Crossing the Chasm
The next three points for the CMO to CEO ascent are:
- Cultivate Entrepreneurial Mindset: Encourage experimentation and risk-taking, with a safety net.
- Expand Expertise: Develop a deeper understanding of allied business functions and soft skills, from finance to operations, from technology to HR, from story-telling to negotiations.
- Build Ecosystem Connects: Actively interface with peers, partners, and suppliers to foster growth, stay ahead of industry trends and understand what others are doing to drive continuous improvement.
The reference to “Crossing the Chasm” comes from a book by Geoffrey Moore. The book explores the challenges high-tech companies face when marketing products to mainstream consumers after initially appealing to early adopters. Moore presents a gap or “chasm” between these two segments and offers strategies to successfully bridge this gap. Key to this transition is focusing on a specific target market, understanding its needs, and tailoring products to serve these needs effectively, thereby facilitating the move from early adopters to a broader mainstream audience.
In our discussion, the chasm is between the two roles of CMO and CEO. As we have seen, few CMOs make the leap to becoming to CEO. So, what can they do?
The first step is, obviously, to deliver a stellar performance as CMO, taking ownership for profitable growth. The next step is for the CMO to ask the CEO and the company board for a larger responsibility: end-to-end control of a business P&L so the CMO can demonstrate leadership capabilities and readiness for the top job.
Cultivate Entrepreneurial Mindset: Running a P&L business requires an entrepreneurial mindset, where the CMO must encourage experimentation and calculated risk-taking within a safe environment. This means empowering team members to explore new ideas, test hypotheses, and learn from failures without fear of repercussions. By fostering an innovation-friendly culture, the CMO can drive agility, creativity, and a growth-oriented mindset throughout the organization. Additionally, the CMO should adopt a test-and-learn approach, continuously iterating and refining strategies based on data-driven insights. This mindset not only promotes a culture of continuous improvement but also demonstrates the CMO’s ability to pivot and adapt to changing market conditions – a vital skill for any successful CEO. [I have discussed many ideas about entrepreneurship both for founders and managers in my book, “Startup to Proficorn.” These two slides point to key ideas in the book.
Expand Expertise: Managing a P&L business requires a holistic understanding of various business functions beyond marketing. The CMO must actively seek opportunities to develop a deeper comprehension of areas such as finance, operations, technology, and human resources. For instance, by working closely with the finance team, the CMO can gain invaluable insights into budgeting, forecasting, and financial analysis – skills that are essential for effective decision-making and resource allocation at the CEO level. Similarly, collaborating with the operations and technology teams can provide the CMO with a better grasp of supply chain management, process optimisation, and the role of technology in driving operational efficiencies. Furthermore, the CMO should hone soft skills such as storytelling, negotiation, and conflict resolution, which are crucial for effective leadership and stakeholder management. Here are some books which can be guides for CMOs in their upward journey:
Build Ecosystem Connects: In today’s interconnected business landscape, success often hinges on the ability to foster strategic partnerships and collaborate with various stakeholders. As a mini-CEO, the CMO should actively interface with peers, partners, and suppliers to understand industry trends and identify growth opportunities. Attending and speaking at events can be a very good learning experience. By engaging with external entities, the CMO can gain valuable insights into best practices, emerging technologies, and innovative approaches adopted by other organisations. This exposure not only broadens the CMO’s perspective but also equips them with the knowledge and networks necessary to navigate complex business ecosystems effectively. Moreover, cultivating strong relationships with internal stakeholders, such as cross-functional teams and executive leadership, is equally crucial. The CMO should position themselves as a unifying force, fostering collaboration and breaking down silos to align the organisation towards a common goal.
CMOs (as CEO-aspirants) can thus use the experience of running a mini-business to showcase their ability to drive growth, navigate complexities, and lead with a comprehensive, strategic approach – essential attributes for any CEO. This is how they can cross the chasm.
Postscript: These essays (written for a course I teach within Netcore) are good additional readings:
