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In this article Andy Bird, Co-Founder and Executive Director at Brand Learning, argues that too much time is spent discussing whether marketers play their role as customer-focused business leaders well enough. Instead, he provides some specific guidance about how they can actually perform this role successfully in practice.
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The Brand Learning Partners Ltd (part of The Brand Learning Group), Burgoine Quay, 8 Lower Teddington Road,
Hampton Wick, Kingston Upon Thames, Surrey KT1 4ER UK Registered No: 4033876 / VAT No: 125496111
Towards Customer-Focused Leadership
In this article Andy Bird, Co-Founder and Executive Director at Brand Learning, argues that too
much time is spent discussing whether marketers play their role as customer-focused business
leaders well enough. Instead, he provides some specific guidance about how they can actually
perform this role successfully in practice.
In the role of CMO I believe you have one central challenge. Ultimately the only way for Marketing as a function to succeed
is to make sure the whole company works as a marketing organisation. You therefore have to shape the whole organisation
so that it focuses on the consumer and you have to ensure that the commercial business model is integrated with the way
you are building and developing your brands.
Phil Chapman, SVP Marketingi
The insight described here by Phil Chapman highlights a dilemma for Marketers. No matter how good a job they do in
technical marketing terms, the results of their performance will ultimately be determined by the actions of their colleagues
in the rest of the business. Generating insights, crafting brand positionings, developing innovation propositions, creating
communication campaigns – all of these activities will be undermined if the organisation as a whole is not aligned in
delivering product and service experiences that create the value customers are looking for in practice.
In fact, one only has to look at the recent problems facing the banking sector to
know that in the transparent new era of social media, customer expectations
now extend even further to include the integrity and responsibility of corporate
behaviour in more general terms.
We live in a world where people have power over organisations and institutions
like never before. And in a world like this, the only businesses that will thrive
and flourish in the longer term are those that perform best in genuinely serving
people’s interests and living up to their values and principles.
Which is where Marketing comes in. The core role of the Marketing function is to help drive profitable, sustainable growth
by building brands and innovative propositions that create better value for customers. Look at the fantastic work done
recently at Nike with the Nike+ proposition, at McDonalds with its customer experience innovation and at Unilever in
championing the cause of social and environmental sustainability. In each case, the Marketing teams identified exciting
market opportunities and created insightful, innovative propositions in response.
But success of this sort is not dependent solely on outstanding technical marketing. It also requires the whole company to
be aligned behind these customer-focused opportunities. And so for Marketers to deliver the goods, they have to establish
their capabilities and performance at two different levels:
- Functional Marketing Excellence: carrying out the key technical aspects of Marketing’s role, from the generation of customer insight and the strategic activities of portfolio strategy, brand positioning and innovation, through to the execution of brand communication and customer experience delivery
- Customer-Focused Leadership: providing a customer-focused agenda for the business as a whole and engaging the whole organisation cross-functionally in its delivery
The Brand Learning Partners Ltd (part of The Brand Learning Group), Burgoine Quay, 8 Lower Teddington Road,
Hampton Wick, Kingston Upon Thames, Surrey KT1 4ER UK Registered No: 4033876 / VAT No: 125496111
These two roles are mutually dependent – it is not possible to do one well without the other. But in our view, too much
time is spent debating the extent to which Marketing plays its customer-focused leadership role well enough, and not
enough on defining clearly what needs to be done to actually play this role in practice. The purpose of this article is to try
and do just that.
Driving Functional Marketing Performance
Before Marketing can earn the right to lead the business, it has to ensure its own functional performance is at an excellent
level. The building blocks for establishing the technical capabilities needed to enable this performance are summarised in
Figure 1.
The starting point is to ‘set the direction’ for capability building by undertaking an assessment of marketing capability needs
and creating a strategy and plan to address them.
The functional organisation must be built by
establishing common ways of working and linking
them to an effective organisation structure, with
clear roles and responsibilities. Within this
framework, the right profile of team must also be
assembled and supported with the necessary skill
development to enable people to deliver
outstanding results in practice.
It is critical, if we are to continue to deliver results and win in our categories,
that we build up stronger specialist marketing capabilities across the organisation.
