Twice a year, Russell Reynolds Associates (RRA) analyzes CMO moves by compiling and reviewing all publicly disclosed marketing leadership appointments. To provide general insight on the findings, Richard Sanderson, Executive Director, Marketing, Consumer and Retail at RRA, suggests: “Marketing leaders continue to be at the center of the storm in terms of c-suite volatility and turnover. The role is rapidly expanding and evolving. The definition of what it means to be a marketing leader varies immensely not just across industries, but also across competitors in the same industry (see here for more insight on the different types of CMOs). Not surprising then that CMO succession planning has become a major gap when CMOs themselves seem uncertain about their own future and longevity, let alone that of their team members they should be developing.
For aspiring CMOs, the news is particularly challenging. The appointment data suggest that in many cases, next generation CMOs will need to move outside of their current employer to achieve their own career goals. That is a difficult message to share as it implies the next generation need to be actively thinking about their own career management and ensuring they are being offered the development skills they need to get to the next level. The message seems to be that while you must continue to deliver and grow with your current employer, you may need to occasionally cast an eye outside. It’s a very tough balance between perceived disloyalty versus looking out of what’s best for your own career.”
Below, RRA identified six trends that were noteworthy, based on CMO moves that occurred in the first half of 2017.
Key Trends In CMO Turnover
1. High level of turnover. In the first half of 2017, there were 187 reported marketing-leader appointments—the greatest number observed since RRA began tracking nearly five years ago.
2. CMO succession crisis. Few companies appear to possess strong internal CMO succession options. 72% of CMO appointments in Q1 & Q2 were external hires. In the technology industry, 89% were external appointments.
3. High volatility persists and is rising. 187 marketing leader appointments were recorded in Q1 & Q2. This is the highest observed number since we began tracking all hires 5 years ago.
4. QSR hot seat. The turnover trend experienced by retail a year ago has spread to the Quick Service Restaurant category. 35% of CMOs have turned over at the top 20 QSRs in the last 6 months.
5. Gender parity steps back. 41% of CMO appointments are women, down from 47% in Q3-Q4 2016.
6. Breaking into some industries is harder than others. As the below graphic illustrates, the consumer and technology sectors are primarily hiring from within their industries, suggesting that it will be more challenging to enter these industries from outside. Sanderson suggests: “On cross industry migration, consumer has been notoriously difficult to break in from outside because there is a perception that marketing leadership roles in consumer can have different responsibilities. Frequently consumer marketing leadership roles will have P&L and General Management accountability that marketing roles outside consumer rarely have. Hence there is often a ‘recruit from within’ mentality given the perception of role differences. On technology, there exists a west coast / Silicon Valley nest of companies that frequently recruit from within their own Bay Area ecosystem. The local pool of talent is rich enough and deep enough, and there is a west coast ‘fail fast’ cultural difference, as well as significant cost of living barriers in Bay Area, that imply there are soft but perceptible barriers to entering the industry from outside.”
For more information, see here for the full report.
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