Embracing Marketing Operations:What is It and Why Bother?
About Your Guide: Gary M. Katz
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
• Founder and Chief Strategy Officer of Marketing Operations Partners
• First ready-to-go COO and change management team for the marketing department
• Chairman of Marketing Operations Future Forum
• 20+ years experience leading corporate marketing,
• marcom, PR, IR, demand gen & change management
• Certified Strategic Planning Process Facilitator (ICA)
• Noted educator, author, speaker and leader in Marketing Operations field
• MS in Organization Development, BA in Public Relations
The Motivation to Change Marketing’s MO
• Defining Marketing Operations
• Marketing Operations: Rising to the Challenge
• A New Vision for Marketing
Webcast Overview
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
The Motivation to Change Marketing’s MO
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
• Your metrics for success are ill-defined
• Your people are slammed
• Your institutional memory is leaky
• Your innovation and creativity are suffering fromconstipation
• Your team, cross-functional or supplier relationships are poorly-aligned
• Your decision-making process is tough to justify
• Your marketing portfolio is not delivering expected results
You Know Your Marketing Resources (and Job) are at Risk When…
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Measure Marketing ROI & Demonstrate Value
Measure Marketing ROI & Demonstrate Value
Common Goals for Marketing Success Tied to Other Groups
73%
60%
Justify Marketing’s Role & Contribution to C-Level Executives
Marketing Processes Enable Internal Efficiencies & Effectiveness
Collaboration & Synergy Supported By Corporate Environment
Coordination of Shared Processes Across Functions
Continuity to Maintain Institutional Knowledge & Expertise
Assimilate & Integrate Resources Obtained From M&A
57%
49%
42%
26%
22%
12%
© 2012 Marketing Operations Partners. All Rights Reserved.
High-Priority MO Challenges Emphasize Metrics, Strategy, Cross-functional
Source: Journey to Marketing Operations Maturity Benchmarking Study, Marketing Operations Partners
Scaling for Growth
EnterpriseStrategic Agenda
Customer Profitability
BuyingAcceleration
Accountability Alignment withStakeholders
MarketingIntelligence
© 2012 Marketing Operations Partners. All Rights Reserved.
Why Marketing Operations is Critical
• Marketing Operations (MO) is a thorough, end-to-end operational discipline that leverages processes, technology, guidance and metrics to run the Marketing function as a profit/value center, growth driver, change agent and fully-accountable business.
• MO reinforces Marketing strategy and tactics with a scalable and sustainable enabling infrastructure, as well as nurturing a healthy, collaborative ecosystem, both within and outside the Marketing department, to drive achievement of enterprise strategic objectives.
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Defining Marketing Operations
• Change management
• Total Quality Management
• Manufacturing
• Organizational reengineering
• IT
• Statistical analysis
• Customer experience management
• Enterprise resource management
• Knowledge management
• Sales pipeline management.
Marketing Operations Encompassesa Board Body of Knowledge
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Marketing Intelligence
Customer Profitability
• Marketing Org. Assessment• Predictive Analytics• Business Intelligence• Competitive & Industry
Benchmarking
• Voice of the Customer• Customer Experience Management• Customer Reference Dev.• Customer Loyalty/Affinity• Win-Loss Analysis
Enterprise Strategic
Innovation & SalesAcceleration
• Marketing Planning & Ops Reviews• Marketing Charter Definition• Change Management• Socialization & Community Building• Leadership Council• Circles of Excellence• Marketing & Brand Governance• CMO Communications
• Sales Pipeline Optimization• Lead Scoring & Nurturing• CRM• Campaign Management• Product Lifecycle Management
Effective Marketing Operations Requires a Diversity of Subject Matter Expertise
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Scaling for Growth
• Process Mapping & Design• Marketing Automation• Knowledge Management• Tool and Template Dev.• Best Practices Documentation• Centers of Excellence• Marketing Competency Dev.• Roles & Responsibilities
Clarification• Team Mix Modeling• Marketing Org. Reengineering• Marketing Resource
Optimization• Supply Chain Management
Accountability
• Metrics and KPI Definition• Dashboard Development• Performance Measurement• Marketing Portfolio Mgt• Budget Mgt & Justification
Alignment withStakeholders
• C-Level Buy-in• Sales Alignment• Finance/IT Alignment• M&A Assimilation
And Even More Subject Matter Expertise!
