Embracing Marketing Operations: What Is It And Why Bother

Embracing Marketing Operations: What is It and Why Bother? Presented by Gary Katz BrightTALK Marketing Operations Channel September 26, 2008 © Marketing Operations Partners, 2008

About Your Presenter - Gary M. Katz

CEO & Founder of Marketing Operations Partners

First ready-to-go COO and change management team for the marketing department

Chairman & Founder of CommPros Group, Inc., a marketing agency

20+ years experience leading corporate marketing, marcom, PR, IR, lead management & change management

Certified Strategic Planning Process Facilitator

National Board and Thought Leadership Committee member for the Business Marketing Association

Marketing Operations Track Chair for the Henry Stewart Conference

Teacher, Marketing Operations: The Engine of Marketing, UCSC Extension

Marketing Expert Witness

Note Author and Speaker on Marketing Operations Topics

MS in Organization Development, BA in Public Relations

Webcast Overview

The Motivation to Change Marketing’s MO

Defining Marketing Operations

Marketing Operations: Rising to the Challenge

A New Vision for Marketing

The Motivation to Change Marketing’s MO © Marketing Operations Partners, 2008

Your metrics for success are ill-defined

Your people are slammed

Your institutional memory is leaky

Your innovation and creativity are suffering from constipation

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

High-Priority MO Challenges Emphasize Metrics, Strategy, Cross-functional Goals Measure Marketing ROI & Demonstrate Value Balance of Marketing Strategy & Tactics 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% 6% © 2007 Marketing Operations Partners

Why Marketing Operations is Critical Scaling for Growth Enterprise Strategic Agenda Customer Profitability Innovation & Sales Acceleration Accountability Alignment with Stakeholders ©2006 Marketing Operations Partners Marketing Intelligence

Defining Marketing Operations © Marketing Operations Partners, 2008

Marketing Operations Definition 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. ©2008 Marketing Operations Partners

Marketing Operations Encompasses A Broad Body of Knowledge

Change management

Total Quality Management

Manufacturing

Organizational reengineering

IT

Statistical analysis

Customer experience management

Enterprise resource management

Knowledge management

Sales pipeline management.

Effective Marketing Operations Requires a Diversity of Subject Matter Expertise Enterprise Strategic Agenda

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

Customer Profitability

Voice of the Customer

Customer Experience Mgt

Customer Reference Dev.

Customer Loyalty/Affinity

Win-Loss Analysis

Segment Marketing

Marketing Intelligence

Marketing Org. Assessment

Predictive Analytics

Business Intelligence

Competitive & Industry Benchmarking

And Even More Subject Matter Expertise! 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

Metrics and KPI Definition

Dashboard Development

Performance Measurement

Marketing Portfolio Mgt

Budget Mgt & Justification

Alignment with Stakeholders

C-Level Buy-in

Sales Alignment

Finance/IT Alignment

M&A Assimilation

The Benefits of Marketing Operations

Brings a long overdue operational focus to Marketing

Applies proven, time-tested Best Practices and Business Processes

Drives Efficiency, Consistent Results

Provides solid foundation for Marketing Excellence

Provides the CMO with an operational partner, a Chief of Staff

Challenge: Converting Insight into Value Lack of Confidence in Marketing Intelligence Knowledge Gaps Seat-of-the-Pants Decision-Making Disagreement over “Facts” If We Build It They will Come ©2008 Marketing Operations Partners

Solutions: Converting Insight into Value No or Slow Growth Anticipate Market/ Customer Shifts Benchmark Against Industry Norms Create Customer-Driven Solutions Learn from Wins & Losses Marketing Operations Breeds Intelligence, Innovation ©2006 Marketing Operations Partners

Challenge: Accelerating Selling/Buying Process No or Slow - Growth... Disappointing Revenue Results Sluggish Pipeline? Unforeseen Obstacles to Sales Clearing Objections Takes Time Missed Opportunities ©2006 Marketing Operations Partners

Solutions: Accelerating Selling/Buying Process No or Slow Growth Feed the Sales Pipeline Engage Customers to Sell & Market Optimize Marketing & Sales Handoffs Grow Synergies, Grow Results Marketing Operations Aligns Sales/ Marketing Efforts ©2006 Marketing Operations Partners

Challenge: Scaling Marketing for Growth Marketing in Reaction Mode Need to Satisfy Mix of Stakeholders Dynamic Competitive Market Unmanageable Complexity Reaching Strategic Objectives is in Question ©2006 Marketing Operations Partners

Solutions: Scaling Marketing for Growth Marketing in Reaction Mode Assess Marketing Optimization Opportunities Tap Infrastructure as Accelerator Manage Ahead of Change Take Leadership to the Performance Front Marketing Operations Raises the Bar ©2006 Marketing Operations Partners

Challenge: Delivering the Strategic Agenda Every Strategy Cycle, Every Budget Cycle -- is a Challenge Disconnect Between Facts & Direction Tough Getting Buy-in Vision Ineffectively Executed Team Relationships Less Than Functional ©2006 Marketing Operations Partners

