OPTIMIZE YOUR MARKETING OPERATIONS the fastest and easiest Marketing Operations assessment tool available take a look inside and see where to improve
What Makes “Better” Marketing Operations? What Makes “Better” Marketing Operations? This question drove us into mythical discussions, similar to what is quality, what makes good design and -later in the evening- what is art? We work with the concept that making things better means taking away the things that make it worse. It’s up to you to decide what those are. In reality it has everything to do with risk management: often ignored by marketers, never ignored by investors. Let’s take the old adage “Doing the right things and doing things right” as the basis. We define effectiveness as doing the right things and efficiency as doing things right, and look at the concept of risk in Marketing Operations. You could say that if we lower the probability and impact of “Doing the wrong things and doing things wrong”, we are lowering risk, mitigating risk and managing risk, and thus creating value. In Marketing Operations, we focus primarily on the execution and efficiency side, on doing things right, which implies that better Marketing Operations means lowering the risks of doing things wrong. Defining “doing things wrong” is arbitrary. Basically, things are done wrong when they do not conform to what is expected.
As a consequence, risk management is impossible when it is not clear what is expected and which risks are acceptable and which aren’t.
“Risk is a fact of business life. Taking and managing risk is part of what companies must do to create profits and shareholder value.” Kevin S. Buehler and Gunnar Pritsch
Expressing and communicating management expectations about risks and better Marketing Operations can be done in manuals, guidelines and procedures. These tools can be integrated and embedded in processes and supported by technology. Use can be monitored via KPIs and dashboards. Correct use of these tools, processes and technology lowers the risks, creates value, and can be rewarded by management. Incorrect use of these tools, processes and technology increases the risks, destroys value, and should be corrected by management. Compliance to internal quality standards and procedures in regards to brand, financial, and legal regulations and guidelines makes better Marketing Operations. The extent to which compliance checks are enforced, defines the value of your Marketing Operations.
TRANSPARENCY MATURITY PRIORITY IMPROVEMENT ALIGNMENT
MO:dna Making marketing count
Marketing Operations DNA provides the basic information required to become excellent in marketing operations.
Disclaimer: We use reasonable efforts to ensure that accurate information is provided in this report, but do not guarantee such accuracy, and make no representations regarding the use or results of use of any content on this report in terms of its accuracy, reliability or any other matter. All information provided in Marketing Operations DNA is intended solely for general information purposes and we cannot take responsibility for the results or consequences of any attempt by you to use or adapt any of the information in Marketing Operations DNA, including, without limitation, any financial analysis, savings or investment summary, labor savings, production increases, scrap reduction savings, annual profit increases or other miscellaneous savings.
Our organization, nor any of its sponsors, individual contributors or system operators, nor anyone who helped develop, create, produce or deliver the content in this Marketing Operations DNA, is liable for any damages related to your use of or inability to use this report, including, without limitation, indirect, incidental, special or consequential damages. This report is delivered subject to the condition that it shall not, by the way of trade or otherwise, resold, hired out, or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition, including this condition, being imposed on the subsequent client.
Published in the Netherlands in 2013 by MRMLOGIQ B.V. Edition Evans Electronics 2013 05 Copyright © 2013 by MRMLOGIQ B.V. All rights reserved. For more information contact: MRMLOGIQ B.V., Amsterdam, The Netherlands www.mrmlogiq.com Printed and bound in The Netherlands Version: MO:DNA 3 - MQ Evans Electronics
table of contents introduction
10 - 29
8. Executive Summary 10. Introduction 16. About Operational Marketing Excellence 18. About Marketing Operations DNA 20. About the Respondents 24. 5 Marketing Resources 26. 10 Marketing Processes 28. 1 Marketing Operations
transparency
30 - 39
30. Marketing Operations Transparency 33. Materials 34. Manpower 38. Machines
maturity priority
40 - 49 50 - 57
improvement alignment
about
64 - 71 72 - 81
82 - 85
definitions 6
50. Marketing Operations Priorities 55. Efficiency Priorities 56. Effectiveness Priorities 57. Compliance Priorities
58 - 63
conclusions
40. Marketing Operations Maturity 45. Maturity by Resource 46. Maturity by Business Unit 47. Maturity by Market 48. Brand Governance Maturity
86 - 88
58. Marketing Operations Improvement 61. Improvement Potential
64. Marketing Operations Alignment 69. Alignment by Role 70. Alignment by Business Unit 71. Alignment by Market
74. Transparency 75. Maturity 76. Priority 77. Improvement 78. Alignment 80. Next Steps
82. About
87. 10 Marketing Processes - 5 Marketing Resources - 9 Value Drivers
7
EXECUTIVE SUMMARY
MO:DNA scorecard
An Operational Marketing Excellence program creates sustainable value. It creates an environment in which the marketing operations investments can be lowered and campaign results are improved, while the operational risks associated with lack of control or transparency are reduced. Marketing Operations DNA delivers insights in who is involved in the core marketing operations processes, what we are doing right and what we can do better. The outcomes of the assessment provide us with the basic information that will help us to become excellent in our marketing execution. Green = lean & red = bad Level 5. Excellent Performance Maturity: optimized - on-demand - anticipatory Priority: no priority Improvement: no improvement potential Alignment: strong alignment
introduction Due to increased competition, expiration of patents and economical challenges, EVANS ELECTRONICS has decided to defend its market share in Household Appliances and Personal Care and grow to top 5 positions in Sound & Vision, Mobile and Health Care. A strategic initiative called 4E, “Effective & Efficient Evans Electronics�, was set out by the Executive team. Within the next two years, the marketing function will design and implement the 4E concept. Taking the MO:DNA survey was the first step in this process. The results are published in this report. The average scores are displayed on the next page. Focus point & Starting Point Drilling down from the average scores from the scorecard, we see where to focus and where to start to become better in Marketing Operations. The process cycle times of the publishing and planning process needs to be improved to be able to reduce the time-to-market and to become more relevant to the customer in our messaging and offering.
* EVANS ELECTRONICS is a non-existing company. It is founded in our imagination with the objective to show you the potential of streamlining your marketing operations and applying MO:DNA. If EVANS ELECTRONICS shows resemblance with a real life company this is no coincidence. The situation at EVANS ELECTRONICS is based on an extensive collection of real-life experiences in marketing operations improvements projects. However, this report was written with no specific company or vertical in mind and is solely used for explanation purposes.
8
Level 4. Strong Performance Maturity: adjustable - flexible - adaptive Priority: low priority Improvement: low improvement potential Alignment: alignment
Level 3. Moderate Performance Maturity: defined - known - planned Priority: medium priority Improvement: medium improvement potential Alignment: moderate alignment Level 2. Weak Performance Maturity: described - traceable - guided Priority: high priority Improvement: high improvement potential Alignment: misalignment Level 1. Poor Performance Maturity: undocumented - unknown - adhoc Priority: essential priority Improvement: enormous improvement potential Alignment: strong misalignment
insights
1. transparency
Insight in where and how resources are allocated.
2. maturity
Average state or quality of resource allocation.
3. priority
Average urgency of issues.
4. improvement
Average potential of operational fixes.
5. alignment
Average agreement on priorities and improvements.
score
highlights
4.5
Many different marketing functions are involved in the content creation and publishing processes. It is a crowded area with limited technology support making the coordination a difficult task.
2.5
Marketing Operations is a relatively weak developed discipline, with publishing being the least developed process and customer touch point management being the best.
