Beyond the buzzword, what is Marketing accountability?

At VisionEdge Marketing, we define Marketing accountability as: “the measuring and monitoring of the commitment a person, group, or organization makes to deliver specific, defined results.” We have found that Marketing organizations are accountable for both the financial and strategic initiatives of the organization. When the Marketing function examines the ROI of a program, it is addressing the financial side of the equation.

Measuring Marketing’s commitment to increasing market share and customer value are examples of being accountable for the strategic initiatives side of the equation. Both necessitate aligning Marketing objectives with business outcomes and linking Marketing to a company’s financial performance.

We have found that Marketing organizations that implement Marketing accountability are able to hold onto, or add to, their marketing budget AND that they become more effective at using marketing to drive business results.

Steps to Improve Your Marketing Accountability

So we know the benefits of improving accountability, but how can you do it in your organization? First, ensure the link between Marketing objectives and the associated programs, tactics, and activities is directly linked to specific quantifiable business outcomes. Second, demonstrate the value of Marketing by setting, monitoring, and reporting on relevant measurable Marketing objectives, metrics, and performance targets to the leadership team on a regular basis.

Easier said than done, you think? True. But these five initial steps will go a long way toward enabling you to achieve this goal.

1. Conduct an audit to identify alignment, data, and process gaps.

It’s hard to know where to go and where to aim if you don’t know your current state. Use the audit to identify and add the right talent, systems, and tools to help automate Marketing processes and improve Marketing performance. Assess the crucial data, analytical, and measurement skills your team needs and provide training. Find about the audits we support.

2. Create and adopt a performance measurement and management strategy, system, and metrics and measurement framework that aligns Marketing with the business outcomes.

Design and select metrics and clear standards of performance that enable Marketing to measure its impact, effectiveness, efficiency and value. It’s important to understand and select the right metrics. Marketing metrics should tie to our three primary responsibilities: acquiring, keeping and growing the value of profitable customers. Therefore, the metrics we select should in some way indicate the impact Marketing is having on market share, customer value, and customer equity.

3. Engage the leadership team and form strategic partnerships with an extended team of Finance, IT, Sales, Service, etc.

The Tuck School of Business facilitated an executive roundtable with nearly 20 CFOs and CIOs from some of the largest companies in the world, including Cisco, IBM, Eaton, Whirlpool, and Citigroup. Why? Because CFOs and CIOs, along with other members of the C-Suite, “have increasingly become key partners in a variety of initiatives critical to business success.” Performance management is one of these critical business initiatives. CFOs often lead the internal discussion about metrics and performance management. CFOs are also taking the initiative to develop standard, consistent measurements that focus on leading indicators of value creation. CIOs and IT play a major role in creating and maintaining the infrastructure and data needed to support performance management. Marketing accountability is key to performance management. The elevation of their roles plus the leadership team’s renewed focus on productivity, business value and performance management requires marketing to build bridges and alliances with finance and IT, and engage them and other key members in the marketing performance management journey.

4. Create and align processes, policies, and practices that ensure the linkage between Marketing objectives and programs with business results.

As a result, the marketing organization will be properly and strategically positioned and pulling in the same direction as the rest of the organization. Organizational development research has shown that proper alignment of people and organizations results in higher productivity for less effort. When you achieve alignment, the link between Marketing projects, programs, and initiatives and the broader company outcomes is explicit. And members of the Marketing team understand the impact of their daily activities on the outcomes. Once you take this step, you will be able to prioritize projects based on their value and impact rather than what’s most familiar or easiest.

5. Develop a multi-level dashboard to report performance and results in real-time to facilitate course adjustments and foster decision-making.

Make your Marketing dashboard an iterative and collaborative effort. A good Marketing dashboard facilitates decisions. If your Marketing dashboard doesn’t enable you to make course adjustments, know what is and isn’t working, and communicate the value of Marketing in financial and strategic impact terms then it’s time for a dashboard makeover. Request a dashboard review to ensure that your dashboard is, in fact, facilitating decisions.

For many Marketing organizations, these steps may require process and cultural changes. So Marketing accountability is not a journey for the weak or timid. However, there have been enough studies over the years to suggest that by implementing Marketing accountability, you will be able to hold onto, or add to, your Marketing budget AND you will become more effective at using Marketing to drive business results. Good for your organization and good for your career. Get started by taking a look at our white paper “Charting a Course for Marketing Effectiveness: Alignment & Accountability.”

FAQ:

(written by Penn of Sintra.ai)

Q1: What is Marketing accountability (beyond the buzzword)?
A: Marketing accountability is the measuring and monitoring of the commitment a person, group, or organization makes to deliver specific, defined results. Marketing is accountable to both the organization’s financial initiatives (e.g., ROI) and strategic initiatives (e.g., market share and customer value).

Q2: Why does Marketing accountability matter to business performance and budget credibility?
A: Because accountability links Marketing objectives to business outcomes and financial performance. Organizations that implement Marketing accountability are better able to retain—or even increase—their Marketing budgets and become more effective at using Marketing to drive business results.

Q3: What is the first principle for improving Marketing accountability?
A: Ensure Marketing objectives—and the programs, tactics, and activities that support them—are directly linked to specific, quantifiable business outcomes. Then demonstrate value by setting, monitoring, and reporting measurable objectives, metrics, and performance targets to leadership on a regular cadence.

Q4: What are the five steps to improve Marketing accountability?
A:

1. Conduct an audit to identify alignment, data, and process gaps—and determine needed talent, systems, tools, and training.
2. Create and adopt a performance measurement and management strategy (including a metrics and measurement framework) that aligns Marketing with business outcomes.
3. Engage the leadership team and form strategic partnerships with Finance, IT, Sales, Service, and other key functions.
4. Create and align processes, policies, and practices that ensure Marketing objectives and programs link to business results—enabling prioritization by value and impact.
5. Develop a multi-level dashboard to report performance in real time, support course correction, and foster decision-making.

Q5: How should Marketing select the “right” metrics for accountability?
A: Metrics should tie to Marketing’s three primary responsibilities: acquiring, keeping, and growing the value of profitable customers. Therefore, metrics should indicate Marketing’s impact on outcomes such as market share, customer value, and customer equity.

Q6: Why are Finance and IT essential partners in Marketing accountability?
A: Because performance management is an enterprise initiative. CFOs often lead discussions about metrics and standardization, with an emphasis on leading indicators of value creation. CIOs and IT enable the infrastructure and data required for measurement. Marketing must build bridges and alliances with both to operationalize accountability.

Q7: What does “process alignment” enable once accountability work begins?
A: It makes the link between Marketing work and company outcomes explicit, so team members understand how daily activities affect results. This enables prioritization based on value and impact—not on what is easiest, most familiar, or most urgent.

Q8: What makes a Marketing dashboard effective (and when is it time for a makeover)?
A: A good dashboard enables decisions and course adjustments by showing what is and isn’t working—and by communicating Marketing’s value in both financial and strategic terms. If your dashboard does not facilitate decisions or course correction, it is time for a dashboard makeover and review.

Q9: What should leaders expect when implementing Marketing accountability?
A: It often requires process and cultural change. It is not a journey for the timid—but the evidence suggests it improves budget credibility and effectiveness, benefiting both the organization and Marketing leaders’ careers.

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