M&A

The Essential Guide to Different Types of CMOs in Today’s Business – Are you the Right Type for your Company?

The Essential Guide to Different Types of CMOs in Today's Business - Are you the Right Type for your Company?

Type #2 - The Strategic CMO

The “All Customers are the Same” Syndrome

There are Ten Different Types of CMO, each serving distinct business needs and roles. Among them is the Strategic CMO.

The Strategic CMO is great at understanding the “bigger picture”, vision and direction for the company, and building strategic programs to get there. Do you resonate with these qualities?

In the previous blog I refrerred to the Strategic side of the CMO by saying: “A successful CMO must achieve the delicate balance between strategic thinking and tactical execution. While crafting a compelling long-term vision for the brand, they must also roll up their sleeves and dive into the nitty-gritty of campaign execution.”
“Strategic success involves aligning marketing initiatives with overall business goals, anticipating market shifts, and positioning the organization for sustained growth. Yet, it’s the tactical finesse – the ability to map the market accurately, calibrate your segmentation, optimize digital channels, fine-tune messaging & lead generation, and measure ROI – that ensures day-to-day success.”

In other words, when a company faces the crossroads of growth, the Strategic CMO emerges as a a potential hero. Their ability to chart the course is expected, and failure is not an option.
Strategic thinking involves anticipating market shifts, understanding customer dynamics, and identifying untapped opportunities, foreseeing and mitigating risks. in order to positioning the organization for sustainable success.


The Tactical Side of the coin:
This is where the paradox lies. Strategy and tactics often seem to be at odds. While strategy paints the grand canvas, tactics wield the fine brushstrokes. The Strategic CMO must reconcile these seemingly divergent forces as they whisper their plan to the cCEO (and the CFO).
The day-to-day campaigns, digital initiatives, and customer interactions can easily consume attention. But without a strategic compass, these efforts risk becoming disjointed and short-lived.


The Art of Balance:
I’ve witnessed numerous CMOs grapple with this dilemma. How do you remain strategic while diving into the tactical trenches? It’s almost like conducting an orchestra while playing a solo instrument.
The answer lies in discipline, awareness and perspective. The Strategic CMO knows when to zoom out and recalibrate the strategic compass. They also recognize when to roll up their sleeves and engage in tactical maneuvers.


My Role in Bridging the Gap:
As an executive coach and consultant, I’ve partnered with CMOs on this journey. Together, we worked on the ve honed the “art of balance”.
We’ve crafted frameworks that allow strategic thinking to permeate every campaign, every customer touchpoint. We’ve applied agile mindsets that adapt without losing sight of the big picture.


The Professional Symphony:
So, the secret lies on embracing your strategic side. But don’t shy away from tactical execution, because this is where strategy comes alive.
As you lead your marketing orchestra, remember that the harmonious blend of strategy and tactics creates the professional symphony that resonates with customers, stakeholders, and the bottom line.
In the end, the Strategic CMO isn’t torn between two worlds; they inhabit both. They are the architects of vision and the artisans of implementation.

I specialize in assisting businesses develop robust Marketing teams. Book a complimentary consultation with me today here: https://calendly.com/hectorbarresi/30min, or visit my website here: https://www.sextant-international.com       

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The Essential Guide to Different Types of CMOs in Today’s Business – Are you the Right Type for your Company? Read More »

The Essential Guide to Different Types of CMOs in Today’s Business – Are you the Right Type for your Company?

The Essential Guide to Different Types of CMOs in Today's Business - Are you the Right Type for your Company?

Type #1 - The Market Centric CMO

The “All Customers are the Same” Syndrome

There are Ten Different Types of CMO, each serving distinct business needs and roles. Among them is the Market Centric CMO.

The Market Centric CMO excels in understanding market dynamics and customer needs, becoming the voice of the customer throughout the buyer journey. Do you resonate with these qualities?

