Partnering for performance Part 4: the CFO and the [`a]^eYjc]laf_g^Õ[]j The CFO’s role
The CFO’s role has undergone a transformation. We believe that the
six segments on the right represent the breadth of the CFO’s remit today. Yd t]jn Tj ]p mkt The leading CFOs we work with typically have some involvement in each T h] in_ g t th E N t ] ] of these segments — either directly or through their team. While the _ dY[ nm E tin h m X Y ]t Z weighting of that involvement will depend on the maturity and ambition i[ jk ] n Y jk E M m m m C g^l`]af\ana\mYd$gfl`]k][lgjYf\k[Yd]g^l`]ÕfYf[]^mf[lagf$Yf\gf P m g J]hj]k]flaf_ =fkmjaf_Zmkaf]kk ; U economic conditions, each segment is critical to effective leadership. O l`]gj_YfarYlagfÌk \][akagfkYj] hjg_j]kkgf grounded in T L kljYl]_a[_gYdk kgmf\ÔfYf[aYd I E lg]pl]jfYd [jal]jaY klYc]`gd\]jk O q V _ ] N t E Y 1 j 6 P t j k g
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;`a]^:jYf\G^Õ[]j, Finance Director, D Airtel Woolworths Holdings Limited, Funding$]fYZdaf_ Leading key South Africa Yf\]p][mlaf_ initiatives afÕfYf[] Kurt Binder kljYl]_qk]l l`Ylkmhhgjlgn]jYdd F m Zql`];=G kljYl]_a[_gYdk CFO, VIZIO Benjamin Karsch n d in j Executive Vice President, _ ] g jd Charlie Bracken j_ g ;`a]^EYjc]laf_G^Õ[]jg^ Yn in ir ] Executive Vice President and Yt mk Revlon Consumer ign hg Yd mj ;g%;`a]^>afYf[aYdG^Õ[]j, ktjY _ qg t]_q G]ttin Liberty Global Kurt Kuehn E CFO, United Parcel Service N T Teresa Finley A B L E M E N Senior Vice President of Joost Quist Global Marketing, CFO, SHV Energy China United Parcel Service Partnering for performance
The Partnering for performance series explores ways in which CFOs can grow, protect and transform their organization by partnering with the leaders of different functions. In this — the fourth part of the series — we explore the relationship between the CFO and the chief eYjc]laf_g^Õ[]j ;EG!&AfhYjla[mdYj$o]^g[mk on the contribution that CFOs are making to four vital marketing-related activities: • Customer segmentation and insight • Marketing return on investment • Optimizing the product portfolio • Digital governance GmjÕf\af_kYj]ZYk]\gfY_dgZYdkmjn]qg^ 652 CFOs, conducted by Longitude Research on behalf of EY, and a series of in-depth interviews In this report with CFOs, CMOs and EY professionals. CFO and CMO: a winning team in a digital world 2 >gjegj]afka_`lk^gj;>GkYf\^mlmj]ÕfYf[] Four CFO-CMO relationship success factors 8 leaders, visit ey.com/cfo. Four key activities for CFO-CMO collaboration • Aehjgnaf_[mklge]jk]_e]flYlagfYf\afka_`l )) • E]Ykmjaf_JGA^jgeeYjc]laf_Y[lanala]k ). • Ghlaearaf_l`]hjg\m[lhgjl^gdag *) • Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 1 CFO and CMO: a winning team in a digital world C]qÕf\af_kYZgmll`];>G%;EGj]dYlagfk`ah2 L`]eYbgjalq -, !g^l`].-*;>Gko]kmjn]q]\kYq[gddYZgjYlagfoal` the CMO has increased. Kaplq%l`j]]h]j[]flg^;>Gkj]hgjlaf[j]Yk]\afngdn]e]flafeYjc]laf_& :ml;>GkYdkg`a_`da_`lka_faÕ[Yflj]dYlagfk`ahZYjja]jk$af[dm\af_ l`]YZk]f[]g^[geegflggdk$hjg[]kk]kYf\CHAkYf\[gflafm]\ cultural differences. ;>Gkk]]l`]aj[gfljaZmlagfl`jgm_`Y[gkl%\ak[ahdaf]d]fk$af\a[Ylaf_ l`Yll`]k`a^llgYegj]nYdm]%\jan]feaf\k]l`Ykfglq]llYc]fhdY[]& Four CFO-CMO relationship success factors: 1 9_j]]gfl`]e]lja[kl`YleYll]j^gj]fl]jhjak]nYdm] 2 :ja\_]l`][mdlmjYd\ana\]Z]lo]]fl`]log^mf[lagfk 3 ;gddYZgjYl]gfeYjc]laf_ÌkYfYdqla[kljYfk^gjeYlagf 4 L]Yegfl`]eYjc]laf_hdYffaf_hjg[]kk ) Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 2 ;>GYf\;EG2Yoaffaf_l]YeafY\a_alYdogjd\ Alaklae]^gj;>Gklg_an]egj]Yll]flagflgl`];EG& Success in a digital world relies on the CFO and the CMO developing a [gddYZgjYlan]$^g[mk]\j]dYlagfk`ah& ;>GkYf\;EGk`Yn]fglljY\alagfYddqZ]]f[dgk]Ydda]k&L`akoYk$Y^l]jYdd$ Yj]dYlagfk`ahl`Yl[gmd\Z]hjgf]lgemlmYdaf[gehj]`]fkagfgjkaee]jaf_ [gfÖa[lgn]jZm\_]lYddg[Ylagfk& Setting the foundations: the evolving role of the CMO and CFO Gmj*(),_dgZYdj]k]Yj[`klm\qaflgl`][`Yf_af_jgd]g^l`];EG^gmf\l`Yl gfdq,+ g^;%kmal]]p][mlan]k^]dll`]j]oYkYkljgf_Zgf\Z]lo]]fl`];EG L`]^gmf\Ylagfk^gjY[dgk]jj]dYlagfk`ahZ]lo]]fl`];>GYf\;EGYj] Yf\l`];>G$[gehYj]\oal`.( o`g^]dll`]j]oYkYkljgf_;EG%;=GZgf\&) Ydj]Y\qZ]af_]klYZdak`]\& :mlaflg\YqÌk\a_alYd][gfgeq$Ykljgf_ÕfYf[]%eYjc]laf_j]dYlagfk`ah[Yf =QÌk*(),klm\qaflgl`][`Yf_af_jgd]g^l`];EG$afngdnaf_egj]l`Yf kh]ddl`]\a^^]j]f[]Z]lo]]f`a_`%_jgol`gj_YfarYlagfk$Yf\l`gk]l`Yl 0((eYjc]laf_Yf\kYd]kd]Y\]jk$Yf\;%kmal]]p][mlan]k$^gmf\l`Yl klY_fYl]gjYj]d]^lZ]`af\&:mkaf]kkeg\]d[gehd]palq`Ykaf[j]Yk]\$Yf\ \a_alYdl][`fgdg_a]k`Yn]j]ngdmlagfar]\l`];EGÌkbgZ$oal`]ehgo]j]\ * [geh]lalgjk[Yf]e]j_]^jgemf]ph][l]\hdY[]k& Yf\af^gje]\[mklge]jk[Yddaf_l`]k`glkdac]f]n]jZ]^gj]& More \]eYf\af_[mklge]jkYj]j]imajaf_f]okcaddk^gjeYjc]l]jk$hYjla[mdYjdq >gj]pYehd]$hmj]o]Z%ZYk]\k]jna[]hjgna\]jkYj]]fl]jaf_eYfqeYjc]lk o`]fal[ge]klg[Yhlmjaf_Yf\afl]jhj]laf_\YlYÈljY\alagfYddqYÕfYf[]% oal`gmll`][gklZmj\]fg^g^Õ[]gjkYd]kf]logjck$_anaf_l`]eYfafklYfl d]\\geYaf& [geh]lalan]Y\nYflY_]&AfZmkaf]kk%lg%[gfkme]j :*;!eYjc]lk$l`]jak]g^hja[] ;gfn]jk]dq$=QÌk*()(DNA of the CFO3ÈZYk]\gfYkmjn]qg^f]Yjdq [gehYjakgfkal]k`Ykhmlhj]kkmj]gfeYj_afkYf\[geeg\alar]\hjg\m[lk$ /((;>GkYjgmf\l`]ogjd\ÈYdkgk`go]\l`YlÕfYf[]oYkZ][geaf_ ^gj[af_gj_YfarYlagfklgj]]nYdmYl]l`]ajeYjc]laf_kljYl]_a]kYf\Zgllgedaf]& egj][dgk]dqafngdn]\afl`]kljYl]_a[_jgol`Y_]f\Y$oal`Yl`aj\ 3 9f\o`]j]Yk`aklgja[YddqeYjc]laf_\]hYjle]flk`Yn]]nYdmYl]\l`]aj hdYqaf_YfY[lan]jgd]af\]n]dghaf_Yf\\]Õfaf_gn]jYddkljYl]_q& [mklge]jkÌoYflk$f]]\kYf\Z]`Ynagjkl`jgm_`^g[mk_jgmhkYf\[gjj]dYlagfk L`akaf[j]Yk]\^g[mkgf\]dan]jaf__jgol`Yf\nYdm]`YkZjgm_`ll`] Z]lo]]fhjgeglagfYd[YehYa_fkYf\kYd]k$fgokgh`akla[Yl]\YfYdqla[klggdk ;>G[dgk]jlgeYjc]laf_ÌkljY\alagfYdko]]lkhgl& [Yfhjgna\]\YlY%\jan]f$hj]\a[lan]eg\]dkl`Yldggcegj]dac]Yfgmlhml^jge *& Competition, coexistence or symbiosis? The DNA of C-suite sales and marketing leaders, =Q$*(),& l`]ÕfYf[]\]hYjle]fll`Yf^jgeeYjc]laf_& 3. L`] )& The DNA of C-suite sales and marketing leaders, =Q$*(),& Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 3 ;>GYf\;EG2Yoaffaf_l]YeafY\a_alYdogjd\ Collaboration is growing, but not quickly enough Chart 2: What are the main reasons you are collaborating more closely with the CMO? (Please select up to three) 9eYbgjalqafgmjkmjn]qg^.-*;>GkkYql`Yll`]aj[gddYZgjYlagfoal`l`] ;EG`Ykaf[j]Yk]\gn]jl`]hYkll`j]]q]Yjk k]];`Yjl)!