Hiring the Right Chief Marketing Officer

Hiring the Right Chief Marketing Ofcer A Practical Guide to Help You Hire the Right Marketing and Growth Executive

By Janet Brey

1 © Chief Outsiders, LLC 2017 Introduction

It’s a big decision, and you want to get it right. So, before you post a job on LinkedIn, hire a recruiter, or start asking around for recommendations for a good Chief Marketing Ofcer (CMO), spend some time reading this guide. It will help you understand the role of a CMO, the top critical skills required, and what you should expect to gain from the role.

First, What Does Marketing Mean to You?

The role of marketing and its place in the organization has changed a great deal over the past three decades. With the advent of new technologies and marketing channels, marketing should now be considered as an integral part of – and key contributor to – sales and the strategic growth of your frm, and not simply an overhead administrative expense.

2 © Chief Outsiders, LLC 2017 According to McKinsey, there are fve shifts that have redefned the landscape of marketing1:

• Moving away from targeted campaigns to personalized interactions, leveraging data analytics and machine learning;

• Selling through a mix of channels, instead of through one or two channels;

• Publishing valuable and informative content, rather than mass-market advertising campaigns;

• Implementing rapid test-and-learn product development vs. the long innovation funnel in order to quickly deliver innovative solutions to the market, and;

• Viewing marketing as an investment instead of a cost, with a measurable, ROI.

Understanding these shifts is critical, as they will impact how you defne the role, set objectives, and allocate marketing resources.

In its simplest terms, marketing is how a company delivers value to a customer. The value is defned and measured in the eye of the customer. Often, this is very diferent from the company’s viewpoint. As value is an exchange, a customer has to be willing to give up something, such as money and time, to acquire the ofering. It is imperative that the perceived benefts outweigh the costs.

Marketing is also responsible to help the business create a positive feeling or emotion about its “brand” – another term that has many meanings. My favorite defnition of a brand is “a promise wrapped up in an experience.” The promise is delivering on the anticipated benefts and starts way before a purchase and lasts long after the purchase.

The brand takes everything related to your product or service into account – how you respond to problems, the way you handle returns, your web site, your ofce, your physical location, your sales people, and every way your company interacts with the world. A strong brand can be very powerful, as brands tend to become lodged in our subconscious (as you’ve experienced the last time you used a Band-Aid or Google-d a search term).

1 “Building a Marketing Organization that Drives Growth Today,” McKinsey& Company, August 2017.

3 © Chief Outsiders, LLC 2017 Why Are You Hiring a CMO?

It is important to understand why you’re planning to hire or replace a marketing leader. Has your growth slowed? Has your CMO retired? Or has it become obvious that you need to improve your marketing but you are not sure how? Here are some of the reasons that often initiate the search for a CMO:

• Sales have stalled, slowed or declined;

• New entrants are in the market;

• Competition is gaining and you are losing – and you have no idea why;

• A new market or opportunity has opened up;

• The marketing group or agency is very busy, but there are no metrics to support the success of these activities;

• The selling cycle is getting longer, and/or close rates are lower;

• The current CMO or marketing leader does not demonstrate the skills required to support the new marketing landscape.

Starting with the “why” behind your need to hire a new or replacement CMO is the best course of action – in this manner, you’ll match the resource with the challenge. Your next step will be to fgure out the “how” behind the “why” – how the CMO will operate within your organization. Finally, you’ll determine what your measures of success will be for the role. Sound familiar? That’s because it’s the time-tested “Simon Sinek Golden Circle concept,” applied to the role.

4 © Chief Outsiders, LLC 2017 Understanding the Role of a CMO

In most organizations, the CMO should be responsible to drive proftable revenue. As an integral member of the executive leadership team, he/she achieves this by:

• Enabling and supporting your sales and product development functions;

• Sharing insights on the industry, market, competition, and voice of the customer;

• Developing and executing marketing plans that advance the company’s business objectives, grow market share, increase revenue and profts, and enhance the brand value;

• Building, managing and enhancing the company brand;

• Strategically promoting the business based on research, market intelligence and ROI;

• Building and nurturing a customer-frst culture across the company;

• Providing thought leadership to shape your growth strategies;

• Fostering collaboration to build a strong brand through cross-functional teams;

• Managing the marketing resources - budget, team and vendors - to support positive ROI.

