Inside the Mind of the Chief Marketing Officer Strong personalities take on the growth challenge

Russell Reynolds Associates’ Inside the Mind of … series addresses the leadership and behavioral attributes of various groups of executives. Contents

Inside the Mind of the CMO: Change agents at a crossroads ...... 3

CMO overview: An extreme profile in thinking and action ...... 4

As their role grows and changes, CMOs increasingly look to the CEO role—with mixed results ...... 5

CMOs contrast strongly with CIOs/CTOs on certain core traits … and even more dramatically with CFOs ...... 6

CMOs and chief digital officers: Birds of a feather?...... 7

As the CMO role splinters, different psychological attributes may come to the fore ...... 8

What’s next for CMOs?...... 9 3

Inside the Mind of the CMO: Change agents at a crossroads

ɳɳ EXECUTIVE SUMMARY

Growth is firmly at the top of most companies’ agenda, yet few have a dedicated chief growth officer. Consumers now demand targeted messages, delivered across multiple platforms, at a time and place of their choosing.

The chief marketing officer (CMO) profile has evolved to respond to the growth agenda. CMOs have developed strong characteristics around innovative, pioneering and influential behavior.

These extreme behavioral characteristics are a double-edged sword. The traits that help to succeed in the CMO role may set up clashes with other C-suite members and also may be a hindrance in CMOs’ onward career trajectory.

When creating digital change, though, this group is well-positioned. CMOs share many attributes with chief digital officers (CDO) that facilitate strong change and relationships.

Will this polarizing personality type be the CMO model going forward? The future of the CMO may well be a full splintering of the role into subtypes that are driven both by particular needs and a more tightly articulated psychological profile.

METHODOLOGY The Russell Reynolds Associates database—unique in that it contains more than 5,000 data points from the top ranks of corporations worldwide—allows us to make statistically driven observations about the characteristics possessed by leaders in a particular field.

Our methodology was straightforward: We compared 36 CMOs from companies totaling more than $1.5 trillion in market capitalization with our broader database of executives (as well as with chief executive officers (CEO) and other C-suite figures) on 60 psychometric scales from well-validated leadership assessments to understand on which scales the CMOs showed statistical differences from the other populations. 4

Inside the Mind of the CMO CMO overview: An extreme profile in thinking and action

Compared with other C-suite figures, CMOs have a markedly extreme leadership and behavioral profile. They differ from the overall executive population across a large number of attributes and to a significant degree on several of those attributes. The first set of attributes centers on CMOs’ innovative, pioneering spirit—they act unconventionally, test limits and are not beholden to structures. These traits conform well to a conventional mental picture of a CMO. The second set of attributes provides a welcome explanation as to how these innovators are successful in action— they use their strong social orientation and persuasive tactics to operate in a remarkably active and productive fashion.

CMOs vs. other executives Statistically Significant Percentage Differences in Attribute Scores

INNOVATIVE Abstract thinking style 21% Percentages Generate innovative solutions 21% represent the degree to which CMOs manifest Imaginative 49% a trait more strongly than PIONEERING How they other executives. For conceptualize instance, their score on Persistent 11% being imaginative is Decisive 16% almost 50% higher Seek high levels of activity 18% than the average Open to new ideas executive’s. 19%

SOCIALLY ENGAGED Seek to understand people 17% Adapt to different audiences 22% Outgoing 30%

ACTIVE AND PRODUCTIVE How they Not beholden to structures and guidelines 34% operationalize Take initiative and test limits 34% Unconventional 37%

INFLUENTIAL Persuasive 10% Inclusive 16% Bold 22% Lead from the front 29% 5

Inside the Mind of the CMO As their role grows and changes, CMOs increasingly look to the CEO role—with mixed results

CMOs aspiring to the CEO role can bring a uniquely innovative sensibility to that role. We found that chief marketing officers differ significantly from chief executive officers on nine psychometric attributes. CMOs hoping to become a CEO will find these traits may potentially help or hinder their forward career path.