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
• Brings a long overdue operational focus to Marketing
• Provides the CMO with an operational partner, a Chief of Staff
• Applies proven, time-tested Best Practices and Business Processes
• Drives Efficiency, Consistent Results
• Provides solid foundation for Marketing Excellence
The Benefits of Marketing Operations
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Lack of Confidence inBusiness Intelligence
Challenge:Converting Insight into Value
© 2012 Marketing Operations Partners. All Rights Reserved.
Marketing Operations: Rising to the Challenge
Lack of Confidence in Business Intelligence
Benchmark Best Practices
Validate Market Demand
Assess Insight/
Opportunity Gaps
Baseline What We Know/What We
Don’t MO BreedsActionable Insight and Innovation
© 2012 Marketing Operations Partners. All Rights Reserved.
Solution:Converting Insight Into Value
The Price of Acquiring & Keeping a Customer is Growing
© 2012 Marketing Operations Partners. All Rights Reserved.
Challenge:Maximizing Customer Profitability
The Price of Acquiring & Keeping
Customers is Growing
Calculate Customer Lifetime Value
Capture Customer Decision Drivers
Win Back At-Risk Customers
Mobilize to Meet Customer Expectations
MO Delivers
Customer Experience
© 2012 Marketing Operations Partners. All Rights Reserved.
Solution:Maximizing Customer Profitability
Every Strategy/Budget Cycle-- a Free-for-All
© 2012 Marketing Operations Partners. All Rights Reserved.
Challenge:Delivering the Strategic Agenda
Catalyze Shared Vision
Strategy / Budget Cycles are Free-for-Alls
Ensure Message Integrity
Live the Brand
SocializeMarketing Change
MO RealizesStrategy
© 2012 Marketing Operations Partners. All Rights Reserved.
Solution:Delivering the Strategic Agenda
No or Slow - Growth...Disappointing Revenue Results
© 2012 Marketing Operations Partners. All Rights Reserved.
Challenge:Accelerating Selling/Buying Process
No or Slow Growth
Integrate Buying/Selling
Cycle
Feed Sales Pipeline
Optimize Sales/ Marketing Hand-offs
Leverage Loyalty Assets
MO Aligns Sales/
Marketing Effort
© 2012 Marketing Operations Partners. All Rights Reserved.
Solution:Accelerating Selling/Buying Process
Marketing in Reaction Mode
© 2012 Marketing Operations Partners. All Rights Reserved.
Challenge:Scaling Marketing for Growth
Marketing in Reaction Mode
Diagnose Marketing Health
Architect Enabling Shared Processes
Optimize Marketing Investment
Develop Marketing Competency
MO MObilizes Resources
© 2012 Marketing Operations Partners. All Rights Reserved.
Solution:Scaling Marketing for Growth
Marketing on Defensive to Show Contribution
“Much of what marketing can contribute right now is seen as less tangible because we lack the metrics” – Dawn Hudson, CEO, Pepsi North America
© 2012 Marketing Operations Partners. All Rights Reserved.
Challenge:Demonstrating Return on Marketing
Marketing on Defensive To Show
Contribution
Align Marketing/Enterprise
Objectives
Track Individual and Team Performance
Fine-tune Forecasting thru Predictive
Analytics
Define and Track Key Metrics via
Dashboards
MO Enables Account-
ability
© 2012 Marketing Operations Partners. All Rights Reserved.
Solution:Demonstrating Return on Marketing
A New Vision for Marketing
Enlightenment
© 2012 Marketing Operations Partners. All Rights Reserved.
