The transformative CMOThree must-have competencies to meet the growing demands placed on marketing leaders

By Caren Fleit and Brigitte Morel-Curran

As organizations strive to set themselves apart from competitors, marketing has taken on new prominence throughout the business process. The days when marketing simply built brands, created above-the-line programs, and targeted customers are over. Now marketing—and more specifically the office of the Chief Marketing Officer (CMO)—is transforming how business is done. As a result, today’s top-flight and aspiring CMOs need new competencies to thrive in this expanded role.

CMOs must move well beyond the longstanding role as “the voice of the

customer” to provide strategic leadership, drive change, and achieve

quantifiable business results. Today they are tasked with not only ownership

of the brand, but also with development of overarching business strategies.

For example, one $4 billion retailer recently charged its new CMO with a

360-degree effort to rethink everything related to customer needs:

products, operations, supply chains, store locations, and how the company

communicated internally and to customers. All the while, CEOs and

corporate boards are scrutinizing marketing activities with unprecedented

analytical intensity.

In short, the mandate for today’s CMOs is nothing less than fundamental

business transformation. “Marketing is increasingly intertwined with all

other functions in the company. CMOs need strong leadership skills to

influence across the organization, cross functionally, and geographically,”

March 2012

Chief Marketing Officers increasingly are taking on enterprise-wide transformation. Through interviews and research, Korn/Ferry has identified the three competencies most essential for success in this expanding role: Creating the New and Different, Focusing on Actions and Outcomes, and Inspiring Others.

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says Lauri Kien Kotcher, CMO of Godiva. “We need to be able to adapt our

plans based on rapid-fire feedback; this means moving together as an

organization to drive results.”

Marketing executives have always leveraged their creative, analytic, and

tactical skills. What is changing is the growing complexity of the business

environment, the communication landscape, the consumer and customer

expectations, and the innovation cycle. As a result, companies looking for a

truly successful and transformative CMO, and marketing executives who

aspire to be CMOs, must focus on acquiring three core competencies:

Creating the New and Different: The ability to generate new ideas and

breakthroughs requires vision, creativity, and broad interests and

knowledge. But leaders must also be able to speculate about alternatives,

manage the innovation process and teams, and bring those ideas to market.

Focusing on Action and Outcomes: Transformative CMOs must possess the

potent combination of attacking everything with energy—while also

keeping an eye on the bottom line. They must be unafraid to initiate action

based on incomplete data, then drive to the finish and honestly assess

results.

Inspiring Others: Building motivated, high-performing teams—or even

moving an entire organization to perform at a higher level—demands a

compelling vision, commitment, and superior communication. These

leaders also must understand what motivates different individuals.

These competencies, drawn from a list of sixty-seven defined in the

Leadership Architect® library, were identified through research conducted

by Korn/Ferry International’s Marketing Center of Expertise. Not everyone

inherently possesses these competencies; even those who do possess them

develop and improve them with each job assignment. Likewise, marketing

executives with a level of self-awareness and humility can indeed develop

them. The following sections discuss each competency, how it manifests in

CMOs, and how it can be developed.

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The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man. — George Bernard Shaw

Creating the New and Different

Transformative CMOs push the boundaries of marketing with breakthrough

thinking. Working with this type of blank slate is a challenge that requires

curiosity, foresight, visionary thinking, mental agility, courage, and

perseverance.

Those who create the new and different strike a balance between marketing

as an art and marketing as a science. “If you apply everything by the letter,

getting caught into your own frameworks, repeating models without having

the courage to be true to a vision and have a point of view, then you end up

fundamentally doing the same thing as everybody else,” says Marc Mathieu,

senior vice president of marketing

at Unilever. In his view, CMOs need

a strong personal desire to make a

mark, not just manage. “These are

the restless souls who don’t just

want the right to have input, but

desire to have impact. These are

people with a sparkle in the eye, passion in the heart, a belief that they can

change the world, and a great team and collaborative spirit. You need this

attitude to overcome the many barriers you encounter in creating the new

and different. Creating the new is very hard work.”

Why competencies?

