This is IRG’s growth study presented to First National Bank in November 2020. The argument starts from the claim that traditional business growth formulas are lacking, and that what it takes to win has been revised since COVID.
It runs the seven building blocks of growth with comparison figures for overperformers, then turns to the marketer’s own position, including what the deck calls the documented CMO crisis and the evidence that the role was regaining influence.
Key findings
- Seventy-one percent of overperformers are willing to accept new business models, against 39 percent.
- Eighty-one percent focus on eliminating friction and delivering ever-evolving experiences, against 32 percent.
- Overperformers report 3.5 times more connections with other functions and 5.5 times more with senior leaders.
- Sixty-eight percent integrate marketing and sales for e-commerce collaboration, against 37 percent.
- In IRG’s 2020 CMO survey, 78 percent reported a significant shift toward humanized growth strategy, against 4 percent.
- Sixty-five percent reported increased CMO influence on growth, against 11 percent, which the deck reads as marketers getting back in the driver’s seat.
The seven building blocks
The first three blocks are about the commercial choices. On abundant markets, overperformers are described as thinking about Nielsen, Amazon and Kickstarter, with figures of 27, 11 and 3 percent shown. On multiple models, 71 percent accept new business models against 39 percent, playing chess and checkers at once. On experiences, 81 percent focus on eliminating friction against 32 percent, and overperformers are characterized as always beautifully dissatisfied.
The next two are about the organization. Seventy percent of overperformers show diversity in strategic decision making against 45 percent, and the culture most associated with delivering evolving experiences indexes 133 for overperformers on innovation, change and entrepreneurship. The anticipative organization shows up as connection: 3.5 times more links with other functions, 5.5 times more with senior leaders, and 68 percent integrating marketing and sales against 37 percent.
The sixth block combines technology with human creativity: 65 percent can attract whole-brain talent against 25 percent, and 66 percent put data and analytics at the core of strategic decision making against 36 percent. The seventh is ambition itself, where bottom-line profit indexes 85 and 130 as the top growth ambition, and impact on people indexes 120 and 76.
The reality COVID exposed
The deck describes a new reality in which the future is unknown and systems are being questioned. Before COVID, the stakeholder emphasis sat on customers and the capital markets. After it, colleagues and community joined them.
The human version of the same shift is put simply: from a professional facade to family reality, with an increase in empathy, and a moment described as make or break for purpose.
The external anchor is Laurence Fink of BlackRock, quoted saying that to prosper over time a company must not only deliver financial performance but also show how it makes a positive contribution to society, followed by the 2019 US Business Roundtable.
The CMO’s own position
The deck is blunt about the marketing function’s standing. It notes that many have documented the CMO crisis, and lists the charges: a perceived over-focus on communication, a taste for shiny and distracting digital toys, and being insufficiently commercial.
The counter-argument is that chief executives need the help, and the call to the room is personal: if not now, when, and if not me, who. The 2020 update supports it with survey figures, 78 percent against 4 percent reporting a significant shift to humanized growth strategy, and 65 percent against 11 percent reporting increased CMO influence on growth.
Scope and limitations
The comparisons are between overperformers and other organizations as IRG defines them, and this deck reports the results without stating the sample or the definition. The 2020 update figures come from IRG’s own CMO survey.
Source
This page summarises Humanized Growth, by First National Bank, Institute for Real Growth, 2020-11-26.