2.9
Many operational issues somehow obstruct and delay people in reaching their marketing goals, with a slow time-to-market being perceived as the biggest problem.
2.6
The average improvement potential is moderate but there are specific areas where lots is to be gained, especially: customer relevance, brand compliance and financial compliance.
4.1
Although the average performance of Marketing Operations is relatively weak, there is high agreement on what needs to be improved to become better.
9
introduction MARKETING OPERATIONS DNA, in short MO:DNA, is all about operational excellence in marketing.
Operational Excellence A philosophy of leadership, teamwork and problem solving resulting in continuous improvement throughout the organization by focusing on the needs of the customer, empowering employees, and optimizing existing activities in the process.
Marketing Operations Management The definition, orchestration, optimization and adoption of processes and software applications, to transform and enable an enterprise’s ability to plan, budget, execute, and measure the impact of enterprise-wide marketing.
10
11
then
Back in the days communication lines were straightforward. There was no need for a Marketing Operations function.
12
now
Nowadays communication lines get tangled in a web of information transactions. We need a Marketing Operations function. 13
What is our Marketing Operations DNA?
DNA defines who we are. It is at the core of all life. If there is a fault in the DNA, survival and growth are at risk.
Can we rely on our DNA? Are we ready and equipped for the challenges ahead?
MO:DNA gives us the insights on where we are today. So we can see where we can become better tomorrow. More scalable, more flexible and more competitive.
14
15
ABOUT operational marketing excellence Understanding the value drivers
Marketing has never found itself in a more challenging nor in a more promising decade. There are more competitors, more products, more brands, more media channels and more regulations than ever before. Basically everything increases, except the budget. Operational pressures and complexity drive many marketing departments to the edge of sanity. And sometimes beyond. On the plus side, there are new techniques, methods and specialized marketing technology available that tackle some deeply-grained issues around marketing: its role within the organization and its ability to deliver efficiently and effectively. Turning the challenge into an opportunity means aligning the long-term vision and the short-term solutions across the marketing supply chain. The secret of safeguarding this life-time opportunity lies beneath the surface, the 80% of the marketing iceberg, in marketing operations.
Michael Porter
20% Strategy & Creative
80% Operations & Processes
Management Guru
“While strategy is the differentiator for creating competitive advantage, operational efficiency is a prerequisite.� 16
17
ABOUT marketing operations DNA Understanding the chapters
Many marketers focus on marketing strategy – branding, positioning, segmentation, tone of voice – neglecting operational marketing efficiency. Marketing Operations DNA delivers the basic information to help us focus on operational marketing excellence. To improve our ability to execute marketing activities and campaigns, we need to know where we are, where we want to be and how to get there.
1. transparency Which resources do we use?
2. maturity
How mature are the resources we allocate?
3. priority
Which value drivers do we rank highest?
4. IMprovement
Which value driver has the biggest improvement potential?
5. ALIGNMent MO:DNA brings the 80% of the marketing iceberg to the surface in 5 chapters.
18
Do we agree on priority and improvement potential?
ABOUT the respondents
Understanding the Marketing Operations DNA respondents
All the data in this document are derived from a MO:DNA survey we executed amongst the people actively involved in our marketing processes.
2. respondents & Business Units
1. respondents & locations
3. respondents & roles
2
Marketing Director
Statistics on the survey
UK 3344
34
BeNeLux 12
SPIF
DACH
CEE 10
21
14
Marketing Manager
Start date: 01-04-2012 End date: 22-04-2012
Operations Manager
Number of respondents: 91
1
Production Manager Health Care
6
Household Appliances
Number of invitations sent: 100
26
Mobile
24
5
Creative Designer
4
Content Creator
4 13
Online Marketer
13
Trade Marketer 32
Personal Care Sound & Vision
16
Database Marketer Other
29 3 4
Average number of months in position: 19 Conclusion: Over 1/3 of the respondents operate from the UK. DACH comes in second place followed by three markets almost equal in amount of respondents (SPIF, BeNeLux, CEE). 20
Cumulative number of months of knowledge contributing to this assessment: 1736
Conclusion: Most respondents work for Personal Care followed by Household Appliances.
Conclusion: 2/3 of the respondents work as a Trade Marketer or Marketing Manager. 21
10 Marketing Processes + 5 Marketing Resources = 1 marketing operations Paul ISAKSON
Strategist & problem solver
“People. Process. Input. If you want to create new outcomes 22
you’ve got to change at least one of them.”
5 MARKETING RESOURCES Within these 10 Marketing Processes we use marketing resources. There are five key resources in marketing. No more, no less.
1.
2.
3.
Materials refers to the physical and digital input and output of the marketing (sub)processes, undergoing the transformation and creating value for the organization.
Manpower refers to all human-related assets across the marketing processes. This covers the number of staff you can deploy (FTE), but also your suppliers, and what their roles and responsibilities are, as well as the proliferation of skills, knowledge and experience.
Machines refers to all technology – hardware and software – used in the process. This resource may range from content management systems, automated publishing modules to campaign management tools, CRM, etc.
4.
5.
Materials
What needs to be created, by whom, using which technology, under which budget, in what timeframe?
Answering this central marketing operations question gives us the five-M paradigm: Materials, Manpower, Machines, Money and Minutes.
Manpower
Money
Minutes
Money refers to budgets and the way they are allocated and spent.
Minutes refers to the time required to process a task, execute a process or go-to-market.
Machines
The dynamic between the marketing resources is as follows: Marketing strategies cause the use of Materials to increase. Manpower and Machines transform the Materials into something more valuable. Money and Minutes are under the greatest pressure to be more efficient. In MO:DNA we focus on Materials, Manpower and Machines, with the objective to reduce the use of Money and Minutes. 24
25
10 MARKETING PROCESSES Where can we change people, process or input in our marketing function? Using the 10 Functional Areas we can easily map our resources. The 10 Functional Areas are 10 Marketing Processes that require different activities, workflows, skill sets, knowledge and technological solutions. They naturally follow the flow as we create, produce and distribute marketing materials.
The 10 Marketing Processes cover three layers, representing the organizational hierarchy.
marketing operations execution processes 1. Content The creation of images, texts, logos, artwork, icons.
S
Source - The entity wishing to present a particular view of an event or object: you or the brand
2. Publishing The creation of advertisements, brochures, displays, websites, banners, TV/radio commercials, flyers.
M
Message - Signal or combination of signals that form a body of information: an idea or an offer
3. Ordering
The coordination of the order list, defining production volumes and capturing demands for marketing material.
Marketing Operations Monitoring & Reporting Process
10. Reporting
The 10 Marketing Processes follow the flow of the traditional SMCR model.
4. Production The coordination with the production suppliers (such as printers and advertising agencies), Request For Quotation (RFQ), purchasing (media & print), traffic.
5. Channel
Trade marketing activities, POP, POS, in-store material distribution to retailers/resellers/dealers/ wholesale, long tail.
C
R
Channel - Vehicle or carrier through which the message is sent: the chosen medium or set of media Receiver - The target, person or thing that takes in messages: the prospect or customer
In between the 4 SMCR elements 3 main processes exist: the creation, production and distribution of marketing materials.
6. End User Consumer marketing activities; digital or physical distribution of campaigns and marketing materials directly to consumers.
9. Knowledge
Marketing Operations Management Process
8. Budget
marketing operations management processes 7. Planning
Management of the production planning; resources planning, calendar, workflow, collaboration, dependencies, alerts, sign-offs.
