CEO’s & CMO’s: 2017 Strategic Planning Questions for Your Digital Team

While the rest of us are enjoying the fall weather, football and the changing seasons, most CMO’s and CEO’s and their leadership teams are elbow deep in 2017 planning and budgeting. In addition to all the normal business challenges, most leadership teams are probably spending a significant amount of time talking – one away or another – about digital and/or their digital transformation. Maybe its a question of how to allocate the capital budget for digital capabilities, or it could be a culture question (“How do we get more digital talent?”). Or, more urgently, it could be an existential question (“how do we compete against X and the disruption they are causing”).

Eventually, those boardroom conversations and plans will make their way down to strategic planning discussions with the VP’s of Digital Marketing, the Chief Digital Officer, Head of Digital, or Directors of Digital. Here’s what we hope those lucky leaders are getting asked in those strategic conversations:

  • What’s our strategy to use data to develop a competitive advantage? We see a lot of C-level leaders who are missing the strategic opportunity to plan for, collect and analyze data in unique ways (not just the obvious stuff) to give themselves a competitive advantage. We know of one company that bought a couple large Instagram handles from their owners, just so they could get the day to day data on likes and use the comments section to gain unique consumer insights that their competitors wouldn’t have
  • How are we using digital to create a unified experience over the whole  customer journey? Smart companies are moving on from digitizing their functions (Sales, Service, PR, brand Management)  to looking for ways to integrate and unify the whole consumer experience. They are going from good/great execution at the functional level to managing the whole customer journey in a holistic, integrated way even though there’s not an immediate ROI and dramatic changes in short term results are rare. Not only is it better for consumers, it positions companies to collect unique, potentially proprietary data along the way. It’s an easy concept to grasp, but it’s incredibly hard to execute internally unless there is a multi-year commitment from the top to keep investing ahead of results.
  • What capital investments and resource allocations do we need to make to get better data across the customer journey? See above. A dramatically improved customer experience will generate incredibly valuable data
  • What must we do to invest enough in both incremental and transformation innovation? No good leader says “no” to opportunities to invest in innovation, but few leadership teams are disciplined enough to balance short-term, functional innovation (i.e. incremental) with the willingness to pursue transformational opportunities.or instance, we know of one company that is generating a surprising amount of revenue from advertising on their digital platform; enough revenue to pay for a larger, more advanced digital team. It’s almost guaranteed that the directors and managers and coordinators on the digital team have ideas for both, but they may not be getting the support to pursue both due to a heavy prioritization of short term results.
  • How do we need to evolve our brand position and actions to be even more relevant to our customers? All leaders should by now understand how digital is transforming consumer expectations of brands. But even after years of watching brands like Dove drive great results by moving the brand to a higher, more aspirational space (and creating amazing digital content that’s getting shared all over the place), too many leaders are still(!) focused on the result (“get me something that goes viral”) instead of the characteristics of a soap brand that millions and millions want to connect with. In other words, you have to do the work to elevate your brand and your company in order to be relatable, digitally.
  • What do we need to do culturally to create the conditions for more agility and innovation in our marketing? Most good business leaders have read up on Agile, Lean Startup, and “working like a startup”. It’s thrilling to see courageous leaders try to change their companies actions. But, smart C-level folks will listen to the digital teams about what needs to change culturally to create the conditions for more flexibility, agility and innovation in their marketing model (or their business, overall). The behaviors are one thing, but the attitudes and beliefs and values and incentives are another. Most importantly, CMO’s and CEO’s should be asking: Have I created the right incentives to unlock true innovation (or  will my team still get penalized for taking risks)?
  • Are we being aggressive in looking at business model or product innovation opportunities? This is something that any sufficiently paranoid organization should be asking itself every six months: “what would a potential disruptor do to come take our business away?” Or, put another way, “how do we not get Blockbustered?” And, as part of the same exercise, CEO’s should be asking their digital team “what opportunities are we missing to use digital for  new revenue, new products, or serving our customers more effectively”? It’s easy to get a false sense of security that “we’re on it!”.
  • What do we need to do to help our employees work at the pace and speed of our customers? As the proliferation of tools and technology accelerates, it’s imperative for customer-focused companies to enable their front line people – the sales folks, the community managers, customer service – to work with the same tools and platforms that their customers are using. So, whether it’s instagram or Snapchat messaging, chatbots or Kik, CMO/CEO’s will make the hard policy changes to stay connected with their consumers

If you’re the VP or Sr Director of Digital, the Head of Digital or the Digital Transformation leader and these questions aren’t coming up in the annual operating plan discussions, you should set up time with your CMO and CEO and push these issues forward. It’s your chance to lead “up” and push the thinking of your organization and, ultimately, position your team to drive even greater impact in the organization. And, to make life a little better for your customers in 2017.