Solutions: Delivering the Strategic Agenda Strategy / Budget Cycles are a Challenge Drive Innovation & Messaging Alignment Develop Visioning as a Tool for Results Bring Discipline to Marketing Governance Win Buy-in for Marketing Change Marketing Operations Guides Process ©2006 Marketing Operations Partners

Challenge: Managing Customer Profitability The Price of Acquiring & Keeping a Customer is Growing Customer Insight Stays in the Field Land Account, Hope for Profits Customer Experience/ VOC are Buzzwords High Customer Churn ©2006 Marketing Operations Partners

Solutions: Managing Customer Profitability The Price of Acquiring & Keeping Customers is Growing Maximize Customer Lifetime Value Leverage Customer Decision Drivers Create Advocates & Win Back At-Risk Customers Mobilize Resources to Meet Customer Expectations Marketing Operations Builds Customer Intimacy ©2006 Marketing Operations Partners

Challenge: Demonstrating Return on Marketing Marketing on Defensive to Show Contribution Marketing Perceived as Cost Center Difficulty Defining Meaningful Metrics Poor Visibility of Results Infrastructure for Measurement Lacking ©2006 Marketing Operations Partners

Solutions: Demonstrating Return on Marketing Marketing on Defensive To Show Contribution Leverage Metrics Blueprint to Drive Measurement Identify Leading & Lagging Indicators Via Dashboards Track & Manage Individual and Team Performance Fine-tune Forecasting with Predictive Modeling ©2006 Marketing Operations Partners Marketing Operations Enables Account-ability

The Progression of MO Maturity Advanced Proesses (LEAN, Six Sigma, Supply Chain)‏ Change Management Competency Development Customer Profitability Enterprise Marketing Management Enterprise Metrics Alignment Marketing Governance Portfolio Management Predictive Analytics Shared Vision Strategic Management Org. Learning Facilitation Fundamental Marketing Operations Budget Management CRM Marketing Services Measurement Vendor Management Expanded Marketing Operations Sophisticated Marketing Operations Behavior-Rewards Alignment Best Practices Campaign Automation Cross-Functional Alignment Knowledge Management Metrics MOM / MRM / DAM Process Mapping & Design *CRM = Customer Relationship Management DAM = Data Asset Management MOM = Marketing Operations Management MRM = Marketing Resource Management

MO Best Practice Framework Metrics Process Guidance Infrastructure Management Technology Strategy Ecosystem Alignment © Marketing Operations Partners, 2007

Profile of Best Practice Firms in Marketing Operations

With Sales

With Enterprise Metrics

> 20% CAGR ’ 03-’07 Strong Brand Identity Execution Excellence Process Excellence

Budgeting

Brand Management

Customer Management

Planning

Product Lifecycle Management

Predictive Analytics for Revenue

Budget Planning Processes

MO Vision: Change the Modus Operandi - 1

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 - 2

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

Is Your Organization Ready for MO? - 1 Substantial marketing Investment

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

CHARACTERISTIC PAIN VISION Dynamic competitive market No or disappointing 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

Is Your Organization Ready for MO? - 2 Under media or regulatory S crutiny

Partner with Quality, Finance, IR

• Map key processes

Document best practices

Apply LEAN, 6 Sigma, etc.

Demonstrate ROI through KPIs, dashboards, etc.

CHARACTERISTIC PAIN VISION 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

Is Your Organization Ready for MO - 3 More tactical than strategic Marketing is valued strategic partner to CEO and C-team - Growth driver - Change catalyst CHARACTERISTIC PAIN VISION Firefighting, CYA behavior © 2006 Marketing Operations Partners

The Future: A New Maturity Model - You’ve heard of the 5 Ps and 3 Cs of Marketing… + © 2008, Marketing Operations Partners P ositioning © 2007, Adrian Ott, Exponential Edge P roduct P romotion P rice P lace C ustomers C ompetitors C orporation

More recently, we saw the unveiling of the 5Ts of Marketing Operations™

T otal Strategy

T echniques and Processes

T racking & Predictive Modeling

T echnology

T alent

The addition of the 5 T’s is Marketing’s rite of passage

The 5 P’s +

The 3 C’s +

The 5 T’s

= 13

The entry age into adulthood in certain cultures

The next step in Marketing’s evolution is to embrace insight from learning organizations

D iscipline #1 - Personal mastery

D iscipline #2 - Mental models

D iscipline #3 - Shared vision

D iscipline #4 - Team learning

D iscipline #5 - Systems thinking

The 5 D’s

Thanks for Attending! For More Results, Contact Us: Phone: 408-243-7881 E-mail: [email_address] Web: www.mopartners.com Blog: http://mopartners.typepad.com/ Marketing Operations Evangelists Group: To join, e-mail [email_address] Journey to Marketing Operations Maturity Benchmarking Study: http://www.mopartners.com/services/MORbenchmark.php © 2008 Marketing Operations Partners