Fundamental MO
Expanded MO
Sophisticated MO
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Budget Management CRM Marketing ServicesMeasurement Vendor Management
The Progression of Mo Maturity
Ecosystem Alignment
MetricsProcessGuidance
Infrastructure Management
Technology
Strategy
EcosystemAlignment
MO Best Practice Framework
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Profile of Best Practice Firms in Marketing Operations
• Marketing full partner to CEO, other CXOs
• Helps formulate & achieve company strategy
• Proactively defines meaningful metrics
• Shows return on Marketing contribution to company success
• Marketing drives innovation, new market penetration & customer profitability
• Tight alignment with R&D, sales & customer service
• Builds CLV, VOC intelligence & pipeline of references
MO Vision: Change the Modus Operandi - 1
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
• Marketing owns sales leads process
• Nurtures prospects through sales funnel
• Removes barriers that block end-to-end visibility
• Marketing, once operationalized, leads the growth charge
• Provides agility & effective response to opportunity
• Leverages best practices, process & technology to scale organization
• Synchronizes effort & ensures cross-functional knowledge-sharing
MO Vision: Change the Modus Operandi - 2
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Is Your Organization Ready for MO? - 1
CHARACTERISTIC PAIN VISION
SubstantialmarketingInvestment
Unmanageable complexity, difficulty demonstrating ROI, Marketing on defensive
Optimize to deliver substantial ROI• Leverage processes, technology,
guidance & best practices to spur productivity, knowledge sharing
• Utilize dashboards & metrics to make informed spend decisions
Recognized by C-team • For accountability & ROI contribution
Dynamic competitive market
No ordisappointing growth, super growth, high customer churn & employee turnover
Marketing aligns w/other functions• Nurturing sales funnel• Revenue targets• Innovation process• New market penetration• Customer experience
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Is Your Organization Ready for MO? - 2
CHARACTERISTIC PAIN VISION
Undermedia orregulatoryScrutiny
Compliance pressure, impact of change on compliance, media magnifying glass
Partner with Quality, Finance, IR• Map key processes• Document best practices• Apply LEAN, 6 Sigma, etc.• Demonstrate ROI through KPIs,
dashboards, etc.
M&A integration challenges
Duplicated efforts, loss of continuity, “everything’s urgent”, hard to get buy-in for initiatives
Marketing leads initiatives• Communications leadership• Walking the talk
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Is Your Organization Ready for MO? - 3
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
CHARACTERISTIC PAIN VISION
More tactical than strategic
Firefighting, CYA behavior
Marketing is valued strategic partner to CEO and C-team
- Growth driver- Change catalyst
+
Product Promotion
Price Place
Customers
Competitors
Corporation
Positioning
Source: © 2007, Adrian Ott, Exponential Edge© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
The Future: A New Maturity Model: You`ve Heard of the 5Ps and 3 Cs of Marketing
1. Total Strategy
2. Techniques and Processes
3. Tracking & Predictive Modeling
4. Technology
5. Talent
4Ps 3Cs
MarketingEffectiveness
5Ts
Source: © 2007, Adrian Ott, Exponential Edge© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
More Recently, We Saw the Unveiling of the 5Ts of Marketing Operations™
The 5 P’s +The 3 C’s +The 5 T’s
= 13
The entry age into adulthood in certain cultures
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
The Addition of the 5 T`s is Marketing`s Rite of Passage
Discipline #1 - Personal mastery
Discipline #2 - Mental models
Discipline #3 - Shared vision
Discipline #4 - Team learning
Discipline #5 - Systems thinking
The 5 D’s
Source: The Fifth Discipline: The Art & Practice of the Learning Organization© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
The Next Step in Marketing`s Evolution is to Embrace Insight from Learning Organizations
3 C’s5 P’s
5 T’s
5 D’s
The Power of 18
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Adding the 5 D`s Leads to a New Level of Generative Learning and Marketing Maturity
See What Marketing Ops Thought Leaders are Saying!
Benchmarking study:adopt best practices,
avoid pitfalls,build your MO roadmap!
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Follow our blog!
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tinyurl.com/Mktg-Ops
Online talk show with execs from Autodesk, Clorox,
Genworth, NetApp, … and more!
© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Jump-start Your Organization’s Awareness of Marketing Operations Improvement Opportunities
Socialize your assessment results through this coffee table book with more than 2 dozen analyses and recommendations. Excerpts from 88‐page MO:DNA report:
www.MOpartners.com/resources/MO-DNA© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Advance Your Expertise in Marketing Operations
1) Impact & Promise of Marketing Ops
2) Mobilizing Strategic Impact for Corporate Growth
3) Designing Marketing Infrastructure for Results
4) Journey to Marketing Ops Maturity
Marketing Operations Essentials: 4 modules available online, in‐person, or hybrid
www.MOpartners.com/resources/© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Join the Marketing Operations Future ForumThe Forum takes you on a discovery process that alters your viewpoint to manage any aspect of marketing more efficiently and effectively
www.MOfutureforum.com© 2012 Marketing Operations Partners, Inc. All Rights Reserved.
Let’s Keep in Touch!
tinyURL.com/MOfutureforum@[email protected]/Mktg-Ops
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© 2012 Marketing Operations Partners, Inc. All Rights Reserved.