Marketing Business Alignment Tool

1. Marketing Business Alignment Tool Marketing/Business Alignment ToolCommunications Aspect of Alignment Level of Alignment Score Justification 1 Marketing management lacks understanding of business 2 Limited understanding of business by Marketing management Understanding of Business by Marketing 3 Good understanding of business by Marketing management Understanding of business encouraged among all Marketing staff 2 4 5 Understanding of business required by all Marketing staff 1 Senior Management lack understanding of Marketing best practices 2 Limited understanding of Marketing by Senior Management Understanding of Marketing by Business 3 Good understanding of Marketing by Senior Management Understanding of Marketing encouraged among all staff 4 4 5 Understanding of Marketing required for all staff 1 Casual conversations and meetings on ad hoc basis 2 Newsletters, reports, group e-mails are sent out Organizational Development, Training, & Learning 3 Training, departmental meetings on a regular basis Formal methods sponsored by Senior Management 3 4 5 Learning monitored and tested for all training programs 1 Business to Marketing only, generally formal communications 2 Business to Marketing only, somewhat informal and accessible Communications Style and Ease of Access 3 Two-way, formal communications are the norm Two-way, somewhat informal, accessibility is limited 5 4 5 Two-way, informal communications and flexible meeting times 1 Ad-hoc knowledge management processes 2 Some structured knowledge sharing emerging Knowledge Management & Intellectual Assets 3 Knowledge management structured around key processes Formal sharing at all levels within organization 1 4 5 Formal sharing with partners, and other external stakeholders 1 No business analysts in the Marketing department 2 Primary Marketing-business link is a Marketing Analyst Marketing-Business Liaison Staff (Marketing Analysts) 3 Marketing Analysts mainly facilitate knowledge transfers Marketing Analysts facilitate relationship building within company 3 4 5 Marketing Analysts enhance relationships with parnters/customersMetrics & Value-Measurement Aspect of Alignment Level of Alignment Score Justification 1 Operational Marketing metrics only (email click thru rates etc.) 2 Marketing metrics and some cost metrics; metrics rarely reviewed Marketing Metrics Maturity 3 Review and act on marketing, cost, and campaign ROI metrics Metrics for each process/campaign are defined and measured 3 4 5 Marketing metrics analyzed to inform resource allocation decisions 1 Marketing campaigns & investments measured rarely, if ever 2 Cost/Lead, Cost/Sale measured, but rarely reviewed Business Metrics Maturity 3 Review and act on ROI and cost metrics for all marketing efforts Measure Return on Customer (net present value of customer base) 3 4 5 Balanced Scorecard to set objectives, measures, targets, initiatives 1 Value of Marketing investments rarely measured by business units 2 Business/Marketing metrics not linked, no cause-effect relationships Link between Marketing and Business Metrics 3 Metrics becoming linked and understood by Marketing & Business Metrics formally linked, reviewed, and acted upon 1 4 5 Marketing/Business metrics are reviewed to provide predictive insight 1 Seldom or never benchmark processes or capabilities 2 Sometimes benchmark processes/capabilities informally Benchmarking Process Maturity 3 May benchmark formally, but benchmarks are seldom acted upon Routinely benchmark process maturity and act upon insights 4 4 5 Routinely benchmark processes, measure results, and act upon 1 Dont assess Marketing investments at all 2 Only assess Marketing investments if there is a significant problem Formally assess Marketing Investments 3 Most Marketing investments are formally assessed to determine ROI Marketing investments routinely assessed and findings acted upon 2 4 5 Marketing investments routinely assessed, with ROI hurdle rate 1 None 2 Few continuous improvement practices, effectiveness not measured Continuous Improvement Practices 3 Few continuous improvement practices, starting to measure results Many continuous improvement practices, always measure results 3 4 5 Continuous improvement practices and measures well-establishedPlanning & Governance Aspect of Alignment Level of Alignment Score Justification