7. Planning
8. Budget 1. Content
2. Publishing
3. Ordering
4. Production
5. Channel
6. End User
Marketing Operations Execution Process
Management of the budget; allocated budget, committed budget, spending, invoices, cost centers, cross billing.
9. Knowledge
Management of knowledge; brand guidelines, procedures, definitions, best practices, results.
create
S 26
produce
M
marketing operations monitoring & reporting process
disTRibute
C
R
10. Reporting Management of business intelligence; reports, data mining, Key Performance Indicators (KPIs), scorecards, dashboards. 27
1 MARKETING operations 10 Marketing Processes and 5 Marketing Resources come together in 1 Marketing Operations.
The Marketing Operations function needs to strategically coordinate all marketing activities. We need to break down the silos, benefit from economies of scale and turn into an integrated organization designed to learn. Only then we can manage our strategy by the minute. When we group and align our resources around the customer we become customer centric, effective and efficient.
Let’s take a look at the transparency, maturity, priority, improvement and alignment of our marketing operations.
28
29
Transparency Which resources do we use?
31
Marketing Operations TRANSPARENCY Transparency within marketing operations implies openness and clear communication about the allocation and use of marketing resources. It is mandatory if you want to re-use assets, avoid waste and to become more collaborative, more accountable and benefit from economies of scale. What is created, by whom, using which technology in our organization? Let’s take a look at Materials, Manpower and Machines.
Materials
Our Media Mix and Information Mix Our Materials refer to a mix of Media and Information categories used in our communication with our audiences.
mediA mix
Indicates the mix of different media types used across our Business Units and Markets to communicate with our audiences. It ranges from various touchpoints like Face to face, Merchandising, Internet, E-mail, Mobile, Outdoor, Print, Radio, Television, etc.
INFORMATION
Indicates the different information categories included in our Media Mix. Think about Corporate Information, Marketing Information, Product Information, Financial Information, Compatibility Information, Legal Information, Channel Information, Co-branding Information, etc.
INFORMATION mix 1. % Of respondents involved in publications for media types
51%
Advertising, Billboards CRM, Customer Intelligence
Mobile
Co-branding Information
Few marketers know the volume and diversity of the marketing resources used. How can you manage something if you don’t know how big it is? Generally operational production volumes are underestimated. And that is an understatement! So let’s start counting. 2. The Patchwork - Gaps and overlap Mapping resources to the 10 marketing processes shows gaps and overlap in your resource patchwork. Gaps usually lead to fingerpointing and ultimately in scapegoating of staff. “that is not my responsibility, I thought you’d pick it up.” A symptom of overlap are time-consuming meetings. At best, the outcome is a compromise. Different business owners have different, or worse, contradicting subgoals supported by different infrastructures. So let’s start mapping. 32
Social, Blog TV, Radio Web, Microsite, Banner
11% 66%
Compatibility Information
6%
43%
Corporate Information
63%
Print, Brochures, Flyers SEO
57%
28%
POS, POP, Displays, In store
1. The Numbers - Volumes and diversity
Channel Information
11%
Merchandising, Events
Transparency tells us what, where and how many.
2. % of respondents involved in content creation for information categories
81% 8%
Financial Information Legal Information
69% 33%
28%
Marketing Information
34% 40%
Conclusion 1: Most respondents are involved in creating ‘Print, Brochures, Flyers’, followed by ‘POS, POP, Displays, In store’.
90%
Product Information
94%
Conclusion 2: Many respondents are involved in creating many types of content. 33
Manpower
Manpower
Our team members play different roles across the 10 Marketing Processes.
Our suppliers play different roles across the 10 Marketing Processes.
our teams
our suppliers
3. marketing processes & roles
10. Reporting
4. marketing processes & suppliers
2x Marketing Directors 14x
3x Database Marketers
Marketing Managers
9. Knowledge
8. Budget
2x Marketing Directors
23x 2x Marketing Marketing Managers Directors
6x Online Marketers
2. Publishing
3. Ordering
1x Operations Manager
13x Online Marketers
1x 5x Operations Production Manager Managers
2x Database Marketers
26x 2x Marketing Marketing Managers Directors
7. Planning 1. Content
11x Marketing 1x Managers Creative Designer
1x Operations Manager
1x Database Marketer
18x Trade Marketers
7x Trade Marketers
2x Production Managers
e 7x Onlin rs Markete
1x Operations Manager
4. Production
4x Others
5x Production Managers
Marketing Operations Monitoring & Reporting Process
s 4x Other
Marketing Operations Management Process
12x Trade Marketers
5x Productions Managers
5. Channel
21x Trade Marketers
10. Reporting
Marketing Operations Monitoring & Reporting Process
IntelCore5
9. Knowledge
2x Others
Conclusion 3: Marketing Managers are involved in operational tasks and Trade Marketers are heavily involved in the creation of content.
WPPK/ Hartmann
8. Budget
WPPK/ Hartmann
7. Planning
6. End User
1x 12x 1x 20x 1x 16x 21x 1x 26x Trade Marketing 3x Marketing 16x Operations Marketing 17x Operations Marketing Marketing Database Others Marketers Director Managers Manager Managers Manager Marketing Marketing Managers Managers Marketer 4x Managers Managers 5x 13x Production 17x Trade 11x Production 13x Online 2x 4x 8x Online ade 2x Managers 4x 1x Marketers Online 26x Tr M an Online ag Marketers Others Creative er Marketers s s Others ters Content ter e Creative ke rk ar M a M Marketers Designers Creator Designers 4x 3x 1x 4x 5x 20x 5x Content Database 20x Others Production 29x Trade Operations 5x Online Trade 4x Production Creators 11x Marketers Trade Manager Marketers Managers Online Marketers Marketers Others Managers Marketers Marketers
1x Production 4x Manager Content Creators
34
Data Mine
1. Content Marketing Operations Execution Process
KingCom Creative Blue Berry
iCatch
2. Publishing WPPK/ Hartmann ThreeSixty
Meier & Mayer
Socialistas
Marketing Operations Management Process
ThreeSixty
TH!NK digicomm
3. Ordering M.A.C. Fulfilment
Madison
4. Production TH!NK digicomm Rototech
5. Channel
Travertari
WPPK/ Hartmann
PrimaPrint
M.A.C. Fulfilment
Store Steps
Mr. Bricks
6. End User Ad Valvas
Exprezz
Marketing Operations Execution Process
Daily Direct
Conclusion 4: No suppliers support knowledge management. 70% of the suppliers support the Marketing Operations Execution Process layer. Publishing and production are supported by many suppliers.
35
Manpower our skills & talents
Position & Talents
Are we fit to face the challenges of the future? How are the talents distributed within the organization? Is the team more creative than analytical? Do the team members consider themselves to be strategic masterminds or operational wizards? Is the team capable of keeping pace with the changing marketing discipline? Let’s take a look at the Manpower within our organization, all human related assets across the marketing processes. This covers the roles and responsibilities, as well as the combined set of skills, knowledge and experience.
5. talents & skills
How are the roles and talents distributed throughout our marketing organization? An equal distribution of talents and skills is necessary to adapt to changing marketing conditions. Are most of your marketers in only one quadrant? Then it is likely you will encounter difficulties to increase marketing maturity and become excellent.
STRATEGIC 1 0,9
The Strategic MasterMind Answering the why, vision, concept, long-term, roadmap, large scale, doing the right thing. The Operational Wizard Answering the how, tasks, tools, short-term, execution, smaller scale, doing things right. The Creative Doing the cool, visual, emotional, impetuous, believes, big picture oriented, right brain.
