FRESH TAKES ON BIG IDEAS

More than 80 percent of CEOs are looking to their chief marketing officers (CMOs) to handle their companies’ growth agendas. But are CMOs equipped enough to deliver on these expectations? 

It’s a significant responsibility, and it’s not just about traditional marketing anymore. The remit of the CMO has expanded dramatically. A few years ago, we talked about “marketing with a capital M” because marketing was moving beyond the remit of advertising and creative work to include analytics, insights, and more. Recently, there has been a widespread trend of CMOs taking on a much broader remit that includes sales and e-commerce, design, product innovation, AI and gen AI, and even distribution in some cases. In short, CMOs are no longer just the head of advertising. They’re unifiers, connecting the dots across an organization.

CMOs are now expected to propel these lofty ambitions, and the growth agenda keeps getting bigger and more complicated with geopolitical issues, supply chain disruptions, and other challenges. But there’s a sizable gap between what CMOs know is important to deliver growth and successful performance, and their ability to achieve it. Their biggest challenge is the marketing operating model. Only 27 percent of consumer and retail CMOs feel they have an operating model that is fit for purpose to deliver on their objectives. Their main constraints are limited access to the necessary capabilities, insufficient cross-functional collaboration, the lack of a ring-fenced budget, and other operational issues. That’s where the tension lies.

“Only 27 percent of consumer and retail CMOs feel they have an operating model that is fit for purpose to deliver on their objectives.”

There’s also a disconnect between what is top of mind for CMOs and where they devote their attention. Many of them feel like they’re spending a lot of time thinking about things they don’t necessarily feel equipped to accomplish—instead of spending time in areas where they know they can deliver. For example, 83 percent of CMOs say that measuring marketing performance is important, but only 41 percent of them feel they have a mature enough organization to be able to do it. This is a bread-and-butter marketing capability, yet because of today’s “new normal” context, CMOs are now struggling to deliver on this kind of objective, which used to be table stakes. What’s more, when it comes to more advanced areas like gen AI, around 37 percent of marketers say it’s important to craft an AI strategy (with clear guardrails and use cases), but only 7 percent feel their organizations are up to delivering.

With these challenges, how can CMOs prioritize? There’s a lot of noise that can be distracting. The key is to stay focused—having a clear North Star vision supported by a well-defined marketing strategy. It’s then critical to focus on alignment inside the organization, connecting people and capabilities in the right way. The CEO–CMO relationship is also critical. CEOs aren’t always aware of everything CMOs must contend with these days. They can help by better understanding the complexity and scope of marketing responsibilities, then allocating more attention and resources toward areas that need bolstering.

The role of the CMO is a position of passion. CMOs are excited to pursue growth and change, and this coming year, marketers will be spinning more plates than ever. The complexity of marketing is accelerating, and the role of the CMO will continue to evolve. The key to success for these leaders will be to focus on rebooting the ways they work.

ABOUT THIS AUTHOR

Biljana Cvetanovski is a partner in McKinsey’s London office.

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