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Measuring Marketing Governance Maturity

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Measuring Marketing Governance Maturity

  1. 1. How To Guide Measuring Marketing Governance Maturity Executive Summary: Governance refers to formal management processes engaging cross- functional steering committees for strategic planning, project prioritization, and performance measurement initiatives. For many large enterprises, Sarbanes-Oxley has been the catalyst for implementing and refining these business processes. Advanced Marketing professionals are capitalizing on the Governance function by adopting their own formal processes to plan, select projects, and monitor performance. By adopting Best Practice Marketing Governance processes, you can better:  Align your strategy and project selection with the business’ goals and objectives;  Gain C-Level buy-in; and  Measure project success using standardized tools and methodologies. Most North American mid-sized companies do not have a mature marketing governance process in place. Use this report to learn the Best Practices for Marketing Governance and follow the step-by-step action plan to set up and maintain this function in your organization.www.demandmetric.com Call a Principal Analyst: (866) 947-7744
  2. 2. 2 Table of Contents Page Introduction 3 Benefits of Marketing Governance 3 The Capability Maturity Model 4 The COBIT Standard 5 Establishing a Governance Benchmark 6 Developing Marketing Governance 6 Maintaining Best Practice Governance 7 Conclusion 7www.demandmetric.com Call a Principal Analyst: (866) 947-7744
  3. 3. 3 Introduction Marketing has the unenviable reputation as the line of business that is not held accountable for achieving specific, measurable, bottom-line results. Finding a bean counter that does not view Marketing as a cost center - producing intangible results - is a daunting task. One of the primary reasons for this is the notable absence of a Marketing Governance function in most organizations. This lack of structure has led to decreased confidence among senior level peers, reduced budgets, and a feeling around the boardroom table that marketing should not be involved in “strategic” decisions. Establishing a culture for Marketing Performance Management (MPM) requires that sound infrastructure is in place for evaluating decisions and results. What is Marketing Governance? Marketing Governance is a structure of processes, procedures, and policies used to optimize the management of Marketing functions. What are the benefits?  Aligned business & marketing strategy  Goals & Objectives map to quantifiable metrics  Increased accountability & support from senior management  Ability to execute integrated multi-channel campaigns  Established decision-making & prioritization processes  Ability to measure marketing performancewww.demandmetric.com Call a Principal Analyst: (866) 947-7744
  4. 4. 4 The Capability Maturity Model In order to improve an organization’s marketing function it is important to understand the maturity of its current processes and procedures. The Capability Maturity Model (CMM), originally designed by Carnegie Mellon University as a method for improving Software Engineering Process Management, can be used to assess the maturity of other business processes including Marketing Governance. CMM (see diagram below) helps organizations understand and deploy Best Practices related to process management. Since governance is a business process, it can be plugged into the CMM model to provide a benchmarking tool for companies wishing to systematically improve organizational maturity in this area.www.demandmetric.com Call a Principal Analyst: (866) 947-7744
  5. 5. 5 The COBIT Standard Another management tool that can be used to develop and refine Marketing Governance is the COBIT standard. Developed by the IT Governance Institute to help IT organizations address Sarbanes-Oxley regulations, COBIT is a Best Practice framework for process management that can be easily adapted for Marketing Governance. Use the summarized & adapted COBIT framework below to understand the Marketing Governance process management maturity levels. For more information on COBIT, please consult: www.isaca.org/cobit/  Level 0 – Non-Existent: No senior management oversight of Marketing activities.  Level 1 – Initial/Ad Hoc: Regular governance practices such as review meetings, creation of performance reports, and investigation into problems take place, but rely mostly on the initiative of the Marketing management team.  Level 2 – Repeatable/Intuitive: Senior management is involved only when there are major problems or successes. The measurement of Marketing performance is typically limited to technical measures and only within the Marketing function.  Level 3 – Defined Process: Specific procedures for management covering key governance activities have been developed. These include regular target-setting, reviews of performance, and project planning and funding for any necessary Marketing improvements.  Level 4 – Managed & Measurable: Target-setting has developed to a fairly sophisticated stage with relationships between outcome goals in business terms and Marketing process improvement measures now well understood.  Level 5 – Optimized: The Marketing governance practices have developed into a sophisticated approach using effective and efficient techniques. There is true transparency of Marketing activities, and the board feels in control of the Marketing strategy.www.demandmetric.com Call a Principal Analyst: (866) 947-7744
  6. 6. 6 Establishing a Governance Benchmark Developing Marketing Governance Review the Capability Maturity Model in conjunction with the summarized COBIT Standard to identify what level of maturity best describes your current state of Marketing Governance. Once you understand your current state, look at what processes and procedures are required to move your organization to the next maturity level. These points can be used as goals & objectives that guide your steering committee. Developing a Governance Benchmark Follow this step-by-step action plan to adopt Marketing Governance:  Understand the value of Marketing Governance  Determine your organization’s current maturity level  Establish sponsorship from the senior management team  Build cross-functional steering committee of key executives  Hold kick-off meeting & schedule quarterly conferences  Set goals & objectives for improving Marketing Governance  Determine how marketing results will be measured (ROI etc)  Assign action items to the appropriate attendees  Manage allocated responsibilities on a proactive basis  Conduct next meeting to track achievement of objectives Use Demand Metrics Steering Committee Charter Template to set the direction and ground rules for your committee.www.demandmetric.com Call a Principal Analyst: (866) 947-7744
  7. 7. 7 Maintaining Best Practice Governance Marketing professionals at mid-sized enterprises need to be disciplined and keep their colleagues committed to governance. Holding quarterly meetings to measure results on Marketing initiatives is a great way to engage C-level executives and improve the profile of the marketing function in the organization. Use Demand Metric’s Meeting Agenda Template and Meeting Minutes Template at each meeting. Make sure to distribute the agenda to attendees before the meeting to facilitate the discussion. Periodic e- mail updates on progress keeps the steering committee in-the-loop with regard to their agreed priorities. Demonstrate leadership by introducing standardized corporate performance measurement systems like the Balanced Scorecard, which is much more effective than ROI to illustrate how Marketing adds value, and ensures Customer-Centricity is at the top of every executive’s mind. Conclusion Governance is critical for improving marketing performance and increasing the strategic role of the marketing function to the organization. It establishes a framework for aligned decision-making and results-driven action. Do not delay adopting these Best Practices in your Marketing department.www.demandmetric.com Call a Principal Analyst: (866) 947-7744

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