The traditional marketing operating model is no longer sufficient. Marketing, once responsible for creative campaigns and lead generation, now plays a pivotal role in driving organizational growth. This transformation requires fundamentally rethinking how marketing functions within an organization. A recent McKinsey article highlights the urgent need for a comprehensive overhaul of marketing operating models to drive growth and efficiency.
The Expanding Role of CMOs
Chief Marketing Officers (CMOs) now manage responsibilities that extend beyond brand awareness and demand generation. They oversee innovation, e-commerce strategies, and the integration of emerging technologies like generative AI. This reflects the expectation for marketing departments to act as revenue drivers, not just cost centers.
In my book, CASH: The 4 Keys to Better Sales, Better Marketing, and a Cohesive Revenue Machine, I emphasize that the modern CMO must align customer journeys and business outcomes. This involves leading teams that deliver personalized, data-informed customer experiences while fostering collaboration with sales and other departments.
Without a cohesive marketing operating model that supports this expanded role, CMOs risk falling short of these expectations. A siloed approach to marketing is unsustainable.
Identifying and Bridging Capability Gaps
Despite recognizing the importance of real-time data, partnerships, and innovative revenue strategies, many organizations struggle to execute these effectively. This often stems from a misalignment between marketing and sales. Sales teams may view marketing as merely a lead generator, while marketing teams lack the customer insights needed to create effective campaigns for the customer journey.
Bridging this gap requires fostering cross-functional collaboration and developing the necessary capabilities within teams. This goes beyond tools and processes—it demands a cultural shift. Organizations must view marketing and sales as part of a unified revenue team rather than separate entities with conflicting priorities.
Four Pillars of Marketing Excellence
A successful marketing operating model rests on four key pillars:
- A Clear Marketing Strategy
A well-defined strategy aligns with organizational goals and customer needs. It must be rooted in a deep understanding of the customer journey, informed by data, and adaptable to market changes. - Performance Measurement
Marketing’s impact should be measured not only by traditional metrics like leads or impressions but also by its contribution to revenue and customer retention. Shared KPIs between marketing and sales are crucial for accountability and collaboration. - Tech-Enabled Marketing
Tools like AI, CRM platforms, and analytics software are more powerful than ever. These tools must integrate seamlessly into workflows and be paired with the right skills to unlock their potential. - A Fit-for-Purpose Operating Model
The operating model must be agile and scalable, designed to adapt to the rapid pace of change in technology and customer behavior. It should also prioritize collaboration, ensuring marketing efforts align with sales activities and broader business goals.
The Shift to Agile, Connected Marketing
This transformation signifies a move toward agile, connected, and data-driven marketing approaches. Companies that adapt will meet evolving customer expectations and maintain a competitive edge. Those that resist risk falling behind as competitors become more nimble and customer-centric.
Actionable Steps to Transform Your Marketing Operating Model
To create a marketing operating model that aligns with modern demands, consider the following steps:
- Assess Your Current Model
Evaluate your existing marketing operations. Are marketing and sales teams aligned? Do you have tools and processes to leverage real-time data? Identify gaps and inefficiencies hindering your ability to respond to market changes. - Invest in Technology
Tools like AI, data analytics, and marketing automation are essential for driving personalization and efficiency. However, technology must integrate with processes and be supported by a team with the skills to maximize its potential.
In CASH, I emphasize the importance of not just adopting technology but ensuring it enhances collaboration. CRM systems, for example, should be shared resources for marketing and sales, providing a unified view of customer interactions.
- Foster Cross-Functional Collaboration
Breaking down silos is critical for creating a cohesive revenue team. This means involving marketing in sales meetings and vice versa while ensuring both teams share insights and work toward common goals.
Regular meetings to share customer objections and feedback can refine strategies. Marketing should continuously align campaigns with sales insights to create more relevant messaging.
- Develop Talent and Skills
The skills required for modern marketing are constantly evolving. Invest in training your team to handle the complexities of data analytics, content creation, and digital strategy.
Unified Marketing and Sales: A Recipe for Growth
Better alignment between marketing and sales is essential for eliminating inefficiencies, capturing missed opportunities, and reducing frustration. A unified operating model ensures marketing efforts directly support sales goals, creating a seamless experience for customers.
In CASH, I highlight the importance of honest communication. Marketing must respect sales’ need for actionable leads, while sales must appreciate the strategic role marketing plays in nurturing prospects and driving awareness. When both teams operate as part of a single revenue machine, the results are transformative.
The Future of Marketing
Marketing is no longer a support function. It has become a strategic driver of growth, innovation, and customer engagement. Realizing this potential requires businesses to rethink their marketing structures and align them with broader organizational goals.
Focusing on a clear strategy, performance measurement, technology integration, and cross-functional collaboration will create a marketing operating model ready for today and tomorrow.
As I state in CASH, “Marketing and sales are no longer separate entities—they are two sides of the same coin, working together to create a cohesive revenue machine.”
This alignment ensures your business meets the demands of a rapidly evolving marketplace.
