Inside the Mind of the Chief Marketing OfficerStrong 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

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

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.

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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 partnership 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 business needs and a more tightly articulated psychological profile.

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Inside the Mind of the CMOCMO 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 executivesStatistically Significant Percentage Differences in Attribute Scores

Persuasive

Inclusive

Bold

Lead from the front

INFLUENTIAL

11%Persistent

Decisive

Seek high levels of activity

Open to new ideas

16%18%

19%

PIONEERING

Seek to understand people

Adapt to different audiences

Outgoing

17%22%

30%

34%34%

37%

10%16%

22%29%

SOCIALLY ENGAGED

Not beholden to structures and guidelines

Take initiative and test limits

Unconventional

ACTIVE AND PRODUCTIVE

21%21%

49%

Abstract thinking style

Generate innovative solutions

Imaginative

INNOVATIVE

Percentages represent the degree

to which CMOs manifest a trait more strongly than

other executives. For instance, their score on

being imaginative is almost 50% higher than the average

executive’s.

How they conceptualize

How they operationalize

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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.

Inside the Mind of the CMOAs their role grows and changes, CMOs increasingly look

to the CEO role—with mixed results

ɳ Be in the right place. Faster- moving or more transformational industries, in particular, are better suited to the CMO leadership style, as are companies in the midst of change or innovation programs. CMOs may struggle as a CEO in more heavily regulated industries.

ɳ CMOs need to moderate how they display some of their more extreme attributes. CMOs test limits, are bold and are upfront in their influencing style. CEOs seek to understand different perspec-tives and involve others in deci-sions but do not overanalyze. They achieve success through others yet remain tough minded.

ɳ Make sure others are on board. The CMO leadership style can be unconventional, colorful and flashy. CEOs exhibit measured emotion. CEOs excel at calculated—not careless— risk taking. They display intensity but maintain control.

FOR CMOs WHO WANT TO BE A CEO …

33% more UNCONVENTIONAL

36% more IMAGINATIVE

32% more likely to ESCHEW STRUCTURES AND GUIDELINES

32% more likely to ADAPT TO DIFFERENT AUDIENCES

29% more likely to DISPLAY FLASHY LEADERSHIP

32% more likely to TAKE INITIATIVE AND TEST LIMITS

Statistically significant differences from CEOs that

HINDERCMOs as they seek the CEO role

Statistically significant differences from CEOs that might

HELP orHINDERCMOs as they seek the CEO role

Statistically significant differences from CEOs that

HELPCMOs as they seek the CEO role

21% more OUTGOING

21% more ABSTRACT THINKING STYLE

22% more BOLD

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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.

Inside the Mind of the CMOCMOs contrast strongly with CIOs/CTOs on certain core traits …

and even more dramatically with CFOs

ɳ Embrace stylistic differentiation within the C-suite. As the notion of “diversity of mindset” becomes an ever more desirable element of company culture, organizations should view a non-uniform C-suite as an asset, not a liability. By fending off groupthink, the sharp personality differences between CMOs and CIOs/CTOs or CFOs in fact drive creativity and enhance risk management.

ɳ Let CMOs be innovation engines on a scale broader than traditional Marketing’s turf. Because CMOs’ “imagination DNA” is so much stronger than other C-suite members’, CMOs can be usefully deployed to help solve problems innovatively across any number of areas—not just the typical Marketing remit.

HOW CAN ORGANIZATIONS LEVERAGE THESE TENSIONS PRODUCTIVELY?

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

COMPARED WITH CIOs/CTOs, CMOs ARE ...

29% more unconventional

13% more innovative

32% more imaginative

21% more willing to test limits

COMPARED WITH CFOs, CMOs ARE ...

