Marketing in Boardrooms recipe for disaster
Prasanna PERERA, Marketing & Management Consultant, Chartered
Marketeer, CIM U.K.
Much is talked about getting Marketing representation in the
boardroom. This is very important but marketing is not something that is
confined to boardrooms but across every sphere of an organization. If a
marketing ethos prevails in an organization, boardroom representation is
a foregone conclusion.
Shareholder Value Analysis (SVA)
It was the late Prof. Peter Doyle that highlighted the concept of SVA
as a means of reconciling the conflict between finance and marketing
professionals. If a SVA focus is maintained in a business, marketers
will get many positions in boardrooms. No doubt about that.
Marketers in Boardrooms must Perform
It is good to observe that more marketers are entering boardrooms.
But the moment of truth is "performance," not merely bottom line but the
Triple Bottom Line (TBL). To perform at board level, multi disciplinary
skills are required.
Some are of the opinion that finance is key, which is not untrue but
human resources, corporate governance, taxation, are equally important.
When they enter the boardroom, some marketers forget about the
"market."
This is a recipe for disaster. Whether you are in the boardroom or
not, you must have a firsthand feel of what is happening in the market.
How many marketers at board levels make field visits on a regular basis?
Respect for other Professionals
Whilst marketing is the driving force of a business, it cannot
operate without the support of other professions. At board levels,
marketers must respect other professionals and work together with them.
My advice to top marketing pro's is to be humble, keep your feet firmly
on the ground, demonstrate teamwork and commit yourself to internal and
external customers.
Corporate Governance
In marketing, organizations deal with many external entities from
customers to service providers. Marketers at boardrooms must ensure that
corporate governance principles are adhered to at all times.
Transparency, elimination of conflicts of interest and ethical
principles should be practiced at all times. Marketers at boardrooms can
set an example to others in terms of corporate governance.
Risk identification and mitigation, ethical issues and managing
crisis situations are boardroom responsibilities, which marketers must
get actively involved!
Be Accountable at all Times
A weakness in marketers is a lack of accountability, for expenditure.
Increasingly shareholders are demanding higher returns on their
investments.
Marketers at boardrooms must create a marketing accountability
culture across their organizations and drive this aspect personally.
"Marketing Due Diligence" is a concept that must be taken on board,
specially in the context of enterprise and market risks. Marketers in
Boardrooms must act as "Brand Champions"
Whilst all Directors are responsible for the corporate brand, it is
Directors from Marketing that have a greater responsibility.
Marketers at board levels must take on the mantle of Corporate Brand
Ambassadors and enhance the equity of brands. Take the example of Muhtar
Kent of Coca Cola, who championed the Coca Cola brand through turbulent
times.
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