It is important that the role is empowered and supported by the CEO. Without that top support, the CMO will likely struggle to be successful. As a part of the executive leadership team, the CMO will ensure that a market-based perspective feeds your growth strategies and builds a foundation for a sustainable competitive advantage.

5 © Chief Outsiders, LLC 2017 Describe Your Ideal CMO

Now that you have an idea of why you want to hire a CMO, and a general understanding of the responsibilities of a CMO, it is time to drill down further to address the specifc needs of your organization.

Here are some factors for consideration:

• Growth strategies – What is your revenue target for the next three to fve years? How aggressive is it?

• Size of your organization – Do you need a full-time CMO, or should you outsource the role to a company like Chief Outsiders, which ofers part-time CMOs at the fraction of the cost of a full-time executive?

• Industry – B2C, B2B, B2G? How competitive is your market? What are the trends in terms of growth, disruption, and globalization?

• Location – Is there talent in your area? Are you a virtual company?

• Sales model – Do you sell direct, online, through a sales team, or indirectly through channels?

• Distribution channels – How do you deliver your product or service? What does your supply chain look like?

• CRM – Do you have a CRM tool and/or a marketing automation platform? Do you have a good database, including detailed profle information, on your customers?

• Ofering – Is your ofering a product, a service, or a combination of the two? Do you need to launch a new ofering? Are one or all of your oferings viewed as a commodity?

• Complexity of sale – How complex is your sale? Is it simple and transactional, or does it take a year to make a sale? Do you sell to large organizations? Do you sell to committees?

• Culture – What is your culture? Is it a performance culture? What type of personality will complement the leadership team and generate excitement about the brand through the entire organization?

6 © Chief Outsiders, LLC 2017 Most organizations like to fnd a CMO that knows their industry, but this can be both a positive and a negative. Sometimes, hiring a CMO with a great background in a diferent industry can be just what you need to bring new ideas and a fresh perspective. Keep in mind that you have a great deal of knowledge about your product/service and industry – so what you are looking for, ideally, is marketing talent, and not another industry expert.

Regardless of whether you are seeking a CMO with industry experience, when you look to hire a CMO, it is important that this person understands: • The rapid pace of technological change is a top challenge for company survival. If you snooze, you lose.

• Keeping on top of trends can help shape growth strategies for your product or service. You want someone who understands how to leverage technology -- not fght it -- in order to be competitive and to drive innovation.

• Alignment with sales is critical. Marketing and sales needs to be a partnership and to share in the wins and losses. It is “we,” not them.

• The importance of measuring everything, in terms of performance metrics and ROI.

• Changes in regulations that impact email, privacy, trademarks, etc.

• How to structure or build your marketing team, including the decision as to which capabilities to keep in-house, what to outsource, and how to budget for a positive ROI.

• The customer is at the center of every decision.

• The importance of culture in building a strong organization. The best strategy will fail if you do not have the troops supporting it.

• How to develop and execute an efective content strategy.

• The importance of social media, word-of-mouth (or mouse), and handling negative comments immediately.

• How to leverage public relations and engage in socially responsible marketing.

7 © Chief Outsiders, LLC 2017 Sample CMO Job Description

If you are creating a new CMO position, or never had a job description, this is the time to get it done. Although there is no one-size-fts-all approach to creating the inventory for this role, the sample provided should help you to get started. You can pick and choose the responsibilities you desire, or add industry-specifc information.

Chief Marketing Offcer

As the Chief Marketing Ofcer, you will be responsible for providing the vision and for leading the company’s marketing activities in support of the company’s business objectives. Reporting to the CEO, your role is to generate revenue by increasing sales and building brand equity throughout the entire organization. This includes responsibility for planning, developing, and managing all internal and external marketing activities. The ideal candidate possesses tremendous communication and leadership skills, with proven success in cross-functional collaboration and execution of innovative campaigns across a broad spectrum of marketing channels. We seek a ground-breaking leader with strategic, creative, and fnancial acumen, as well as a strong business intellect, to take our organization to the next level.

Location: Specify the physical location, or if the position can be virtual.

Responsibilities

• Develop and execute a marketing plan that supports the business objectives and growth strategies.