BitTorrent wants to change the way the web is built | The Verge

In this vision, web publishers could publish, distribute, and update an entire website through the BitTorrent protocol, and others visiting the page would automatically help share the site’s content, just as anyone downloading a file over BitTorrent would also start sharing the file with other peers.

via BitTorrent wants to change the way the web is built | The Verge.

From “Labs” to “Core”: Transitioning from Digital Experiment to Core Business

From “Labs” to “Core”: Transitioning from Digital Experiment to Core Business

It’s pretty clear by now that smart CMO’s are seeking ways to accelerate growth by looking at digital products and platforms to energize their product mix and boost their marketing. As they ask their team to explore faster, both CMO’s and CTO’s need to be ready for the bumps ahead as the innovations go from “experiments” to “core business”.

Often, the leaders who are being asked to lead innovation are explicitly tasked with finding new ways to work in addition to defining new product/service offerings. They might be leading Innovation, New Products, New Ventures or Business Development. So, they are expected to explore new tools, new technology, new partners or new methods for working with a goal of injecting innovation into the organization while defining new revenue streams.

But, while there is a growing set of best practices on how to invent and launch new products inside the enterprise, there aren’t as many best practices for the transition period when those products go from “innovation” into “run the core business”. Worse, few innovation leaders have a clear plan for enlisting the support of the functional leaders (IT, Product management, sales, etc.) who have to maintain and manage an innovative product once it’s launched and proven.

As a result, one of the biggest threats to capturing the benefit from innovation activities is the slow death that comes when the original strategic intent is second guessed, re-thought, and challenged by the core business.

For example, imagine a scenario where the VP of Innovation for Enormicon Inc saw a legitimate market opportunity for a new product with a different business model. Over the course of a year, his “Enormicom Labs” team moved quickly, working like an agile startup to create the first iteration of the product including customer growth, market traction, press awareness and lots of insights into how the product could succeed. But, to scale the product, Enormicon would have to move the product from the “Labs” team into the core business.

As the product moves from the “Labs” team to the mainline business, the strategic intent of the innovation project will probably clash with the functional strategies that support the business. The tech choices that were made to enable speed and quality in the “innovation” phase will probably run counter to tech strategies that guide the main business (i.e. repeatability, cost reduction, leverage core technologies, scale efficiencies). The marketing approach used to quickly gain new customers for the innovative product will probably not be supportable by the “core” marketing team’s strategies.

To successfully grow businesses via innovation, Enormicon will need support in launching innovative products, but also in re-integrating those products into the business once the new product is proven.

Innovation leaders will need strong support as they think through the start up process AND the phase of introducing their new products and services into the main business. Change leaders will need to develop stronger support for:

  • Tech Strategy – Choosing tech (the software, the programming language, the development methodology, the support model) that will work for both the start up phase (agile, fast, easy and cheap to build and support) and the re-entry phase (software that’s scaleable, supportable by the corporation, bullet-proof and fits into the rest of the company’s architecture)
  • Maintaining Strategic Support – Building the strategic rationale and the  business case for doing things differently, so functional leaders will invest the extra effort and time and money to support the experimental efforts (tech, marketing, etc.

Transformation is Everyone’s Job, not Just the CMO: “Will 2015 Be The Year Of Digital Transformation?”

CMO magazine predicts 2015 will be the year of “digital” transformation for most orgs. They asked a bunch of CMO/Marketing leaders to offer some predictions for the year.

These days digital transformation is top-of-mind for CMOs, and it reaches all corners of marketing. That includes devising new strategies to meet the expectations of omnichannel customers, capitalizing on what new technologies now enable (geotargeting, personalization, and automation, to name just a few), and changing the makeup of the modern-day marketing team to ensure the right skill set.

If you’re a CMO and you’re just getting to this, it might already be too late.