2. 1 Not done, or done as needed for budgeting process 2 At unit/functional level, slight Marketing input Formal Business Strategic Planning 3 Some Marketing input and cross-functional planning is completed At unit and enterprise level, with Marketing heavily involved 4 4 5 Formal Business Planning with Marketing, partners & key stakeholders 1 Not done, or done on a reactive basis, no long term planning 2 At unit/functional level; slight business input Formal Marketing Strategic Planning 3 Some business input and cross-functional planning is completed At unit and enterprise level, with business heavily involved 3 4 5 Formal Marketing Planning with input from customers/partners etc. 1 Completely decentralized Marketing departments and efforts 2 Mainly decentralized with some Marketing support from corporate Organizational Structure 3 Marketing department is becoming more centralized and standardized Centralized Marketing department, some procedures & policies 4 4 5 Centralized Marketing department, standard procedures & policies 1 Marketing Manager/Director reports to VP Sales 2 Marketing Manager/Director reports to VP Sales & Marketing Reporting Relationships 3 Marketing Director/CMO reports to CFO or COO Marketing Director/CMO reports to COO or CEO 5 4 5 Chief Marketing Officer reports directly to CEO 1 As a cost center, spending is unpredictable and not planned 2 As a cost center by business unit, budgets are not established How Marketing is Budgeted 3 Some projects treated as investments, budgets are established Marketing treated as a strategic investment, budget is increasing 3 4 5 Marketing is viewed as a profit center that enables revenue growth 1 Necessary evil to provide website, collateral, sales support 2 Need for a brand is emerging, spending for need to have items only Rationale for Marketing Spending 3 Business understands that investments in Marketing increase sales Spending in Marketing is to reduce cost/sale, increase revenues 2 4 5 Spending in Marketing drives competitive advantage & profitability 1 Dont have one 2 Meet informally as needed Senior Level Marketing Steering Committee 3 Formal committees meet regularly on a defined schedule Steering committee has proven to be effective in decision-making 4 4 5 Steering committee must approve spending over a certain limit 1 React to business or Marketing need 2 Project priority determined by Marketing function alone How Projects are Prioritized 3 Marketing projects are prioritized by Senior Management Projects are prioritized mutually by Marketing & Senior Management 4 4 5 Using a portfolio approach, projects are logically prioritized with indexExecutive Level Sponsorship Aspect of Alignment Level of Alignment Score Justification 1 Marketing is viewed as a cost of doing business or necessary evil 2 Marketing is gaining credibility and becoming an asset/differentiator Business Perception of Marketing 3 Marketing is viewed as enabling future business activity & growth Marketing drives & sustains future business activity & growth 3 4 5 Marketing is the critical function that drives major decision-making 1 Marketing is not involved in strategic business planning at all 2 Marketing has some input but does not have a seat in the boardroom Marketings Role in Strategic Business Planning 3 Marketing provides key information, insights, & advice for planning Marketing is a key influencer in strategic business planning 1 4 5 Marketing and business adapt quickly and strategically to change 1 Marketing takes all the risks, receives no rewards 2 Marketing takes most risks, with little reward Shared Risks and Rewards 3 Marketing and business start sharing risks and rewards Risks and rewards are always shared between business & Marketing 3 4 5 Managers incented to take strategic risks and rewarded for success 1 Marketing-business relationship isnt managed or is non-existent 2 Marketing-business relationship managed on ad hoc basis Managing the Marketing-Business Relationship 3 Relationship building processes exist, but not always followed Relationship building processes are complied with on a regular basis 2 4 5 Relationship building processes are continuously improved 1 Conflict and mistrust between Marketing & business 2 Transactional relationship between Marketing & business Relationship/Trust Style 3 Marketing becoming a valued service provider Long-term partnership is emerging as credibility is increased 5 4 5 Partner, trusted provider of Marketing services 1 There are usually no business sponsors or champions for projects 2 Often have a senior Marketing or business sponsor/champion Business Sponsors/Champions 3 Marketing and business sponsor/champion at unit level Marketing & business sponsor/champion at the corporate level 4 4 5 CEO is the business sponsor/champion for all marketing initiativesSystems & Technology 1 Not done, or done as needed for budgeting process 2 At unit/functional level, slight Marketing input Formal Business Strategic Planning 3 Some Marketing input and cross-functional planning is completed At unit and enterprise level, with Marketing heavily involved 4 4 5 Formal Business Planning with Marketing, partners & key stakeholders 1 Not done, or done on a reactive basis, no long term planning 2 At unit/functional level; slight business input Formal Marketing Strategic Planning 3 Some business input and cross-functional planning is completed At unit and enterprise level, with business heavily involved 3 4 5 Formal Marketing Planning with input from customers/partners etc. 1 Completely decentralized Marketing departments and efforts 2 Mainly decentralized with some Marketing support from corporate Organizational Structure 3 Marketing department is becoming more centralized and standardized Centralized Marketing department, some procedures & policies 4 4 5 