There are two major trends in Manpower: 1. The Creative – Analytical skills & talents Over the years, marketing has gradually shifted from an art to a science. This transition within the marketing field, running parallel with the transition from offline to online media and technological innovations, has opened up a new world of opportunities with regard to customer insights, customized product offerings and return on investment calculations. Marketing has become more analytical.
The Analyst Doing the smart, textual, factual, pratical, knowing, detail oriented, left brain. Role Marketing Director
0,8 0,7 0,6
0
0,1
ANALYTICAL
0,2
0,3
0,4
0,5 0,5 0,4 0,3
0,6
0,7
0,8
0,9
1
CREATIVE
0,2 0,1 0
OPERATIONAL
Marketing Manager Operations Manager
2. The Strategic – Operational skills &talents Over the years, marketing focus has gradually shifted from mainly generating good ideas to the execution of good ideas. Media proliferation and reduced product lifecycles call for a better coordination and collaboration skills to master marketing complexity. Nowadays on average 70% to 80% of the activities within a marketing department are related to marketing execution. A good marketing execution and a well-oiled marketing operations engine have become prerequisites for marketing success. Operational Marketing Excellence has become a must. 36
Production Manager Creative Designer Content Creator Online Marketeer Trade Marketeer Database Marketeer
Conclusion 5: Most respondents score high on the strategic and creative scale. Few respondents mentioned their analytical and operational skills. 37
Machines
our marketing technology Our marketing technology solutions support different areas across the 10 Marketing Processes.
6. marketing processes & Technology
Indigo
Site-C
10. Reporting
Marketing Operations Monitoring & Reporting Process
IntelCore5
9. Knowledge
8. Budget
Connect (MS SharePoint)
ProClear
1-2 Many
FTP
Neutron
Marketing Operations Management Process
MAP
MS Excel
7. Planning 1. Content
COOP
2. Publishing Adobe
3. Ordering Madison Square
M.A.C. Fulfilment
4. Production
5. Channel Partner base (MS Access)
6. End User Target Soft
1-2 Many Delphy CRM
Conclusion 6: Budget Management is fragmented and done in three different systems. Planning is predominantly done via MS tools. Publishing and Production are not really supported by internal systems. 38
Marketing Operations Execution Process
maturity How mature are the resources we allocate?
41
Marketing Operations Maturity Identifying the current maturity of resources is essential to estimate our Operational Marketing Excellence growth potential. Displaying our maturity scores in a heatmap allows us to see how we are performing and where there is room for improvement and learning. Striving for Operational Excellence in Marketing is a matter of climbing the maturity ladder. With every step we become more efficient and effective and create sustainable competitive advantage.
Maturity tells us about the operational leaders and laggards. 1. The Scores - Levels & descriptions The scores are based on the Capability Maturity Model (CMM), developed by Carnegie Mellon University. The CMM has been altered to fit the purpose of MO:DNA and to map marketing processes and resources. Maturity is rated on a scale from 1 - immature to 5 - optimized. 2. The Location - Units & markets Rates our marketing operations maturity by resource, business unit or market. The maturity tells us who is allocating resources more efficient and effective than others. Look at the characteristics of your leaders and laggards and create your own best practise. 42
Maturity Levels
Materials
Manpower
Machines
Level 5. Optimized - On demand - Anticipatory Marketing material is continuously improved, based on customer result measurements. All material is created according to the marketing plan. It is linked to tactical and strategic goals.
Level 5. Optimized - On demand - Anticipatory Through a controlled and monitored process our roles & responsibilities are continuously improved through incremental steps.
Level 5. Optimized - On demand - Anticipatory. There is a single interactive enterprise marketing platform, where all marketing-related data can be continuously checked and improved.
Level 4. Adjustable - Flexible - Adaptive Marketing material can easily and effectively be adapted by marketing management to particular projects according to the marketing plan, without significant loss of quality or deviating from brand specifications.
Level 4. Adjustable - Flexible - Adaptive Roles & responsibilities can be guided, controlled and adapted to particular projects, whilst maintaining quality standards.
Level 4. Adjustable - Flexible - Adaptive The marketing management uses workflow tools and automated data synchronization to control, adjust and adapt data across the organization.
Level 3. Defined - Known - Planned Marketing materials are well-defined, standardized and consistent. The individual marketing materials are linked to objectives and the marketing plan.
Level 3. Defined - Known - Planned Roles & responsibilities are defined and documented, which enables the entire organization to consistently execute processes and workflows.
Level 3. Defined - Known - Planned There is one set of technology and software solutions for the entire group. A consistent asset & project administration is established across all teams through a controlled data entry process.
Level 2. Described - Traceable - Guided Some marketing materials are produced repeatedly, but without guaranteed consistency. The marketing plan is consulted and offers (limited) guidance when there is a request for new marketing material.
Level 2. Described - Traceable - Guided Some roles & responsibilities look similar throughout the organization. Discipline is not strict, but where it exists it may help to ensure that existing processes are maintained during times of stress.
Level 2. Described - Traceable - Guided Some technology and software is used by multiple individuals. Data is shared via a central folder structure. Overviews are created in spreadsheets based on templates.
Level 1. Undocumented - Unknown - Ad Hoc Marketing material is created on an ad hoc basis, reacting to requests from the business. Results from previous campaigns are not stored or consulted when new campaigns are created. 44
Level 1. Undocumented - Unknown - Ad Hoc Business is run in an ad hoc and reactive manner. Roles & responsibilities are generally undocumented and in a state of dynamic change.
Level 1. Undocumented - Unknown - Ad Hoc The technology and software used in campaigns differs per individual marketer. Assets are stored in personal folders and can be requested at external agencies. Overviews are created in personal spreadsheets.
Maturity scorecard
What is the maturity of the resources in our organization? Can we manage our resources more efficiently?
Our average maturity level score per Resource is:
Materials Manpower Machines
2.8 2.6 2.3
2.5
1. maturity by resource
Materials Manpower Machines
2.5 2.2 1.9
1.6 1.5 1.3
3.3 3.1 3.0
3.1 3.1 2.8
3.7 3.6 3.3
3.9 3.6 3.4
2.4 2.0 1.8
3.5 3.1 2.8
1.8 2.0 1.3
1.9 1.6 1.6
Content
Publishing
Ordering
Production
Channel
End User
Planning
Budget
Knowledge
Reporting
Conclusion 7: The average Marketing Operations maturity is 2,5. The Marketing Operations Execution Process layer has the highest maturity level, with an exception for Publishing. Knowledge Management and Reporting are the least mature processes. 45
maturity
Maturity
What is the maturity of our resources across the different Business Units? Can we match well-performing with less performing Business Units?
What is the maturity of our resources across the different Markets? Can we match well-performing with less performing Markets?
