Why Chief Marketing Officers should be central to every transformation

Chief Marketing Officers are perfectly positioned to help other C-suite executives take their transformations to the next level.

If transformation is an undeniable imperative for organizations to drive growth, then driving successful transformation is crucial. Yet the recent results of a research collaboration between EY teams and the University of Oxford’s Saïd Business School indicate that 67% of senior leaders have experienced at least one underperforming transformation in the last five years. This level of underperformance is concerning when business is booming. It becomes untenable as energy price spikes, inflation, rising interest rates, ongoing geopolitical tensions and persistent supply chain challenges raise the threat of recession. How can we work to be sure transformations are more consistently successful?

CMOs have long served as chief dot connectors, and they can use the strength of their cross-functional and often cross-geographic relationships to help drive effective change. CMOs have always had accountability for the brand promise, and the challenge has been to deliver that brand promise across a customer journey owned by many other functions — from supply chain to customer care. The reality causes marketers to adapt as leaders and become strong integrators of experience across the organization. The nature of a CMO’s job requires strong leadership and cross-functional collaboration, preparing them uniquely as leaders for broader transformation efforts.

2. Care: Take advantage of CMOs as transparent communicators

CMOs deeply understand the importance of clarity and authenticity, as it is the currency of being a strong marketer. And, in major transformations, human emotions often breed skepticism around key messages and communication. The research showed that half of workers who experienced an underperforming transformation were more likely to see transformation as just another word for layoffs.

In transformation, where trust is bred through transparency, CMOs’ skills as transparent communicators can be very effectively applied to crafting clear messaging that can be understood throughout the whole organization. The same persona-based creative strategies used in brand marketing can be deployed to internal communications to be sure that messaging is tailored to different members of internal communities, inspiring employees to believe and trust in the transformation.

3. Inspire: Tap CMOs as human-centered storytellers

Leaders need to create a vision that everyone can believe in, compelling teams to commit to the change experience. In the research, 71% of workers agreed that for the vision to be real, leaders need to clearly communicate why change is needed, not just what they need to do. It becomes critical to foster genuine belief as opposed to passive understanding of tactical steps of transformation. 

As marketers, CMOs are human-centered storytellers, creating compelling, memorable brand experiences across platforms, deeply rooted in human emotions and insights. In the context of broader enterprise transformations, CMOs can apply their powers of persuasion to help transform negative emotions to belief in transformation initiatives, helping people feel supported as they adapt to change. CMOs can also apply their knowledge of cultural trends and what is actively in the zeitgeist to make messages resonate further. Experts in messaging, CMOs can collaborate with other executives to provide guidance on what will resonate within the enterprise to drive positive impact.

4. Empower: Embrace innovation through the CMO’s affinity for testing and learning 

Forty-six percent of the research respondents in high-performing transformations shared that the process encouraged innovative experimentation and new ideas versus 29% in low-performing transformations. In other words, innovation is critical.

Change is a constant for CMOs. As such, they are inherently testers and learners, always seeking ways to effectively build brand equity and performance. Since return on investment in marketing hinges on the successful deployment of key levers like audience, creative and media channels, it requires a willingness to innovate often. For broader transformations to thrive, they too must embrace innovation, like the marketing function, and get comfortable with experimentation. A CMO’s test-and-learn mindset, which is constantly seeking new ideas (and proof points of results), is well-suited to sit at the heart of a broader transformation effort. 

5. Build: Use CMO expertise as digital transformation leaders to create value at scale

Technology is a critical ingredient in realizing the transformation vision and accelerating how benefits get realized. In the research, nearly half (48%) of respondents from high-performing transformations say their organization invested in the right technologies to meet their transformation vision versus 33% in low-performing transformations. 

As digital transformation leaders, CMOs who have long championed the value of a more connected, intelligent, anticipatory customer experience know the value of technology intimately. As data and digital innovation increasingly connect the end-to-end customer journey, CMOs have been partnering with chief information officers (CIOs) and other leaders to build digital transformations using a wide range of marketing and advertising technology solutions.

Broader transformations require the connective tissue accelerated by data, automation and technology. CMOs have vital experience to apply this know-how to serve enterprise-wide transformations. The same lessons learned around technology-driven approaches to marketing can now be applied to supply chain, procurement, R&D and beyond — many of which hinge on capturing quick wins while executing on a longer-term technology roadmap to drive value.

6. Lead: Drive successful change by tapping into the CMOs’ ability to be powerful cultural ambassador

Not surprisingly, data revealed that 44% of respondents in high-performing transformations say their organization’s culture encouraged new ways of working versus only 28% in low-performing transformations. The “people agenda” clearly fits squarely at the heart of transformation and successful adoption of change hinges on managing a shift in culture. 

CMOs are powerful cultural ambassadors. They are steeped in culture and trends externally and well-attuned to the internal dynamics. Tasked with creating awareness, consideration, intention and action throughout the marketing “funnel,” CMOs drive impact with consumers through an optimized mix of message reach and frequency, and they are often an organization’s expert in behavioral change. CMOs also tend to embody more adaptive leadership styles, embracing change and showing vulnerability themselves as they “walk the walk” — another critical mindset to drive transformation success.

Unleash the power of CMOs in transformation

Transformation is never easy. However, the EY-Oxford research provides vital insights that humans are at the core of driving them successfully. CMOs understand the need to empower people and connect with them in the context of who they truly are, while harnessing the power of data and technology to drive strong connections. They are powerful communicators and innovators, blending creativity and experimentation with the right level of rigor and discipline to drive successful execution at scale.

By putting CMOs at the center of transformation, we put humans at the center of the change on multiple dimensions and dramatically increase our likelihood of delivering on the ambitions that sit at the heart of the transformation initiative.