Rise of the CMO: CEOs Recognize Marketing's Evolution
In a recent survey, CEOs are acknowledging the enhanced performance and understanding of Chief Marketing Officers (CMOs) within their organizations. The survey, conducted by Boathouse, reveals a significant shift in CEOs' perceptions of the marketing department and CMOs, reflecting a newfound appreciation for their strategic role and business acumen. This recognition marks a turning point in the relationship between CEOs and CMOs, signaling a shift in the dynamics of the c-suite.
The Changing Perception of CMOs
In a surprising turnaround, nearly half of CEOs now regard their marketing department as 'best in class,' a notable increase from just 20% in 2021. This shift in perception reflects a growing confidence in the capabilities of CMOs and their teams. According to the third edition of Boathouse's survey of CEOs on marketing and CMOs, nearly three-quarters (73%) of CEOs gave their CMOs an A or a B grade for their overall performance, marking a 12 percentage point jump over the previous survey. The survey, which queried 150 CEOs of U.S. companies across 17 sectors, also revealed that 87% of CEOs believe their CMOs understand their vision, and 80% acknowledge their CMOs' proactive approach in executing that vision. Furthermore, 69% of CEOs stated that their CMOs now have a better grasp of the company's balance sheets, indicating an enhanced understanding of financial aspects.
'Coming out of Covid, the world is calming down a bit, and I think CMOs got smarter about [other aspects] of the business, like supply chain,' said Boathouse CEO John Connors, highlighting the evolving role of CMOs in navigating complex business dynamics.
Embracing Business Acumen
CEOs are recognizing the evolving language of business spoken by CMOs, indicating a fundamental shift in the perception of marketing professionals. According to the survey, 77% of CEOs believe their CMOs now have a better grasp of the company's board and political dynamics, a significant increase from 63% in 2021. This enhanced understanding is further underscored by the fact that nearly all (94%) of CMOs attend board meetings, indicating their active participation in strategic discussions. Moreover, more than half of CEOs (58%) expressed confidence in their CMOs' ability to incorporate artificial intelligence (AI) into their work, recognizing it as a tool for sustaining innovation.
'When we first did the study three years ago, marketing people were speaking their own language; they weren't speaking the language of business,' said Boathouse CEO John Connors. 'I'm hoping the pendulum is starting to swing back, and they are starting to speak the language of business; that's going to continue this upward trajectory of the CMO in the c-suite.'
Challenges and Opportunities for CMOs
Despite the positive shift in perception, there are still challenges and missed opportunities for CMOs to address. The survey revealed that only 9% of CEOs believe their CMOs are personally loyal to them, signaling a potential area of concern. Additionally, CMOs need to further enhance their participation in financial goal setting and board meetings to strengthen their image within the c-suite. While there is increased understanding of balance sheets, only half of CMOs participate in their company's financial goal setting, presenting an opportunity for greater involvement. Similarly, only a third of CMOs participate in more than half of the board meetings they attend, highlighting the need for a more active role in strategic discussions.
'When we originally started this study, it was to bring some religion to CMOs to say, 'You have to consider more audiences than just the consumer to be respected,' Connors said. 'I think it's an interesting time to look at new models and to challenge the classic brand management model. You can only do that when the CMO is on the upswing, it's hard to do that when you're on the downswing.'