Let’s think for a moment.
As a seasoned B2B industrial marketing consultant, I’ve witnessed firsthand the multifaceted challenges faced by Chief Marketing Officers (CMOs) in today’s dynamic and always evolving business landscape. While the role of a CMO has evolved significantly over the years, the expectations placed upon them remain remarkably high. Let me elaborate on the intricacies that often escape the spotlight:

Strategic Vision and Tactical Execution:
A successful CMO must achieve the delicate balance between strategic thinking and tactical execution. While crafting a compelling long-term vision for the brand, they must also roll up their sleeves and dive into the nitty-gritty of campaign execution.
Strategic success involves aligning marketing initiatives with overall business goals, anticipating market shifts, and positioning the organization for sustained growth. Yet, it’s the tactical finesse – the ability to map the market accurately, calibrate your segmentation, optimize digital channels, fine-tune messaging & lead generation, and measure ROI – that ensures day-to-day success.

The Customer-Centric Conundrum:
The term “customer-centric” echoes across boardrooms, but its true essence often eludes even the most seasoned CMOs. It’s not merely about segmenting audiences or personalizing emails; it’s about cultivating a deep understanding of customer pain points, aspirations, and behaviors, along with their priorities, budgets and options (competitors).
Effective CMOs immerse themselves in the customer journey, empathizing with buyers at every touchpoint. They decode behavioral data, conduct voice-of-customer analyses, and translate insights into actionable strategies. It’s a relentless pursuit – one that requires both intuition and data-driven precision.

Financial Acumen and Resource Allocation:
Beyond creative campaigns and brand storytelling lies the financial underpinning of marketing. CMOs must master budget allocation, resource optimization, and cost-effectiveness.
They grapple with questions like: How much should we allocate to demand generation versus brand building? Which channels yield the highest return? How do we justify marketing spend to the CFO? Balancing creativity with fiscal discipline is an art form. Not all CMOs can do this.

Innovation and Risk-Taking:
The pressure to innovate weighs heavily on CMOs. They’re expected to stay ahead of trends, experiment with emerging technologies, and disrupt the status quo. Yet, innovation carries inherent risks—some campaigns may flop, and uncharted territories may yield uncertain outcomes.
The seasoned CMO navigates this tightrope by fostering a culture of calculated risk-taking. They champion experimentation, fail fast, learn faster, and infuse the organization with a growth mindset.

The Analytical Mind:
Amid the creative whirlwind, CMOs wield data analytics as their secret weapon. They decipher marketing attribution models, decipher conversion funnels, and extract actionable insights from heaps of data.
Whether it’s A/B testing, cohort analysis, or predictive modeling, the CMO’s analytical acumen shapes decisions. They’re not just storytellers; they’re data storytellers—translating numbers into narratives that drive revenue.

In conclusion, the modern CMO is similar to a symphony conductor – balancing diverse instruments (strategy, creativity, finance, analytics, etc) to create harmonious “marketing melodies” that translate into revenue growth for the business.
So, let’s peel back the layers of those glossy job descriptions and recognize that effective CMOs are orchestrators, not one-person bands. They thrive on collaboration, adaptability, and the relentless pursuit of excellence.
That is why I will be listing the ten different types of CMO that exist during the next several blogs.

I specialize in assisting businesses develop robust Marketing teams. Book a complimentary consultation with me today here: https://calendly.com/hectorbarresi/30min, or visit my website here: https://www.sextant-international.com       

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Mistake #3: To forget about the customers

Three Mistakes that will ruin your Acquisition

Mistake #3 - To Forget about the Customer

The “All Customers are the Same” Syndrome

Many acquisitions are made to capture a certain segment of the market or a new market that, would otherwise take too long to reach organically.  These types of transactions sometimes aim at spaces that are not directly related or connected to the acquiring company’s space or area of expertise. And for that very reason must be thoroughly analyzed from several angles to ensure that the new market can be served as well or better than before, and that the new owners will have analyzed strategically the synergies with the existing business. Maintaining the customer base (and the revenues from that base) while working on the other aspects of the strategy, is critical to the success of the transaction, however, the percentage of success is not always high. Business models differences, sales channels, customer support structures, pricing and payment terms, lead times, and innovation expectations are just some of the factors that may influence the rate of success. If these factors are not fully understood beforehand, or are ignored, failure is inevitable.

