An interim CEO, CMO or CSO charged with transforming a company’s revenue performance is going to assess how well aligned the marketing and sales functions are to each other and to the market. Misalignment between Sales and Marketing is a common cause of under-performance and inefficiency, after all.
Identifying that misalignment exists within the organization is relatively easy and even can be measured via an Alignment Index . However, solving the problem long term has proven very difficult. An interim executive with revenue responsibility is likely on point to “fix it” and fix it quick.
The results of a poll on this topic are enlightening even though the poll is not statistically representative. Responses in the poll suggest that the lack of B2B marketing skills within the Marketing department are the leading obstacle to achieving long-lasting alignment with Sales.
The poll asked the question, “What is the biggest obstacle to successfully aligning Marketing and Sales long term?” The choices given are:
- Culture–lack of commitment and trust
- Technology–lack of CRM, etc.
- Process–lack of a shared action plan
- Funnel–lack of funnel definitions, roles
- Skills–lack of the right skills in Marketing
Lack of the right skills within the Marketing organization has received 50% of the responses thus far. Lack of commitment and trust within Marketing and Sales is second most popular choice having been selected by 35% of the respondents. Lack of agreement to funnel stage definitions and roles is third most common obstacle to alignment with 14% of respondents.
My experience as consultant and interim executive in scores of B2B companies over past nine years validates this finding. The talented, eager, creative people in Marketing lack critical know-how to be strong strategic and tactical partners with Sales. The type of B2B marketing skills necessary for success in today’s companies are not taught in most Universities.
The required skills and best practices don’t always come to Marketers from years on the job if careers are spent in unsophisticated companies without strong marketing leadership.
The poll results suggest that companies wishing to align Marketing and Sales are smart to first invest in black-belt level of B2B marketing training for their Marketing teams.Read Full Post | Make a Comment ( None so far )
Good discussion of how to define alignment of sales and marketing in this post. http://ow.ly/1sPxN .
Good perspectives are presented in the original post and in subsequent comments from other marketing and sales gurus. Any interim marketing or sales executive charged with generating a revenue breakthrough must focus on the processes and culture with the two organizations.Read Full Post | Make a Comment ( None so far )
There’s a lot of talk about aligning sales and marketing. I’ve given speeches on the topic and have written numerous posts. Company executives know it’s an issue, but what are the costs associated with misalignment?
If our car is out of alignment we know that the tires are going to wear out faster; we are more in danger of the car wandering out of our lane into on-coming traffic; the ride isn’t as smooth; and the car is harder to steer. We know the cost of replacing tires and in our mind we can calculate the risk of an accident. That’s pretty easy.
But, what is the cost if a company’s revenue engine is out of alignment? Believe me, it’s costing you more than a set of new tires.
I want to open this discussion up and let the ideas flow. I have a thesis. I think most companies have been driving in a misaligned state for so long they are settling for sub-par results and resigned to trying to solve the problem. Misalignment is the default situation in most B2B companies.
Here is an excellent reason why an outside executive serving in an interim manager capacity at your firm, or as a consultant is best able to get you out of the rut. They bring objectivity and the knowledge that there is indeed gold at the end of the rainbow.
What is the cost of misalignment? If, as business managers, we can’t put a number to the cost we’ll hesitate to invest in a solution, and that is the way it should be.
Here are a few areas in which misalignment is costing your company.
- Low conversion rates – your proposal to close ratio is static or falling. Research has shown that misaligned companies have a lower conversion rate. What would be the impact if you reduced your cost of customer acquisition by 10% , 20% or more?
- Missed revenue forecasts – unpleasant budget surprises at quarter end when actual sales are significantly below budget.
- Lost customers – research has shown that misaligned companies are not as good at keeping and growing profitable customers. What is the lifetime value of a customer? If you lost 10% or 20% fewer customers each year what would than mean to the top line and bottom line?
- Slow reaction to market dynamics – when marketing and sales have difficulty agreeing on direction and tactics there are delays in action; opportunities are missed. What is the value to you in beating the competition to a market opportunity?
- Internal strife – It’s not fun or productive to work in a company in which marketing and sales are at odds (or at war). Soon egos and politics rule the decision making rather than a focus on progressing buyers through the sales funnel. The cost here, besides low productivity, is employee turnover. What are your recruitment and training costs in sales and marketing?
- Do-overs – programs are often created and never implemented because there is disagreement about what should be done and how. What is the cost of programs that never see the light of day, or what is the cost of do-overs?
- Loss of momentum – the most effective revenue generation plans are those that have coordinated strategies and tactics where sales and marketing are pulling forward together. A dog-sled team is a good metaphor. When the dogs are running out of step or in different directions the sled is not going to progress at optimum speed.
Those areas will give you a start. I’m sure I’ve overlooked a few. Once you’ve identified the cost areas you’re ready to get out your calculator and compute what the chaos is costing you.
Give it a shot. Bring out the calculator, look at your current financial statements and budget. Don’t be shocked if the total cost is 5% or more of your total sales and marketing budget.
Think small if you like. What would a 5% improvement in any area look like? Think big. What would a 20% improvement in any area look like? What would a 5% improvement in all areas look like?
I look forward to reading your comments and sharing more on this topic soon.Read Full Post | Make a Comment ( None so far )