Driving Market Impact by Operationalizing Agile Marketing

Driving Market Impactthrough Operationalizing Agile

Barre Hardy, Associate Partner CMG

March 16, 2016

About CMG’s approach to agile

EXPERIENCETwo decades of bringing new technologies and products to market, working in collaborative, cross-silo, highly effective/efficient processes.

RESEARCHThree-plus years of research among leading chief marketing officers, agile practitioners and other experts to gain insight on the state of the art.

BUILD We have helped marketing teams of five to 100+ people make the transformation through the trial, adoption and scaling of Agile for Marketing™ (what we call A4M) across their marketing organizations.

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What we’ll talk about

1. Agile Overview2. What it Means to Scale Agile3. Best Practices to Make Agile Last

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The only sustainable competitive advantage is your organization’s ability to learn faster than the competition.”

4© 2015 CMG Consulting - CONFIDENTIAL Source: ©1990 Peter Senge, The Fifth Discipline

What is Agile Marketing?

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• Customer centric approach to business

• Rapid learning cycles

• Flexible planning –willing to respond to change vs. follow a plan

• Accountable and empowered teams

Based off the following premise

6© 2015 CMG Consulting - CONFIDENTIAL

1. Adaptive & Iterative campaigns over big bets

2. Many small experiments

3. Adjusting based on what you learn

Busi

ness

val

ue

Project timeline

1

2

3

4

5

3

Agile

Waterfall

The playbook for a winning game plan

Agile marketing discipline will up your execution game


1. 2. 3.

4.

5.

Agile drives operational excellence

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Yet, most organizations look like this

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POWER & STRUCTURE

AuthorityFormal rolesHierarchyStable processToll gates/check points/formal reviews

COMMAND & CONTROL

Where is your organization today?

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COMMAND & CONTROL

INDIVIDUAL ACCOUNTABILITY

COLLABORATIVE CULTURE

SHARED ACCOUNTABILITY

Source:

Agile Organizations Live Here

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Source:

COMMAND & CONTROL

INDIVIDUAL ACCOUNTABILITY

COLLABORATIVE CULTURE

SHARED ACCOUNTABILITY

Moving to a more decentralized structure enables organizations to have:

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1. Better understanding of market

2. Speed of anticipation and response

3. Better decision making

4. Happy and proactive teams

5. Clarity of mission - people marching

together in the same direction

….And the data shows it.

Agile marketers report gaining big benefits across the board

13© 2015 CMG Consulting - CONFIDENTIAL Source: ©2014 CMG. The CMO‘s Agenda

There’s a difference between . . .

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BEING AGILEDOING AGILE

Methodology vs. Mindset

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MINDSETRight brain

Flexible

Collaborative

Empowered

Experimental

Customer-focused

Transparent

METHODOLOGYLeft brain

Set structure

Set roles

Self-organized

Focused

Data driven



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To transform requires changing the system

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• Strategic objectives• Core org. capabilities• Resourcing; priorities• Cascading

(translation; clarification; communication)

• Value proposition; differentiation

• Behavioral Standards

• Cultural reinforcements

• Performance management (KPIs; management reporting and decision-making)

• Work process design• Tools and technology• Strategic, resourcing, and

budgeting alignment• Enabling support

systems (information, people, rewards, decision making, renewal)

• Right people in the right jobs on the right teams

• Performance management system

(plans, reporting, coaching)• Structure (roles & responsibilities; reporting relationships)

Governance of the Agile for Marketing operating systemArbitration over the processEmpowerment of the teams

To transform requires changing the system

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• Strategic objectives• Core org. capabilities• Resourcing; priorities• Cascading

(translation; clarification; communication)

• Value proposition; differentiation

• Behavioral Standards

• Cultural reinforcements

• Performance management (KPIs; management reporting and decision-making)

• Work process design• Tools and technology• Strategic, resourcing, and

budgeting alignment• Enabling support

systems (information, people, rewards, decision making, renewal)

• Right people in the right jobs on the right teams

• Performance management system

(plans, reporting, coaching)• Structure (roles & responsibilities; reporting relationships)

Governance of the Agile for Marketing operating systemArbitration over the processEmpowerment of the teams

