Director Advisory

Strategy

Why Marketing Should Matter to Boards By Diana O’Brien and Deborah DeHaas

As marketing becomes a more powerful The Value of Marketing Intelligence inside and outside the organization. Direc- channel for building a company’s brand, With marketing at the center of intelli- tors should ask questions such as: Are en- promoting collaboration across the en- gence-gathering on brand and reputation, gagements with customers, partners, and terprise, and gathering customer insights, the CMO can work with leaders overseeing other third parties aligned with the com- boards should consider reexamining the risk management to educate directors about pany’s cultural values? How are employees role of marketing and how the market- the organization’s approach to risk and cri- trained to handle these engagements? Do ing function might be tapped to fulfill the sis. To do this, CMOs should routinely employees know how to spot a potential board’s oversight responsibilities. share insights with the board. In response, crisis—internal or external—both in real- The digital transformation of business directors should consider understanding the world and electronic interactions, such as has empowered consumers and changed following areas so they can better incorpo- on social media? Is there a clearly identi- the role of the chief marketing officer rate marketing intelligence into their strat- fied channel employees can use to report a (CMO). Historically, marketing depart- egy and risk oversight duties. pending crisis? ments pushed messages into the market- With rapid advances in technology and place and could control both content and greater collaboration with other functions, recipients. Digital advancements, which How well does the CMOs are well-positioned to work closely include everything from social media to organization incorporate with boards on strategy and other impor- emerging technologies, have put consum- marketing data and tant issues facing their organizations, and to ers—who now have greater access to infor- contribute valuable insights to protect and mation, and make faster decisions—at the analytics into strategy? strengthen brand and reputation. center. These changes have created signifi- cant opportunities by expanding the ways The organization’s approach to assess- Diana O’Brien companies engage directly with consum- ing and monitoring market developments. (far left) is chief ers and gather market intelligence using Board members should actively learn about marketing of- customer relationship management and the organization’s marketing capabilities ficer, Deloitte other systems. At the same time, the risks and what the function does to analyze and LLP. Deborah to a brand have risen sharply, as consumer monitor the market ecosystem, including DeHaas is vice chair and national managing loyalty can change faster than ever thanks customers, competitors, vendors, regulators, partner, Center for Board Effectiveness, and to the influence of social media channels. and others. Directors should ask questions chief inclusion officer, Deloitte. Marketing leaders are finally being in- such as: How connected is marketing to As used above, Deloitte refers to a U.S. mem- vited into the C-suite and are expected to other functions to continuously monitor, fil- ber firm of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guaran- collaborate with senior counterparts to over- ter, and address social media and other rep- tee. This article contains general information only. see enterprise risk management, talent, and utation risks? Do the aforementioned func- None of the U.S. member firms of DTTL or their culture, as well as strategy and finance. Be- tions work in siloes? How well does the or- respective subsidiaries (the Deloitte U.S. Firms) are, by means of this article, rendering account- cause the CMO is at the intersection of ganization incorporate marketing data and ing, business, financial, investment, legal, tax, or marketing, culture, and risk, this person can analytics into strategy and operations? What other professional advice or services. This article is not a substitute for such professional advice or strategically contribute to the board by es- analysis and reporting should the board ex- services, nor should it be used as a basis for any tablishing a unified approach to using the pect to help it monitor disruptive threats decision or action that may affect your business. Before making any decision or taking any action brand as a lever for growth while also more and potential opportunities? that may affect your business, you should consult quickly managing brand and reputation Employee engagement and training. a qualified professional advisor. The Deloitte U.S. Firms shall not be responsible for any loss sus- risks across customers, business partners, Directors should understand how employ- tained by any person who relies on this article. employees, and other stakeholders. ees are trained to interact with others, both Copyright © 2017 Deloitte Development LLC

76 NACD Directorship September March/April 2010 2017