At the core of the transformative CMO is a set of behavioral and cultural competencies—that is, measurable characteristics that relate to success. A competency may be a behavioral skill; a technical skill; an attribute, such as intelligence; or an attitude, such as optimism. Research conducted at several universities and tested in long-term studies involving large corporations indicates that individuals who master the key competencies identified for a given role tend to be high performers. Korn/Ferry International uses a proprietary library of sixty-seven competencies called The Leadership Architect®, developed by Lominger International, and these competencies are integrated into search assessments, 360-degree performance assessments, and interview guides.

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It is also a particularly valued competency for organizations that want to

achieve market leadership. They need innovative thinking to use

macroeconomic trends, new markets, and changes in customer expectations

to their advantage. CMOs who are innovators are able to immerse

themselves in the problem at hand while looking broadly for connections.

By letting ideas incubate, and relaxing and reducing distractions to allow

the breakthrough ideas to emerge, these CMOs are more likely to identify

the ones that are worth pushing forward.

“It is critical to be more outer-directed than inner-directed,” says Jill

Beraud, CEO of Living Proof and former CMO of PepsiCo Beverages Americas.

“This means continually looking outside of your industry, doing competitive

patterning, and looking at other industries and other parts of the world for

inspiration and solutions.”

CMOs who transform their organizations through innovation can have an

impact on the entire business value chain. “Innovation can be across

product design, the service experience, the use of channels,” notes Peter

Horst, CMO at Capital One Bank. “We are looking for a fresh take on the

game. We look to be strategically bold by focusing on breakout moves rather

than incrementalism. There is a growing appetite for innovation, at a faster

pace.”

Even the most well-established brands are constantly trying new approaches

to engage customers and new markets. “Starbucks is in the middle of a

transformational agenda,” says Marie Silloway, CMO of Starbucks China.

The company is constantly examining how to enhance its brand promise

and delight customers through the store experience and by developing new

food products and beverages. “In China, innovation will be around figuring

out how to maintain a consistent relationship with the customer base, how

we can connect more deeply and more frequently,” says Silloway. “We are

also looking for ways to leverage digital technology, which is still a

relatively immature space in China.”

“ Innovation can be across product design, the service experience, the use of channels. We are looking for a fresh take on the game. We look to be strategically bold by focusing on breakout moves rather than incrementalism. There is a growing appetite for innovation, at a faster pace.”

Peter Horst Chief Marketing Officer, Capital One Bank

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Focusing on Action and Outcomes

Today’s markets emphasize speed and agility. Perfectionism,

procrastination, and risk avoidance hamper CMOs’ ability to take quick and

timely action in order to generate desired outcomes.

CMOs who demonstrate a bias for action and an eagerness to take the

initiative generally nurture an overall results-oriented mindset that drives

the bottom line. They also instill the necessary urgency within teams and

organizations to excel. “Focus on results and celebrate achievement, but

don’t overlay staff with dozens of checks and balances,” says Paul Dickinson,

the international managing director of client services for Christie’s

International, and former global sales and marketing director for Virgin

Atlantic. “Errors, even embarrassing ones, happen, but you’ve got to give

people a challenge and give them the freedom to achieve it.”

Transformative CMOs strike the right balance between action and

thoughtful approaches to avoid wreaking havoc with unbridled change.

They stay focused on their vision and maintaining momentum, but also

consider the best courses of action as new data emerge. If CMOs do not

achieve success with early steps, they must be agile and resilient enough to

make adjustments.

Increasingly, CMOs also must demonstrate tangible business results that

align with the goals of the whole organization. They are expected to be

more financially oriented and have

a measurable role in generating

revenue, which requires refining

the way they think about customer

relationships. “We are more

focused on numbers; we push the

marketing team to think about metrics and where are the greatest levers we

can push,” says Deborah Meyer, CMO of PulteGroup.

Appropriate structures and processes can help create sustainable growth.

