The document discusses how CMOs are facing pressure to achieve more with less marketing dollars. It recommends that CMOs adopt the 7S framework to optimize their marketing operations. The 7S framework involves analyzing and coordinating 7 interrelated levers: shared values, strategy, structure, systems, staffing, skills, and style. Adopting this framework would help CMOs standardize success and efficiency across departments, brands, and agency partners.

1. It’s Time for CMOs to adopt the
7S Framework
“While it’s critical to consolidate cost, you can’t consolidate creativity.”
By Dean Crutchfield Associates

2. Marketing faces its first real existential crisis today, especially as
pressure on CMOs to achieve what many are referring to as “the same
impact for 60% of the dollars” builds. That’s why now’s the time for
CMOs to adopt and apply to marketing operations the 7-S Framework:
An analytical tool that’s been successfully used by hundreds of firms.
Dean Crutchfield Associates

3. The 7S Framework
Developed by McKinsey consultants in
the early 1980s for organizations, the
framework represented a new way of
thinking about organizational
effectiveness, focused not on structure
but on coordination. A simple concept:
change one of seven interrelated levers,
and you must change them all.
CMOs today have remarkable
opportunities to engage consumers in a
two-way relationship. To do so requires
recalibrating their entire marketing
operation, from departments to brands
through to agency partners. Leveraging
the principles of the 7-S Framework
can help CMOs standardize the success
and efficiency of the process.
Dean Crutchfield Associates

4. Here’s an overview of the seven Today’s consumer admires brands
levers and the ways in which CMOs that enable them to participate.
should apply the framework to CMOs must adopt narrative-based
optimize their own operations: brand and marketing strategies
that can engage consumers:
1. Shared values. creating brands that are more
magnanimous, malleable and
The interconnecting center of
functional.
McKinsey’s model, this is where
the other six levers come together.
Product (RED)’s unique approach
reinvented the business of
philanthropy by creating
reciprocity with the customer
while simultaneously
demonstrating that its partner
brands promote the cause and
concomitantly make money by
doing good. That takes
coordination of all seven levers.
Dean Crutchfield Associates

5. 2. Strategy
CMOs are seeking new ways to get That doesn’t mean TV advertising is
and keep customers. According to dead, far from it, it just the “traditional
Verse Group and Jupiter research, part”. Today we have affordable and
more than 60% of CMOs surveyed reliable technology and orchestrated
media to tap into the consumer, it’s
said that traditional advertising
opened what we can see, hear, taste,
and brand positioning are not as touch and smell all sorts of tools for
effective for attracting customers. pre-event anticipation, preparation,
So CMOs are looking to improve and experience; the actual shopping,
CPM, e.g., Reckitt-Benckiser’s interactions, and flow; as well as post-
decision to boost TV advertising purchase memories and rewards
effectiveness by ramping up online
video spend with the likes of
Hulu.com. According to eMarketer,
online advertising is expected to
generate $39.5 billion in sales this
year — a 23.3% increase from 2011
— compared to a sum of $33.8
billion on print. By 2013 that figure
is estimated to be closer to $43
Dean Crutchfield Associates
billion.

6. 3. Structure
For the CMO, what matters is the where one agency is responsible for
structure of agency relationships. all the other partners, including
Consolidation is king, as evidenced by payments, budgets and hires.
a number of flawed big brand On the other hand, you have moves
attempts, e.g., Dell attempt to being made by industry leaders such
consolidate 800 agencies into Enfatico. as Coca-Cola and Unilever who are
While it’s critical to consolidate cost, both looking under their belt to find
you can’t consolidate creativity. The efficiencies that they can add back into
fix? P&G’s “Brand Agency Leader” their media spend. Coke is planning to
value-based compensation model, find over $500M! The 7 variables are
crucial for this model to succeed.

7. 4. System
ROI is the system the CMO needs to perfect. To enhance the CFO’s view of
marketing’s value, CMOs are leading the charge for change, as demonstrated
by Coca-Cola Co.’s recent initiative to push for the adoption of value-based
compensation models. The idea isn’t new, but the need has gained momentum
as CMOs hasten to cut costs and complain that current ROI tools are
inadequate. Management consultancies are piling in to help. Look out!
Dean Crutchfield Associates

8. 5. Staffing
The CMO is the key to a successful
staffing strategy as he or she
decides how to build the brand
across multiple channels and the
people required. Understanding the
variables of the 7-S Framework is
essential as pressure mounts to
reduce headcount, but retain the
best people for the task in hand.
“The Vitality Curve” is one of the
best tools for doing so: It prioritizes
the top 20% for special treatment,
70% for training and the bottom
10% for firing.
Dean Crutchfield Associates

9. 6. Style/Culture
For the CMO, it’s the style of It used to be the 4Ps (price,
marketing communication that product, place, promotion); now
can optimize the changing it’s the 4Cs: content, community,
relationship between brand and commerce and consumers. To tap
consumer. Today marketers can these, the full force of marketing is
hold entirely different awesomely powerful, but there are
conversations with the consumer caveats if you neglect certain
by shaping brands that enable levers. PepsiCo Americas CEO
people to participate. . Massimo d’Amore’s vainglorious
attempt to revitalize seven brands
simultaneously to save costs,
consolidate agency partners and
bring a cohesive approach to the
brands backfired, costing millions.
While big results require big
ambitions, appetites need to be
separated from requirements (7 of
them).
Dean Crutchfield Associates

10. 7. Skill
For marketers it’s about how to P&G’s “Build From Within”
generate more “earned media” program tracks the
from budgets and how brand performance of its star
narratives, non-traditional performers, known as
media and innovation will play a Proctoids, via monthly and
central role, but there’s a skill annual talent reviews. Evidently
gap between need and it’s been successful in so far,
capability. but issues are afoot for P&G
as customers switch to lower
Ultimately, with a shift in the value brands.
world of brands and marketing,
new skills are required as ever
more complex programs are
designed that integrate
traditional and non-traditional
media.
Dean Crutchfield Associates

11. The success of contrarian marketing strategies requires CMOs to
table prevailing marketing theories and embrace experimentation.
There are very few things in business that pay off by waiting.
Now’s the time for the CMO to leverage the 7-S Framework.

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For 20 years Dean Crutchfield has advised the
world's most iconic brands, built businesses, created
new companies, opened international offices and
spoken about the role of brands at Duke, Kellogg,
Wharton and the Google Speaker Series. He has
made appearances on all major TV news networks,
commentary in the global press, editorials in major
business publications and is a Contributor to Forbes.
With a proven ability to inspire and push the
boundaries beyond the notion of what was thought
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20. Global Client Experience
Aviva* McKinsey
BP Metsä Serla*
BT* Nomura*
BSkyB* PepsiCo
Camper & Nicholson PG&E
Carter’s Pitney Bowes
Cellcom* RBS*
CITI Scanfinest*
Comcast Shell
“Dean always cuts to the core of what needs General Electric Smirnoff
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Dean helped us think through solutions and Littlewood’s* Tower of London*
then form the best way to present those McDonald’s Warburg Pincus
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M50 WGM
*References upon request
Dean Crutchfield Associates * Overseas Project

21. LET’S
GROW
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22. Contact: Dean@deancrutchfield.com +1 917 239 3303
333 East 34th Street, Ste 15A/B, New York, NY 10016
Dean Crutchfield Associates

23. Dean Crutchfield Associates
Sell More, Seize More, Win More
Growth Advisors
Dean Crutchfield Associates