Statistically significant Statistically significant Statistically significant differences from CEOs that differences from CEOs that might differences from CEOs that HINDER HELP or HELP CMOs as they seek CMOs as they seek the CEO role HINDER the CEO role CMOs as they seek the CEO role

33% more 22% more 36% more UNCONVENTIONAL BOLD IMAGINATIVE

32% more likely to 21% more 32% more likely to ESCHEW ABSTRACT ADAPT TO STRUCTURES THINKING DIFFERENT AND GUIDELINES STYLE AUDIENCES

29% more likely to 21% more 32% more likely to DISPLAY FLASHY OUTGOING TAKE INITIATIVE LEADERSHIP AND TEST LIMITS

FOR CMOs WHO WANT TO BE A CEO …

ɳɳ Be in the right place. Faster- ɳɳ CMOs need to moderate how ɳɳ Make sure others are on board. moving or more transformational they display some of their more The CMO leadership style can industries, in particular, are better extreme attributes. CMOs test be unconventional, colorful and suited to the CMO leadership style, limits, are bold and are upfront in flashy. CEOs exhibit measured as are companies in the midst of their influencing style. CEOs seek emotion. CEOs excel at change or innovation programs. to understand different perspec- calculated—not careless— CMOs may struggle as a CEO in tives and involve others in deci- risk taking. They display more heavily regulated industries. sions but do not overanalyze. They intensity but maintain control. achieve success through others yet remain tough minded. 6

Inside the Mind of the CMO CMOs contrast strongly with CIOs/CTOs on certain core traits … and even more dramatically with CFOs

CMOs and chief information officers/chief technology officers (CIO/CTO) are increasingly being challenged to work closely together, and this partnership can be fruitful but rocky. One possible driver of this effect is the extreme personality of CMOs across four core traits. Compared with CIOs/CTOs, CMOs are far more unconventional, innovative, imaginative and willing to test limits. Additionally, when we compare CMOs with chief financial officers (CFO), we see even greater gaps across these attributes. This reflects both the extreme personality of the CMO and the strong contrast we generally observe between CFOs and their other C-suite peers, reflecting the role CFOs play in managing risk by counterbalancing their colleagues’ more boundary-pushing traits.

ɳɳ CMOs vs. CIOs/CTOs and CFOs Statistically Significant Percentage Differences in Attribute Scores from Overall Executive Population

COMPARED WITH CIOs/CTOs, COMPARED WITH CFOs, CMOs ARE ... CMOs ARE ...

UNCONVENTIONAL 29% 40% more unconventional more unconventional

INNOVATIVE 13% 29% more innovative more innovative

IMAGINATIVE 32% 60% more imaginative more imaginative 21% 30% TEST LIMITS more willing to test limits more willing to test limits

HOW CAN LEVERAGE THESE TENSIONS PRODUCTIVELY?

ɳɳ Embrace stylistic differentiation within the C-suite. ɳɳ Let CMOs be innovation engines on a scale broader As the notion of “diversity of mindset” becomes an than traditional Marketing’s turf. Because CMOs’ ever more desirable element of company culture, “imagination DNA” is so much stronger than other organizations should view a non-uniform C-suite as C-suite members’, CMOs can be usefully deployed to an asset, not a liability. By fending off groupthink, help solve problems innovatively across any number of the sharp personality differences between CMOs areas—not just the typical Marketing remit. and CIOs/CTOs or CFOs in fact drive creativity and enhance risk . 7

Inside the Mind of the CMO CMOs and chief digital officers: Birds of a feather?

CMOs and chief digital officers are extreme personality types with a good deal of “leadership DNA” in common. Both groups show innovative thinking, intellectual openness and the ability to adapt their message across audiences. However, while CDOs focus on disruption—leveraging their contemplative nature to engineer new ways to push the envelope—CMOs, true to their functional role, are far more focused on straightforward selling. They are change agents up to a point but then prioritize persuasion, whereas CDOs would choose to break down barriers.

CMOs and CDOs

Attributes on Which CMOs and CDOs Are Statistically Significantly Different from Overall Executive Population

OVERT DISRUPTIVE INFLUENCERS CHALLENGERS

CHIEF MARKETING OFFICERS Attributes in common CHIEF DIGITAL OFFICERS • Bold* • Abstract thinking style* • Achievement oriented • Inclusive • Adapt to different audiences* • Challenge traditional approaches • Outgoing* • Decisive • Entrepreneurial spirit* • Persistent • Generate innovative solutions* • Go against the grain* • Persuasive • Lead from the front* • Identify limitations* • Unconventional* • Not beholden to structures and guidelines* • Independent minded* • Open to new ideas* • Inquisitive* • Seek high levels of activity • Optimistic • Take initiative and test limits* • Socially confident* • Think “outside the box”* • Willing to take calculated risks*

*Indicates extreme trait—more than 20% difference from overall executive population for CMOs or CDOs

HOW CAN ORGANIZATIONS BEST DEPLOY CMOs AND CDOs TO EFFECT DIGITAL CHANGE?

