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Submitted URL: https://app.gartnerformarketers.com/e/er?utm_campaign=GML_GB_2023_GML_C_NL3_PROSPECTAPR6&utm_medium=email&utm_source=Eloqua&cm_mmc=E...
Effective URL: https://blogs.gartner.com/michael-mccune/2023/02/08/marketing-must-rightsize-its-investment-in-marketing-operations/?ictd%...
Submission: On April 06 via api from US — Scanned from DE

Form analysis 3 forms found in the DOM

POST https://blogs.gartner.com/michael-mccune/wp-comments-post.php

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        <p class="privacy-text">By clicking the "Subscribe" button, you are agreeing to the
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Blog home
Blog post



MARKETING MUST RIGHTSIZE ITS INVESTMENT IN MARKETING OPERATIONS

By Michael McCune | February 08, 2023 | 0 Comments


MarketingMarketing Data and AnalyticsMarketing Leadership and
ManagementMarketing Leadership and StrategyMarketing OperationsMarketing
Organization and TalentMarketing Technology and Emerging Trends

Only 28% of marketing organizations exhibit characteristics that correlate with
improving operational performance. CMOs put enterprise growth at risk by
investing in ineffective transformation efforts.

Register at our upcoming webinar to learn more.


EVERYONE IS TRYING TO TRANSFORM

Gartner’s 2022 Marketing Operations Survey shows that 94% of marketing
organizations have established or are establishing a formal pursuit of marketing
operational excellence. 

We call this the “pursuit of MOE”.

Gartner defines the pursuit of MOE as an approach to improving marketing’s
functional processes and/or changing the way marketing gets work done to
increase efficiency, scale and effectiveness.

The imperative for pursuing change is well documented (see Digital
Transformation / VUCA Environment / Journey Orchestration / Cookie Deprecation).
But even though business-as-usual marketing no longer looks like a 1970’s ad
campaign, it’s still dominated by the push out of time-bound messages produced
by one-off projects. 


THE TOTAL COST OF CHANGE

In trying to transform itself, I find that marketing leaders have trouble seeing
the forest through the trees. Marketing is spending money on many initiatives
with many names: driving technology adoption, organizing customer data,
implementing agile processes, improving analytics, optimizing workflows,
aligning work to strategy. The list goes on.

Gartner’s 2022 Marketing Operations survey aimed to cut across these initiatives
and build a total cost for the pursuit of operational excellence. Analysis of
the data found that on average marketing spends 31% of its budget on the pursuit
of MOE. 

Here is the list of expenditures we asked about:

 * Dedicated Full-Time Staff for the Marketing Operations
 * Technology for Marketing Operations
 * Training and Upskilling for Dedicated Staff MarOps Staff
 * External Consulting and Research Support for Dedicated Staff
 * Training and Upskilling for All Marketing Staff
 * External Consulting and Research Support for Organizational Change

Less than half of that spend went to dedicated marketing operations staff and
technology, the majority went to enabling change.


THE RISK OF INEFFECTIVE EFFORTS

The cost (and risk) of change is not surprising.

What is worrisome is the inconsistency of effort as it relates to performance
improvement objectives.

Only 28% of pursuits have characteristics that correlate with improvement in
operational performance. We call those ‘strong pursuits.’*



Strong pursuits actually spend 40% of their marketing budget on the pursuit of
MOE, and are likely to be adding staff. That should scare the 72% of marketing
organizations that comprise all other pursuits which don’t correlate with
success.

All other pursuits spend less than strong pursuits: 27% of the marketing budget.
But I don’t think you can’t just tell ‘all other’ marketing organizations to
blindly up their investment in hope of becoming more effective at the pursuit of
MOE.

Also, this research doesn’t reflect the opportunity cost of withholding funds
from existing marketing programs.

The characteristics of strong pursuits are listed below – along with links to
our related guidance. If you don’t have alignment to positive operational
improvement outcomes, it might just be better to direct budget back into
business-as-usual marketing activities until you feel confident in your own
pursuit of MOE.


BEWARE OF OVER-OPTIMIZATION

One more word of caution. While change may be constant, transformation should
reach an end.

At some point, even strong pursuits of MOE should see diminishing returns on
investment as critical gaps are resolved, new capabilities established, and
important processes made more efficient. 

There will still be a need to spend budget on operational excellence, but
marketing operations leaders should set an expectation that investment will be
reduced and funds redirected back into a more efficient and effective marketing
function. 

After all, that is what prudent stewards of marketing resources are supposed to
do.

– Michael

 


* STRONG PURSUITS

Strong pursuits of operational excellence in marketing complement the day-to-day
management of marketing’s work. In Gartner’s analysis of survey data, strong
pursuits generally consist of 5 or more of the following characteristics:

 * No manual work management

 * Broad adoption of a primary work management tool

 * Integrated operational martech (budget, planning, work, resource management)

 * Strong investment in change (> 35% of the marketing budget)

 * Utilization of formal or adapted Agile methods for the majority of work

 * Sole responsibility for one or more change mandates

 * Already in pursuit of MOE for more than 2 years

 


GARTNER GUIDANCE

Subscription required:

 * CMOs Must Shake Off Economic Concerns to Broaden Marketing Operations
   Investments
 * Marketing Must Run Optimally With an Operational System
 * Focus on the Strong Pursuits of Marketing Operational Excellence to Improve
   Performance
 * Improve Marketing Operations’ Impact Using Hidden Gem KPIs
 * Quick Answer: Scoping and Communicating Marketing Operations’ Mandate
 * Market Guide to Marketing Work Management Platforms

The Gartner Blog Network provides an opportunity for Gartner analysts to test
ideas and move research forward. Because the content posted by Gartner analysts
on this site does not undergo our standard editorial review, all comments or
opinions expressed hereunder are those of the individual contributors and do not
represent the views of Gartner, Inc. or its management.

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