& Changes in marketing strategy 33 Chart 1: Over the past three years, what change has there been to the extent that you collaborate with the CMO? New products and services 29 Change/plans for change in the operating model To a much greater extent 14 28 or organizational structure of the business Need for a better understanding of the return To a slightly greater extent 40 28 from marketing activities Need for better understanding of performance No change 34 26 of product/service portfolio To a slightly lesser extent 9 Shift to digital within the business 25 Need for a more rigorous understanding of customer To a much lesser extent 3 24 segments and drivers of customer behavior % 0 5 10 15 20 25 30 35 40 45 Change/plans for change in geographical 20 footprint of the business ;>GkhgafllgÊ;`Yf_]kafeYjc]laf_kljYl]_qÊYf\l`]f]]\^gjÊF]o hjg\m[lkYf\k]jna[]kÊYkl`]lghlog\jan]jkg^_j]Yl]j[gddYZgjYlagf Volatile customer demand 17 Z]lo]]f;>GkYf\;EGk k]];`Yjl*!& Launch/relaunch of brand 16 While the CFO and CMO have not traditionally ;`Yf_]g^[`a]^eYjc]laf_g^Õ[]j 15 Z]]f[dgk]Ydda]k$al`YkYdd[`Yf_]\lg\Yq& % 0 5 10 15 20 25 30 35 Afl`]`qh]j%[geh]lalan]\a_alYd][gfgeq$ Y[dgk]ÕfYf[]%eYjc]laf_[gff][lagf[Yf ]fYZd]Z]ll]j[mklge]j]ph]ja]f[]kYf\ hjgÕlYZd]$kmklYafYZd]_jgol`& Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 4 ;>GYf\;EG2Yoaffaf_l]YeafY\a_alYdogjd\ CmjlCm]`f$;>GYlMHK$kYqkY\akjmhl]\eYjc]l]fnajgfe]flak\janaf_l`ak af[j]Ykaf_Yda_fe]fl&ÉOal`[`Yff]d%k`a^laf_Yf\hjgda^]jYlagfafl`]\a_alYd 9ajl]d2_dgZYdl]d[gËkafn]kle]flY_]f\Ymfal]kÔfYf[] ogjd\$[mklge]jk[Yfafl]j^Y[]oal`l`][gehYfqafdglkg^\a^^]j]fl^gjeYlk& and marketing Alhmlkhj]kkmj]gfYddg^mklgmf\]jklYf\l`]Z]kloYqlg\jan]\]eYf\Yf\ l`]fe]]lalo`ad]Z]af_[gkl%]^^][lan]&Ê Afj][]flq]Yjk$l]d][geemfa[Ylagfk[gehYfa]k`Yn]afn]kl]\`]Ynadq afYk]ja]kg^kh][ljmeYm[lagfk$o`]j]Zq_gn]jfe]fl%gof]\YajoYn]k LgY[`a]n]hjgÕlYZd]$kmklYafYZd]_jgol`$l`];>GYf\;EGf]]\lg[gddYZgjYl] Yj]kgd\lgZa\\af_gj_YfarYlagfk&AfAf\aYaf*()-$oaj]d]kk[gehYfa]k Yf\[gfljaZml]l`]aj\a^^]j]flkcaddkYf\h]jkh][lan]k&L`]kl]j]glqha[Yd;>GYf\ afn]kl]\MK )0ZafYajoYn]kafo`YloYkYj][gj\%Zj]Ycaf_kYd]g^ ;EGYj]n]jq\a^^]j]flafl]jekg^h]jkgfYdalqlqh]kYf\kcaddk]lk$o`a[`eYq _gn]jfe]fl%gof]\kh][ljme&4 ]phdYafl`]h]jkakl]f[]g^l`]\ana\]Z]lo]]fl`]log& >gj9ajl]d$YfAf\aY%`]Y\imYjl]j]\_dgZYdl]d][geemfa[Ylagfk[gehYfq$ @go]n]j$o]Ydkgcfgol`YleYfY_]e]fll]Yekl`Yl`Yn]\an]jk]l`afcaf_ [dgk][gddYZgjYlagfZ]lo]]fÕfYf[]Yf\eYjc]laf_`YkZ]]fYf h]j^gjeZ]ll]j&L`]j]^gj]$l`]n]jq\a^^]j]f[]kl`Yl`Yn]kgdgf_c]hlÕfYf[] ]kk]flaYdhYjlg^^gjemdYlaf_YZa\\af_kljYl]_qYf\Yda_faf_dgf_%l]je Yf\eYjc]laf_YhYjl$eYqaf^Y[lhYq\ana\]f\ko`]fl`][`Ydd]f_]kg^l`] [mklge]jY[imakalagfkljYl]_qoal`l`]kh][ljmej]imaj]\&ÉGmj;>G hYjlf]jk`ahYj]eYfY_]\&>gj]pYehd]$ÕfYf[]ÌkjakceYfY_]e]fl\ak[ahdaf] akn]jq[dgk]dqafngdn]\oal`l`]eYjc]laf_^mf[lagf$hYjla[mdYjdqaf Yf\eYjc]laf_Ìk[mklge]j%\jan]faffgnYlagf[YhYZadalqkalYlghhgkal]]f\kg^ Yj]Ykl`YlY^^][ll`]^mf[lagf\aj][ldq$dac]l`]kh][ljmeYm[lagf$ÊkYqk Eg`al:]gljY$;`a]^:jYf\G^Õ[]jYl9ajl]d& l`]k[Yd]$Yf\emklZ]ZYdYf[]\& @Ynaf_Y[d]Yjhgaflg^na]ogfl`]_gYdkYf\gZb][lan]kak]kk]flaYd$ Y[[gj\af_lg:]gljY&ÉQgmf]]\lgZmql`]ja_`lkh][ljmeYll`]ja_`l eYjc]lYll`]ja_`lhja[]$Ê`]kYqk&É9f\l`YlakZgl`YeYjc]laf_ \][akagfYf\YÕfYf[aYd\][akagf&Ê 4. ÉJ][gj\Af\aYfkh][ljmeYm[lagfk]llgkhmjl]d][gek[gfkgda\YlagfÊ$ Financial Times, EYj[`+($*()-& Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 5 ;>GYf\;EG2Yoaffaf_l]YeafY\a_alYdogjd\ Barriers that threaten the performance of the A closer connection to the CMO, but not close enough CFO-CMO partnership In the last three years: Top two drivers of collaboration: Despite the strong rationale for a closer CFO-CMO union, our survey shows l`Ylegklgj_YfarYlagfkYj]Ydgf_oYq^jgej]Ydaraf_l`akhgl]flaYd&>ajkldq$ ÕfYf[]Yf\eYjc]laf_kladdk]]ehgd]kYhYjlo`]fal[ge]klg\]Õfaf_ 1 Changes in emlmYddqmf\]jklgg\lggdk$hjg[]kk]kYf\c]qh]j^gjeYf[]af\a[Ylgjk CHAk! marketing k]];`Yjl+!& strategy Chart 3: What do you consider to be the main barriers preventing a closer relationship with the CMO? (Select up to three) 2 New products DY[cg^[geegflggdkYf\hjg[]kk]k 33 report greater and services 54% collaboration with the CMO L`]YZk]f[]g^Y[d]Yjk]lg^CHAk l`YldafcÕfYf[aYdh]j^gjeYf[]Yf\ 32 the marketing agenda ;mdlmjYd\a^^]j]f[]kZ]lo]]f 31 Three barriers to a more effective collaboration ÕfYf[]Yf\eYjc]laf_ DY[cg^h]j[]an]\nYdm]g^l`ak 29 1 caf\g^[gddYZgjYlagf CFOs say Lack of common The need for CFOs to maintain objectivity 29 tools and processes DY[cg^ÕfYf[]j]kgmj[]klg\]\a[Yl] 26 2 to the marketing agenda Absence of clear KPIs dafcaf_ÕfYf[aYdh]j^gjeYf[] EYjc]laf_aklgg\a^Õ[mdllgimYfla^q 25 and the marketing agenda I do not perceive any barriers 10 3 % Cultural differences 0 5 10 15 20 25 30 35 Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 6 ;>GYf\;EG2Yoaffaf_l]YeafY\a_alYdogjd\ L]j]kY>afd]q$K]fagjNa[]Hj]ka\]flg^?dgZYdEYjc]laf_YlMHK$kYqkl`Yl Chart 4: In which of the following areas do you consider your contribution to eYjc]l]jkf]]\lgY[[]hll`Yll`]q\gfglYdoYqk_]lh]j^gjeYf[]af\a[Ylgjk marketing to be most valuable? (Select up to three) ja_`l&ÉL`][jalaim]ZY[clgeYjc]laf_akl`Ylo]lYdcYZgmlj]n]fm]Yf\lgh%daf] _jgol`$Yf\[YfZ]_madlqg^a_fgjaf_eYj_afYf\imYdalqg^j]n]fm]Yf\mdlaeYl]dq EYfY_af_[gklkYf\hjgÕlYZadalq 39 _jgol`g^hjgÕlYZadalq&D]Y\af_af\a[YlgjkÈn]jkmkdY__af_hjgÕlaf\a[YlgjkÈYj] YdkgYfaehgjlYfl[gfka\]jYlagf^gjeYfY_af__jgol`h]j^gjeYf[]&É Setting budgets 36 K][gf\dq$l`][mdlmjYdakkm]kl`Yl`Yn]hdY_m]\l`]j]dYlagfk`ahZ]lo]]f ÕfYf[]Yf\eYjc]laf_Ydkgj]eYafYlgh%l`j]]ZYjja]j& Measuring performance 27 L`aj\dq$\]khal]l`]_jgoaf_]eh`YkakgfnYdm][j]Ylagfafl`]ÕfYf[]jgd]$ eYfq;>Gkkladdk]][gkleYfY_]e]flYkl`]ajZa__]kl[gfljaZmlagf&ÊEYfY_af_ Financing 26 [gklkYf\hjgÕlYZadalqÊakk]]fZq+1 g^;>GkYkl`]egklnYdmYZd][gfljaZmlagf l`]qeYc]lgeYjc]laf_$o`ad]gfdq*- [al]É=fkmjaf_nYdm]j]YdarYlagf&Ê Ensuring value realization 25 :gl`[gkl\ak[ahdaf]Yf\nYdm][j]YlagfoaddZ]]kk]flaYdlgl`]km[[]kkg^ Building the business case 23 l`];>Gjgd]&:ml[d]Yjdql`]j]akegj]l`Ylf]]\klgZ]\gf]lgZYdYf[]l`] for new initiatives aehgjlYf[]g^[gkl\ak[ahdaf]oal`Y[gfljaZmlagflgl`]kljYl]_a[\aj][lagfg^ Determining the level of ambition and eYjc]laf_Yf\alkjgd]af\]dan]jaf_dgf_%l]je$hjgÕlYZd]_jgol`& 22 risk appetite for new initiatives Resourcing and human capital 21 Setting the agenda for change 19 Change management 17 % 0 5 10 15 20 25 30 35 40 45 Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 7 Four CFO-CMO relationship success factors O`Yl[YfÕfYf[]Yf\eYjc]laf_d]Y\]jk\glg\]n]dgh a more effective and collaborative relationship? We identify four relationship success factors. 