• Manage the internal marketing team and third-party vendors to achieve specifc objectives and metrics.

• Develop and manage the marketing budget, including the media and advertising spend (print, online, TV, mobile, social, etc.).

• Develop (or revise) the competitive advantage(s) of company, and articulate a compelling value proposition supported by action-oriented messaging to specifc market segments.

• Work with human resources and the leadership team to develop, promote, and nurture a culture that lives and breathes the company’s values and brand.

8 © Chief Outsiders, LLC 2017 • Provide insights and guidance on persona development, and foster an understanding of the customer journey.

• Analyze, evaluate, plan, and execute both existing and potential marketing activities and strategies. Develop benchmark criteria and KPIs to measure the efciency and efectiveness of marketing programs.

• Work closely with sales management to ensure alignment of goals and activities.

• Manage third-party vendors, including web developers, graphic designers, and public relations agencies.

• Develop collateral, including sales marketing resources, web sites and landing pages, social media, and thought leadership activities, as one integrated marketing communications program.

• Evaluate and continuously improve digital assets with focus on ROI. These include:

» Web site (desktop and mobile)

» Content objectives, development and distribution

» Search engine optimization

» Social media

• Work with the sales team to develop, execute, and monitor lead generation programs that focus on quality leads instead of quantity.

• Develop demand generation programs, and implement marketing automation tools.

• Conduct and analyze market research to determine awareness, competitive positioning, client satisfaction, and growth opportunities.

• Develop programs which increase customer lifetime value, increase referrals, and expand customer share of wallet.

• Monitor and measure the efectiveness of all marketing activities against key performance indicators (KPIs) and ROI.

• Demonstrate strong fnancial acumen, with the ability to assess market penetration, proft margins, sales growth, and cost containment.

• Achieve targeted results, and ensure timely and efective execution of marketing programs.

9 © Chief Outsiders, LLC 2017 • Coach and mentor the marketing team and support the team’s ability to deliver and exceed expectations while creating opportunities for succession talent.

• Lead the development of annualized marketing plans and support the communication of key strategies and initiatives.

Talents:

• Experience in the development of high-level marketing and brand strategy in B2B/B2C/ B2G, aligning with the strategic vision of the organization.

• A visionary, with a deep understanding of traditional and innovative marketing strategies, as well as a proven track record of creating campaigns and initiatives that will increase revenues and drive results.

• An executive who understands the importance of aligning the organization internally around brand and marketing objectives.

• Mastermind and execute innovative stakeholder communications strategies to build awareness around the company’s activities and accomplishments.

Qualifcations:

• Master’s Degree preferred (MBA/Marketing). Bachelors’ degree required.

• 10 to 15 years of well-rounded marketing / business development experience in B2B/CPG, with positions of increasing responsibility, including a focus on marketing expansion, lead generation, and identifcation of emerging growth opportunities.

• Knowledge of [YOUR] industry, digital marketing, mobile marketing, and integrated, multichannel marketing.

• Technology savvy, with understanding of SaaS and cloud-based services.

• 10 years of leadership experience, with the ability to motivate and provide professional development to a team. A hands-on, collaborative style of working is critical.

• Experience building brand awareness and support with both internal and external stakeholders.

Finding talent is always a challenge. The frst step when looking for the right talent is to get the word out to your network. This can be through a professional group or LinkedIn. Post on your LinkedIn profle that you are looking for a marketing leader to help you reach your growth goals. It is a good idea to include a few of the key criteria that you are looking for, such as experience in CPG or banking. Give it a week or two, and if this does not bear any fruit, post the job on a job board. Recruiters can be an option -- although this can be quite costly.

Another option is to outsource the role. This can be done through a partnership with a company such as Chief Outsiders, which provides fractional CMOs through a unique “Executives-as-a- Service” model. Sometimes, having an interim CMO can help a company better defne their objectives for the role, while providing an experienced “jumpstarter” for their marketing goals, objectives, and strategies.

One path to avoid is to outsource the entire role to the full-service marketing agency that leads you to believe it can do it all. Granted, the role of agencies has expanded into more planning and strategic activities (and that is a good thing). However, they cannot replicate the C-level leadership that is required.