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MISTAKE #2: To buy the wrong company

Three Mistakes that will ruin your Acquisition

Mistake #2: To buy the wrong company

The “This ir Our Best Option” Syndrome

Sometimes you will not have much of a choice of ideal acquisition targets. It is possible that the poll is limited due to the specific requirements you have for the right company, or perhaps you want to play in a competitive space (not recommended) where several other buyers are bidding for the same targets. Other times, the list may be longer and there will be more options and less urge to move forward. In any case, it is imperative to acquire the right company, as the consequences from a wrong choice are almost always beyond repair, and many times you will see that a wrongly acquired company will be sold after a few years of repeatedly trying to make it work.

Several facts lead to purchasing the wrong company, such as the lack of a thorough and accurate understanding of the business being acquired, overestimating the value, staring with the wrong acquisition strategy, conducting insufficient due diligence and list goes on. For example, making an acquisition to enter a new market, for which the acquiring company is not well prepared versus an expansion to an adjacent space which is much better understood and where the sales channels can be effective could be the deciding factor for failure or success. Some may argue that the due diligence should bring to light all the facts and details about the target, but the reality is that the confidence in the due diligence during an acquisition is overrated.

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MISTAKE #1: “To believe that the acquisition will fix the current problems of the company”

Three Mistakes that will ruin your Acquisition

Mistake #1: “To believe that the acquisition will fix the current problems of the company”

The “Fix by acquisition Syndrome”

This type of mistake is typical of organizations that believe that buying a company with a great product, or technology for example, will resolve their poor innovation and low product vitality issues. If the problem is that the company lacks a culture of innovation, has inward looking product management and engineering organizations, and the sales force struggles to adopt and sell new technologies and business models, then the result of the acquisition will be more like pouring salt over an open wound. In one of my personal experiences of an actual acquisition, the VP of Engineering left because he disagreed with most of the reasons why the acquisition was being done. He objected the R&D synergies proposed in the integration plan and was ready to reject the product roadmap based on the new product offered by the company to be acquired. According to his words, the new product, its technology, and its features “did not represent who we were”. What this VP did not realize was that “who we were until then” was not creating the innovative solutions that our customers needed to resolve their needs and problems, and that for that reason we were losing market share, as well as our long-time reputation as innovators. This sounds surreal, but it is true. The acquisition is an enhancement or an expansion to the company, not a band-aid.

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MISTAKE #1: “To believe that the acquisition will fix the current problems of the company” Read More »

Three Mistakes that will ruin your acquisition – Intro (based on true stories)

Three Mistakes that will ruin your Acquisition - intro

(based on true stories)

Mergers and Acquisitions (M&A) has been and still is, the growth and diversification strategy by excellence every time a company has decided to accelerate their access to a new market, a product, technology, know-how, or even “feet on the street” as opposed to adopting an “organic” strategy.

Many companies count with their own specialized M&A organizations, which focus on the identification, assessment, valuation, negotiation, due diligence and closing of their mergers and acquisitions.

Significant resources are dedicated to the execution of an acquisition. Typically, it all starts with a solid Strategic Plan that will have identified an acquisition as the right thing to do to achieve a certain strategic goal. The target companies are selected following a set of specific criteria that will point to the best acquisition candidates. Then a rigorous process is followed till the acquisition closes.

Given the amount of planning, resources, analysis, assessment and reassessments, due diligence, synergies stress testing, board reviews, and integration plans, one would think that the probabilities of success for any given acquisition would be higher, at least proportionate to the time, effort, talent and money invested in the operation. Now, assuming that the Harvard Business Review report is accurate, between 70 to 90 percent of acquisitions fail.  So, how come so many of these transactions, which were so thoroughly planned, analyzed, scrutinized, critiqued, vetted by analysts, and consultants, then approved by the CEO, and by the board of directors after further review, then fail? How is that even possible? Well, it is very possible. I have been part of great and not so great acquisitions myself, and I have learned firsthand what can make or break one of these. Through my years of experience, I have learned how to execute successful acquisitions that actually deliver value on the business case, and I have identified Seven Mistakes that buyers must avoid in order to prevent a failed operation. (more to come)

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