A New Seat in the C-Suite

Why the CMO position is outdated, and the benefits of creating a new role to replace it.

Michael Schmidt | Brand + Communications Strategy | VCU Brandcenter 2009

Woe be the CMO!

Percentage of CMO’s who rated marketing as “highly influential and strategic” in their company.<10%

Length in months of the average CMO’s tenure.22-28

Marketing budgets’ historical rank among expenditures to be cut during difficult economic times.#1

CMO Council Survey

BRAND

BUSINESS

The Source of the Problem

Corporate structure has led to the compartmentalization, and marginalization, of external decision-making.

A Better Reflection of Reality

Today’s consumer views brands more holistically, forming their opinion based on all the information available.

REPUTATION

Adapted from Marty Neumeier, The Brand Gap

The Other Half of the Equation

Adapted from Robert G. Eccles, Scott C. Newquist, and Roland. Schatz, “Reputation and Its Risks,” Harvard Business Review, February, 2007

=REPUTATION Expectation )( Experience+

Out with the CMO

• Tied to old-school marketing tactics

• Has limited internal influence

• Perceived as disconnected from operations

Responsible for external image

Out with the CMO

• Tied to old-school marketing tactics

• Has limited internal influence

• Perceived as disconnected from operations

In with the CRO

Responsible for external image

• Practices an evolved understanding of branding

• Realigns brand and business decision-making

• Fosters innovation

Responsible for reputation

A Worthy Successor

CRO

As a replacement for the CMO, the Chief Reputation Officer is:

Better aligned with business operations.

Based on a dynamic yet more long-term perspective.

Recognized as essential to a company’s vitality.

1.

2.

3.

Evaluating Reputation

REPUTATION

Products and Services

Workplace Environment

Vision and Leadership

Social Responsibility

Emotional Appeal

Financial Performance

Adapted from Brønn, C. and P. S. Brønn, “Reputation and organizational efficiency.” Corporate Reputation Review, Spring 2005

Evaluating Reputation

REPUTATION

Products and Services

Workplace Environment

Vision and Leadership

Social Responsibility

Emotional Appeal

Financial Performance

Adapted from Brønn, C. and P. S. Brønn, “Reputation and organizational efficiency.” Corporate Reputation Review, Spring 2005

Evaluating Reputation

REPUTATION

Operations

Customer Service

Human Resources

Corporate Communications

Marketing

Financial Strategic Planning

Defining the Role

The CRO Payoff

$$

•Stronger relationships:

•Formal reestablishment of external perception as a key consideration for businesses.

•Accelerated progression toward future possibilities of branding as it has evolved.

companies & consumers

marketing & operations

clients & agencies

Evolving as Partners

Evaluating ideas based on how they extend to multiple, synchronized media.

Crafting ideas with multiple value streams; consumer, company, planet, etc.

Moving Beyond... In Pursuit of...

Adapted from Adrian Ho, “From the Mind of Zeus Jones”

Evolving as Partners

Evaluating ideas based on how they extend to multiple, synchronized media.

Creating additive, engaging communications.

Crafting ideas with multiple value streams; consumer, company, planet, etc.

Finding new ways to deliver enriching experiences.

Moving Beyond... In Pursuit of...

Adapted from Adrian Ho, “From the Mind of Zeus Jones”

Evolving as Partners

Evaluating ideas based on how they extend to multiple, synchronized media.

Creating additive, engaging communications.

Utilizing new, nontraditional media tactics.

Crafting ideas with multiple value streams; consumer, company, planet, etc.

Finding new ways to deliver enriching experiences.

Developing new revenue opportunities.

Moving Beyond... In Pursuit of...

Adapted from Adrian Ho, “From the Mind of Zeus Jones”

Michael SchmidtBrand + Communications Strategy

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