Global brewer AB InBev, for instance, divides its marketing efforts into

three processes: long-term brand and strategy activities, including

However beautiful the strategy, you should occasionally look at the results. —Winston Churchill

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understanding demand, segmentation, positioning, and portfolio thinking;

short-term (twelve to eighteen months) efforts to connect the brand to

consumers; and ongoing renovation and innovation. “All of our ‘brand

dreams’ are translated into specific key performance indicators,” says Chris

Burggraeve, the company’s CMO. AB InBev trains its marketers, spells out

expectations, and rigorously tracks results each year with a proprietary

point-based marketing audit system that is part of its marketing excellence

program. The company is very disciplined about tracking brand health, even

beyond marketing. Since 2008 even top management’s incentive

remuneration is partially tied to achieving specific “brand health”

objectives, and more recently company reputation targets. “This

demonstrates to all our stakeholders that as a top five FMCG (fast-moving

consumer goods) company, we are very serious about our mantra, ‘Brand

health today is topline tomorrow,’” says Burggraeve.

Inspiring Others

Although Inspiring Others is the third identified competency, it is truly the

foundation for all CMO success. In order to create the new and different,

teams need to be inspired and aligned behind a vision of change. Inspired

and motivated teams take action and accomplish much more in terms of

measurable outcomes.

However, motivation is neither automatic nor consistent from person to

person. Transformative CMOs must develop a clear and compelling vision,

and then communicate that vision in a way that appeals to the core

interests and values of their constituents. “Inspiration is making people do

the impossible,” says Ann Lewnes, senior vice president of global marketing

for Adobe Systems Inc. “It is the

ability to show people where you

want to go and giving them the

confidence you can get there.”

CMOs who are passionate about

their vision should be able to close

the gap between the current reality and an envisioned future and, in the

process, ignite passion in others. The overall goal is to inspire followers to

operate at their peak. What motivates each individual might be different,

but each has to give focus, energy, and commitment.

If you want to build a ship, don’t drum up people to collect wood and don’t assign them tasks and work, but rather teach them to long for the endless immensity of the sea. —Antoine de Saint-Exupery

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Inspiration can also stem from getting “permission” to fail while

innovating. “It is important to acknowledge that failure is an option, but

that fear is not,” says Unilever’s Mathieu. “That will unleash energy, passion,

and adrenaline that becomes contagious.”

Others agree. “The CMO needs to paint a bold vision that people can sign up

for and get excited about,” says Living Proof’s Beraud. “The role of the CMO

is to provide opportunities for teams to stretch their ideas and encourage an

environment where it’s OK if something does not work. This instills

confidence and encourages an innovative culture.”

Additionally, in order to drive organization-wide transformation, CMOs

need inspirational leadership that extends across functions. That may

require a more nuanced approach that leans heavily on diplomacy,

communication, and other interpersonal skills. In highly matrixed

organizations, “It is important for CMOs to provide thought leadership, be

assertive, and collaborative—allowing and encouraging others to own the

process and the outcome,” says Horst of Capital One Bank.

Enhancing abilities in an unequal world

Although competencies can be instilled through training and experience,

some—particularly the ability to Create the New and Different—are often

difficult for individuals to develop. As a result, companies looking for a

transformative CMO face the added challenge of making sure that

candidates possess these competencies.

For their part, current and aspiring CMOs should look for help wherever

they can find it. Most enterprises’ talent management programs are

designed to help executives in their career growth. However, a generalized

program may not recognize the changing behavioral requirements of

successful CMOs. Simply identifying high-potential leaders and giving them

leadership training is not likely to help them nurture the three

competencies critical for today’s marketing leaders. The development map

for the transformative CMO must cover new ground, perhaps including

individualized coaching and deliberately developmental assignments.

For CMOs, failing to leverage this new set of competencies can severely limit

It is important to acknowledge that failure is an option, but that fear is not. That will unleash energy, passion, and adrenaline that becomes contagious.”

Marc Mathieu Senior Vice President of Marketing, Unilever

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their success and hamper their careers. CMOs cannot rely on past successes

to chart a clear course for the future. Instead, CMOs must chart an entirely

new map that relies on these competencies to innovate, inspire, and execute

for success.

Companies that recognize that marketing is central to transformation

efforts and are interested in bringing in a transformative CMO must work

even harder to assess candidates for these competencies. Simply having

industry or category experience is no guarantee of success. The ultimate

measure of successful CMOs is the ability to create the new and different,

to focus on action and outcomes, and to inspire others in order to drive

change in their organizations.

