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flast.indd 28 19/08/14 11:39 AM THE SHIFT ffirs.indd 1 19/08/14 11:39 AM FREE PPremium Content This book includes premium content that can be accessed from our Web site when you register at www.josseybass.com/go/scottdavis using the password professional. ffirs.indd 2 19/08/14 11:39 AM THE SHIFT The Transformation of Today’s Marketers into Tomorrow’s Growth Leaders Scott M. Davis Foreword by Philip Kotler ffirs.indd 3 19/08/14 11:39 AM Copyright © 2009 by John Wiley & Sons, Inc. All rights reserved. Published by Jossey-Bass A Wiley Imprint One Montgomery Street, Suite 1200, San Francisco, CA 94104-4594—www.josseybass.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authoriza- tion through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/ permissions. 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Jossey-Bass books and products are available through most bookstores. To contact Jossey- Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002. Jossey-Bass also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Davis, Scott M. The shift: the transformation of today’s marketers into tomorrow’s growth leaders / Scott M. Davis; foreword by Philip Kotler. p. cm. Includes bibliographical references and index. ISBN 978-0-470-38838-9 (cloth) 1. Marketing. 2. Technological innovations. 3. Management. I. Title. HF5415.D377 2009 658.8'02—dc22 2009011423 Printed in the United States of America first edition HB Printing 10 9 8 7 6 5 4 3 2 ffirs.indd 4 19/08/14 11:39 AM CONTENTS Foreword ix Philip Kotler Acknowledgments xiii Preface: It’s All About Growth xvii Five Aspects of The Shift xix Why Should I Change? I’m Okay xx Building the Case for the Marketer as Growth Champion and Catalyst xxiv The Time Is Now xxvi v ftoc.indd 5 19/08/14 11:39 AM vi Contents Introduction: Preparing to Make The Shift 1 Voices from the Front Line 2 The Reason Most CEOs (Including Yours) Don’t Shift 3 If CEOs Do Not Want to Shift, How Can We? 4 Can You Shift? Look First at Your Marketing Organization Archetype 13 Archetypes and Success Enablers Combine to Show the Best 21 1T HE FIRST SHIFT 27 From Creating Marketing Strategies to Driving Business Impact Insights: Your Secret Weapon 28 Power in a P&L Mind-Set 31 Cementing the First Shift: Earning Organizational Credibility and Trust 35 How to Set the Growth Agenda 38 Aligning Business and Marketing Strategies 43 Capturing the CEO’s Imagination 44 Visionary Marketers’ Twelve Strategic Growth Topics 45 Your Five-Step Plan to Victory 57 Keeping the Dialogue on Track 61 So, What Do I Do on Monday Morning? 63 2T HE SECOND SHIFT 65 From Controlling the Message to Galvanizing Your Network Written in collaboration with Andy Flynn The Network Era 69 ftoc.indd 6 19/08/14 11:39 AM Contents vii Thriving in the Network Era 71 Network Touch Points 88 So Why Isn’t Everyone Galvanizing Their Network? 98 So, What Do I Do on Monday Morning? 101 3T HE THIRD SHIFT 105 From Incremental Improvements to Pervasive Innovation Written in collaboration with Mitch Duckler Pervasive Innovation 107 A Shift Toward Customer-Led Innovation 108 What Visionary Marketers Can Learn from Model Innovators 120 Fusing Visionary Marketing and Innovation 137 So, What Do I Do on Monday Morning? 140 4T HE FOURTH SHIFT 143 From Managing Marketing Investments to Inspiring Marketing Excellence Written in collaboration with Andy Pierce Marketing Excellence, Growth, and Accountability 147 Why Marketing Must Change Now 148 What the “Big M” Marketing Shift Requires 152 Experimentation at the Core of Success 157 A Few More Questions 169 So, What Do I Do on Monday Morning? 172 ftoc.indd 7 19/08/14 11:39 AM viii Contents 5T HE FIFTH SHIFT 175 From an Operational Focus to a Relentless Customer Focus Written in collaboration with Jeff Smith The Realities of a Relentless Focus on the Customer 181 Start Working Inward from the Customer 183 Inspire the Organization to Align Differently 186 A Bottom-Up Transformation Approach: Making a Business Case to Relentlessly Focus on the Customer 192 Visionary Marketers’ Additional Transformational Igniters 195 The Evolution of Brand Councils to Growth Councils for Organizational Transformations 199 Organizational Transformation: Corporate Versus Business Unit, Centralized Versus Decentralized 205 We’re All in This Together 207 So, What Do I Do on Monday Morning? 208 Afterword: Shifting Is Not Easy 211 Bibliography 217 Index 221 ftoc.indd 8 19/08/14 11:39 AM FOREWORD or many years, I have been making a strong argument in my Fmeetings with top executives that marketing has to take on a stronger role within their organizations. Marketing is more than a function that supports sales and creates communications materials, and it has considerably more to offer in helping to shape where a company is going and reach its growth aspirations. I believe that marketers have the ability to partner with the CEO and other executives in ways that most companies have not experienced. To this point, I also believe that today’s marketers must be charged with helping their company create a future portfolio of offerings, prices, services, experiences, messages, and media to win over cus- tomers and capture a growing share of a customer’s wallet and loy- alty, and not just his or her awareness. However, this premise does raise some questions. First, is marketing equipped to take on a higher-profile role? I believe the answer could be yes, but today many companies, by ix flast.indd 9 19/08/14 11:39 AM x Foreword default, are hiring marketers for stereotypical roles, usually encom- passing managing just the promotional P of the 4 P’s (product, price, place, and promotion). How could a marketer hired primarily for promotional skills and experiences truly have the ability to become a growth driver within the organization? To succeed in a more strategic role, these marketers would have to obtain the right levels of training, cross-company internal support, and executive- level trust in taking on higher-level and broader responsibilities, or the company will have to go outside to recruit the talent required. Ultimately CEOs and boards must determine whether they are going to make an internal or external investment in marketing to truly pay off the role within their organizations. The good news is that I am starting to see some companies take a more expansive view of marketing by starting to hire heads of mar- keting, or CMOs, who have a much greater ability to manage and influence others. These marketers are termed Visionary Marketers in The Shift, which is appropriate on two fronts. First, they have a more expansive vision of what their company is trying to achieve in the longer term and what role marketing can play in helping their com- pany achieve its sales and profit growth objectives. Second, the term visionary is appropriate for this reimagined role, as it foreshadows what the future profile of successful marketers should encompass. Another major question is whether CEOs and their senior exec- utive team will expand their ideas of what marketing can accom- plish. CEOs tend to see marketing as a department that comes into play after the product has been made, and thus their primary job is to help sell the product or service. I would argue instead that mar- keting must be seen as having a key role in, and responsibility for, setting the strategic direction for the firm. Management guru Peter Drucker said it best over thirty years ago: “A company has only two basic functions: innovation and marketing.” I believe this still to be true, and thus marketing has to truly become a strategic asset so companies can extract the full value out of this important function.