Agile Marketing Operating

System

LEADERSHIP

MetricsPeople Process

Components of operating at scale

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Focus

STRA

TEGY

PRO

GRA

MEX

ECUT

ION

Lead

ersh

ip G

over

nanc

e

• Progress against goals

• CSAT• Revenue• ROMI

Marketing Leadership

Team

Prioritization & Budget

$$$$$$$

$$$$

• Progress against program KPIs

• Product • Solution• Initiative

KEY PROGRAMS

Business Owner/Team Lead

• Objectives• Priorities• Segmentation

/Customer Knowledge

• Strategy

Program Backlog

• Progress against sprint cycles

• Delivery efficiency

DELIVERY ACTIVITY

Delivery Teams

• Objective setting• Planning• Sprints/

iterations• Learning cycles• Customer

feedback loops

Sprint Backlog

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Program Manager

• Marketing Goals & Objectives• Marketing Priorities• KPIs

MARKETING ROADMAP



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Agile as a Performance Driver – Best Practices


3. Focus on Customer

1. Focus on People

4. Rapid Learning Cycles

2. Solve Problems, not just do tasks

5. Active Management

1) Focus on People

• Jointly accountable, highly empowered teams aligned on goals and objectives.

• Really understand what behaviors need to change

• Get people comfortable being t-shaped - have a formal cross-training approach.

• Develop a career path for agile team members.

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It’s the culture and the people, not the process, that makes agile work.

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Case Study – Impact after 3 monthsCollaborative:

Working together versus in silos

3.2

4

0 5

Iterative/experimental:

Taking small calculated risks and learning from them

Empowered to make decisions:

I believe I am empowered to make the necessary decisions

2.6

4

0 5

3.2

4

0 5

2.6

4.4

0 5

Customer focused:

Putting customer needs at center of decision making

Pre Agile AdoptionPost Agile Adoption

2) Solve Problems, Not Just Tasks


• Align around the business problem or opportunity

• Must have a clear strategy and clear organizational priorities

• Take the time upfront with teams to get the “what” right.

Case Study – Team Alignment

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Financial Advisors:Regain #1 position in the market

Insurance:Improve customer satisfaction/ Year 1 retention

Retirement:Increase active accounts by 30%Grow net sales by X%

Segment A: Segment B: Segment C:Improve customer satisfaction

Grow share of walletGrow market share

Align by SegmentAlign by Product

3) Focus on the Customer


• Do your diligence on your customer – internal and external

• Really prioritize based on value to the customer

Case Study – Building Backlogs from Journey Mapping


Is it easy to access the information customers need?Where is the

leakage for callers, branch, web?

How well do you deliver on their needs?

Where aren’t you meeting expectations?

Where do they need more information?

4) Rapid Learning Cycles


• Agile Delivery – short, iterative sprints to plan, deliver, and learn from work.

• Purposeful testing & learning to understand customers needs and behaviors.

• Improving both the work and how the team works together.

Case Study: Rapid Learning enables Predictive ModelLink Marketing Activity to Business Outcomes

Underperforming by

60%

© 2015 CMG Consulting - CONFIDENTIAL

27%increase in viewership

5) Active Management, Especially At Scale

• Take the time to put together a purposeful change management plan

• Build a thoughtful approach to integrating stakeholders

• The Importance of the Program Manager.

• Inspire active and engaged leadership.

• Manage & measure performance

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Case Study: Active Management


Priorities Management

Resource Management

Performance Management

Agile Operating System Improvement

EXPECTATIONS OF LEADERSHIP

We have to be careful that we don’t let all this great activity that we’re getting done because of agile marketing lull us into thinking that we’re accomplishing our goals just because we’re moving so much from the backlog to ‘Done’.”

32© 2015 CMG Consulting - CONFIDENTIAL Source: ©2014 Matt Heinz, Agile Marketing Blog

Conclusion

• Agile can deliver enhanced marketing performance

• It does so through customer discipline, jointly accountable highly collaborative teams focused on rapid learning and iterative delivery.

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© 2015 CMG Consulting - CONFIDENTIAL

They've embraced a lot of additional responsibility. Because they own certain things, they drive them differently than they would

otherwise. It forces them to look at the business purpose of what they’re doing. It’s made them smarter.”

Amanda Paull, VP of Marketing, Extensis

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