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Becoming a Transformative CMO

CMOs, and those aspiring to the position, can take immediate concrete steps

toward becoming a transformative marketing leader by focusing on the

three critical competencies. Here, we’ve broken each down into critical do’s

and don’ts.

Creating the New and DifferentBeing a creative visionary overflowing with new ideas is fantastic. But there

are other ways to foster innovation in yourself and the marketing team. Just

being flexible, able to shift gears, and willing to take chances puts you a

step ahead. Even with incomplete information, practice speculating about

how things might turn out. And don’t discount the power of follow-through:

you must manage innovation through the organization to bring the new

ideas to market.

You must be able to...> Allot sufficient time and focus for

effective brainstorming sessions.

> Collaborate with colleagues who

have diverse perspectives and can

build on each other’s suggestions.

> Manage workload and schedule to

create space for creative thinking

and experimentation.

> Play the role of idea champion by

navigating the organization and

helping to implement an idea

that has merit.

> Study the methods of great

inventors and innovators.

...Without> Quickly dismissing every offbeat

idea as unworkable.

> Insisting on perfection that can smother the inherent messiness of the innovation process.

> Waiting for a crisis to embark.

> Selling yourself short and ignoring your intuition.

> Relying on old data for new ideas.

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Inspiring Others Getting individuals and teams to perform at a higher level and to embrace

change is the essence of leadership. Interpersonal communication is key: a

compelling vision drives both action and morale.

You must be able to...> Get to know other people and

what really motivates them.

> Adjust your approach to meet other people’s needs and interests.

> Use metaphors and analogies to paint a picture to which others can relate.

> Negotiating skillfully to achieve a fair outcome or promote a common cause.

> Building motivated, high-performing teams.

...Without> Delivering a speech, or worse,

by reading the speech.

> Assuming that delivering a message once is all that is needed to gain buy-in.

> Leaving people guessing about why they are doing this.

> Underestimating the power of relationships.

> Forgetting to express gratitude for efforts and reward.

Focusing on Actions and Outcomes A transformative CMO is focused on the target and the bottom line. He or

she drives to get projects underway, and is resilient and tenacious enough

to see each through to the end.

You must be able to...> Balance analysis with action.

> Break up tasks and find ways to reinforce yourself as the tasks are completed.

> Initiate action before all the facts are known.

> Give progress updates.

...Without> Being afraid to make mistakes.

> Letting obstacles paralyze you.

> Making excuses yourself or shrinking responsibilities.

> Assuming people know what you are doing.

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Caren Fleit is co-leader of Korn/Ferry International’s Marketing Center of

Expertise. She is a Senior Client Partner in the firm’s Consumer practice,

based in New York City.

Brigitte Morel-Curran is a Senior Partner and Country Managing Director,

Switzerland for Korn/Ferry Leadership and Talent Consulting, based in

Zurich.

Contributing EditorsJennifer Carroll, Senior Client Partner

Philiep Dedrijvere, Senior Client Partner

Richard Sumner, Principal

Tierney Remick, Senior Client Partner

Korn/Ferry’s Marketing Center of ExpertiseJacques Amey, Geneva

David Barnes, Princeton

Jan Campbell, Princeton

Jennifer Carroll, Chicago

EJ Chae, Seoul

Jennifer DeCastro, New York

Philiep Dedrijvere, Brussels

Patrick Delhougne, New York

Ann Fastiggi, New York

Keith Feldman, San Francisco

Caren Fleit, New York

Peri Hansen, Los Angeles

Jeff Hocking, San Francisco

Katherine Lee, New York

Grace Nida, Tokyo

John Petzold, New York

Tierney Remick, Chicago

Jane Stevenson, Atlanta

James Stuart, London

Richard Sumner, London

Kalya Tea, Paris

Jeff Wierichs, New York

Kate Wright, Melbourne

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About The Korn/Ferry InstituteThe Korn/Ferry Institute generates forward-thinking research and viewpoints

that illuminate how talent advances business strategy. Since its founding in

2008, the institute has published scores of articles, studies and books that

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Pacific, Europe, the Middle East and Africa, is a premier global provider of

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© 2012 The Korn/Ferry Institute