Mark Baynes, Global Chief Marketing Officerii
Leading a Customer-Focused Business
So far, so good – many leading companies have now realised the importance of this first step and focus strategically on
strengthening their functional marketing capabilities and performance over time. But in the new commercial environment
that we all operate in, there is also an increasingly important leadership dimension that Marketers now need to embrace
more directly.
One of the most important roles that other functions see Marketers playing in their businesses is bringing the outside in. As
an example, Jon Harding, Head of Organisation Development at Barclaycard, explains, “If I have a look at the really good
Marketing people I have met over the years, they have an outward focus into the world and a genuine curiosity in what is
going on and why. They then bring this back into the organisation and respond to it, finding ways to make money from
what they see and learn.”
Marketers have a vital role to play in generating insight into how their businesses can achieve commercial success by
creating value for customers in responsible and principled ways. But to do so, they also need to bring the whole
organisation with them so that the promises Marketers then go on to make through brand communication are fulfilled in
reality.
Figure 1: Brand Learning Capability Development © Brand Learning 2013
The Brand Learning Partners Ltd (part of The Brand Learning Group), Burgoine Quay, 8 Lower Teddington Road,
Hampton Wick, Kingston Upon Thames, Surrey KT1 4ER UK Registered No: 4033876 / VAT No: 125496111
Based on Brand Learning’s experience
working with clients in recent years,
we see three particular ways in which
this can be achieved (see Figure 2).
1. Business & Brand Purpose
The first and most important step for
any leader is to define what it is they
want to lead for. Based on the things
they care about and believe in, they need to clarify the role they want to play and what success will look like in the future.
As part of the creation of this personal purpose, a Marketing leader needs to make a conscious decision to define his or her
leadership in terms of the whole company, rather than at just a functional level. Only then will they have the right mindset
to establish themselves as a genuine leader of cross-functional customer focus in the business.
It will be essential to involve the rest of the Marketing leadership team in this thinking as early as possible so that a shared
purpose is established for the functional role of Marketing within the organisation. As an example, when Phil Chapman was
CMO at T-Mobile, his team defined the following vision for the role of Marketing: “to anticipate and create everyday
customer communication behaviours, driving profitable cross-functional delivery of T-Mobile experiences to make T-Mobile
the UK’s most considered network”.
In other companies, we have seen leadership teams define a clear view on the way they want to approach marketing by
creating a form of manifesto to underpin their marketing strategy. Unilever’s recent reinvention of its marketing philosophy
under the banner of ‘Crafting Brands For Life’ is a good example.
It is also extremely important to establish Marketing’s role in clear
commercial terms to win understanding and support from senior colleagues
in other functions. In the words of Keith Weed, Unilever’s CMCO, “if
Finance counts where the money’s going, Marketing counts where it’s
going to come from”. Marketing must define in simple terms the role
customers play in the business model and, as a consequence, the role that
Marketing can play in driving profitable business growth.
But perhaps most importantly, in the spirit of leading for the whole rather than just for their function, Marketers need to
lead the creation of a relevant and inspiring customer-focused purpose for the whole business. They are able to do this by
building brands based on ideals or a higher purpose to improve the lives of customers in some unique way.
Torvald Veale, International Brands Development Director at Alliance Boots, explains how this has happened in his
company: “Boots has re-energised its retail business using the idea ‘Feel Good’. It’s about people feeling good about
themselves, looking good and having confidence. The idea has captured that internal sense of ‘that’s what we stand for’. In
an organisation with so many thousands of people who are themselves really passionate about the business, giving them a
clear sense of purpose has been transforming.”
Figure 2: Brand Learning Capability Development © Brand Learning 2013
The Brand Learning Partners Ltd (part of The Brand Learning Group), Burgoine Quay, 8 Lower Teddington Road,
Hampton Wick, Kingston Upon Thames, Surrey KT1 4ER UK Registered No: 4033876 / VAT No: 125496111
2. Customer-Focused Operating Model
For Marketing to go beyond ideas and truly influence the company’s activities in practice, an operating model must be
created that has customer considerations at its heart.
