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Management in crisis- New planning and Future CMOToni Keskinen,Marketing [email protected]+358 50 5522276

mailto:[email protected]

The management is challenged by accelerating change, complexity and creativity demand


IBM CEO study, 1500 interviews in 2010

Key findings:

1. The World’s private and public sector leaders believe that a rapid escalation of “complexity” is the biggest challenge confronting them. They expect it to continue – indeed, to accelerate – in the coming years

2. They are equally clear that their enterprises today are not equipped to cope effectively with this complexity in the global environment

3. Finally, they identify “creativity” as the single most important leadership competency for enterprises seeking a path through this complexity.


“The threats and opportunities aren’t just coming at us faster or with less predictability; they are

converging and influencing each other to cerate entirely unique situations. The first-of-their-kind

developments require unprecedented degrees of creativity – which has become a more important

leadership quality than attributes like management discipline, rigor or operational acumen.”

Mr. Samuel J. Palmisano, Chairman, President and CEO of IBM Corporation

Management has difficulties combining..


Topsight Insightwith

Average management view:

DRIVING IN THE DARK



Marketing dept/CEO(future)

CFO/HR/Research (past)

Sales/customer services/analytics(now)

Average management view

DIFFERENT PERSPECTIVES


Fractured data use – Blindspots

Weight

Time

On-lineAnalytics

Realtime:Automatic-optimization

Own/competitorAnnual report

P’n’L

Tracking

Campaign analysis

ScoringRFMModeling

CRMsalesreport

Own/competitorQuarterly

P’n’L

SoMe

Co-creation/Open innovation CSAT/

VOC

Mystery-shopping

Own/competitorMonthly

P’n’L

Diciplined and capsuled information result blind spots and do not offer optimal value. There is no story in the data

Own personnel

Monthly Quarterly Annual


Combined data = Story & insights

Weight

Time

On-lineAnalytics

Realtime:Automatic-optimization

Annual reportP’n’L

Tracking,research

Campaign analysis

ScoringRFMModeling

CRMsalesreport

QuarterlyP’n’L

SoMe

Co-creation/Open innovation

CSAT/VOC

Mystery-shopping

MonthlyP’n’L

Combined data that is open for all decision makers, tell much richer and more valuable story and increase the value of information

REALITY CHECK:IN BUSINESS YOU ARE ALWAYS DRIVING IN THE DARK


YOU CAN GET BETTER LIGHT, BUT NEVER DAYLIGHT

WHAT’S HAPPENING IN THE BUSINESS ENVIRONMENT?


Customer relationships and insights are more important than ever due to..


PRIVACY & OTHER REGULATION

DATA EXPLOSION

UNPREDICTABILITY:

LIKELIHOOD OF BLACK SWANS

TECHNOLOGY COSTS DOWN

GLOBAL INTERDEPENDABILITY

FROM MEDIOCRISTAN TO EXTREMISTAN

OPPORTUNITY DEMOCRACY

TRANSPARENCY

FOCUS SHOULD BE:

CUSTOMER BEHAVIOR CHANGE AND

CHANGE SCENARIOS

REAL TIME REQUIREMENT

TRUST VS. OPPORTUNISM

SO, WHAT IS THE FUTURE ROLE OF MARKETING AND CMO?


Demand for accountability

– The key here is the corporate management acceptable marketing investment model = accountability and business cases

– Marketing has been a rogue spending area in corporations without direct accountability for financial results. Managing liquid investments worth several percentages of corporate turnover/year (P&G 9-11%) must be held accountable and responsible

– Every single business investment area is held liable for profitability and accountability apart from advertising and marketing.

– Because real accountability is becoming possible, it will be demanded. Period.


CMO has the best combination of customer and business understanding

– CMO has a role between corporate strategy, operations, and customer understanding

– CMO is responsible for constantly analyzing and tracking the brand’s success and perception in the market compared to other brands and players: how the market works from the customer point of view

– CMO should know how different strategies influence customer behavior, loyalty and consequently business

– CMO has resources to allocate and he can react in both brand related issues and tactical sales

– CMO’s job is to make the money work for the company and invest in any purpose resulting profits, growth and competitive advantage


Why do companies exist?- To serve their customers


CMO’s current order of priorities:

1. Find, reach and feed new customers

2. Convert them to buyers

3. Keep and grow the value of each customer

4. Create such a great experience and high value that customers are voluntarily spreading the brand with recommendations

Corporate interest = CMO’s focus


New order in priorities (bottom up):

1. Most accountable growth from customers and their lifetime value including customer experience

2. Strongest growth of customer base from increased conversion rate

3. Other market – non customers, is least accountable. Real time marketing, result based business models and analytics increase ROI

FUTURE CMO – CATALYST FOR CHANGE


Futurecmo.org

Business and internal information

Marketing and sales Strategy, offering, operationsCustomer research and

behaviour analytics

CEO CFOCMO CSOHR etc.

FutureCMO

Marketing profitability optimisation (Everything is

marketing: product, pricing, distribution, customer

experiences, organisation, promotions, reclamations…)

Translation of customer behavior to corporate strategy and operations management

CustomerMarket

andBusiness

view

Insights


CMO – Portfolio manager responsible for Allocation and Attribution

MARKETING PORTFOLIO

CUSTOMER PORTFOLIO

PRODUCTS AND

SERVICES PORTFOLIO

Sync

ECOSYSTEM VIEW?Convergence, re-structuring, new specialist diciplines.. Change in balance of power and influence


Integration of knowledge and diciplines will be inevitable = Co-creation and co-operation+ completely new game changers (Black Swans)


Likelihood: the ecosystem players will create new coalition propositions and value creation methodologies in Symbiosis

ITCREATIVEAGENCIES

CONSUL-TING

MEDIA AGENCIES

RESEARCH &

ANALYTICSMEDIA

EDUCATION

CMO & BOARD OF

DIRECTORS

BRAND = HOLISTIC ENTITY

Convergence of ecosystem and silos


• Goals: Managing with knowledge and accountability

• CMO should be responsible creating a nervous system for corporate portfolio management (customers – marketing – products and services):

Limbic system = capability to react automatically to individual customer’s and marketing opportunities and needs guiding and steering operations in any given customer interface

Cortex = Intelligence and analysis of the market, foresight and scenarios

• Components and partners supporting internal organisation:

IT infra: data capturing, warehousing and management, automatization

Portfolio management: Marketing – customers - products and services

Analytics and insights, scenarios and strategy

Execution capabilities proactively and reactively

Innovation and development: services, products, distribution, networks, operations, partnering and communications

Brand = Company as a holistic entity

CHANGE WILL BE AN ADVENTURE WE ARE ENTERING ALREADY = OPPORTUNITY and INSPIRATION


Check outfuturecmo.orgfor more

THANK [email protected]+358 50 55 22276


Date post:	04-Aug-2015
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