CMOs CDOs ɳɳ Communicate and influence the board and CEO to ɳɳ Concretely drive digital transformation efforts. help drive the company’s digital understanding and ɳɳ Serve as organizational provocateur on digital engagement. topics—continually open up new areas of inquiry. ɳɳ Ensure that digital efforts are highly contextualized to overall company strategy. 8

Inside the Mind of the CMO As the CMO role splinters, different psychological attributes may come to the fore

Perhaps even more fascinating than the psychological picture of CMOs today is the potential schism within the role going forward. On one hand, companies seeking greater disruption than what today’s CMOs can provide are appointing a or . On the other hand, companies seeking to harness the CMO role to more growth-oriented business goals are creating a chief customer/experience officer or chief growth officer position.

Behavioral and Leadership Trait Spectrum of New Roles

PRODUCTIVE DISRUPTOR ...... “CEO-LIKE”

CHIEF DIGITAL CHIEF INNOVATION CHIEF CUSTOMER/ CHIEF GROWTH OFFICER OFFICER EXPERIENCE OFFICER OFFICER Executives in this Born out of a fusion The role is responsible This role has become role are charged with of the CMO and lead for designing and en vogue in most leading large-scale information technology owning the end-to-end consumer packaged digital transformation (IT) roles (due to customer experience goods companies, as efforts within an increasing marketing and culture across all organizations look to established, complex spend on IT platforms), channels and touch unlock and maximize . this role addresses points (online, offline, the next stage of growth. innovation from the mobile). The role is being The role is intended to level created in consumer- create a holistic way on down. Executives in facing legacy industries of looking at growth. this role are charged (particularly retail and Typically, this role with nurturing new financial services) reports to the CEO and and evolving experiencing significant has Innovation, R&D, current businesses and transformation or Marketing Strategy and generally are shaping disruption. Sales reporting into it. the organization’s future with both a technologist’s and a marketer’s eye. Challenge Forward Embrace traditional thinking calculated approaches risks Innovative

Entrepreneurial Data Accelerate See the spirit powered actions big picture 9

Inside the Mind of the CMO What’s next for CMOs?

As the CMO role continues to morph, companies will benefit from understanding the following dynamics:

USING THE POLARIZING ATTRIBUTES OF THE CMO AS “A FORCE FOR GOOD” Organizations are challenged to direct CMO energy toward the most 1 important change initiatives—within Marketing or more broadly.

UNDERSTANDING WHICH “CMO FLAVORS” THEIR ORGANIZATION TRULY NEEDS Diagnosing what role (or roles) truly suits an organization’s needs—be it a disruption-focused chief digital officer, a CEO-esque chief growth officer or simply a change-oriented chief marketing officer—is key to 2 optimizing CMO performance.

GETTING THE MOST OUT OF “CREATIVE TENSION” WITHIN THE C-SUITE By understanding the dramatically different psychological attributes of CMOs and their closest C-suite partners (CIOs/CTOs, CFOs), organizations can thoughtfully leverage contrast in thinking 3 to provide a balanced strategic and operational picture.

BEING SAVVY ABOUT MATCHING THE CMO TO THE BUSINESS CONTEXT Depending on business conditions and the company’s life cycle point, organizations will seek a CMO who is further from—or closer to— 4 the polarizing profile of today’s “new breed.” AUTHORS

RICHARD SANDERSON leads many of the firm’s chief marketing executives throughout his career. He has worked marketing officer, communications, digital and e-commerce and lived in five countries across three continents and is now search assignments in all industries. He has recruited chief based in Chicago. marketing officers for financial services, healthcare, retail, MALLORY SAMSON is the firm’s Global Knowledge Leader and consumer products and services clients across the for the Consumer Sector, inclusive of chief marketing country. He is based in Chicago. officers. She is based in Chicago. NORM YUSTIN advises clients in our Consumer Sector with MELISSA SWIFT is the firm’s Global Knowledge Leader for functional expertise in retail organizations and marketing Leadership & Succession. She is based in New York. officers. Before joining Russell Reynolds Associates, he was a two-time chief marketing officer and has recruited Analysis was conducted by ERIN MARIE CONKLIN.

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