Centralized Marketing department, standard procedures & policies 1 Marketing Manager/Director reports to VP Sales 2 Marketing Manager/Director reports to VP Sales & Marketing Reporting Relationships 3 Marketing Director/CMO reports to CFO or COO Marketing Director/CMO reports to COO or CEO 5 4 5 Chief Marketing Officer reports directly to CEO 1 As a cost center, spending is unpredictable and not planned 2 As a cost center by business unit, budgets are not established How Marketing is Budgeted 3 Some projects treated as investments, budgets are established Marketing treated as a strategic investment, budget is increasing 3 4 5 Marketing is viewed as a profit center that enables revenue growth 1 Necessary evil to provide website, collateral, sales support 2 Need for a brand is emerging, spending for need to have items only Rationale for Marketing Spending 3 Business understands that investments in Marketing increase sales Spending in Marketing is to reduce cost/sale, increase revenues 2 4 5 Spending in Marketing drives competitive advantage & profitability 1 Dont have one 2 Meet informally as needed Senior Level Marketing Steering Committee 3 Formal committees meet regularly on a defined schedule Steering committee has proven to be effective in decision-making 4 4 5 Steering committee must approve spending over a certain limit 1 React to business or Marketing need 2 Project priority determined by Marketing function alone How Projects are Prioritized 3 Marketing projects are prioritized by Senior Management Projects are prioritized mutually by Marketing & Senior Management 4 4 5 Using a portfolio approach, projects are logically prioritized with indexExecutive Level Sponsorship Aspect of Alignment Level of Alignment Score Justification 1 Marketing is viewed as a cost of doing business or necessary evil 2 Marketing is gaining credibility and becoming an asset/differentiator Business Perception of Marketing 3 Marketing is viewed as enabling future business activity & growth Marketing drives & sustains future business activity & growth 3 4 5 Marketing is the critical function that drives major decision-making 1 Marketing is not involved in strategic business planning at all 2 Marketing has some input but does not have a seat in the boardroom Marketings Role in Strategic Business Planning 3 Marketing provides key information, insights, & advice for planning Marketing is a key influencer in strategic business planning 1 4 5 Marketing and business adapt quickly and strategically to change 1 Marketing takes all the risks, receives no rewards 2 Marketing takes most risks, with little reward Shared Risks and Rewards 3 Marketing and business start sharing risks and rewards Risks and rewards are always shared between business & Marketing 3 4 5 Managers incented to take strategic risks and rewarded for success 1 Marketing-business relationship isnt managed or is non-existent 2 Marketing-business relationship managed on ad hoc basis Managing the Marketing-Business Relationship 3 Relationship building processes exist, but not always followed Relationship building processes are complied with on a regular basis 2 4 5 Relationship building processes are continuously improved 1 Conflict and mistrust between Marketing & business 2 Transactional relationship between Marketing & business Relationship/Trust Style 3 Marketing becoming a valued service provider Long-term partnership is emerging as credibility is increased 5 4 5 Partner, trusted provider of Marketing services 1 There are usually no business sponsors or champions for projects 2 Often have a senior Marketing or business sponsor/champion Business Sponsors/Champions 3 Marketing and business sponsor/champion at unit level Marketing & business sponsor/champion at the corporate level 4 4 5 CEO is the business sponsor/champion for all marketing initiativesSystems & Technology

3. Aspect of Alignment Level of Alignment Score Justification 1 No marketing systems are implemented, processes are not defined 2 Email marketing system, basic contact/list management, mainly excelPrimary Marketing Systems 3 CRM, Campaign Management, Web Analytics, Content Management Demand Generation Platforms, PR Measurement, Sales Portals, 2 4 5 Marketing Resource Management, Dashboards, Business Intelligence 1 All systems are disparate, not integrated, difficult to cross reference 2 Some reports are generated and imported into other disparate systemsSystems Integration 3 Systems are becoming integrated around a key platform Systems are mainly integrated, reliable, and have accurate data 1 4 5 Systems provide predictive and diagnostic insight for future campaigns 1 Processes are ad hoc, not documented, or not adhered to regularly 2 Processes are becoming defined, technology is used sporaticallyProcess Automation 3 Technology is implemented to automate key marketing processes Process metrics exists and are benchmarked and reviewed often 1 4 5 Real-time messaging, lead scoring & nurturing, closed loop systemsHuman ResourcesAspect of Alignment Level of Alignment Score Justification 1 Innovation and entrepreneurial