1. Agree on the metrics that matter for enterprise value L`];>GYf\;EGk`gmd\[gddYZgjYl]lg\]Õf]h]j^gjeYf[]e]lja[kl`Yl [gfljaZml]lgl`]]fl]jhjak]ÌkkljYl]_a[gZb][lan]k&>afYf[]d]Y\]jkoaddf]]\ lgZ]eaf\^mdlgaf[dm\]Zgl``Yj\ÕfYf[aYde]Ykmj]kYf\egj]fmYf[]\$ fgf%ÕfYf[aYde]Ykmj]klgYkk]kk^Y[lgjkkm[`YkZjYf\]imalq& Viewing marketing through two measurement lenses Cmjl:af\]j$;>GYlNARAG$Z]da]n]kl`Yl;>Gkf]]\lgna]oeYjc]laf_ l`jgm_`logd]fk]ko`]f]nYdmYlaf_aehgjlYflafalaYlan]kl`Yl`Yn] \a^^]j]fle]Yfkg^e]Ykmjaf_l`]ajj]lmjf&ÉL`]Õjkld]fkak`goY eYjc]laf_afn]kle]flaehY[lkl`]ZjYf\lg\jan]dgf_%l]je]imalq$ nYdm]Yf\dgqYdlql`Ylaflmjf^m]d[gfkme]j\]eYf\^gjgmjhjg\m[lk& L`YlÌk[jala[YddqaehgjlYfl$Yf\l`YlÌkYfafn]kle]fll`Yl[YfZ] [`Ydd]f_af_lge]Ykmj]\aj][ldqZmlqgm[Yf_]lYlall`jgm_`af\aj][l ^]]\ZY[cdac]ZjYf\klm\a]kl`Yle]Ykmj]ZjYf\YoYj]f]kk$hj]^]j]f[]$ Yf\j][gee]f\YlagfjYl]kgn]jlae]&L`]gl`]jd]fklg[gfka\]jak`go YeYjc]laf_afn]kle]fl[YfY[[]d]jYl]k`gjl%l]jek]dd%l`jgm_`mkaf_ hja[af_Yf\hjgeglagflg`]dheYfY_][`Yff]dafn]flgjqafdaf]oal` l`]kmhhdq[`Yaf&:gl`lqh]kg^afn]kle]flYj]aehgjlYfllg\jan]l`] gn]jYddZmkaf]kk$kgqgmÌn]_gllg_]lY_gg\ZYdYf[]lg]fkmj]qgmÌj] YZd]lgZ]faeZd]Yf\Y\bmkllgk`gjl%l]je[`Yf_]kafl`]eYjc]lo`ad] * kladdZmad\af_hj]^]j]f[]Yf\\]eYf\^gjqgmjZjYf\gn]jl`]dgf_jmf&Ê Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 8 Four CFO-CMO relationship success factors ÉA^e]lja[k^gjl`]eYjc]laf__jgmhYj]]al`]jfgf%]pakl]flgjhmj]dq[j]Ylan]% ZYk]\$l`]fqgmÌj]fgl_gaf_lg_]l^g[mk]\afn]kle]flYf\]^^gjlgfl`] Connect four for a fruitful CFO-CMO collaboration l`af_kl`Yl\jan]l`]`a_`]klj]lmjfgfafn]kle]fl$ÊkYqk:]fbYeafCYjk[`$ ;EGg^J]ndgf;gfkme]j&ÉAlÌkl`];EGYf\;>Glg_]l`]jo`g\jan]nYdm] [j]Ylagf$hjgÕl$Yf\ÕfYf[aYdj]lmjfgfafn]kle]flYkl`]e]lja[kZqo`a[` Performance Culture eYjc]l]jkk`gmd\Z]e]Ykmj]\Yf\j]oYj\]\&Ê Agree on the Bridge the performance cultural divide 2. Bridge the cultural divide between the two functions metrics that drive and measure Lgj]khgf\lglg\YqÌk^Ykl%[`Yf_af_eYjc]l]fnajgfe]fl$gj_YfarYlagfkf]]\ on Co success ti nn `a_`d]n]dkg^[gddYZgjYlagfYf\ljmklZ]lo]]fÕfYf[]Yf\eYjc]laf_&;mdlmjYd ec e n c n t io \anakagfk[Yf\]kljgqljmklYf\j]kmdlaf]Y[`\ak[ahdaf]j]^mkaf_lg[gddYZgjYl] o n C Y[jgkkgj_YfarYlagfYdZYjja]jk& C n o o i n BggklImakl$;>GYlK@N=f]j_q;`afY$Z]da]n]kl`Yl;>Gkf]]\lghdYqYf t n c e e c n t n i Y[lan]jgd]afZja\_af_\a^^]j]f[]kZ]lo]]fl`]log^mf[lagfk&L`akakYZgml o o n C j][g_faraf_l`]\a^^]j]fleaf\k]lkg^]Y[`_jgmhYf\]f[gmjY_af_\aYdg_$ o`ad][d]Yjdq[geemfa[Ylaf_l`]gj_YfarYlagfÌkkljYl]_a[hjagjala]kYf\ Strategy Analytics risk tolerance. L]Yegfl`]eYjc]laf_hdYffaf_ ;gddYZgjYl]gfeYjc]laf_Ìk hjg[]kklgZmad\Yda_fe]floal` analytics transformation ÉEYjc]laf_Yf\kYd]kh]ghd]Yj]em[`egj]]pljgn]jl]\&AfÕfYf[]$qgmoYfl corporate priorities and changes o`ad]Yda_faf_oal`l`]gn]jYdd h]ghd]l`YlYj]YZalegj][gfk]jnYlan]$Ê`]kYqk&É9kY;>G$qgm[YfgfdqZ] in strategic direction business strategy km[[]kk^mda^qgm[Yfhmlqgmjk]d^gfZgl`ka\]kYf\c]]hqgmjZY[ckljYa_`l ^gjl`]l`af_kqgml`afcYj]aehgjlYfl^jgeYo`gd]%[gehYfqh]jkh][lan]& ÉAljqlg[j]Yl]YemlmYdYoYj]f]kk$kgl`YleYjc]laf_Yf\kYd]kmf\]jklYf\ ÉEqe]kkY_]lg;>GkYf\ÕfYf[]h]ghd]aklgj]Ydar]`go l`]dg_a[g^o`ql`][gehYfq\g]kfÌloYfl[]jlYafjakck&Dac]oak]$alak jYha\dql`]ogjd\g^eYjc]laf_`Yk]ngdn]\&A^qgmkladd aehgjlYfll`YlÕfYf[]mf\]jklYf\kl`Yl[]jlYafjakc%lYcaf_akh]jeakkaZd]& `Yn]l`akhYjY\a_e^jgeq]YjkY_gl`YlalÌklgm[`q%^]]dq Yf\fgf%imYflaÕYZd]$qgm`Yn]fÌlZ]]fhYqaf_Yll]flagf&Ê Aljqlg_]lh]ghd]afk]fagjhgkalagfklg`Yn]egj][gfn]jkYlagfkYZgmlo`Yl akhgkkaZd]$gj`gol`]q[YfZ]eY\]hgkkaZd]$o`ad]kladdhjgl][laf_l`]daealk&Ê Kurt Kuehn, CFO at UPS Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 9 Four CFO-CMO relationship success factors 3. Collaborate on marketing’s analytics transformation 4. Team on the marketing planning process EYjc]laf_akmf\]j_gaf_Yka_faÕ[YflljYfk^gjeYlagfYkYj]kmdlg^l`] =^^][lan]eYjc]laf_hdYffaf_ak]kk]flaYd^gj\janaf_hjgÕlYZd]_jgol`$hmk`af_ ]phdgkagfg^Za_\YlYYf\Y\nYf[]\YfYdqla[k&@go]n]j$^gj;EGk$Y[`a]naf_ l`]gj_YfarYlagflgk]lklj]l[`af__gYdkYf\afna_gjYlaf_l`]YhhjgY[`Zq Yd]Y\]jk`ahhgkalagfaf[gdd][laf_$eYfY_af_Yf\eafaf_\YlY^gjeYjc]laf_ dggcaf_Z]qgf\o`Yl`Ykogjc]\o]ddafl`]hYkl&>afYf[]Ìkafngdn]e]fl$]Yjdqaf hmjhgk]kakY[gehd]pmf\]jlYcaf_& l`]hjg[]kkYf\gf_gaf_l`jgm_`gmll`][q[d]$[Yf`]dh]fkmj]l`YleYjc]laf_Ìk kljYl]_a[hdYffaf_akYda_f]\oal`]fl]jhjak]gZb][lan]k$Yf\akY\bmkl]\lge]]l ÉO]k]]dYj_]kcaddkYf\[geh]l]f[q_YhkafeYfqgj_YfarYlagfk$Ê`]kYqk& ÉAlÌkfgll`Yll`]qf]]\lgÕf\l`]f]plhagf]]jaf_ha][]g^l][`fgdg_qlg `]dhl`]e&L`YlÌk]Ykq&AlÌkl`]^Y[ll`Yll`]q[YfÌlljYafgjÕf\l`]h]ghd] l`]qf]]\&;>GkYj]fgoegj]afngdn]\afl`akkhY[]kgl`]q[YfeYc]egj] kljYl]_a[\][akagfkYjgmf\[YhYZadalq\]n]dghe]flafn]kle]flk&Ê 9kljgf_[gddYZgjYlagfZ]lo]]fl`];>GYf\l`];EG[Yf`]dh]fkmj] l`]\]n]dghe]flg^YfYdqla[k[YhYZadala]kafeYjc]laf_ak[ggj\afYl]\oal` ]fl]jhjak]%oa\]]^^gjlkYf\afn]kle]flk& Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 10 Improving customer segmentation and insight C]qÕf\af_kYZgmll`];>GÌkjgd]afaehjgnaf_[mklge]j segmentation and insight: Kaplq%gf]h]j[]flg^;>GkeYc]aehjgnaf_[mklge]jk]_e]flYlagf and insight a priority. :mld]kkl`Yf`Yd^ ,/ !^]]dl`]qeYc]Yka_faÕ[Yfl[gfljaZmlagflg this activity. L`ak[gfljaZmlagf\qfYea[[`Yf_]koal`k]fagjalq2egj]l`Yf`Yd^ -) !g^?jgmh;>GkkYql`]qeYc]Yka_faÕ[Yflgjn]jqka_faÕ[Yfl [gfljaZmlagfafl`akYj]Y$[gehYj]\oal`+1 g^ Four customer segmentation and insight priorities for the CFO and CMO: 1 D]Y\jgZmkljakceYfY_]e]flYhhjgY[`lg[mklge]j\YlY 2 Afn]klafl`]kcaddkf]]\]\lglmjf[mklge]j\YlYaflgafka_`l 3 =klYZdak`_gn]jfYf[]hjaf[ahd]k^gj[mklge]jYfYdqla[k[YhYZadalq 4 =fkmj]l`][mklge]jafka_`lYhhjgY[`ak\jan]fZqZmkaf]kkkljYl]_q 3 Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 11 Aehjgnaf_[mklge]jk]_e]flYlagfYf\afka_`l L`]]phdgkagfg^Za_\YlY`YkeY\][mklge]jk]_e]flYlagfYf\afka_`lY C]qÕf\af_kYZgmll`];>Gjgd]af[mklge]j [jala[Ydkgmj[]g^[geh]lalan]\a^^]j]flaYlagf&EYfqgj_YfarYlagfk$`go]n]j$ Yj]ja[`af[mklge]j\YlYZmlhggjafZmkaf]kkafl]dda_]f[]&L`];>GhdYqk segmentation and insight YfaehgjlYfljgd]aflmjfaf_\YlYaflgY[lagfYZd]afka_`l$o`ad]eYfY_af_ L`]eYbgjalqg^l`].-*ÕfYf[]d]Y\]jko]kmjn]q]\eYc]aehjgnaf_ ka_faÕ[Yfl\YlYjakck& [mklge]jk]_e]flYlagfYf\afka_`lYhjagjalq k]];`Yjl-!& ;mklge]jk]_e]flYlagfYf\afka_`lda]Yll`]`]Yjlg^dYklaf_Yf\ Chart 5: Over the next three years, how much of a priority will hjgÕlYZd][mklge]jj]dYlagfk`ahk$Yf\`Yn]dgf_Z]]fc]qlgh]j^gjeYf[] improving customer segmentation and insight be for your organization? Yf\[geh]lalan]\a^^]j]flaYlagf&Lg\Yq$gj_YfarYlagfk`Yn]Y[[]kklg mfhj][]\]fl]\Yegmflkg^[mklge]j\YlY$Yf\Ykl`]hjgda^]jYlagfg^ÉkeYjlÊ Very high priority 20 l][`fgdg_q[gflafm]klgmf^gd\$l`akngdme]oaddaf[j]Yk]&L`ak\YlYhj]k]flk ka_faÕ[Yflghhgjlmfala]k^gjl`];>GYf\;EGlg]pljY[lafka_`lklgZmad\dgf_% High priority 41 l]jehjgÕlYZd]_jgol`& :qYhhdqaf_Y\nYf[]\YfYdqla[kl][`faim]klg[mklge]j\YlY$gj_YfarYlagfk Medium priority 30 [YfY[`a]n]f]od]n]dkg^kgh`akla[Yl]\[mklge]jk]_e]flYlagf$Z]qgf\l`] mkmYd_jgmhaf_kg^Y_]$_]f\]jgjaf[ge]&L`akY\nYf[]\k]_e]flYlagf[Yf Low priority 7 \jan]_jgol`l`jgm_`aehjgn]\eYjc]laf_$[mklge]jk]jna[]kYf\hjg\m[l affgnYlagf&9k[gjhgjYl]_dgZYdarYlagf[gflafm]kYf\l`]Égf]%kar]%Õlk%YddÊ Very low priority 2 YhhjgY[`Z][ge]kd]kk[geegf$\]lYad]\[gfkme]jafka_`lkoaddg^^]jafjgY\k % to opportunity. 