The overall commercial structure of any business should be designed to support as best as possible the delivery of a
seamlessly integrated customer experience. In today’s complex digital environment, where the touchpoints with customers
have fragmented dramatically, significant and frequent corporate restructuring has become commonplace.
However, no matter how carefully the organisation is constructed, at least as important is the task of clarifying the way
interactions should take place between the people working in different parts of the structure. Collaborative working
relationships and clear decision-making roles and responsibilities must be established so that activities can be joined up
across different departments and functions. These arrangements can then be translated back in to the specific job
specifications and accountabilities of people within the Marketing function so that the profile of their work is connected
explicitly with those in other parts of the business.
One litmus test of the extent to which Marketing has created a customer-focused operating model is where brand strategy
sits within the organisation’s activity. If it is only influencing the functional activities of Marketing, limited mainly to the
guidance of brand communication and activation, then there is a long way to go.
The brand provides the interface between the entire company and its customers. In any genuinely customer-focused
business, brand strategy is therefore inextricably linked with the overall business strategy and its influence should extend
across all functions. O2’s application of its ‘Fresh Thinking, New Possibilities’ brand strategy is a good example, with all
company activities now needing to sit within one of four key platform areas within the strategy. As Sally Cowdry explained
at this year’s Marketing Leaders Programmeiii, “Fresh Thinking, New Possibilities now pervades all of our teams. We’ve
introduced a new mindset across O2”.
3. Engagement and Activation
Once the organisation of the company is set up to serve the customer, the third step is to make sure the people working within it are motivated and empowered to do so in practice.
As explained earlier, an inspiring brand purpose is a powerful
foundation for emotional engagement. Not only is this
increasingly important in today’s media landscape to generate
interest and demand from customers for the company’s brand
proposition, it also helps drive greater engagement and
commitment from the people within the business itself to
actually deliver the benefits that are promised. As
demonstrated by brands such as Red Bull (energise the world),
IBM (build a smarter planet) and Pampers (care for the happy, healthy development of babies), creating brands that are
based on ideals means that everyone has more to buy into – customers and employees alike.
However, internal brand engagement programmes too often begin and end with employee inspiration. More focus is
needed on the support systems needed to ensure that good intentions are embedded in lasting behaviour change. At Aviva,
their goal to be their customers’ “most recommended insurer” is being ‘operationalised’ by defining the key drivers of
customer satisfaction and advocacy and building them into a globally aligned measurement system.
The Brand Learning Partners Ltd (part of The Brand Learning Group), Burgoine Quay, 8 Lower Teddington Road,
Hampton Wick, Kingston Upon Thames, Surrey KT1 4ER UK Registered No: 4033876 / VAT No: 125496111
Marketers need to get better at driving internal ‘customer focus’ change programmes by integrating traditional brand
engagement with more practical and operational initiatives of this type. Collaboration with other functions is key,
particularly with HR who can play an essential role in helping to embed brand values and behaviours in people systems and
reward mechanisms throughout the company.
Transforming Marketing Capabilities and Performance
To draw these arguments together, if Marketers are to transform the effectiveness of their organisations in creating
customer value and driving growth, they need to build their capabilities at two key levels.
On the one hand, they must give as much attention as
ever to strengthening their own functional marketing
capabilities. But they must also step up to play a
stronger customer-focused leadership role for the
company as a whole. They are uniquely placed to play
this role owing to their responsibility for generating
customer insight and building the company’s brands.
And organisations need them to play it too if they are
to cope with the complex demands of the market
environment within which they now operate.
There’s never been a more challenging time to be a
marketer, but neither has there been a more exciting
time - and this leadership opportunity is one of the
main reasons why.
i The Growth Drivers’ by Andy Bird & Mhairi McEwan, Wiley, 2012 ii The Growth Drivers’ by Andy Bird & Mhairi McEwan, Wiley, 2012 iii The Marketing Society’s Marketing Leadership Programme is run annually in association with Brand Learning
Copyright © BRAND LEARNING 2013
For further information:
Brand Learning Burgoine Quay 8 Lower Teddington Road Kingston Upon Thames Surrey KT1 4ER UK Please contact us on +44(0) 20 8614 8150 or [email protected] Brand
Figure 3: Brand Learning Capability Development © Brand Learning 2013