of a fusion of the CMO and lead information technology (IT) roles (due to increasing marketing spend on IT platforms), this role addresses innovation from the business model level on down. Executives in this role are charged with nurturing new businesses and evolving current businesses and generally are shaping the organization’s future with both a technologist’s and a marketer’s eye.
CHIEF CUSTOMER/ EXPERIENCE OFFICER
The role is responsible for designing and owning the end-to-end customer experience and culture across all channels and touch points (online, offline, mobile). The role is being created in consumer-facing legacy industries (particularly retail and financial services) experiencing significant transformation or disruption.
CHIEF GROWTH OFFICER
This role has become en vogue in most consumer packaged goods companies, as organizations look to unlock and maximize the next stage of growth. The role is intended to create a holistic way of looking at growth. Typically, this role reports to the CEO and has Innovation, R&D, Marketing Strategy and Sales reporting into it.
Challenge traditional approaches
Innovative
Entrepreneurial spirit
Data powered
Forward thinking
Accelerateactions
Embrace calculated risks
See the big picture
PRODUCTIVE DISRUPTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . “CEO-LIKE”
9
Inside the Mind of the CMOWhat’s next for CMOs?
As the CMO role continues to morph, companies will benefit from understanding the following dynamics:
USING THE POLARIZING ATTRIBUTES OF THE CMO AS “A FORCE FOR GOOD”Organizations are challenged to direct CMO energy toward the most important change initiatives—within Marketing or more broadly.
UNDERSTANDING WHICH “CMO FLAVORS” THEIR ORGANIZATION TRULY NEEDSDiagnosing what role (or roles) truly suits an organization’s needs—be it a disruption-focused chief digital officer, a CEO-esque chief growth officer or simply a change-oriented chief marketing officer—is key to optimizing CMO performance.
GETTING THE MOST OUT OF “CREATIVE TENSION” WITHIN THE C-SUITEBy understanding the dramatically different psychological attributes of CMOs and their closest C-suite partners (CIOs/CTOs, CFOs), organizations can thoughtfully leverage contrast in thinking to provide a balanced strategic and operational picture.
BEING SAVVY ABOUT MATCHING THE CMO TO THE BUSINESS CONTEXTDepending on business conditions and the company’s life cycle point, organizations will seek a CMO who is further from—or closer to— the polarizing profile of today’s “new breed.”
1
3
2
4
AUTHORS
RICHARD SANDERSON leads many of the firm’s chief marketing officer, communications, digital and e-commerce search assignments in all industries. He has recruited chief marketing officers for financial services, healthcare, retail, and consumer products and services clients across the country. He is based in Chicago.
NORM YUSTIN advises clients in our Consumer Sector with functional expertise in retail organizations and marketing officers. Before joining Russell Reynolds Associates, he was a two-time chief marketing officer and has recruited
marketing executives throughout his career. He has worked and lived in five countries across three continents and is now based in Chicago.
MALLORY SAMSON is the firm’s Global Knowledge Leader for the Consumer Sector, inclusive of chief marketing officers. She is based in Chicago.
MELISSA SWIFT is the firm’s Global Knowledge Leader for Leadership & Succession. She is based in New York.
Analysis was conducted by ERIN MARIE CONKLIN.
GLOBAL OFFICES
Asia/Pacific ɳ Beijing ɳ Hong Kong ɳ Melbourne ɳ Mumbai ɳ New Delhi ɳ Seoul ɳ Shanghai ɳ Singapore ɳ Sydney ɳ Tokyo
EMEA ɳ Amsterdam ɳ Barcelona ɳ Brussels ɳ Copenhagen ɳ Dubai ɳ Frankfurt ɳ Hamburg ɳ Helsinki ɳ Istanbul ɳ London
Americas ɳ Atlanta ɳ Boston ɳ Buenos Aires ɳ Calgary ɳ Chicago ɳ Dallas ɳ Houston ɳ Los Angeles ɳ Mexico City ɳ Minneapolis/St. Paul
ɳ Montréal ɳ New York ɳ Palo Alto ɳ San Francisco ɳ São Paulo ɳ Stamford ɳ Toronto ɳ Washington, D.C.
ɳ Madrid ɳ Milan ɳ Munich ɳ Oslo ɳ Paris ɳ Stockholm ɳ Warsaw ɳ Zurich
© Copyright 2015, Russell Reynolds Associates. All rights reserved.
Russell Reynolds Associates is a global leader in assessment, recruitment and succession planning for boards of directors, chief executive officers and key roles within the C-suite. With more than 370 consultants in 46 offices around the world, we work closely with public, private and nonprofit organizations across all industries and regions. We help our clients build teams of transformational leaders who can meet today’s challenges and anticipate the digital, economic, environmental and political trends that are reshaping the global business environment. Find out more at www.russellreynolds.com. Follow us on Twitter: @RRAonLeadership.