0 5 10 15 20 25 30 35 40 45 Q]l$Yll`]kYe]lae]$l`]ngdme]$n]dg[alqYf\nYja]lqg^l`ak\YlYakkg ka_faÕ[Yfll`Ylal[YfZ]gn]jo`]deaf_&;gehYfa]k]n]jqo`]j]Yj]kljm__daf_ oal``gol`]q[Yf[gdd][lYf\YfYdqr]l`ak\YlYYf\$egj]aehgjlYfldq$mk] allg\jan]Z]ll]j\][akagfk&L`];>Gda]kYll`][]fl]jg^l`]k]]^^gjlk$oal`Y “ You can have the best data and insights in the world, ^g[mkgf\janaf_]fl]jhjak]nYdm]Yko]ddYkeYfY_af_l`]jakckYkkg[aYl]\oal` and the best technology and tools, but what you [mklge]j\YlY& need is for someone to do something differently as a result of those insights. So it’s about behavioral and process change as well as technology.” Chris Mazzei$?dgZYd;`a]^9fYdqla[kG^Õ[]j$=Q Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 12 Aehjgnaf_[mklge]jk]_e]flYlagfYf\afka_`l ;`Yjda]:jY[c]f$=p][mlan]Na[]Hj]ka\]flYf\;g%;`a]^>afYf[aYdG^Õ[]j$ Four customer segmentation and insight priorities for DaZ]jlq?dgZYd$l`]afl]jfYlagfYd[YZd][gehYfq$Z]da]n]kl`Yl[mklge]jafka_`l ak]kk]flaYd^gjZmad\af_dgf_%l]jenYdm]&É9kY;>G$alÌk[]jlYafdqaehgjlYfl$Ê`] the CFO and the CMO kYqk&ÉA^kge]gf]kYqk$ËAÌe_gaf_lg\gYf]ohjg\m[l$ÌYf\qgmYkcl`]e`go 1. Lead a robust risk management approach to customer data l`]qYj]_gaf_lgegf]lar]al$l`]j]khgfk]akg^l]fËA\gfÌlcfgo$ÌYf\l`YlÌk o`]fqgmcfgoqgmÌn]_glYhjgZd]e&L`];EGf]]\klgcfgol`][mklge]j$ J]_mdYlgjkYj][Yj]^mddqk[jmlafaraf_gj_YfarYlagfkÌmk]g^[mklge]j\YlY&9f o`Yll`][mklge]joYflk$`goo][Yfegf]lar]gmjafn]kle]flkYf\o`Yl ]pYehd]g^l`ak[YfZ]k]]faf=mjgh]Ìk*(),afljg\m[lagfg^l`]Éja_`llgZ] afn]kle]flko]k`gmd\hjagjalar]&Ê ^gj_gll]fÊjmdaf_&L`]EYq*(),jmdaf_Zql`]=mjgh]Yf;gmjlg^Bmkla[]_Yn] [alar]fkl`]ja_`llgYkcafl]jf]lk]Yj[`]f_af]klgj]egn]]eZYjjYkkaf_gj :ml\]khal]j][g_faraf_[mklge]jafka_`lYkYhjagjalq$ÕfYf[]d]Y\]jkYj] k]fkalan]j]kmdlk^gjim]ja]kl`Ylaf[dm\]l`]ajfYe]&- fglYdoYqkeYcaf_l`][gfljaZmlagfl`Yll`]qk`gmd\&D]kkl`Yf`Yd^ ,/ !g^ l`].-*;>Gko]kmjn]q]\^]]dl`]qeYc]Yka_faÕ[Yflgjn]jqka_faÕ[Yfl AfY\\alagf$f]o\YlYhjanY[qdYokhjghgk]\Zql`]=mjgh]Yf;geeakkagf [gfljaZmlagflgaehjgnaf_[mklge]jk]_e]flYlagfYf\afka_`l k]];`Yjl.!& Yj]]ph][l]\lg[ge]aflg^gj[]af*()/&L`]k]oaddaf[j]Yk]Zmkaf]kk]kÌ Gf]akkm]l`Yl;>Gk^Y[]akl`YlÕfYf[]^mf[lagfkqkl]ekYf\hjg[]kk]k j]khgfkaZadalq^gj[mklge]j\YlYYf\afljg\m[]kYf[lagfk^gjalZ]af_ Yj]_]Yj]\lgoYj\_]f]jYlaf_afka_`laflgh]j^gjeYf[]af\a[Ylgjkkm[`Yk [gehjgeak]\gjeakmk]\&L`]hjghgk]\j]_mdYlagf[gmd\aehgk]Õf]kYk`a_` hjgÕlYZadalq$jYl`]jl`Yfl`]n]jq\a^^]j]flaf^gjeYlagff]]\]\lgmf\]jklYf\ Yk* g^YffmYd_dgZYdlmjfgn]j& akkm]kkm[`Ykda^]lae][mklge]jnYdm]Yf\Z]`Ynagj& Chart 6: How much of a contribution do you make to improving customer CFOs and CMOs need to work together to make sure that they segmentation and insight? have the right data privacy measures in place. They should ask themselves the following questions: N]jqka_faÕ[Yfl[gfljaZmlagf 16 )& O`Ylngdme]kg^[mklge]j\YlY\go]`gd\7 Ka_faÕ[Yfl[gfljaZmlagf 31 *& Average contribution 32 3. How do our processes and controls stand in relation to international imYdalqklYf\Yj\k7 Small contribution 15 4. @Yn]o]Ykk]kk]\l`]aehY[lg^YZj]Y[`g^gmj[mklge]j\YlY7 -& O`YlkY^]_mYj\k\go]`Yn]afhdY[]^gjY[mklge]j\YlYZj]Y[`7 No contribution at all 6 .& @googmd\YZj]Y[`Z]j]hgjl]\Yf\o`Ylhjg[]kk]k\go]`Yn]af % 0 5 10 15 20 25 30 35 hdY[]^gjYeYbgjaf[a\]fl7 Lg\Yq$Yk;>Gkk]]clg\jan]hjgÕlYZd]_jgol`Yf\hjgl][lnYdm]$Yegj] []fljYdjgd]af[mklge]jafka_`l`YkZ][ge][jm[aYd& -& É?gg_d]afÕ_`llgklgh_dgZYdj]egnYdg^k]fkalan]dafck$ÊFinancial Times'^l&[ge$Bmdq*+$*(),& Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 13 Aehjgnaf_[mklge]jk]_e]flYlagfYf\afka_`l =QÌkEYrr]aZ]da]n]kl`Ylgj_YfarYlagfkf]]\lg[gfka\]jhmZda[ljmklYkhYjlg^ 2. Invest in the skills needed to turn customer data into insight l`]ajj]khgfk]&É;d]Yjdq$qgmf]]\lg[gfka\]j[qZ]jk][mjalqYf\l`][`Yf_af_ j]_mdYlgjqdYf\k[Yh]&:mll`]gl`]jYj]YakhmZda[ljmkl&L`akakYZgmlYkcaf_ =QÌk@gdklgfZ]da]n]kl`Ylgj_YfarYlagfkg^l]f`Yn]nYklYegmflkg^[mklge]j qgmjk]d^im]klagfkkm[`Yk2Ë?an]fgmjZjYf\$Yf\gmjhjgeak]lgl`]eYjc]l$ \YlY$Zmlkljm__d]lglmjfl`YlaflgZmkaf]kkafl]dda_]f[]&É;]jlYafk][lgjkYj] o`Yl\go]Z]da]n]akYhhjghjaYl]^gjmklg\goal`[mklge]j\YlY7ÌAlÌk \YlYja[`Yf\cfgod]\_]hggj$Ê`]]phdYafk&ÉL`]q`Yn]fÌlafn]kl]\afl`] kge]l`af_l`Yl[gff][lkoal`l`][gj]hmjhgk]g^l`]gj_YfarYlagf&Ê h]ghd]kcaddklgZ]YZd]lgljYfkdYl]l`Yl\YlYaflgY[lagfkl`]qf]]\lglYc]&Ê ;>GkYj]af[j]Ykaf_dqlYcaf_Yd]Y\af_jgd]afgn]jk]]af_l`]]fl]jhjak]Ìk hgjl^gdagg^YfYdqla[kafn]kle]flk$]fkmjaf_l`Ylegj]kljYl]_a[\][akagfkYj] “ We must really understand our end customers in eY\]Yjgmf\afn]kle]flkYf\[YhYZadalq\]n]dghe]fl&;>Gk[Yf]fkmj]l`] order to build the right products and solutions that \]n]dghe]flg^l`][mklge]jYfYdqla[k[YhYZadalqak[ggj\afYl]\oal`gl`]j YfYdqla[k_jgmhkoal`afl`]gj_YfarYlagf$o`ad]lYcaf_aflgY[[gmfll`]kh][aÕ[ address their needs. For example, we’ve seen that j]imaj]e]flkg^l`];EGYf\eYjc]laf_^mf[lagf& while Millennials consume content more frequently ?]f]jYlaf_[mklge]jafka_`lkj]imaj]kkh][aÕ[kcaddk$km[`Yke]Ykmjaf_l`] through mobile devices, the length that they watch aehY[lg^kg[aYde]\aYgjYkk]kkaf_l`]Z]`Ynagjg^[mklge]jkY[jgkkemdlahd] TV is growing year over year — it’s just across more [`Yff]dk&L`ak`Yj\\YlYk[a]f[]Ydkgf]]\klgZ]eYjja]\lgl`]kg^l]j ]d]e]flkg^eYjc]laf_$km[`Ykl`]f]]\^gj[mklge]jaffgnYlagfYf\l`] platforms than other segments of the population. ]eglagfYd[gff][lagfZ]lo]]f[mklge]jkYf\ZjYf\k& They consume more streaming content on their own schedule, and they’re more engaged across 3. Establish governance principles for customer analytics capability multiple screens, often simultaneously. So from that Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 14 Aehjgnaf_[mklge]jk]_e]flYlagfYf\afka_`l ÉL`]j]akYfaehgjlYfl\aklaf[lagfZ]lo]]fYfYfYdqla[kkljYl]_q$Yf\YZmkaf]kk kljYl]_qo`a[`j]da]kgfYfYdqla[klg^mf\Ye]flYddq[`Yf_]l`]kgmj[]kg^nYdm] “ Modern analytics means that we know more today, [j]Ylagf$ÊkYqk=QÌkEYrr]a&ÉOal`gmlYj]Yddq[d]Yjgj_YfarYlagfYdYfko]jlg but there’s still a gap. You need left-brain and l`YldYll]jim]klagf$qgm[Yf_gg^^afYdglg^\a^^]j]fl\aj][lagfk$kge]g^o`a[` ja_`l%ZjYafh]ghd]$kmal%Yf\%la]Yf\Öah%Öghh]ghd]$ eYqZ]hjg\m[lan]$gl`]jkfgl&Ê to collaborate. Accepting risk and uncertainty is Al[]jlYafdqakfglY_an]fl`YlYfYdqraf_[mklge]j\YlYoadd\]dan]j_j]Ylafka_`lk& hYjlg^l`]affgnYlagf]ngdmlagfl`Yll`]ÕfYf[] Af^Y[l$[mklge]jYfYdqla[keg\]dk[Yfg^l]f^Yadlg\]dan]jl`]afka_`lkl`Yl ]p][mlan]k`gh]\^gj$Z][Ymk]l`]eg\]dkmk]\Yj]\ak[gff][l]\^jgel`] function has to undergo too. So we need those \][akagfkl`Yl]p][mlan]kf]]\lgeYc]lg\]dan]jl`]gj_YfarYlagfÌkkljYl]_a[ skills and perspectives that marketing brings as _gYdk&:qZ]_affaf_oal`Y[d]Yjna]og^[gjhgjYl]kljYl]_qYf\\jan]jkg^nYdm]$ gj_YfarYlagfk[Yf^g[mkgfl`]\YlYl`]qoaddf]]\$Z]ll]jmf\]jklYf\o`Yl o]ddYkYfYdqla[kYf\imYdaÕ[Ylagf&Ê lggdkYj]f]]\]\lghjgh]jdqÉ[jmf[`ÊalYf\]fkmj]l`]kcaddkYf\[YhYZadala]k Kurt Kuehn, CFO, UPS are in place to exploit it. This increases the likelihood of turning data into _]fmaf][mklge]jafka_`lkl`Ylj]Yddq]f_Y_]k]fagjeYjc]laf_]p][mlan]kYf\ l`]d]Y\]jk`ahl]YeYf\afÖm]f[]c]qd]n]jkg^nYdm]& ÉL`]j]Yj]YfmeZ]jg^_gg\j]Ykgfk^gjkge]\]_j]]g^[]fljYdarYlagfoal` YfYdqla[kj]kgmj[]kYf\kcaddk$ÊkYqkEYrr]a&É?]f]jYddq$l`gm_`$qgm`Yn] Customer analytics: marrying decentralization with lgc]]hY^YajYegmfl[dgk]lgl`]^mf[lagfo`]j]YfYdqla[kakZ]af_Yhhda]\& cross-organizational collaboration Qgmf]]\lgklYjloal`l`]Zmkaf]kkhjgZd]el`Yll`]^mf[lagfakljqaf_lg kgdn]&L`akakZ]ll]jl`YfbmklYkcaf_2ËO`Yl\YlY\gA`Yn]Yf\o`Ylk`gmd\A MHKj][g_far]kl`]f]]\^gjlYadgj]\YfYdqla[k[YhYZadalq$ZmlakYdkg \goal`al7ÌL`Ylakg^l]fYj][ah]^gjkh]f\af_Ydglg^egf]qgfl][`fgdg_q [j]Ylaf_Y[geemfalqYhhjgY[`lg]f[gmjY_][gddYZgjYlagf&L`]Yae Yf\YfYdqla[kl`Ylea_`lfgld]Y\lgYfql`af_g^nYdm]&Ê aklgk`Yj]Z]klhjY[la[]o`ad]]fkmjaf_l`YleYjc]laf_`Ykl`]kh][aÕ[ [mklge]jafka_`lYf\k]_e]flYlagfYfYdqla[kalf]]\k&MHKÌk>afd]qkYqk2 9fmeZ]jg^gj_YfarYlagfkYj]mkaf_Y`mZ%Yf\%khgc]eg\]dlgY[`a]n] KNH?dgZYdEYjc]laf_YlMHK$kYqk2ÉO]Yj]ogjcaf_lgoYj\k[j]Ylaf_ l`akZYdYf[]&>gj]pYehd]$YlK9H$Y[]fljYdar]\[YhYZadalqoYk[j]Yl]\lg Y[geemfalq$oal`kge]gf]d]Y\af_aloal`l`]nakagflgafkhaj]Yf\ \jan][gfkakl]f[q$Zmll`][gehYfqYdkgmk]kYZmkaf]kkhYjlf]jeg\]dlg eYfY_]&L`Yloadde]Yfo]Zjaf_H` Gj_YfarYlagfkf]]\lg]fkmj][mklge]j\YlY]^^gjlkYj]\jan]fZqZmkaf]kk kljYl]_q$Yf\Yj]fglk]d^%k]jnaf_gj\ak[gff][l]\^jgenYdm]\jan]jk& Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 15 Measuring ROI from marketing activities As organizations respond to changing customer demands and channel proliferation in a digital world, marketing spend is growing. 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Bmkl)+ g^l`];>Gk$`go]n]j$kYa\l`Yll`]Y_]f\Ykg^ÕfYf[]Yf\ eYjc]laf_o]j][gehd]l]dqYda_f]\gfl`]akkm]g^e]Ykmj]e]fl e]l`g\gdg_a]k& ;>GkeYc]e]Ykmjaf_eYjc]laf_JGAl`]fmeZ]jgf]Yj]Yo`]j]l`]q ^]]dl`]qf]]\lgeYc]YZa__]j[gfljaZmlagf& Four marketing ROI priorities for the CFO: 1 C]]hYc]]f]q]gfl`]^mddha[lmj]$Yf\l`]\]lYadk 2 E]]lafl`]ea\\d]gfnYdm]n]jkmkngdme] 3 :jaf_eYjc]laf_Yf\ÕfYf[]lg_]l`]jlg]f[gmjY_]d]Y\af_hjY[la[]k 4 4 9[[]hll`YlfglYddj]lmjfkYj]kg]Ykqlge]Ykmj] Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 16 E]Ykmjaf_JGA^jgeeYjc]laf_Y[lanala]k J]k]Yj[`km__]klkl`Yl[gehYfa]kkh]flYfYn]jY_]g^)(&/ g^j]n]fm]k d]n]dg^afl]j]kll`jgm_`gfdaf]]f_Y_]e]floal`l`]ZjYf\&ÉL`]j]Ykgf gfeYjc]laf_dYklq]Yj$.o`ad]eYjc]laf_Zm\_]lko]j]mhZq.&/ &7 Accurate l`Ylk`a^lakY[[]d]jYlaf_oal`\a_alYdeYjc]laf_akl`Yloal`l`]YZmf\Yf[]g^ e]Ykmj]e]flg^l`]]^^][lan]f]kkg^km[`Yka_faÕ[Yflafn]kle]flk`gmd\Z] \YlYfgoYnYadYZd]l`jgm_`l`gk][`Yff]dk$qgm[Yf_Ym_]qgmjj]lmjfgf Y_an]f$ZmlafeYfq[gehYfa]k$alak\gf]hggjdqgjfglYlYdd& afn]kle]fl^Yjegj]]^^][lan]dqYf\hangllgghlaear]qgmjkh]f\egj]jYha\dq l`Yf]n]jZ]^gj]$Ê`]kYqk& .& É?Yjlf]jKmjn]qJ]n]Ydk Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 17 E]Ykmjaf_JGA^jgeeYjc]laf_Y[lanala]k :mlo`ad];>GkZ]da]n]l`akakY[jala[YdY[lanalq$Yf\l`YlÕfYf[]`YkY Four marketing ROI priorities for the CFO ka_faÕ[Yfl[gfljaZmlagflgeYc]$l`]j]Yj][gf[]jfkYZgmll`]Yda_fe]flg^ l`]log^mf[lagfkgfl`]e]Ykmj]e]flY_]f\Y2 1. 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We train our people on how to pull those levers; )(q]YjkY_gYf\l`]qo]j]n]jqmfhjgÕlYZd]&O]klYjl]\Y`m_] l`]ÕfYf[aYdaehY[ll`Ylal`Yko`]fqgm\ghmddl`]e3Yf\l`]eYl`]eYla[Yd hjgb][l$lg_]l`]joal`kYd]k$lgj]Y[lanYl][mklge]jk&L`]j]oYkY ^gjemdYlg\jan]]fl]jhjak]nYdm][j]Ylagf^jgehmddaf_l`gk]d]n]jk&Ê [dgk][gff][lagfZ]lo]]fkYd]kYf\ÕfYf[]lgY[`a]n]l`ak&O]_Yn] l`]kYd]kj]hklYZd]lk$o`a[``Y\YfYhhda[Ylagfo`]j]l`]q[gmd\Õdd afl`]af^gjeYlagfYZgmll`][mklge]j$o`a[`_Yn]YjYf_]Yf\Yhja[] Questions for CFOs in measuring marketing ROI: g^hjg\m[lqgm[gmd\g^^]jl`]e$Yko]ddYko`Yll`]hYqZY[cogmd\Z] Yf\l`]j]lmjfg^l`][mklge]j&L`]j]o]j]daealkoal`afo`a[`l`]q`Y\ )& O`a[`CHAkYj]o]hjagjalaraf_afgmjYfYdqkakYf\]nYdmYlagf7 lggh]jYl]$Yf\j]oYj\ogmd\Z]dafc]\lgl`Yl&Ê *& @goYj]o]_]f]jYlaf_Yf\hjg[]kkaf_l`]\YlY^gjl`gk]CHAk7 Af;`afY$ImaklkYqkl`]gj_YfarYlagfhdYfklgafljg\m[]lYZd]lklg 3. @gooaddo]mk]l`]CHAko]Yj]egkl^g[mk]\gflgaf^gje the local sales force at the end of the year. However, he does counsel \][akagf%eYcaf_7 l`Yl\a_alYdkgdmlagfkYj]fglafl`]ek]dn]kYkadn]j%Zmdd]lYfko]j&9 eYlmj][mklge]jj]dYlagfk`aheYfY_]e]fl ;JE!kqkl]eYf\^mddq 4. @gooaddo]lYc]aflgY[[gmflegj]aflYf_aZd]eYjc]laf_aehY[lk hjg^]kkagfYdar]\kYd]k^gj[]Yj]logf][]kkYjqhj][gf\alagfk& km[`YkZjYf\nYdm]Yf\[mklge]j]ph]ja]f[]7 -& @gooaddo]ZYdYf[]l`]k`gjl%l]jeYfYdqkakg^eYjc]laf_JGAoal` gmjdgf_%l]je_gYdk7 Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 19 E]Ykmjaf_JGA^jgeeYjc]laf_Y[lanala]k 4. Accept that not all returns are so easy to measure ?]fmaf]JGAe]Ykmj]e]flakl`]@gdq?jYad^gjeYfqeYjc]laf_^mf[lagfk& Al[Yf`]dhl`]eYjc]laf_^mf[lagfbmkla^qalkZm\_]lj]im]klk$Yf\$af\]]\$ Kge]eYjc]laf_aehY[lkoaddZ]lgm_`]jlge]Ykmj]$Yld]Ykloal`l`]e]lja[k alko`gd]j]Ykgf^gjZ]af_&>jgeYÕfYf[]h]jkh][lan]$al[Yf]fkmj]l`Yl l`Yl;>GkYj]mk]\lgYhhdqaf_&:mll`ak\g]kfÌle]Yfl`Yll`]Zmkaf]kkk`gmd\ afn]kle]flakZ]af_\aj][l]\lgl`]afalaYlan]kl`Yl\]dan]jl`]egklnYdm]Yf\ fglhmjkm]l`]k]gml[ge]k&;>GkeYqkge]lae]k`Yn]lgY[[]hlegj]kmZb][lan] kmhhgjll`]Zmkaf]kkkljYl]_q&HYjlf]jk`ahZ]lo]]fl`];>GYf\;EGak Ykk]kke]fl[jal]jaY& [jm[aYd&L`]kggf]jl`]qgn]j[ge]l`]dgf_%]klYZdak`]\ZYjja]jkZ]lo]]fl`] ÉO]dggcYlo`YleYjc]laf_[Yf\gl`YlY[lmYddqY[[]d]jYl]kk]dd%l`jgm_`$ log^mf[lagfk$l`]kggf]jZgl`oaddk]]l`]Z]f]Õlkg^Y[ggj\afYl]\YhhjgY[` o`a[`ake]YkmjYZd]$ÊkYqkNARAGÌk:af\]j&É:mlo]Ìn]Ydkg_gllgafn]kllg lgeYjc]laf_JGAe]Ykmj]e]fl& eYc]kmj]gmjZjYf\klYqk`]Ydl`q&O`ad]l`YlÌk[jala[YddqaehgjlYfl$alÌk Oggdogjl`kKgml`9^ja[YÌkAkYY[kYj_m]k2ÉL`akakYim]klagfg^]n]jqgf] ]plj]e]dq\a^Õ[mdllg\]l]jeaf]Yj]lmjf&Qgm_]lall`jgm_`af\aj][l^]]\ZY[c mf\]jklYf\af_o`Yl\jan]kk`Yj]`gd\]jnYdm]2o]ogjcoal`gmjZmkaf]kk Yf\ZjYf\klm\a]k$Zmlqgm\gfÌl`Yn]eYfqlYf_aZd]j]kmdlk&Ê mfalklg`]dhl`]e\]Õf]Zmkaf]kk[Yk]kYf\Yjjan]YlYhhjghjaYl]lYj_]lk^gj J]]rYAkYY[k$>afYf[] =imYddq$;>Gkf]]\lgZ]YoYj]l`Yle]Ykmj]e]flafeYjc]laf_oaddfglYdoYqk Y[`a]n]l`]Ym\al%[gehdaYflklYf\Yj\kl`YlYj]l`]fgjeafÕfYf[aYdj]hgjlaf_& ;>Gkf]]\lgY[[]hll`ak$Yj_m]kJ]ndgfÌkCYjk[`&ÉL`]h]j^][lakl`]]f]eqg^ l`]]p[]dd]fl$Ê`]kYqk&É9ÕfYf[aYdYfYdqkakklYf\Yj\oal`fgjgge^gj]jjgj$dac] qgmf]]\^gjÕfYf[aYdj]hgjlaf_$d]Y\klg^]Yjg^d]n]jY_af_\aj][lagfYd\YlYl`Yl j]kmdlkafYimYflalYlan]Yfko]jl`Ylakg^^Zqhdmkgjeafmk)( &:mll`]_gYdaf eYjc]laf_aklg\][a\]`goem[`Yf\o`]j]lgafn]kl$Yf\hdmkgjeafmk)( af l`Yl[gfl]ploaddYdegklYdoYqkd]Y\lgl`]ja_`lYfko]j&Ê Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 20 Optimizing the product portfolio C]qÕf\af_kYZgmll`];>GÌkjgd]afghlaearaf_l`] product portfolio: >a^lq%]a_`lh]j[]flg^l`].