Our average maturity level score per Business Unit is:
Our average maturity level score per Market is:
Healthcare Household Appliances Mobile Personal Care Sound & Vision
UK CEE BeNeLux DACH SPIF
by business uNit
by Market
2.0 2.6 2.4 2.6 2.3
1,0 1,8 1,4 1,7 1,3
Content
Publishing
Ordering
Production
Channel
End User
Planning
Budget
Knowledge
Reporting
Conclusion 8: Business Units are equally mature with an exception for Health Care, which scores significantly lower. End User and Knowledge are not covered in Healthcare. 46
UK CEE BeNeLux DACH SPIF
Machines
2,0 1,6 1,5 1,3 1,8
Manpower
Machines
1,7 1,8 1,8 1,9 2,3
Materials
Manpower
0,0 1,4 1,3 1,2 1,0
Machines
Materials
0,0 1,6 1,8 2,1 1,5
Manpower
Machines
0,0 1,6 1,3 1,8 1,8
Materials
Manpower
1,8 3,3 1,7 3,2 1,8
Machines
Materials
1,6 3,7 2,0 3,3 2,2
Manpower
Machines
1,6 4,1 2,3 2,3 2,3
Materials
Manpower
1,6 1,9 1,6 1,9 1,5
Machines
Materials
1,6 1,9 1,9 2,3 1,7
Manpower
Machines
1,6 2,8 2,4 2,3 2,0
Materials
Manpower
0,0 3,2 3,4 3,5 3,3
Machines
Materials
0,0 3,6 3,6 3,7 3,7
Manpower
Machines
0,0 4,0 3,8 4,0 3,5
Materials
Manpower
3,0 3,3 3,7 3,2 3,6
Machines
Materials
3,0 3,6 3,9 3,6 3,8
Manpower
Machines
3,3 3,7 4,0 3,6 3,8
Materials
Manpower
2,4 2,8 2,8 2,7 2,9
Machines
Materials
2,6 3,1 3,0 3,2 2,9
Manpower
Machines
2,6 3,1 2,8 3,3 2,8
Materials
Manpower
2,3 3,1 3,0 3,0 3,0
Machines
Materials
2,7 3,1 3,0 3,3 3,0
Manpower
Machines
2,7 3,5 3,3 3,4 3,0
Materials
Manpower
1,0 1,3 1,0 1,5 1,0
Machines
Materials
1,0 1,7 1,4 1,5 1,3
Manpower
Machines
1,0 1,7 1,5 1,7 1,3
Materials
Manpower
1,7 1,8 1,7 2,1 1,9
Machines
Materials
1,7 2,3 2,1 2,3 2,2
Manpower
Machines
2,0 2,7 2,4 2,5 2,1
Materials
Manpower
Healthcare Household Appliances Mobile Personal Care Sound & Vision
3. Maturity by Markets
Materials
2. Maturity by Business Unit
2.6 2.6 2.3 2.6 2.4
2,6 2,2 2,4 2,4 2,4
2,3 2,0 1,7 2,6 2,1
2,2 1,4 1,6 2,1 1,7
1,6 1,4 1,6 1,7 1,3
1,6 1,4 1,4 1,4 1,3
1,4 1,1 1,2 1,4 1,0
3,3 3,8 3,2 3,4 3,3
3,0 3,5 3,0 3,3 3,1
3,1 3,0 2,7 3,0 2,9
2,9 3,5 2,9 3,1 3,1
2,9 3,3 2,7 3,3 3,1
2,8 3,0 2,4 2,7 2,7
3,6 3,8 3,5 3,8 3,6
3,6 3,6 3,5 3,7 3,6
3,4 2,9 3,4 3,6 3,2
4,1 3,8 4,0 3,7 3,6
3,8 3,5 3,5 3,6 3,4
3,6 3,3 3,0 3,4 3,2
2,7 2,0 2,2 2,1 2,4
2,3 2,0 1,6 2,1 2,0
1,9 1,8 1,5 1,7 1,7
3,3 3,0 3,1 3,0 2,8
2,9 2,8 2,6 2,7 2,6
2,7 2,5 2,6 2,3 2,3
1,5 1,5 1,8 2,0 1,0
1,4 2,0 1,8 2,6 2,0
1,4 0,0 1,0 1,3 1,0
1,7 2,3 1,7 2,0 2,4
1,9 2,0 1,1 1,4 1,3
1,8 1,7 1,4 1,4 1,0
Content
Publishing
Ordering
Production
Channel
End User
Planning
Budget
Knowledge
Reporting
Conclusion 9: UK has the highest maturity, because of the Channel and End User processes. BeNeLux has the lowest maturity, because of low scores on Content, Publishing, Knowledge and Reporting processes. 47
BRAND GOVERNANCE MATURITY OUR BRAND ORIENTATION
The Brand Orientation Index clearly shows that brand-oriented companies are more profitable, have a long-term scope, combine the internal and external perspective in a holistic approach, have executive involvement in marketing and set clear goals. Strong brands correlate with strong business performance. How does the marketing department experience the brand orientation of the company itself? Is Is Is Is
it merely a logotype? the brand a culture carrier that expresses the cohesion between colleagues? the brand used to create trust and drive sales? the brand the backbone of the company, connecting values and logic?
4. Internal Brand Perception
The brand is a visual element. The management team shows little interest in the brand. Brand recognition in the market is limited. We have no defined and/or strong brand values.
Brand Orientation research findings
The brand is the carrier of the corporate culture
10%
1. It is profitable to be brand-oriented. The more brand-oriented a company is, the more profitable it is. The most brand-oriented companies have almost twice the operating profit (ebita) of those that are the least brand oriented. 2. Short-term financial perspective and brand orientation do not go together well. Relatively few brand-oriented companies are listed on the stock exchange. One explanation for this may be that because of the quarterly economic cycle, listed companies are forced to adapt a short-term profitability mindset. This mindset seldom benefits long-term brand stategy.
The brand is a logotype
18%
57%
15%
3. Combining an internal and an external perspective is a success factor for brand orientation. Most brand-oriented companies have the ability to combine both an internal and an external perspective on brand development. These companies have succeeded in creating a value-driven organization in which the employees are brand ambassadors, while they also have the ability to exploit the brand as a strategic competitive tool on the market. Building a strong brand requires a holistic approach.
The brand is a sales tool We focus more on product branding than on corporate branding. The management shows considerable interest in the brand. Our brand is highly recognized in the market. We have defined brand values, but most people/consumers don’t know what they are.
4. In brand-oriented companies, brand development is an issue for top management. In most brand-oriented companies the executive management group is very involved and active in various brand-related issues. Decentralized brand responsibility seldom promotes brand orientation. 5. Brand-oriented companies attach considerable importance to setting up targets and meeting them. Successful brand building is characterized by continuity and determination. The most brand-oriented companies therefore attach considerable importance to setting up long-term goals and to evaluating them, for both internal and external brand development.
Our brand is the vehicle for educating and connecting employees. There is a considerable brand involvement from the management team. There is limited brand recognition in the market, but our internal brand values are highly respected.
The brand is the backbone of all operations
Conclusion 10: By far the most respondents see the brand as a sales tool.
The brand is the cement that holds together strategy, operations and organization. The management team is highly involved in the brand. Our brand is widely recognized and we have strong and well-known brand values.
www.brandorientationindex.com 48
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PRIORITY Which value drivers do we rank highest?
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Marketing Operations priorities What do we perceive as important performance improvements? If we look at efficiency, effectiveness and compliance, which operational improvements will help us to reach our goals and create value? Each marketing discipline or department within a large organization tends to set its own goals for efficiency, effectiveness or compliance. Sometimes these goals align with broader marketing or corporate objectives. Sometimes they don’t. Even worse, each can work against the other: the different functions can create a silo-driven mentality that establishes individual fiefdoms. A more organization-wide collaborative approach will yield better results. Making conscious and holistic decisions on Operational Excellence objectives and selecting priorities helps all parties to work together and create sustainable value.
priority scorecard
Priority levels Level 5. Not a priority This topic does not prevent me from doing my job and achieving my goals. We don’t need to spend efforts to improve this topic.