Once you have identifed a select group of candidates through executive recruiting, networking, posting on LinkedIn, or other means, it is time to start the interview process. If you have an HR department or individual, have them conduct the frst pre-interview based on your key criteria.

Since the CMO will be interfacing with all parts of the organization, it is a good idea to include other members of the leadership team in the interview process. The interviews can be one-on- one, or you may opt for a panel interview if the size of your company – and the potential number of interviewers – supports it.

Some of the pros of a panel interview include time savings, a reduction of bias, improved accuracy, and the ability to ofer the candidate better insights about the company and the interactions of the leadership team. If you conduct a panel interview, make sure that everyone understands the desired traits of an ideal CMO, and that the interview is structured with a set of pre-planned questions.

Questions you may consider asking to ensure whether the candidate is a right ft include:

• What project, job, or task would be the most signifcant accomplishment in your career to date?

• What’s on your marketing dashboard, and what are the KPIs you track?

• How do you undertake the branding process for a company, its products, and its services?

• What do you consider to be the biggest challenges for a CMO these days?

• What pricing frameworks do you prefer to use?

• What is your approach to both customer- and competitor-focused market research?

• Can you share details about some job-specifc knowledge you’ve obtained in the past year, and what your takeaway was?

• In your digital marketing approach, how do you balance inbound and outbound marketing?

• If you could start your last role over again, what would you do diferently?

• What do you think of the art and science of marketing, and where do your strengths lie within that paradigm?

• Knowing what you know so far about our company, what strategies and tactics would you put in place to help drive revenue?

The goal of the interview is to uncover the details of what this person can do, and compare it with what needs to be done. Asking a lot of clever questions is a turn-of to many executives, and is a waste of time. Ask strategic and revealing questions. Spend your time learning about this person, and trust your gut!

What Do I Pay a CMO?

If this is your frst time hiring a CMO, it may be difcult to know what is considered fair compensation for someone who will be so vital in the success of your company. There are a number of factors to consider, such as your location, the size of your organization, and what you can aford.

If your company is small and growing fast, you might consider structuring part of the compensation as equity. With this type of compensation, the CMO receives a percentage of the company, with a starting average of half a percent on the low end, and 2 percent for a seasoned professional. Depending on the responsibilities of the role, or how large your company becomes, the amount could vary signifcantly, so think ahead and be careful if you use the percentage-based model.

13 © Chief Outsiders, LLC 2017 Payscale, Inc., provides data on CMO salaries to help you determine a good starting point.

According to the Bureau of Labor Statistics, there is little diference in annual median salaries between industries, though it’s interesting to note that almost 25 percent of professionals with a lead marketing title are concentrated in the software and networking industry.

Finding the right CMO can make a big diference in your company. When you fnd someone who becomes your go-to partner, big things can happen. But getting that right person can take time. If you are in a time crunch, consider outsourcing the role (or part of it) until you fnd the right person.

Chief Outsiders provides part-time CMO talent for a fraction of the cost of hiring someone full-time. The company has collected a pool of more than 55 executives with diverse industry experience – any of whom can quickly get you on the fast track, and even help you fnd that perfect permanent CMO.

Hopefully the time you spent reading this guide was time well spent. Chief Outsiders has several additional resources available for download on the website:

• How to Build Your Marketing Team for Growth (ebook)

• What Does a Fractional CMO Cost?

• 10 Questions to Ask When Hiring a CMO

• Do CMOs Really Matter? Harvard Business Review Says Yes!

Also, “The Growth Gears” – a best-selling book written by the co-founders of Chief Outsiders -- is an outstanding tool to help you gain an understanding of how marketing can help you reach your goals. The book provides a simple framework along with tools, templates and action steps to ensure that a market-based perspective is feeding your strategy and execution plan.

If you have suggestions or questions about the material presented in this document, please email [email protected].

About the Author

Janet Brey

Janet Brey is an accomplished senior executive committed to helping small to mid-sized companies achieve and sustain growth. By providing strategic counsel to company leadership, she transforms marketing into a sales generating, competitive advantage that results in increased proftability and a positive ROI. She is also an adjunct professor at the William Paterson University College of Business where she teaches marketing courses.

www.ChiefOutsiders.com • [email protected] • Call 855-777-2443