-*;>Gko]kmjn]q]\hmlY`a_`hjagjalq gfhjg\m[lhgjl^gdagghlaearYlagf& Lo]flqh]j[]flg^;>GkeYc]alYn]jq`a_`hjagjalq& L`gk]o`geYc]hjg\m[lhgjl^gdagghlaearYlagfYn]jq`a_`hjagjalq Yj]Ydkgl`gk]o`gl]f\lg[gddYZgjYl]egj]oal`l`];EG& KaeadYjdq$g^l`gk]o`geYc]hjg\m[lhgjl^gdagghlaearYlagfYn]jq `a_`hjagjalq$,/ j]hgjlYka_faÕ[Yflaf[j]Yk]afl`]ajafngdn]e]fl oal`eYjc]laf_&L`ak^Yddklg)0 ^gj;>Gkl`Yl\gfglj]hgjlhjg\m[l hgjl^gdagghlaearYlagfYkYn]jq`a_`hjagjalq& Four product portfolio optimization priorities for the CFO: 1 =klYZdak`YfgZb][lan]mf\]jklYf\af_g^hjg\m[lnYdm] 2 Lmjf\YlYaflgZmkaf]kkafl]dda_]f[] 3 ;geemfa[Yl]l`]kljYl]_a[gZb][lan]kg^l`]hgjl^gdagghlaearYlagf - 4 :d]f\l`]ÕfYf[aYdh]jkh][lan]oal`l`][mklge]jh]jkh][lan] Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 21 Ghlaearaf_l`]hjg\m[lhgjl^gdag ;gehYfa]kY[jgkkeYfqk][lgjkkljm__d]oal`hjg\m[lhjgda^]jYlagfYf\gn]j% [gehd]palqoal`afl`]ajhgjl^gdagk&;>GkhdYqY[jala[Ydjgd]afd]Y\af_kljgf_$ A particular challenge for the insurance sector ]na\]f[]%ZYk]\j]na]okg^o`]j]gj_YfarYlagfkYj][j]Ylaf_gj\]kljgqaf_nYdm] Hjg\m[l[gehd]palqakYfakkm]Y[jgkkYddk][lgjk$^jge[gfkme]j_gg\k afl`]ajhgjl^gdag$Yf\eYcaf_jgge^gjf]ohjg\m[laffgnYlagfklgÖgmjak`& to technology. But in our research, it is the insurance industry that Gj_YfarYlagfkk`gmd\j]na]ol`]ajhgjl^gdagg^hjg\m[lkj]_mdYjdqYkhYjlg^ Yhh]YjklgZ]km^^]jaf_l`]egkl&9egf_gmjkmjn]qj]khgf\]flk$ their strategic planning. This activity is core to saving costs, and identifying a higher percentage of insurance CFOs say that product portfolio o`]j]lg_jgo$Õp$]palgjkmklYafhjg\m[lkYf\k]jna[]k& ghlaearYlagfakYn]jq`a_`hjagjalq k]];`Yjl1!l`YfafYfqgl`]j k][lgj&L`]j]Yj]nYjagmkj]Ykgfk^gjl`ak&F]o[YhalYdj]imaj]e]flk$ Q]leYfq[gehYfa]kkljm__d]oal`l`ak[gj]hYjlg^l`]ajZmkaf]kk&9[mklge]j% km[`YkKgdn]f[qAAaf=mjgh]$Yj]^gj[af_afkmjYf[]Õjeklgj]l`afc centric approach often leads to a proliferation of products as CMOs seek to hjg\m[lhgjl^gdagkYf\\an]jlYll]flagfYoYq^jgel`gk]l`YlYj]`a_`dq e]]ll`]f]]\kg^]n]j%egj][mklge]jk]_e]flk&L`]j]kmdl[YfZ]`a_`[gklk$ [YhalYdafl]fkan]&Hjg\m[lhjgda^]jYlagf`YkZ]]fYeYbgjakkm]afl`] [gehjgeak]\imYdalq$af[j]Yk]\[geeg\alarYlagfYf\Ydkg[gf^mkagfg^[`ga[] af\mkljqYk[gehYfa]kk]]clgYhh]Ydlg]n]j%egj]lYj_]l]\k]_e]flk& ^gj[mklge]jk& L`]jak]g^\a_alYdYf\YfÉgefa%[`Yff]dÊYhhjgY[`lgl`]\]dan]jqg^ insurance products has further increased the pressure to develop new Egj]aehgjlYfldq$YkmZ%ghlaeYdhjg\m[lhgjl^gdagdaealk_jgol`hgl]flaYd product and service offshoots. Z][Ymk]k[Yj[]j]kgmj[]kYj]fglZ]af_YhhjghjaYl]dqYddg[Yl]\&:q[gf\m[laf_ Chart 9: Percentage of CFOs per sector that put a very high priority on Yj]_mdYjhgjl^gdagj]na]o$[gehYfa]k[Yf`Yn]YZ]ll]jh]jkh][lan]gfo`]j] optimizing the product portfolio lg^g[mkl`]aj]^^gjlk&L`]q[Yfl`]fkljahZY[cZdgYl]\hgjl^gdagkYf\\an]jl Yll]flagflgoYj\lgegjjgoÌkZdg[cZmkl]jhjg\m[lk$jYl`]jl`Yfq]kl]j\YqÌk declining ones. Insurance 34 Hgjl^gdagghlaearYlagf\]eYf\kY[Yj]^mdZYdYf[]Z]lo]]f]fkmjaf_Y[mklge]j% Technology 23 []flja[YhhjgY[`Yf\Ynga\af_]p[]kkan]hjg\m[lhjgda^]jYlagf&ÉLgeYaflYaf ghlaeYdhjg\m[lhgjl^gdag$qgmf]]\lgZYdYf[]l`]j]imaj]e]fllgkYlak^qYdd Consumer products 22 g^qgmj[mklge]jkÌf]]\kY_Yafkll`][gklYf\[gehd]palqg^eYfY_af_alYf\ eYcaf_egf]q$ÊkYqk@YffgDgj]frd$?dgZYd9mlgeglan] LjYfkhgjlYlagf Banking and 21 ;]fl]jHjaf[ahYd$=Q&ÉAlÌkdac]l`]f]]\lghjmf]Ylj]]gn]jlae]lgeYaflYafalk capital markets health and encourage new growth.” Life sciences 20 Gj_YfarYlagfkl`Yl\gl`ak]^^][lan]dq[Yf^g[mkgf_jgol`ghhgjlmfala]k$ []e]flYeYjc]lY\nYflY_]o`]j]l`]q`Yn]gf]$[j]Yl][geh]ddaf_[mklge]j Oil and gas 18 ]ph]ja]f[]kYf\j]khgf\ima[cdqlg]e]j_af_eYjc]l\]n]dghe]flk&L`]qYdkg _]f]jYl][gkl]^Õ[a]f[a]kYf\$Zqj]egnaf_[gehd]palq^jgel`]gj_YfarYlagf$ [YfeYc]j]_mdYlgjq[gehdaYf[]Yf\jakceYfY_]e]flegj]kljYa_`l^gjoYj\& Power and utilities 13 % 0 5 10 15 20 25 30 35 40 Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 22 Ghlaearaf_l`]hjg\m[lhgjl^gdag C]qÕf\af_kYZgmll`];>Gjgd]afghlaearaf_l`] 9ko]ddYk[dgk]j[gddYZgjYlagfoal`l`];EG$l`]j]k]Yj[`k`gokl`YlYdegkl product portfolio `Yd^g^;>Gko`geYc]hjg\m[lhgjl^gdagghlaearYlagfYn]jq`a_`hjagjalq j]hgjlYka_faÕ[Yflaf[j]Yk]afl`]ajafngdn]e]floal`l`]eYjc]laf_^mf[lagf >a^lq%]a_`lh]j[]flg^l`].-*;>Gko]kmjn]q]\hmlY`a_`gjn]jq`a_` ,/ !&L`ak^Yddklg)0 ^gjl`]j]klg^l`]kYehd]& hjagjalqgfhjg\m[lhgjl^gdagghlaearYlagf k]];`Yjl)(!& Chart 10: Over the next three years, how much of a priority will optimizing the product portfolio be for your organization? Making creativity part of product portfolio optimization :]fbYeafCYjk[`$=p][mlan]Na[]Hj]ka\]fl$;`a]^EYjc]laf_G^Õ[]j Very high priority 20 g^J]ndgf;gfkme]j$J]ndgf$Z]da]n]kl`Ylhgjl^gdag\]n]dghe]fl Yf\ghlaearYlagfj]imaj]kY[geZafYlagfg^[j]YlanalqYf\k[a]f[]& ÉDac]egkll`af_kafeYjc]laf_$eYfY_af_l`]hjg\m[lhgjl^gdagakY High priority 38 ja_`lZjYafYf\Yd]^lZjYaf]p]j[ak]&O]\gYdglg^[j]Ylan]ogjclg ZjYafklgjehgl]flaYdf]ohjg\m[lkgdmlagfkl`Yloadd[j]Yl]nYdm]^gj Medium priority 29 [gfkme]jk&O]Ydkgmk]Ydglg^\YlYlgl`]fYkk]kko`]l`]jf]o hjg\m[la\]Ykoadde]]ll`gk][gfkme]jf]]\k&O]Ydkgmk]ÕfYf[aYd Low priority 10 \YlYlgkar]l`]eYjc]l$lgk]lYkYd]hja[]Yf\lgghlaear]Yfqakkm]k within the portfolio.” Very low priority 3 L`akYhhjgY[`j]imaj]k_]fmaf][gddYZgjYlagfZ]lo]]fÕfYf[]Yf\ % eYjc]laf_$oal`eYjc]laf_ljYaf]\afl`]f]o\ak[ahdaf]kYkj]imaj]\& 0 5 10 15 20 25 30 35 40 9kJ]ndgfÌkCYjk[`]phdYafk2ÉL`]jgd]g^l`];>Gaklg_ma\]gfl`] ÕfYf[aYdaehY[lg^l`]\][akagfkl`Ylo]Ìj]eYcaf_&:mll`];>G[Yffgl =a_`lq%gf]h]j[]flg^l`gk]o`geYc]hjg\m[lhgjl^gdagghlaearYlagfYn]jq Z]km[[]kk^mdYkYhgda[]g^Õ[]jY_YafkleYjc]l]jk&EYjc]l]jkYdkgf]]\ `a_`hjagjalql]f\lgj]hgjl[dgk]j[gddYZgjYlagfoal`l`];EG&L`ak^Yddklg lgZ]ljYaf]\Yf\^g[mk]\gfl`]ja_`ll`af_&Ê mf\]j`Yd^^gjl`]j]klg^l`]kYehd] k]];`Yjl))!