With the release of two recent research notes —Marketing Organizational Design and Strategy Survey 2016: Marketing Leaders’ Ambitions Outstrip Capabilities and Designing Your Marketing Team for the Next Decade — there’s been a healthy debate on the Gartner for Marketing Leaders research team about the need for and the impact of a rethink when it comes to organizational design. Clients want to know how to design and build a modern marketing organization that optimizes resources, achieves business goals and adapts to future needs. For many of the firms we talk to, the key issues include:
- Coping with the ever expanding domain of responsibility. The CMO Spend survey last Fall showed that executive leader expectations for marketers continue to expand across the board from strategic (innovation and strategic planning) to tactical (converting leads to sales). Our new organizational design and strategy survey shines a specific light on the expanding role of Marketing — setting overall corporate strategy and technology decision-making. Sixty-seven percent of marketing leaders say they play a leading or significant role in the corporate strategy setting and almost two-thirds say that the purchase of marketing technology is decided either entirely by marketing or by a marketing-led hybrid team. Success in both these areas calls for skills and experience that exist outside the marketing team today.
- High demand skills are getting harder to recruit and retain. Every marketing organization aspires to be a data-driven, customer-connected and revenue-generating machine so its not surprising that the most in-demand skills are marketing analytics (53%), digital commerce (48%) and social media marketing (41%). Sadly, these in-demand skills also happen to be the hardest to hire for and retain for 48%, 37% and 35% of respondents respectively.
- Increasing or decreasing dependency on agencies and other marketing services. If they had their way, marketing leaders would reduce their dependency on agencies but they don’t think its actually going to happen. The current marketing operating model leans heavily on agencies for strategy and execution to complement existing in-house resources and provide additional marketing capacity. A total of 52% of marketers surveyed say they work with in-house marketing teams to set strategy but look to agencies and third parties for execution. Forty-three percent expect their use of agencies to increase over the next three to five years and only 10% expect to decrease.
We would love to hear from you. What new areas of responsibility is your marketing team being asked to take on? Do you have the right people and skills in place to succeed? What’s you take on the future of your agency partner needs? Drop us a line or add the comment section below!