Average
Average
2.9
St. Dev St.Dev Modus Modus
1.2 2.0
Efficiency Priorities
2.9
Reduce Operational Costs
2.3
Reduce Process Cycle Times
2.4
Increase Operational Capacity
1.5
Reduce Time-to-Market
1.8
Increase Customer Relevance
3.3
Increase Customer Exposure
3.6
Increase Brand Compliance
4.4
Increase Legal Compliance
3.8
Increase Financial Compliance
Level 4. Low priority This topic barely prevents me from doing my job and achieving my goals. We could spend efforts to improve this topic.
Marketing Operations DNA clusters the operational priorities around the 3 value drivers of Operational Marketing Excellence: Marketing Efficiency Driving higher results through smarter allocation and use of marketing resources, lowering the investment. Marketing Effectiveness Facilitating higher results through a better infrastructure, enabling right time, right place, right offer capabilities, increasing the return. Marketing Compliance Improving risk management by a better controlled marketing infrastructure and by delivering output according to guidelines regarding brand, finance and legal, thus lowering the risk. 52
Level 3. Medium priority This topic sometimes prevents me from doing my job and achieving my goals. We should spend efforts to improve this topic.
Level 2. High priority This topic often prevents me from doing my job and achieving my goals. We need to spend efforts to improve this topic.
Level 1.Essential priority This topic always prevents me from doing my job and achieving my goals. It is essential we spend efforts to improve this topic.
Effectiveness Priorities
Compliance Priorities
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Efficiency Priorities Marketing Efficiency is how well the use of marketing resources is minimized to create the marketing output. Achieving efficiency is primarily aimed at the benefit of the process owner. Efficiency measurements are related to things like Internal, Operational, Processes, Organization and Resources. The main efficiency drivers are costs, cycle time and capacity.
1. Reduce Operational Costs Operational costs are associated with the financial investments to create and produce marketing materials. These include costs related to HR, creative agency fees, planning, coordination, workspace and systems costs. Operational marketing costs do not include Media buying costs. In some organizations the ratio between Media costs (customer touch points) and Operational marketing costs (overhead) is called the “the working dollar versus non-working dollar ratio�.
2. Reduce Process Cycle Times Cycle time is the total length of time required to complete an entire process. It includes the time taken to perform the actual work, also known as processing time, as well as the handover and waiting. Often processing time is less than 1% of the cycle time. Therefore comparing the sum of processing times between the old and the new situation is not sufficient. Reducing cycle times means primarily looking at the waiting, not at the doing.
3. Increase Operational Capacity Capacity is the ability to do, to perform or to produce. It refers to the size, amount, load and scalability of Manpower (human resources) and Machines (technology systems). In some marketing organizations, higher capacity and higher peak performance are required to handle a growing list of (customized) messages and associated Materials. Accurate capacity ensures that the availability of resources is in line with the current and future business needs and that demand and supply are balanced.
2.9 2.3 2.4
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Effectiveness Priorities Marketing Effectiveness is how well the marketing output meets the requirements of its end customer. Achieving effectiveness is primarily aimed at the benefit of the customer. Effectiveness measurements are related to words like External, Media, Campaigns, Offer, Market and Customer. The main effectiveness drivers are time-to-market, relevance and exposure.
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Compliance Priorities Marketing Compliance is how well management expectations about marketing are embedded in internal quality standards and procedures. Achieving compliance is primairily aimed at the benefit of the management. Compliance measurements are related to words like manuals, guidelines, approvals and checks. The main compliance drivers are brand compliance, legal compliance and financial compliance.
1.5
4. Reduce Time-to-market The time-to-market of campaigns refers to the time required from the start of the marketing concept to the launch of the campaign. If you take the same start date as before the improvement, and launch earlier, a reduced time-tomarket results in an increased “sales window”. If you take the same launch date as before the improvement, but start later, a reduced time-to-market allows you to decrease the “response time” to changing market conditions.
7. Increase brand compliance Brand compliance refers to the measures and procedures by which the brand guidelines are directed and controlled. A brand needs to be creative to be distinctive and stand out from the crowd. A brand also needs to be consistent to be recognized, and to be remembered by the crowd. The creative concept needs to be carried out consistently through all aspects of creative production to add value. Brand compliance reduces the risks that the brand is used in a wrong way.
1.8
5. Increase Customer Relevance Customer relevance relates to creating an offer that meets and satisfies every aspect of the customer need, and is delivered through a preferred media channel. Nowadays customers are better informed, more savvy and more media-wise than ever before. Improving “right offer, right place capabilities”, through marketing operations, facilitates a better customer engagement, more customer intimacy, creates context and drives sales.
8. Increase legal compliance Legal compliance refers to the procedures by which legal regulations are applied and controlled. These can be local language laws, laws on company registration information, equal opportunity legislation and accounting laws like Sarbanes-Oxley (SOX) and IFRS. But usage rights on digital assets are also part of legal compliance measures. Legal compliance reduces the risk of campaign recalls or financial repercussions.
3.3
6. Increase Customer exposure Customer exposure relates to the number and frequency of customer touch points. A bigger market presence can be calculated using Gross Rating Point (GRP), measuring the size of an audience reached by a specific media vehicle or schedule. The GRP is calculated by multiplying the percentage of the target audience reached by an advertisement with the frequency they see it in a given campaign.
9. increase Financial compliance Financial compliance refers to the procedures by which financial approvals are applied and controlled. Research shows that 20% to 40% of all operational activities within marketing environments go nowhere near serving any strategic or tactical purpose. Through financial approval measures and procedures, budget allocations become transparent, correct, and controlled. Financial compliance reduces the risk that company resources and associated budgets are spent on wrong operational activities.
3.6 4.4 3.8
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improvement Which value driver has the biggest improvement potential?
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MARKETING OPERATIONS improvement The previous chapter about priority tells us about the importance of operational changes. This chapter about improvement potential shows us the expected impact of those priorities. If we compare the priority list with the improvement potential we can identify the focus point for operational excellence in marketing.
IMPROVEMENT scorecard
Improvement levels Level 5. No improvement potential We have clear insight in the situation. We have successfully implemented means and measures and have this topic under full control.
Average
Average
2.6
St. Dev St.Dev Modus Modus
0.9 2.0
Efficiency Improvements
2.5
Reduce Operational Costs
2.4
Reduce Process Cycle Times
3.8
Increase Operational Capacity
2.2
Reduce Time-to-Market
1.8
Increase Customer Relevance
3.7
Increase Customer Exposure
2.1
Increase Brand Compliance
3.1
Increase Legal Compliance
1.8
Increase Financial Compliance
Level 4. Low improvement potential We have a fairly good understanding of the situation. We have done projects related to this topic which have shown pretty satisfying results.
Improvement potential tells us about opportunities and impact 1. The Ranking - Value drivers & impact The same 9 value drivers, which have been prioritized in the previous chapter, are ranked on improvement potential by the respondents. By ranking the improvement potential we will be able to discover where the opportunities lie in our organization. 2. The Quotes - Like & dislike What do we do best in our marketing organization and what would we like to improve? A selection of quotes from the respondents, related to our marketing operations, reflects how our team feels about the daily marketing operations. 60
Level 3. Moderately Improvement potential is present. We have some form of understanding about the situation. We have done some projects related to this topic which have shown some results.