AMERICASAtlanta 1180 Peachtree St., NE Suite 2250 Atlanta, GA 30309-3521 United States of America Tel: +1-404-577-3000Boston One Federal Street, 26th Fl. Boston, MA 02110-1007 United States of America Tel: +1-617-523-1111Buenos Aires Manuela Sáenz 323 7th Floor, Suites 14 & 15 C1107BPA, Buenos Aires Argentina Tel: +54-11-4118-8900Calgary Suite 750, Ernst & Young Tower 440-2nd Avenue SW Calgary, Alberta T2P 5E9 Canada Tel: +1-403-776-4175Chicago 155 North Wacker Drive Suite 4100 Chicago, IL 60606-1732 United States of America Tel: +1-312-993-9696Dallas 200 Crescent Court, Suite 1000 Dallas, TX 75201-1834 United States of America Tel: +1-214-220-2033Houston 600 Travis Street, Suite 2200 Houston, TX 77002-2910 United States of America Tel: +1-713-754-5995Los Angeles 11100 Santa Monica Blvd. Suite 350 Los Angeles, CA 90025-3384 United States of America Tel: +1-310-775-8940Mexico City Torre Reforma 115 Paseo de la Reforma 115-1502 Lomas de Chapultepec 11000 México, D.F. México Tel: +52-55-5249-5130Minneapolis/St. Paul IDS Center 80 South 8th St, Suite 1425 Minneapolis, MN 55402-2100 United States of America Tel: +1-612-332-6966Montréal 2000, avenue McGill College 6e étage Montréal (Québec) H3A 3H3 Canada Tel: +1-514-416-3300
New York 200 Park Avenue Suite 2300 New York, NY 10166-0002 United States of America Tel: +1-212-351-2000Palo Alto 260 Homer Avenue, Suite 202 Palo Alto, CA 94301-2777 United States of America Tel: +1-650-233-2400San Francisco 101 California Street Suite 2900 San Francisco, CA 94111-5829 United States of America Tel: +1-415-352-3300São Paulo Edifício Eldorado Business Tower Av. Nações Unidas, 8.501 11º 05425-070 São Paulo Brazil Tel: +55-11-3566-2400Stamford 301 Tresser Boulevard Suite 1210 Stamford, CT 06901-3250 United States of America Tel: +1-203-905-3341Toronto 40 King Street West Scotia Plaza, Suite 3410 Toronto, ON M5H 3Y2 Canada Tel: +1-416-364-3355Washington, D.C. 1700 New York Avenue, NW Suite 400 Washington, D.C. 20006-5208 United States of America Tel: +1-202-654-7800
ASIA/PACIFICBeijing Unit 3422 China World Offfice 1 No. 1 Jian Guo Men Wai Avenue Beijing 100004 China Tel: +86-10-6535-1188Hong Kong Room 1801, Alexandra House 18 Chater Road Central Hong Kong, China Tel: +852-2523-9123Melbourne Level 51, Rialto Towers 525 Collins Street Melbourne, VIC 3000 Australia Tel: +61-3-9603-1300Mumbai 63, 3 North Avenue, Maker Maxity Bandra Kurla Complex Bandra (East), Mumbai 400 051 India Tel: +91-22-6733-2222
New Delhi One Horizon Center, 14th floor Golf Course Road, Sector 43 DLF Phase-V, Gurgaon 122 002, Haryana India Tel: +91-11-4603-4600Seoul 16F West Tower Mirae Asset Centre 1 Building 26 Eulji-ro 5-gil, Jung-gu Seoul 100-210 Korea Tel: +82-2-6030-3200Shanghai Room 4504, Jin Mao Tower 88 Century Avenue Shanghai 200121 China Tel: +86-21-6163-0888Singapore 12 Marina View #18-01 Asia Square Tower 2 Singapore 018961 Tel: +65-6225-1811Sydney Level 25 1 Bligh Street Sydney NSW 2000 Australia Tel: +61-2-9258-3100Tokyo Akasaka Biz Tower 37F 5-3-1 Akasaka Minato-ku, Tokyo 107-6337 Japan Tel: +81-3-5114-3700
EMEAAmsterdam World Trade Center, Tower H, 18th Floor Zuidplein 148 1077 XV Amsterdam The Netherlands Tel: +31-20-305-7630Barcelona Avda. Diagonal, 613 2˚A 08028 Barcelona Spain Tel: +34-93-494-9400Brussels Boulevard Saint-Michel 27 B-1040 Brussels Belgium Tel: +32-2-743-12-20Copenhagen Kongens Nytorv 3 1050 Copenhagen K Denmark Tel: +45-33-69-23-20Dubai Burj Daman Offices Tower Office C610, 6th floor DIFC, PO Box 507008 Dubai United Arab Emirates Tel: +971 50 6574346
Frankfurt OpernTurm, 60306 Frankfurt am Main Germany Tel: +49-69-75-60-90-0Hamburg Stadthausbrücke 1-3/Fleethof 20355 Hamburg Germany Tel: +49-40-48-06-61-0Helsinki Unioninkatu 22 00130 Helsinki Finland Tel: +358-9-6226-7000Istanbul Cumhuriyet Cad. No 48 Kat: 4/B Pegasus Evi Elmadağ 34367 Şişli Istanbul / Türkiye Tel: +90-212-705-3550London Almack House 28 King Street London SW1Y 6QW United Kingdom Tel: +44-20-7839-7788Madrid Miguel Angel, 11, 7° 28010 Madrid Spain Tel: +34-91-319-7100Milan Corso Giacomo Matteotti, 3 20121 Milan Italy Tel: +39-02-430-015-1Munich Maximilianstraße 12-14 80539 München Germany Tel: +49-89-24-89-81-3Oslo Haakon VIIs Gata 1 NO-0161 Oslo Norway Tel: +47-2203-8010Paris 20 rue de la Paix 75002 Paris France Tel: +33-1-49-26-13-00Stockholm Hamngatan 27 SE-111 47 Stockholm Sweden Tel: +46-8-545-074-40Warsaw Belvedere Plaza ul. Belwederska 23 00-761 Warsaw Poland Tel: +48-22-851-68-38Zürich Stampfenbachstrasse 5 8001 Zurich Switzerland Tel: +41-44-447-30-30
RussellReynolds.com