40% more unconventional

29% more innovative

60% more imaginative

30% more willing to test limits

UNCONVENTIONAL

INNOVATIVE

IMAGINATIVE

TEST LIMITS

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CMOs and CDOs

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

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

OVERT INFLUENCERS

DISRUPTIVE CHALLENGERS

• Bold*• Inclusive• Outgoing*• Persistent• Persuasive• Unconventional*

• Abstract thinking style*• Adapt to different audiences*• Decisive• Generate innovative solutions*• Lead from the front*• Not beholden to structures

and guidelines*• Open to new ideas*• Seek high levels of activity• Take initiative and test limits*• Think “outside the box”*

• Achievement oriented• Challenge traditional

approaches• Entrepreneurial spirit*• Go against the grain*• Identify limitations*• Independent minded*• Inquisitive*• Optimistic• Socially confident*• Willing to take

calculated risks*

CHIEF MARKETING OFFICERS Attributes in common CHIEF DIGITAL OFFICERS

Inside the Mind of the CMOCMOs 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 ɳ Communicate and influence the board and CEO to

help drive the company’s digital understanding and engagement.

ɳ Ensure that digital efforts are highly contextualized to overall company strategy.

CDOs ɳ Concretely drive digital transformation efforts. ɳ Serve as organizational provocateur on digital

topics—continually open up new areas of inquiry.

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

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Inside the Mind of the CMOAs 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 chief digital officer or chief innovation officer. 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

CHIEF DIGITAL OFFICER

Executives in this role are charged with leading large-scale digital transformation efforts within an established, complex organization.

CHIEF INNOVATION OFFICER

Born out of a fusion of the CMO and lead information technology (IT) roles (due to increasing marketing spend on IT platforms), this role addresses innovation from the business model level on down. Executives in this role are charged with nurturing new businesses and evolving current businesses and generally are shaping the organization’s future with both a technologist’s and a marketer’s eye.

CHIEF CUSTOMER/ EXPERIENCE OFFICER

The role is responsible for designing and owning the end-to-end customer experience and culture across all channels and touch points (online, offline, mobile). The role is being created in consumer-facing legacy industries (particularly retail and financial services) experiencing significant transformation or disruption.

CHIEF GROWTH OFFICER

This role has become en vogue in most consumer packaged goods companies, as organizations look to unlock and maximize the next stage of growth. The role is intended to create a holistic way of looking at growth. Typically, this role reports to the CEO and has Innovation, R&D, Marketing Strategy and Sales reporting into it.

Challenge traditional approaches

Innovative

Entrepreneurial spirit

Data powered

Forward thinking

Accelerateactions

Embrace calculated risks

See the big picture

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

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Inside the Mind of the CMOWhat’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 important change initiatives—within Marketing or more broadly.

UNDERSTANDING WHICH “CMO FLAVORS” THEIR ORGANIZATION TRULY NEEDSDiagnosing 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 optimizing CMO performance.

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

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

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AUTHORS

RICHARD SANDERSON leads many of the firm’s chief marketing officer, communications, digital and e-commerce search assignments in all industries. He has recruited chief marketing officers for financial services, healthcare, retail, and consumer products and services clients across the country. He is based in Chicago.

NORM YUSTIN advises clients in our Consumer Sector with functional expertise in retail organizations and marketing officers. Before joining Russell Reynolds Associates, he was a two-time chief marketing officer and has recruited

marketing executives throughout his career. He has worked and lived in five countries across three continents and is now based in Chicago.

MALLORY SAMSON is the firm’s Global Knowledge Leader for the Consumer Sector, inclusive of chief marketing officers. She is based in Chicago.

MELISSA SWIFT is the firm’s Global Knowledge Leader for Leadership & Succession. She is based in New York.

Analysis was conducted by ERIN MARIE CONKLIN.

GLOBAL OFFICES

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© Copyright 2015, Russell Reynolds Associates. All rights reserved.

Russell Reynolds Associates is a global leader in assessment, recruitment and succession planning for boards of directors, chief executive officers and key roles within the C-suite. With more than 370 consultants in 46 offices around the world, we work closely with public, private and nonprofit organizations across all industries and regions. We help our clients build teams of transformational leaders who can meet today’s challenges and anticipate the digital, economic, environmental and political trends that are reshaping the global business environment. Find out more at www.russellreynolds.com. Follow us on Twitter: @RRAonLeadership.

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