Level 2. Very Improvement potential is high. We don’t have the situationunder control and there are multiple issues. We either have not done anything yet to fix this problem, or have done something but with limited results.
Level 1. Extremely Improvement potential is rocketing. We have no insight. The situation is out of control. We either have not done anything to fix this problem or previous projects have failed.
Effectiveness Improvements
Compliance Improvements
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What we do best in our marketing organization “I happen to have a good relationship with Group Marketing & Communications.”
“It is an interesting business with a lot of competition. We need to be sharp to succeed. I like that.”
“Retailers don’t know which material is available so they don’t know what to order. Sometimes I wonder if they ever use our stuff.”
“Reverts all the way, all the time.”
“If I need something I have to make it myself. What the UK is creating doesn’t work around here.”
“We have done a lot of initiatives this year! It is never boring.”
“For the first time in 7 years we have a brand book. It looks great.”
“I like the dynamics of being in a sales driven organization.” 62
“We are very flexible and take a lot of pride in fixing last minute jobs.”
“I would not design the unit as it is now. There are too many people.”
“I like the freedom in my role.”
“Excel, Excel, Excel! We are turning our backs towards the customer filling in Excel sheets.”
like!
Dislike!
“We are short of staff. We burn people.”
“We are doing the impossible for the ungrateful. Nobody sees. Nobody cares.”
What WE suggest to improve in our marketing organization
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alignment Where do we agree or disagree?
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marketing operations Alignment Understanding where we agree and disagree on status and potential is vital to succesfully improve Marketing Operations. Each discipline within a large organization tends to set its own sub-goals. Sometimes they perfectly contribute to the bigger company and marketing objectives, sometimes they don’t. Many marketing organizations are managed according to a common sense approach. But in Marketing Operations, where creativity meets structure, where finance meets IT and accountability meets that now-or-never market opportunity, “common sense” is rarely the best guide. Misalignment on objectives and priorities is one of the biggest contributors to destroying company value.
alignment scorecard
Alignment levels Level 5. Strong alignment Respondents completely agree on almost all items. We don’t need to spend efforts to improve this topic.
PRIORITY PRIORITY PRIORITY
IMPROVEMENT IMPROVEMENT IMPROVEMENT
Average Average Average
3,8 3,8 3,8
4,3 4,3 4,3
Average Average Average
Alignment Alignment Alignment
4,3 4,3 3,6 4,3 3,6 4,1 3,6 4,1 4,1
3,9 3,9 4,1 3,9 4,1 4,5 4,1 4,5 4,5
Reduce Operational Costs Reduce Operational Costs Reduce Process CycleCosts Times Operational Reduce Process Cycle Times Increase Operational Reduce Process CycleCapacity Times Increase Operational Capacity Increase Operational Capacity
Effectiveness Alignment Effectiveness Alignment Effectiveness Alignment
3,9 3,9 4,1 3,9 4,1 3,8 4,1 3,8 3,8 3,2 3,2 3,6 3,2 3,6 4,0 3,6 4,0 4,0
4,4 4,4 4,4 4,4 4,2 4,4 4,2 4,2 4,6 4,6 4,5 4,6 4,5 4,5 4,5 4,5
Reduce Time-to-Market Reduce Time-to-Market Increase Customer Relevance Reduce Time-to-Market Increase Customer Relevance Increase Customer Exposure Relevance Increase Customer Exposure Increase Customer Exposure Increase Brand Compliance Increase Brand Compliance Legal Compliance Increase Brand Compliance Increase Legal Compliance Financial Compliance Increase Legal Compliance Increase Financial Compliance Increase Financial Compliance
Knowing where we are misaligned is the most important insight if we want to be excellent in Marketing Operations. Level 4. Alignment Respondents completely agree on most items. We could spend efforts to improve this topic.
Level 3. Moderate alignment Respondents somewhat agree on some items. We should spend efforts to improve this topic.
Alignment tells us about the differences of opinion 1. The Scores - Value drivers & gaps Using a spider web diagram, we visualize the alignment on the 9 value drivers. Insight is created on the differences of opinion within our organization. 2. The Variables - Units & markets
Level 2. Misalignment Respondents disagree on most items. We need to spend efforts to improve this topic.
Level 1. Strong misalignment Respondents completely disagree on almost all items. It is essential we spend efforts to improve this topic.
Efficiency Efficiency Efficiency
Compliance Alignment Compliance Alignment Compliance Alignment
The alignment of our priorities and improvement potential in relation to roles, business units or markets. 66
67
alignment by role
2. Alignment of Roles & Improvement Potential
1. Alignment of Roles & Priority Reduce Operational Costs
Reduce Operational Costs
1.0
Increase Financial Compliance
2.0
1.0
Reduce Process Cycle Times
Increase Financial Compliance
4.0
Increase Operational Capacity
Increase Legal Compliance
Increase Customer Exposure
4.0
Increase Operational Capacity
5.0
5.0
Increase Brand Compliance
Reduce Process Cycle Times
3.0
3.0
Increase Legal Compliance
2.0
Reduce Time-to-Market
Increase Customer Relevance
Increase Brand Compliance
Increase Customer Exposure
Reduce Time-to-Market
Increase Customer Relevance
Operational Roles Strategic Roles
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Alignment
Alignment
by business unit
3. Alignment of Business Unit & Priority
by market
4. Alignment of Business Unit & Improvement potential
Reduce Operational Costs
Reduce Operational Costs
1.0
Increase Financial Compliance
2.0
Reduce Process Cycle Times
Increase Financial Compliance
4.0
Increase Operational Capacity
Increase Legal Compliance
Increase Customer Exposure
4.0
Reduce Process Cycle Times
Increase Financial Compliance
Increase Customer Relevance
Increase Brand Compliance
Increase Customer Exposure
Increase Operational Capacity
Reduce Process Cycle Times
Increase Financial Compliance
Increase Legal Compliance
4.0
Reduce Time-to-Market
Increase Brand Compliance
Increase Customer Exposure
Increase Customer Relevance
2.0
Reduce Process Cycle Times
3.0
Increase Operational Capacity
Increase Legal Compliance
5.0
Health Care Household Appliances Mobile Personal Care Sound & Vision
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2.0
1.0
3.0
5.0
Reduce Time-to-Market
Reduce Operational Costs
1.0
3.0
5.0
Increase Brand Compliance
2.0
6. Alignment of Markets & Improvement potential
Reduce Operational Costs
1.0
3.0
Increase Legal Compliance
5. Alignment of Markets & Priority
4.0
Increase Operational Capacity
5.0
Reduce Time-to-Market
Increase Customer Relevance
Increase Brand Compliance
Increase Customer Exposure
Reduce Time-to-Market
Increase Customer Relevance
BeNeLux CEE DACH SPIF UK
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conclusions & next steps
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conclusions Transparency
conclusions Maturity
Which resources do we use? How do we allocate our resources across our processes?
How mature are the resources we allocate? What is the maturity of our resources across the different processes, Business Units and markets?
transparency graphs
overall conclusion on transparency
overall conclusion on Maturity
CONCLUSION 1: Most respondents are involved in creating ‘Print, Brochures, Flyers’, followed by ‘POS, POP, Displays, In store’.
There is a strong focus on traditional offline media, potentially passing over the power and synergy of online channels and social media.
The average maturity of the marketing resources and processes is 2,5. Creating marketing materials, Knowledge management and Reporting are the least mature.
CONCLUSION 2: Many respondents are involved in creating many types of content.
