A Call to Action for CMOs and Marketing Professionals

Reading the "Future Tense: The Global CMO" a report by the Economist Intelligence Unit and sponsored by Google is best read by marketers new to the profession. Those abiding in the field for some time will be amazed at how so little the marketing story has changed, and a painful one it is at that. Old stuff.

As a warning to those new to the profession, the report notes "transformation is painful." Aligning marketing and sales is painful. Turnover remains high among CMOs. Marketing may not have the skill set necessary to get the job done in the age of the connected consumer. "Marketing executives and advertising agencies are scrambling to find the talent required for interactive media." There remains the mystery of marketers continuing "to invest in digital, yet focusing their marketing strategy on brand building at the expense of what is much more measurable."

We think it is time to change this negative and de-motivating story and refocus marketing on a strategy of sustainable development to drive a new paradigm, one not based on accountability and blind growth, but economic development and innovation. Innovation that "aligns profit
motives and environmental best interests" as referenced at the March 2008 CFO Green Conference by Fred Krupp, President of the Environmental Defense Fund.

Change is hinted at, tactically, in the Future Tense report: "Effective agencies and marketing partners must abandon the old paradigms and assist clients in embracing new technologies, including their low costs." It's the last part, low costs, and a reference to Lenovo's newly consolidated marketing hub in Bangalore, India, that makes one wonder if the de-valuation of communication skills and local knowledge is running hand in hand with unsustainable development because, as marketers, we have not stepped up to the plate to change rules and transform ourselves in this electronic age.

There are signs of life referenced in the FT report one being a reference to IBM's "The Authentic Enterprise." There was a corporate reorganization that IBM implemented in July 2008 which "consolidated three previously discrete functions: marketing, communications and IBM’s corporate citizenship organization."

But we have to turn to a CFO, Dave Burritt, VP and CFO, Caterpillar Inc. to appreciate the broad implications of sustainability strategies and related principles and standards: The first one, reputation, with consumers demanding greater responsibility, brings reputation building to the forefront of not only marketing, but to all customer-facing functions. The second re-establishes the value of talented employees as a hedge against high rates of turnover and as a recruitment plus as employees consistently rate the best employers on how they display a regard for the environment. The third is risk reduction: lesson the damage that comes back to roost. At the same CFO green conference that featured Mr. Burritt, it was noted by Michael Monahan, CFO of Pitney Bowes Inc.: "The bottom line at Pitney Bowes reflects tangible benefits. Sustainability improves cash flow, generates revenue, increases operating efficiency, and furnishes a starting point for connecting with existing and potential customers."

It's time for CMOs to use the considerable talent and creativity of their team to take a leadership role as sustainability advocates across all functions and, ultimately, understand sustainability as a starting point for connecting with existing and potential customers. It's time to bond with the CFO, enlist the CIO, and engage the CEO in a process of "strategic doing" to agree on sustainability strategies for the company and its employees, partners, and customers.

Transformation doesn't have to be painful. At the beginnings of the information age it was exciting, challenging, and led to prosperity. Still is, when driven by a commitment to sustainable development.

Both reports referenced above may be downloaded, see Whitepapers to the left of this blog post.