& Chart 11: Percentage of CFOs whose collaboration with the CMO has increased in the last three years CFOs who make product portfolio 81 optimization a very high priority Others 47 % 02010 30 40 50 60 7080 90 Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 23 Ghlaearaf_l`]hjg\m[lhgjl^gdag Four product portfolio optimization priorities for the CFO ;>Gkf]]\lg`]dh]klYZdak`l`]e]lja[kl`YloaddZ]mk]\lgj]na]ol`] hgjl^gdag&L`akakY[gehd]p]p]j[ak]l`Ylf]]\klglYc]Y[[gmflg^l`] 1. Establish an objective understanding of product value ]fl]jhjak]kljYl]_q$Yf\l`]afka_`lkYf\Yfko]jkl`YlYj]f]]\]\lgeYc] \][akagfk&L`]k];>G%\]l]jeaf]\e]lja[koaddl`]fhjgna\]l`]]na\]f[] Hgjl^gdagghlaearYlagfj]da]kgfYfgZb][lan]mf\]jklYf\af_g^hjg\m[lnYdm]& f]]\]\lggn]j[ge]j]kaklYf[]a^l`]gj_YfarYlagff]]\klghmddl`]hdm_gfY @go]n]j$h]j[]hlagfg^Yhjg\m[lÌknYdm][Yfg^l]fZ][dgm\]\Zq]eglagfYd product or service. YllY[`e]flklghjg\m[lk$hYjla[mdYjdq^jge]p][mlan]ko`gYj][dgk]dq Ykkg[aYl]\oal`l`]e& 2. Turn data into business intelligence =QÌkDgj]frdZ]da]n]kl`Yl;>GkhdYqY[jala[Ydjgd]af]fkmjaf_l`YlYfgZb][lan] ;>GkhdYqY[jala[Ydjgd]afZjaf_af_YfYdqla[k[YhYZadalqlgl`]hgjl^gdag mf\]jklYf\af_g^hjg\m[lgjk]jna[]nYdm]\jan]k\][akagfk&ÉEgkl[gehYfa]k ghlaearYlagf]p]j[ak]&=QÌkDgj]frdk]]k\YlYYfYdqkak$jYl`]jl`Yf\YlY% `Yn]Y`Yj\lae][mddaf_Yhjg\m[l$]kh][aYddqa^l`Ylhjg\m[l_]f]jYl]k _Yl`]jaf_$Ykl`]c]q[`Ydd]f_]$hYjla[mdYjdqaf[gehd]pgj_YfarYlagfk&ÉKg j]n]fm]$Ê`]kYqk&ÉQgmk`gmd\Z][mllaf_g^^YZjYf[`YkhYjlg^l`]hjmfaf_ eYfq[gehYfa]k`Yn]kgh`akla[Yl]\=JHkqkl]ekl`Yl_]llaf_l`]\YlYakd]kk hjg[]kk^gjl`]o`gd]lj]]$ZmlqgmÌj]kladd[mllaf_g^^Ydanaf_ZjYf[`$Yf\l`Yl of an issue than what you do with the data once you have it,” he explains. ak`Yj\^gjkge]h]ghd]&Ê ÉKge]lae]k$l`]Õjklkl]hak[j]Ylaf_Yhjg\m[l`a]jYj[`qYf\]phdYafaf_`go ;>Gk[Yf`]dhl`]gj_YfarYlagflg_]lhYkl]eglagfYdYf\kmZb][lan] hjg\m[lkj]dYl]lg]Y[`gl`]j&>gj]pYehd]$a^qgmÌj]Yfgj_YfarYlagfl`YloYk YllY[`e]flklghjg\m[lkoal`afl`]hgjl^gdag&L`ake]Yfk_Yafaf_Yjgmf\]\ ^gmf\]\gfY[imakalagfkYf\`Ykemdlahd]Zmkaf]kkmfalk$al[YfZ]`]dh^mdlg na]og^h]j^gjeYf[]l`YldggckZ]qgf\bmklj]n]fm]k&ÉO`YlakaehgjlYflak Zmad\Y[geegf^jYe]ogjclgdggcYlhjg\m[lkYf\`goqgmk]jn][mklge]jk& l`]\ak[ahdaf]g^j]Yddqmf\]jklYf\af_`goem[`egf]qqgmYj]eYcaf_$fgl Bmkl`Ynaf_l`Yl[gfn]jkYlagfca[ckg^^Ydglg^`]dh^md\aYdg_$ÊkYqkDgj]frd& `goem[`j]n]fm]qgmYj]_]f]jYlaf_$ÊkYqkDgj]frd&ÉG^l]f$l`]j]Yj]Ydd caf\kg^l`af_kl`YlY\\[gkllgqgmjZmkaf]kkl`YlYj]fglYko]ddmf\]jklgg\& ;gehYfa]k[Yf`Yn]emdlahd]hjg\m[ldaf]k$oal`]Y[`daf]af[dm\af_eYfq O`]fqgmhmddalYddlg_]l`]jYf\dggcYlal^jgeYhgjl^gdagh]jkh][lan]$qgm \a^^]j]fl[gfÕ_mjYlagfklge]]lnYjqaf_[mklge]jf]]\k&;gehYfa]kÈ^jge [YfÕf\l`YlqgmÌj]ZYj]dqZj]Ycaf_]n]fgj]n]fdgkaf_egf]q&Ê h`YjeY[]mla[YdÕjeklg[gehml]j`Yj\oYj]hjgna\]jkÈeYq`Yn]dal]jYddq l`gmkYf\kg^\a^^]jaf_hjg\m[lk&:q]klYZdak`af_Y^jYe]ogjcl`Yl]klYZdak`]k Oggdogjl`kÌAkkY[k\g]khgaflgmll`YlYÉjgmf\]\na]oÊoaddf]]\lg[geZaf] `a_`%d]n]dhjg\m[l^Yeada]koal`k`Yj]\[`YjY[l]jakla[k$;>Gk[Yf[mll`jgm_` ÕfYf[aYdYfYdqkakoal`eYjc]laf_Ìkmf\]jklYf\af_g^ZjYf\\qfYea[k&>gj l`ak[gehd]palqYf\_an]l`]\YlYYfYdqkak]^^gjlYe]Yfaf_^mdkljm[lmj]& ]pYehd]$Yhjg\m[leYqZ]mf\]j%h]j^gjeaf_Z][Ymk]al`Ykfgl`Y\l`] ja_`leYjc]laf_afn]kle]fl&ÉO]ogmd\fÌlbmkldggcYll`]ÕfYf[aYdYkh][lk$ Z][Ymk]alÌkYZgmll`]ZjYf\Yko]dd&AkalY[Yk]g^mkfgle]j[`Yf\araf_gj la]jaf_alhjgh]jdq$gjakalbmklfglYZjYf\ogjl`afn]klaf_af7Afl`YlkalmYlagf$ l`Ylogmd\Z]egj]g^Yhjg\m[l[Yddl`YfÕfYf[]&Ê Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 24 Ghlaearaf_l`]hjg\m[lhgjl^gdag ,&:d]f\l`]ÕfYf[aYdh]jkh][lan]oal`l`][mklge]jh]jkh][lan] Questions for CFOs in optimizing product portfolios: Gf]g^l`]\Yf_]jkg^Yhgjl^gdagghlaearYlagf]p]j[ak]akl`Ylal[YfZ][ge] )& How frequently do we undertake portfolio reviews to assess \angj[]\^jgel`]f]]\kg^l`][mklge]j&Kljgf_[ggh]jYlagfZ]lo]]f;>G h]j^gjeYf[]Yf\k]llYj_]lk7 Yf\;EGgfhgjl^gdagghlaearYlagf[Yf]fkmj]l`Yll`]ÕfYf[aYd]d]e]flak [gmfl]jZYdYf[]\oal`l`][mklge]jh]jkh][lan]& *& 3. Communicate the strategic objectives of the portfolio optimization L`]hgjl^gdagghlaearYlagfhjg[]kkf]]\klgk]f\l`]ja_`le]kkY_]$Zgl` afl]jfYddqYf\]pl]jfYddq&AlakaehgjlYfll`Ylalakfglk]]fYkbmklYf]p]j[ak] af[gklj]\m[lagf$Ykl`Yl[j]Yl]kl`]h]j[]hlagfl`Ylal`YkYk`gjl%l]je^g[mk and is a tactical, rather than strategic, initiative. Instead, the CFO should ]fkmj]l`Yll`]hjg_jYeak[geemfa[Yl]\YkYe]Yfkg^[j]Ylaf_hjgÕlYZd] _jgol`afl`]lghdaf]$o`a[`Yddgokl`][gehYfqlg\an]jlj]kgmj[]kYf\ afn]kle]flaflgf]oaffgnYlagfk& ÉAl`afcalÌkaehgjlYfllg[geemfa[Yl]o`Yll`]afl]flak$o`a[`aklqha[Yddql`Yl o]f]]\lg^j]]mhj]kgmj[]klgogjcgfl`]l`af_kl`Ylj]YddqeYll]jlggmj [mklge]jk$ÊkYqkDgj]frd&É9_jgol`klgjqakYdoYqkZ]ll]jlg[geemfa[Yl]l`Yf Y[gkl%[mllaf_$]^Õ[a]f[qklgjq&;%kmal]kmhhgjl^gjl`ake]kkY_]akYdkgc]q&Ê Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 25 Digital governance C]qÕf\af_kYZgmll`];>GÌkjgd]af\a_alYd_gn]jfYf[]2 Kda_`ldqegj]l`Yf`Yd^ -) !g^l`].-*;>Gko]kmjn]q]\hmlY`a_` or very high priority on digital governance. G^l`];>Gko`geYc]\a_alYd_gn]jfYf[]Yn]jq`a_`hjagjalq$gn]j`Yd^ j]hgjl=:AL<9_jgol`g^egj]l`Yf)( gn]jl`]hYkll`j]]q]Yjk& Lo]flq%Õn]h]j[]flg^;>GkkYql`]qYj][gddYZgjYlaf_egj][dgk]dq oal`;EGkZ][Ymk]g^l`]k`a^llg\a_alYdoal`afl`]Zmkaf]kk& Four digital governance priorities for the CFO: 1 :mad\Y`gdakla[ha[lmj]g^l`]gj_YfarYlagfÌk\a_alYdhgjl^gdag 2 =fkmj]\a_alYdjakceYfY_]e]flakhYjlg^l`]_gn]jfYf[]^jYe]ogjc <]ka_fY_gn]jfYf[]^jYe]ogjcl`Ylhjgna\]kÉ^j]]\geoal`afY 3 ^jYe]ogjcÊ 4 Ogjcegj][dgk]dqlg_]l`]jlgj]Ydar]l`]gj_YfarYlagfÌk\a_alYdhgl]flaYd . Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 26 Digital governance F]o\a_alYdl][`fgdg_a]khj]k]fl_Ye]%[`Yf_af_eYjc]l_jgol`ghhgjlmfala]k& C]qÕf\af_kYZout the CFO’s role in digital governance ;EGkYj]mkaf_\a_alYdaffgnYlagfklgljYfk^gje[mklge]j]ph]ja]f[]kYf\ a\]fla^qf]oZmkaf]kkeg\]dghhgjlmfala]k&EYfqgj_YfarYlagfkkm^^]j$`go]n]j$ Gn]j`Yd^ -) !g^l`];>Gko]kmjn]q]\eYc]\a_alYd_gn]jfYf[]Y`a_` ^jgeY^jY_e]fl]\YhhjgY[`lg\a_alYd&;>GkhdYqYf]kk]flaYdjgd]afZmad\af_Y hjagjalq k]];`Yjl)*!& _gn]jfYf[]eg\]dl`Ylafljg\m[]k[g`]j]f[]Yf\hjagjalar]kjakceYfY_]e]fl Chart 12: Over the next three years, how much of a priority will digital governance Yf\JGAoal`gmlklaÖaf_affgnYlagf& be for your organization? Afj][]flq]Yjk$eYfqgj_YfarYlagfk`Yn]j]khgf\]\lg\a_alYd[`Ydd]f_]kYf\ Very high priority 15 ghhgjlmfala]kgfY^jY_e]fl]\ZYkak&9kYj]kmdl$l`]q`Yn]g^l]f]f\]\mhoal` af[g`]j]flgh]jYlaf_hjY[la[]kl`YllYc]dalld]Y[[gmflg^jakceYfY_]e]fl$gj g^ÕfYf[aYde]lja[kkm[`YkJGA& High priority 36 9kdgf_Ykl`]k]gj_YfarYlagfk[gflafm]lgjmfl`]aj\a_alYdY[lanala]kafkadgk$ Medium priority 36 l`]qoadd^Yadlg_]ll`]eYpaemehgkkaZd]Z]f]Õl^jge\a_alYdafn]kle]flk Yf\eYq]phgk]l`]Zmkaf]kklgmff][]kkYjqd]n]dkg^jakc& Low priority 11 L`];>G`YkYnalYdjgd]lghdYqafZmad\af_Y_gn]jfYf[]eg\]dl`Yl]fYZd]k l`]gj_YfarYlagflgeYc]l`]ja_`lafn]kle]fl\][akagfkY[jgkkl`][geh]laf_ Very low priority 2 afl]j]klkg^\a^^]j]flZmkaf]kkmfalk$^mf[lagfkYf\_]g_jYh`a]k& % 0 5 10 15 20 25 30 35 40 ÉLqha[YddqdYj_]$_dgZYdgj_YfarYlagfkoal`emdlahd]ZjYf\k`Yn]daeal]\nakaZadalq g^`goem[`egf]ql`]qkh]f\gf\a_alYd$`goeYfq\a_alYdhjgh]jla]kl`]q G^l`];>Gko`geYc]\a_alYd_gn]jfYf[]Yn]jq`a_`hjagjalq$egj]l`Yf`Yd^ gofYf\[gfljgd$Yf\Yhggjmf\]jklYf\af_g^l`]hgl]flaYdjakckhgk]\ZqYfq -) !j]hgjl=:AL<9_jgol`gn]jl`]hYkll`j]]q]Yjkg^egj]l`Yf)( k]] g^l`]k]kal]k$^jge\YlYhjanY[qZj]Y[`]klggml%g^%\Yl]af^gjeYlagfgfl`] ;`Yjl)+!&L`ak\jghklg+- ^gjl`]j]klg^l`]kYehd]& \a_alYdhjgh]jla]k$ÊkYqkDYmj]f[]:m[`YfYf$ Others 35 % 0102030405060 Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 27 Digital governance L`]j]Yj]loghjaf[ahYdj]Ykgfko`q;>GkemklZmad\Yf]^^][lan]\a_alYd AfYf]fnajgfe]flo`]j]l`]Y[lanala]kg^gf]hYjlg^Yfgj_YfarYlagfeYq _gn]jfYf[]eg\]d& mfoallaf_dq]phgk]l`]o`gd]Zmkaf]kklgj]_mdYlgjqjakcYf\j]hmlYlagfYd \YeY_]$Y[g`]j]flYf\_dgZYd_gn]jfYf[]eg\]dak[jm[aYd& >ajkl$\a_alarYlagfakljYfk^gjeaf_l`]oYqgj_YfarYlagfkYj]kh]f\af_egf]qgf l][`fgdg_q&Afl`]hYkl$km[`kh]f\af_oYk[gflYaf]\oal`afl`];Yh]pZm\_]l ÉHjanY[qakY`m_]lgha[$ÊkYqkDaZ]jlq?dgZYdÌk:jY[c]f&ÉL`]o`gd][gf[]hl g^l`][`a]^af^gjeYlagfg^Õ[]j ;AG!& Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 28 Digital governance 2. Ensure digital risk management is part of the governance ÉL`]j]akY[d]Yjjgd]^gjl`];>Glgogjcoal`l`];EG$l`];AGYf\gl`]j framework e]eZ]jkg^l`]]p][mlan]eYfY_]e]flZgYj\lg]fkmj]l`YlYddl`][gfljgdk Yf\kY^]_mYj\kYj]afhdY[]Yf\[gff][l]\lghjgl][l[mklge]j\YlY&L`akak L`]j]_mdYlgjqogjd\ak[Yl[`af_mhoal`\a_alYdY\nYf[]k&9k[gehYfa]k\g ]kk]flaYdlghjgl][ll`]gj_YfarYlagf^jgehgl]flaYdÕfYf[aYd$j]hmlYlagfYdYf\ egj]oal`\a_alYdl][`fgdg_qYf\\YlY$j]_mdYlgjkYj]dggcaf_lgk]lZgmf\Yja]k& [jaeafYdjakckkl]eeaf_^jgeeakmk]g^\YlY$gjfgf%[gehdaYf[]oal`\a^^]j]fl ;>Gkf]]\lgZ]YoYj]g^`gol`]j]_mdYlgjqdYf\k[Yh]ak]ngdnaf_\a^^]j]fldq d]_akdYlagfYjgmf\l`]ogjd\$ÊkYqkLgfqCdaeYk$?dgZYd>afYf[]H]j^gjeYf[] Yjgmf\l`]ogjd\$Yf\]fkmj]l`Yll`]aj[gehYfqÌk\YlYhjY[la[]k[gehdq$gj Aehjgn]e]fl9\nakgjqD]Y\]j$=Q& ]dk]^Y[]l`]hjgkh][lg^k]jagmkÕfYf[aYdgjj]hmlYlagfYd\YeY_]& O`ad]l`]nYdm]l`Yl\a_alYd[YfZjaf_lgYfgj_YfarYlagfakaee]fk]$al[YfZ] Questions for CFOs concerning risk management of social media [gehd]l]dqmf\]jeaf]\a^l`]Ykkg[aYl]\jakckYj]fgleYfY_]\&L`]egkl activity: ka_faÕ[Yflg^l`]k]jakckakl`YlYfgj_YfarYlagfÌkafY[lagfoadd[Ymk]allgZ] kim]]r]\gmlg^l`]eYjc]l$_an]fl`][geh]lalan]dYf\k[Yh]ak]ngdnaf_kg )& 3. Design a governance framework that provides “freedom within a framework” ;>Gkf]]\lgeYfY_]l`]l]fkagfZ]lo]]flogaeh]jYlan]k&Gfl`]gf]`Yf\$ l`]qf]]\lg[gfljgdkh]f\Yf\eYfY_]jakc&Gfl`]gl`]j`Yf\$l`]qf]]\lg hjgegl]kh]]\$affgnYlagfYf\[mklge]j%[]flja[alq& Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 29 Digital governance Oal`\a_alYdaffgnYlagfk\janaf_[`Yf_]Ylkm[`Y^YklhY[]$[gehYfa]k While the CFO-CMO partnership has not traditionally been the closest dac]DaZ]jlq?dgZYdYj]mkaf_n]flmj]Yjeklgegn]egj]ima[cdqYf\ one on the C-suite, in an increasingly digital business context, it will Ö]paZdqlgj]khgf\lg[`Yf_af_[mklge]j\]eYf\kgjeYjc]l\akjmhlagfk& be pivotal to organizational sustainability and success. By working together to tackle customer segmentation and insight, marketing ROI, DaZ]jlq?dgZYdgofkY_dgZYdafn]kle]fl^mf\ÈDaZ]jlq?dgZYd product portfolio optimization and digital governance, CFOs and CMOs N]flmj]kÈoal`Y[mjj]flhgjl^gdagl`Ylaf[dm\]k[gehYfa]kafl`] will help their organization adapt to a new reality, and build the [gfl]fl$l][`fgdg_q$afl]jf]lYf\\akljaZmlagfkhY[]k&Alkhgjl^gdag foundations for a strong and productive partnership for the future. af[dm\]k[gehYfa]kdac]E]\aYegjh`$Y[dgm\%ZYk]\\a_alYdja_`lk eYfY_]e]flhdYl^gje&L`]klYl]\eakkagfg^l`]^mf\aklgÉ[gff][l h]ghd]lgl`]\a_alYdogjd\Yf\]fYZd]l`]elg\ak[gn]jYf\]ph]ja]f[] alk]f\d]kkhgkkaZadala]k&Ê8 8. DaZ]jlq?dgZYdN]flmj]k>Y[lK`]]l$>gmjl`ImYjl]j*(),& Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 30 Survey respondent demographics Industry Consumer products 67 Banking and capital markets 58 Technology 57 Life sciences 56 Insurance 56 Oil and gas 55 Power and utilities 53 DiversiÕed industrial products (including 32 aerospace and defense and chemicals) Mining and metals 31 Automotive and transportation 28 Cleantech (including energy, water, 27 transportation, agriculture and manufacturing) Asset management 26 Real estate 25 Telecommunications 23 Media and entertainment 15 Private equity 12 Construction 7 Import/export/wholesaling 7 Professional services 6 Other 5 Transportation 4 7 Health care 2 Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 31 Kmjn]qj]khgf\]fl\]eg_jYh`a[k Country US 80 Finance roles China 80 Brazil 42 Group CFO or Õnance director 329 United Kingdom 40 Divisional CFO or Õnance director 159 Mexico 31 Regional CFO or Õnance director 164 India 30 Canada 30 Australia 30 Germany 29 Annual revenue in US$ Singapore 28 Greater than $20b 28 Russia 25 Between $10b and $20b 45 France 24 Between $5b and $10b 91 Hong Kong, China 21 Between $1b and $5b 158 Argentina 20 Between $500m and $1b 120 South Africa 20 Between $250m and $500m 89 Indonesia 20 Between $100m and $250m 121 Philippines 15 Colombia 11 United Arab Emirates 10 Turkey 10 Spain 10 South Korea 10 Saudi Arabia 10 Italy 10 Nigeria 5 Sweden 3 Netherlands 3 Norway 2 Belgium 2 Portugal 1 Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 32 Other publications in this series =QÌk;>GY_]f\Yg^^]jkafka_`lklg`]dh;>Gk_jgo$hjgl][lYf\ljYfk^gjel`]ajgj_YfarYlagf& Previous studies in the Partnering for performance series are: EY is the exclusive sponsor of the CNBC Global CFO Council. Partnering for performance Partnering for performance HYjl)2l`];>GYf\l`]kmhhdq[`Yaf HYjl*2l`];>GYf\@J Coming soon Partnering for performance Partnering for performance Part 3: the CFO and the CIO HYjl-2l`];>GYf\l`];=G >gjegj]afka_`lk^gj;>Gk$nakaley.com/cfo. Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 33 Contacts >gj^mjl`]jaf^gjeYlagf$hd]Yk][gflY[l2 CFO agenda Customer advisory Robert Brand Woody Driggs ?dgZYd;>G9_]f\YD]Y\]j ?dgZYd;mklge]jD]Y\]j L]d2#)*()0/*-.1* L]d2#)/(+/,/)+01 =eYad2jgZ]jl&ZjYf\8]q&[ge =eYad2ogg\q&\ja__k8]q&[ge Hanno Lorenzl Digital Hjaf[ahYd$?dgZYd9mlgeglan] Laurence Buchanan Transportation Center =mjgh]$Ea\\d]=Ykl$Af\aYYf\9^ja[Y L]d2#)+)*0/1*./, Partnering for performance HYjl,2l`];>GYf\l`][`a]^eYjc]laf_g^Õ[]j 34 EY | Assurance | Tax | Transactions | Advisory About EY =QakY_dgZYdd]Y\]jafYkkmjYf[]$lYp$ljYfkY[lagfYf\Y\nakgjq k]jna[]k&L`]afka_`lkYf\imYdalqk]jna[]ko]\]dan]j`]dhZmad\ljmkl Yf\[gf^a\]f[]afl`][YhalYdeYjc]lkYf\af][gfgea]kl`]ogjd\ gn]j&O]\]n]dghgmlklYf\af_d]Y\]jko`gl]Yelg\]dan]jgfgmj hjgeak]klgYddg^gmjklYc]`gd\]jk&Afkg\gaf_$o]hdYqY[jala[Ydjgd] afZmad\af_YZ]ll]jogjcaf_ogjd\^gjgmjh]ghd]$^gjgmj[da]flkYf\ ^gjgmj[geemfala]k& =Qj]^]jklgl`]_dgZYdgj_YfarYlagf$Yf\eYqj]^]jlggf]gjegj]$g^ l`]e]eZ]j^ajekg^=jfkl Qgmf_?dgZYdDaeal]\$]Y[`g^o`a[`ak Yk]hYjYl]d]_Yd]flalq&=jfkl Qgmf_?dgZYdDaeal]\$YMC[gehYfq daeal]\Zq_mYjYfl]]$\g]kfglhjgna\]k]jna[]klg[da]flk&>gjegj] af^gjeYlagfYZgmlgmjgj_YfarYlagf$hd]Yk]nakal]q&[ge& ¡*()-=Q?EDaeal]\& All Rights Reserved. =Q?fg& BMC Agency ?9((-*W()+)/ =<Fgf] L`akeYl]jaYd`YkZ]]fhj]hYj]\^gj_]f]jYdaf^gjeYlagfYdhmjhgk]kgfdqYf\akfglafl]f\]\lg Z]j]da]\mhgfYkY[[gmflaf_$lYpgjgl`]jhjg^]kkagfYdY\na[]&Hd]Yk]j]^]jlgqgmjY\nakgjk^gj specific advice. ey.com/cfo L`]na]okg^l`aj\hYjla]kk]lgmlafl`akhmZda[YlagfYj]fglf][]kkYjadql`]na]okg^l`]_dgZYd =Qgj_YfarYlagfgjalke]eZ]j^ajek&Egj]gn]j$l`]qk`gmd\Z]k]]fafl`][gfl]plg^l`]lae] l`]qo]j]eY\]&