Content creation is not treated as a separate specialization judging by the large amount and variety of roles and people involved. This potentially decreases the quality, relevance and impact of the message.
With the strong customer driven focus of the large trade marketing workforce the physical and digital distribution processes of marketing materials have the highest maturity.
CONCLUSION 3: Marketing Managers are involved in operational tasks and Trade Marketers are heavily involved in the creation of content. CONCLUSION 4: No suppliers support knowledge management. 70% of the suppliers support the Marketing Operations Execution Process layer. Publishing and production are supported by many suppliers.
There is a strong focus on the creation of marketing materials using many supporting suppliers but no Print-on-Demand tool. The physical production of materials requires many suppliers, but there is no underlying technology to support the buying and production of materials.
CONCLUSION 5: Most respondents score high on the strategic and creative scale. Few respondents mentioned their analytical and operational skills.
Many are involved in marketing execution, while they regard their skills as strategic and creative.
CONCLUSION 6: Budget Management is fragmented and done in three different systems. Planning is predominantly done via MS tools. Publishing and Production are not really supported by internal systems.
It is nearly impossible to create an instant overview of the status of marketing activities with the use of MS Office tools only. It is likely that “on time delivery” is problematic.
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With a large amount of suppliers and marketers involved in the ordering and production of marketing materials, these processes rank second highest in terms of maturity. The maturity of the entire marketing execution process is at a level that does not allow for standardization of knowledge or reporting on processes and marketing data. Healthcare, being a young productline, does not cover all processes. This implies risk that things are overlooked. UK has the highest maturity, while BeNeLux has the lowest maturity, (re)creating many materials locally.
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conclusions Priority Which value drivers do we rank highest? According to our strategy, which value driver has the highest priority?
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conclusions Improvement Which value driver has the biggest improvement potential? Which priority do we believe has the largest improvement potential?
overall conclusion on priority
overall conclusion on improvement
While ‘Process cycle time’ is ranked as most important driver for internal improvement, the effectiveness priority is not Time-to-Market’ but ‘Customer relevance’. Reducing process cycle time can lead to increased customer relevance if content is created closer to the live date of campaigns and materials.
Respondents agree on the fact that ‘Process cycle times’ are a high priority and have a high improvement potential. If we consider that reducing ‘Time-to-Market’ has a high improvement potential, despite its low priority, it will probably improve due to the decrease of ‘Process cycle times’.
With ‘Process cycle time’ as the most important driver for internal improvement, financial compliance will be a challenge with the current structure.
The relevance of the marketing messages (customer relevance) are perceived to have also both a high priority and a big improvement potential.
With the large number of people involved in the creation of content and materials, brand compliance is a challenge if the current structure is maintained.
Although brand compliance is a high priority, its improvement potential is not regarded very high.
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conclusions Alignment Do we agree on value drivers and improvement potential? Are we aligned across the different roles, Business Units and markets?
overall conclusion on alignment Regardless of the role, BU or market, all respondents agree on the same improvement potential. The very opposite is true for the alignment of priorities. There is no Business Unit or market that typically represents the overall priorities and improvement potential (‘Reduce cycle time’ and ‘Customer relevance’). This potentially indicates that there is no capability to roll out new strategies throughout the organization down to the lowest operational levels. The Business Unit Personal Care can be considered representing best the overall priority and improvement potential. The UK, and to a lesser extent DACH, are the markets that can be considered representing best the overall priority and improvement potential.
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Where to start looking
to improve our marketing operations?
WHAT? = FOCUS POINTS
Value Driver
1 2 3
Increase Customer Relevance Reduce Time-to-Market Reduce Process Cycle Times
Process
1 2 3
Publishing Reporting Knowledge
Business Unit
1 2 3
Healthcare Sound & Vision Mobile
Region
1 2 3
BeNeLux SPIF DACH
What should we improve? What should be our focus point? The value drivers which are most urgent to improve, in combination with the highest improvement potential should be the focus of our operational excellence activities. High Priority (urgency) x High Improvement (potential) =
Focus Point
WHERE? = STARTING POINTS Where should we improve? Where should we start? The areas with the lowest maturity are likely to be a good starting point for our project. Low Maturity (Process and/or Business Unit and/or Region) =
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Starting Point
about
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about MRMLOGIQ
MRMLOGIQ is a marketing efficiency company
MO:DNA is an MRMLOGIQ product. It is based on more than a decade of improving marketing operations departments for some of the best brands in the world. MRMLOGIQ streamlines marketing processes and translates marketing strategy into daily tasks and routines. We assist you in improving your marketing operations to guarantee an excellent execution of brand activities and marketing activities. By rationalizing marketing processes and implementing marketing technology, we help you save substantial budget, reduce time-to-market of materials and improve the quality of your marketing output. Marketing Resource Management is our core business. It is not something we also do; it is the only thing we do. Through the delivery of operational marketing excellence we make marketing count. In every sense of the word.
www.mrmlogiq.com www.marketinggovernance.com
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marketing operations dna
10 marketing processes 1. Content The creation of images, texts, logos, artwork, icons. 2. Publishing The creation of advertisements, brochures, displays, websites, banners, TV/radio commercials, flyers. 3. Ordering The coordination of the order list, defining production volumes and capturing demands for marketing material.
definitions
4. Production The coordination with the production suppliers (such as printers and advertising agencies), Request For Quotation (RFQ), purchasing (media & print), traffic. 5. Channel Trade marketing activities, POP, POS, in-store material distribution to retailers/resellers/dealers/ wholesale, long tail. 6. End User Consumer marketing activities; digital or physical distribution of campaigns and marketing materials directly to consumers. 7. Planning Management of the production planning; resources planning, calendar, workflow, collaboration, dependencies, alerts, sign-offs. 8. Budget Management of the budget; allocated budget, committed budget, spending, invoices, cost centers, cross billing.
5 marketing resources 1. Materials Materials refers to the physical and digital input and output of the marketing (sub) processes, undergoing the transformation and creating value for the organization. 2. Manpower Manpower refers to all human-related assets across the marketing processes. 3. Machines Machines refers to all technology – hardware and software – used in the process. 4. Money Money refers to budgets and the way they are allocated and spent. 5. Minutes Minutes refers to the time required to process a task, execute a process or go-to-market.
9 value drivers 1. Reduce operational marketing costs Reduce coordination costs in your marketing processes. 2. Reduce process cycle times Execute your marketing processes faster. 3. Increase operational capacity Improve the ability to handle bigger volumes within your marketing department. 4. Reduce time-to-market of campaigns Reduce the time from marketing concept to campaign launch. Increasing your sales window or decreasing response time to changing market conditions. 5. Increase customer relevance Improve “right offer, right place” capabilities. 6. Increase customer exposure Having more media touchpoints and bigger market presence. 7. Increase brand compliance Improve the procedures by which the brand guidelines are directed and controlled. 8. Increase legal compliance Improve the procedures by which legal regulations are applied and controlled. 9. Increase financial compliance Improve the procedures for directing and controlling budget.
9. Knowledge Management of knowledge; brand guidelines, procedures, definitions, best practices, results. 10. Reporting Management of business intelligence; reports, data mining, Key Performance Indicators (KPIs), scorecards, dashboards. 86
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about marketing resource management The noble art of getting things done in marketing. Efficiently.
For more information about the basic concepts, read: Marketing Resource Management – The noble art of getting things done in marketing. Efficiently. Romek Jansen & Frans Riemersma. Available at www.amazon.co.uk.