the organizational dna of effective marketing · 2013-05-16 · booz & company 1 marketers...
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Booz & Company Orlando, May 15, 2013
The Organizational DNA of Effective Marketing How to do the right things right Thomas A. Stewart Chief Marketing and Knowledge Officer Booz & Company
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Marketers today face a daunting—and exhilarating—strategic agenda
Jonathan Becher’s Five Imperatives for Marketing
Source: SAP CMO Jonathan Becher
Most employees can’t see the market. Marketing does—or should. Marketing
must be the cultural catalyst that gets the company thinking about the market.
Represent the
Voice of the
Market
When people interact with brands, they still have relatively fragmented
experiences—online is different from in-store, etc. Marketing must lead the
effort to address this fragmentation.
Be the Champion
of the Overall
Experience
Companies may own their brand, but they no longer control it. Those outside
the corporate walls have more power over your brand than you do. Marketers
must adapt to this brave new world.
Be the Brand
Steward
For the first time, marketing can get a view of customers in real time. But data
without insight is irrelevant; insight without action is worthless. CMOs must
become better at both art and science.
Capitalize on
Insights
Marketing must rise above company silos and divisions (including its own) and
think holistically about the company’s value proposition, integrating messages
and insights across business units, geographies, and functions.
Be an Integrator &
Force Multiplier
Across the Co
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As CMOs, we all know: The heat is on
Pressure to do many
more things
From understanding media to
creating and managing media
From segmentation to analytics;
from “insights” to “big data”
From a few channels to many
From a few geographies to many
Pressure to be cheaper
and more effective
Availability of outsourced
suppliers
Marketing as a “cost center”
The never-ending search for
marketing ROI
Pressure to become even
more strategic
The need to contribute to global,
cross-functional capabilities
The need to “grow our own
growth”
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The ability to execute is driven by four pairs of building blocks that constitute a company’s Organizational DNA
Decisions &
Norms
What People Do Decisions describe the underlying formal
mechanics of how and by whom decisions are truly made while Norms represent the unwritten rules of
how we do things around here.
The Four Pairs of Organizational DNA Building Blocks
Information &
Mindsets
What People Pay Attention To Information describes how performance is measured, activities are coordinated, and
knowledge is transferred while Mindsets describe the deeply held beliefs that employees apply when
processing information.
Motivators &
Commitments
What Drives People Motivators are the objectives, incentives and
career alternatives available to employees within an organization while Commitments are the unwritten aspirations that drive and motivate people for the organization and themselves.
Structure &
Networks
How People Relate Structure represents the formal organizational
model, including “lines and boxes” while Networks are informally connected groups of individuals
used to communicate, make decisions or obtain support.
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Our research shows that enterprises often fail at execution because they go
straight to structural reorganization and neglect the most powerful drivers of
effectiveness – decision rights and information flow
What Matters Most to Strategy Execution1
Average Strength Index Score (Out of 100)
An organization’s DNA is critical to driving successful strategy execution
1) 26,743 respondents are from 31 different companies
Source: Booz & Company Org DNA Profiler® analysis
25
26
54
50
Structure
Motivators
Decisions
Information
(including Metrics)
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“As good as it gets…” Flexible enough to adapt quickly to external market
shifts, yet steadfastly focused on and aligned behind
a coherent business strategy
“Succeeding by the skin of our teeth…” Inconsistently prepared for change, but can “turn on
a dime” when necessary, without losing sight of
the big picture
“Flying in formation…” Often driven by a small, involved senior team, it
succeeds through superior execution and the
efficiency of its operating model
“Everyone agrees, but nothing changes.” Congenial and seemingly conflict-free, this
organization builds consensus easily, but struggles
to implement agreed-upon plans
“Let 1,000 flowers bloom.” Contains scores of smart, motivated, and talented
people, who rarely pull in the same direction
at the same time
“We’re from Corporate, and we’re here to help.” Multiple layers of management create "analysis
paralysis“ in a frequently bureaucratic and highly
political environment
“The good old days meet a brave new world.” Too large and complex to be effectively controlled
by a small team, it has yet to "democratize"
decision-making authority
The Resilient Organization
The Just-In-Time Organization
The
Military Precision
Organization
The Passive-Aggressive Organization
The Fits-and-Starts Organization
The Overmanaged Organization
The Outgrown Organization
“Weak Execution” Cultures
“Strong Execution” Cultures
Sequence your own
organization’s DNA at
www.booz.com/orgdna
We have identified seven organizational “cultures” based on how an organization’s DNA comes together
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Marketing organizations display a distinctive profile of organizational “pathology”
Marketing Benchmark Percentage of Responses By Organization Type
4%
16%
13%
14%
9%
6%
8%
12%
18%
"Weak" Other
Outgrown
Fits-and-Starts
Overmanaged
Passive-Aggressive
"Strong" Other
Military Precision
Just-in-Time
Resilient
44% of Marketing
are “Strong”
Execution Cultures
Source: Booz & Company Org DNA Profiler® analysis (overall benchmark includes over 12.4K responses since survey re-launch in May 2011 - Marketing is a subset of overall benchmark)
56% of Marketing
are “Weak”
Execution Cultures
with Outgrown,
Fits-and-Starts and
Overmanaged
percentages higher
than the overall
benchmark
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Compared to IT and sales, marketing significantly lags in its capacity to execute and in its organizational coherence
Overall
Benchmark Marketing IT Sales
“Strong” Execution
Cultures1 48% 44% 48% 53%
Organizational
“Coherence Index”2 39% 33% 39% 42%
Org DNA Profiler® Results Percentage of Responses
1) “Strong” execution cultures include Resilient, Just-in-Time, Military Precision and “Strong” Other
2) “Coherence Index” scores of 80 or above which is based on the answers to 5 Org DNA Profiler® questions: 1) Are important decisions quickly translated into action?; 4) Are we
disciplined in focusing our efforts where we can win?; 5) When we look at new opportunities, do we look first at financial attractiveness or at fit?; 7) Do we have a distinctive culture that
gives us competitive advantage?; 12) Do senior executives walk the talk?
