Frustration is viral

November 20, 2013

Frustration is a viral sentiment spreading throughout the global business community, “How do you find executive management who can truly achieve results, embrace cutting-edge methods and implement bold new ways to succeed?”

Business success comes not by natural intuition, through costly mistakes, charismatic diplomacy or knowing the ‘right’ people. (This attitude has, and continues to, put potentially immortal companies at risk and costs billions in avoidable commercial failures.)

Business success comes from wisdom-based talent layered upon experience and knowledge.

Many large international businesses need to experience change and renewal, particularly those with a number of market leading products, in established industries, major categories and competitive businesses.

They desperately NEED sustainable competitive advantage, which comes from innovation built upon solid strategic skills, genuine strategic innovation, blue-ocean growth initiatives spawned by the ability to identify key challenges effecting the organisation, and ability to develop and conceptualise strategies to improve competitiveness, steering those initiatives to improve overall business performance.

This calls for a leader with academic grounding, a breadth of experience that is rare among business individuals, and genuine successes in SME as well as middle sized and large companies. (The premise being no one person is ever responsible for success in large organisations, so ‘pure corporate’ executives from this background are more likely to behave been at the right place, at the right time, as often as they are a true performer.)

Boards must now scour the executive labour market for a new beast: Someone best suited is now an individual with success across a plethora of industries, who possesses demonstrable ability to understand new concepts quickly and act as an innovative thinker, with numerous experiences setting product strategy as well as the ability to implement.

Breakthrough performers must possess a passion for marketing strategy and instinctual understanding of buyer behaviour. They must be endowed with insight into the mechanics of marketing planning and business issues, and a wisdom that is unlikely to been seen in a young, corporate “climber”.

Self assured, mis-perceived as arrogant, or over-confident, ‘hero’ CEO’s dispel doubt when allowed to apply their craft and when results evolve.

All it takes is for an imaginative and dynamic Board or Shareholders to dare to try… the outcome being greater than the pain of resistance to change if they do.

During my Feb 2012 presentation at the FMCG summit at MGSM in Sydney, I asked the group of about 60, “When did you do your last segmentation study?”.

I was appalled to find only 1 company had undertaken a segmentation study in the past seven years… SEVEN YEARS!!!!!!!! (Less frequent than 3 years is considered intolerable!)

There was once a time when FMCG marketers were recognised as leaders, gurus even, in the execution of marketing science: An FMCG marketer was the herald of super-normal profits, profit maximising decision making, and management leadership.

When segmentation is the most powerful tool in the arsenal of a marketer’s weaponry, and the professional standard slips to such a low, no wonder FMCG companies are crying poor!

But, are their marketing executives to blame? I wonder….

Could it be the declining quality of market research services in Australia has so declined as to undermine the anticipated value, insight or trend identification?

Could it be that senior management is so diluted in marketing training that those who control the purse strings – ignorant of how much they don’t know – simply are not allowing marketing departments sufficient budget for segmentation studies – denying resultant sustainable competitive advantage and brand equity investment?

Could it be that the pure-academic standards in the tertiary education of marketers has simply eroded the passing down of commercially important training and skills to the point where marketing graduates simply are not empowered with proper education in marketing anymore?

I sit, jaw agog, sometimes at the wasteful and poor marketing communications efforts in TV advertising spend and creative, at outdoor ads, online ads and other marketing communications execution that just denies justification, and I wonder… but with the revelation of such poor strategic marketing management helps me understand the woes of the industry and from where they come.