The real challenge to a “digital transformation” is that the CMO will only be a cheerleader (worst case) or one key leader in the executive suite (best case). The real transformation has to happen in organizations the CMO doesn’t always control.

Business Units – Short and long term incentives, promotional criteria and budget allocation all need to change. For example, digital transformation requires a ton of experimentation. Experimentation equals risk. Most good marketers have incentives that do not align with risk and change. Transformation requires, by definition, change.

IT – Systems, tools, incentives and budgeting will have to be changed. For instance, most capital budgeting requires some sort of ROI estimate. Most of the “digital transformation” investments will have, at best, a hazy ROI horizin. Yet, the investments need to be made to enable the transformation.

HR – The way organizations hire, develop, train and evaluate teams will have to change and the CMO rarely has direct influence over the group. For example, organizations will need to promote teams that have a high confidence in ambiguity, can lead through change, are resilient. Most importantly, business functions will need to reward true creativity.

I love the discussion of driving transformation. There’s a ton that’s needed. But, it’s not just the CMO’s job. It’s everybody’s job.

CMO’s, Brands and Innovation: The Factory, The Lab & the Studio

It’s great to see smart brands investing in “Labs” as outlined in this recent Adweek article about pushing the frontiers of retail. You could also look at Kraft, Nike, Mondelez and even good old General Mills (but, their Marketing Lab is now defunct based on what i’ve heard recently). It’s easy to see why a big company would want to create a “Lab”:

  • Try out new technology (without committing to long term support and integration)
  • Try new approaches, methods and processes (without committing to roll them out across the rest of the company)
  • Try new partners (without having to form long term relationships)
  • Try new business models (without committing to long term capital)

And a bunch of other benefits.

I’ve been thinking about what a modern marketing team really needs, going forward. The forward thinking CMO’s will recognize that the “Lab” is a critical piece of a larger transformation effort. But, it’s not the only one. The CMO office will need to drive change through three pieces working together:

  • The Lab – The place to, literally, experiment. Try new things, new tools, new skills, etc. This is where real innovation is found and validated.
  • The Factory – This is where the content/marketing gets made at scale, efficiently with a core focus on delivering immediate impact, now. In general, this will be delivered by the current roster of agencies and other partners who are on the hook for content and brand building materials. CMO’s will need a way to inject the innovations created in the “Lab” into the Factory. Smart agencies will be actively looking for ways to translate what works in the lab into their everyday work.
  • The Studio – The Studio is about craft, art and excellence. Generally, this is the content that is small, well crafted, and focused on making more of a statement. If brand content has the possibility of being art, the studio will craft it. Where the Lab is all about the “new” and “better” and the Factory is all about the “Scale” and “Efficiency” and results, the “Studio” is about delivering the highest quality possible.

The job of the Chief Digital Officer (or the CMO herself) would be to integrate the three really effectively to deliver the results any good marketer needs:

  • In Market results, now – The traditional results that marketers and business builders really need: Reach, frequency, depth, conversions, loyalty, advocacy.
  • Better consumer knowledge – Data about the consumer and their interaction with the brand and the insights that come from the combination of data analysis and good old fashioned intuition
  • Better operations – New ways of working, new techniques & tools to do the job better
  • A clearer sense of what’s coming next – Stronger intuition about how the marketer can better serve the consumer AND build a longer term advantage for her brand or her company

This is pretty much thinking out loud. I hope to come back and work on these ideas.

The BlockChain is the Beauty Inside Bitcoin

I need to come back and write up a clear article on this, but i’ve been digging deep into Bitcoin. Not the cryptocurrency part, but the actual protocol behind it. The think i’m curious about: What else could we apply the blockchain concept to. That is, what kind of decentralization can happen when there is a secure, transparent, open, scriptable, public ledger holding the system together.

Lots more to think about,  but here’s a couple important articles for my own future reference:


One Good Writing Lesson from Mad Magazine’s Al Jaffee

I think this is pretty good advice for any writer. It’s easy to be emotional and strident, but the best work channels that energy through a distinct, mostly consistent view of the world. And then, funny is usually better.

“When we’re successful, it’s a funny take on a serious subject,” explained Jaffee. “When we fail is when we preach.”

via Cartoonist Al Jaffee Reveals the One Fold-In ‘MAD Magazine’ Wouldn’t Run | Newsmakers – Yahoo News.