Source: Booz & Company Org DNA Profiler® analysis (overall benchmark includes over 12.4K responses since survey re-launch in May 2011 – Marketing, IT & Sales are subsets)
Shows how well an
organization is lined up to
deliver its strategy
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With new access to data, marketing can prove
its effectiveness better than ever before
Creative and adaptable – open to new ideas and
eager to learn
Compared to IT & sales, marketing orgs:
– Are more likely to be motivated by values and
pride than by money (53% marketing versus
45% IT and 41% sales)
– Believe their organization has about the right
number of layers (marketing same as sales at
63% and 54% IT)
– Admire expertise: Honor credibility, results and
relationships more than hierarchical authority
(57% marketing, 59% IT and 54% sales)
Trust gap
Too much fondness for the new and crazy
– Not enough effort on focus and discipline
Cultural differences with sales and IT are a
prescription for conflict
– Sales and IT appear to be more execution-
oriented than Marketing
– New technologies likely to bring these
differences into high relief
May not be well lined up to deliver its strategy
Our work and data reveal some interesting strengths and weaknesses of marketing organizations
Strengths Weaknesses
Insights Into Marketing Organizations
Bottom line, marketing organizations have a significant strategic opportunity in front
of them and may not have the current skills to achieve success
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We need more than a Model-T engine to win a Formula 1 Race
How can we represent the voice of the customer when we have trouble getting information and data
across the silos between marketing and other organizations, and within our silos?
How can we champion the whole customer experience when our smart, talented people rarely pull
in the same direction?
How can we capitalize on insights when many of our organizations are “outgrown”—too big to be run
centrally, but not yet set up to deliver rapid response to our BUs?
How can we be brand stewards when there is a trust gap between marketing and the rest of the
organization—with your decisions second-guessed a lot?
Above all, how can we be force multipliers when our formal and informal organizations do not work
coherently together?
?
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Next steps: Five ways marketers can increase their organizational effectiveness
Rank Organization Trait Building
Block
Strength
Index (Out of 100)
1
Everyone has a good idea of the
decisions and actions for which he
or she is responsible
Decisions 81
2
Important information about the
competitive environment gets to
headquarters quickly
Information 68
3 Once made, decisions are rarely
second-guessed Decisions 58
4 Information flows freely across
organizational boundaries Information 58
5
Field or line employees usually
have the information they need to
understand the bottom-line impact
of their day-to-day choices
Information 55
Top 5 Fundamental Traits of
Organizational Effectiveness
Source: Booz & Company analysis
Sample of Actions That Can Be
Taken By Marketers
1) Assign process owners for key marketing
processes to coordinate activities and assume
accountability
2) Clarify marketing goals and streamline
operational decision making at each level to
increase coherence and reduce the “let 1,000
flowers bloom” approach
3) Introduce information systems that allow staff
to report strategically relevant on-the-ground
information to headquarters in real time
4) Leverage your openness to new ideas to
create cross-functional centers of excellence,
especially with IT and sales, to destroy silos and
cut down on second-guessing
5) Leverage your belief in expertise to become
more evidence-based in everything you do
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Here are some tools and articles that may be of use to you
Take our Booz & Company Org
DNA Profiler® survey at
www.booz.com/orgdna to
understand the “health” and overall
effectiveness of your organization
Our Booz & Company authored articles
on the right can be found at
www.booz.com or www.booz.com/orgdna