spirit is discouraged 2 Innovation is somewhat encouraged at unit levelInnovative, Entrepreneurial Environment 3 Innovation is strongly encouraged at unit level, business cases used Employees often present business cases to support new ideas 3 4 5 Business cases are reviewed, dynamic & innovative work environment 1 Top business and marketing management at corporate level 2 Same, with emerging functional influence from department leadersKey Marketing HR decisions made by: 3 Top business and unit management: Marketing advises on decisions Top business and Marketing management across the entire firm 5 4 5 Top management across the firm and business partners 1 Department tends to resist change 2 Change management programs emerging, planning is conductedChange Readiness 3 Programs in place at functional level for change management Programs in place at corporate level for change management 5 4 5 We are proactive and anticipate and manage change effectively 1 Job transfers rarely occur 2 Occasionally occur within unitCareer Crossover Opportunities 3 Regularly occur for unit management Regularly occur at all unit levels 5 4 5 Also at corporate level 1 No opportunities for cross-functional training or learning new skills 2 Some cross-training and job rotation is completed by departmentCross-Functional Training and Job Rotation 3 Formal cross-training programs run by all business units Formal cross-training programs implemented across enterprise 4 4 5 All employees are required to continually add to their skill set 1 Minimal social interaction between Marketing-business 2 Strictly a business-only relationshipSocial Interaction 3 Trust and confidence is emerging Trust and confidence achieved between Marketing-business 4 4 5 Social interation with customers and partners is a general practice 1 No retention program, poor recruiting 2 Marketing hiring focused on technical skillsAttract and retain top talent 3 Technical and business skills desired, retention programs in place Formal program for hiring and retaining skilled staff 4 4 5 Effective program for hiring and retaining skilled staff Aspect of Alignment Level of Alignment Score Justification 1 No marketing systems are implemented, processes are not defined 2 Email marketing system, basic contact/list management, mainly excelPrimary Marketing Systems 3 CRM, Campaign Management, Web Analytics, Content Management Demand Generation Platforms, PR Measurement, Sales Portals, 2 4 5 Marketing Resource Management, Dashboards, Business Intelligence 1 All systems are disparate, not integrated, difficult to cross reference 2 Some reports are generated and imported into other disparate systemsSystems Integration 3 Systems are becoming integrated around a key platform Systems are mainly integrated, reliable, and have accurate data 1 4 5 Systems provide predictive and diagnostic insight for future campaigns 1 Processes are ad hoc, not documented, or not adhered to regularly 2 Processes are becoming defined, technology is used sporaticallyProcess Automation 3 Technology is implemented to automate key marketing processes Process metrics exists and are benchmarked and reviewed often 1 4 5 Real-time messaging, lead scoring & nurturing, closed loop systemsHuman ResourcesAspect of Alignment Level of Alignment Score Justification 1 Innovation and entrepreneurial spirit is discouraged 2 Innovation is somewhat encouraged at unit levelInnovative, Entrepreneurial Environment 3 Innovation is strongly encouraged at unit level, business cases used Employees often present business cases to support new ideas 3 4 5 Business cases are reviewed, dynamic & innovative work environment 1 Top business and marketing management at corporate level 2 Same, with emerging functional influence from department leadersKey Marketing HR decisions made by: 3 Top business and unit management: Marketing advises on decisions Top business and Marketing management across the entire firm 5 4 5 Top management across the firm and business partners 1 Department tends to resist change 2 Change management programs emerging, planning is conductedChange Readiness 3 Programs in place at functional level for change management Programs in place at corporate level for change management 5 4 5 We are proactive and anticipate and manage change effectively 1 Job transfers rarely occur 2 Occasionally occur within unitCareer Crossover Opportunities 3 Regularly occur for unit management Regularly occur at all unit levels 5 4 5 Also at corporate level 1 No opportunities for cross-functional training or learning new skills 2 Some cross-training and job rotation is completed by departmentCross-Functional Training and Job Rotation 3 Formal cross-training programs run by all business units Formal cross-training programs implemented across enterprise 4 4 5 All employees are required to continually add to their skill set 1 Minimal social interaction between Marketing-business 2 Strictly a business-only relationshipSocial Interaction 3 Trust and confidence is emerging Trust and confidence achieved between Marketing-business 4 4 5 Social interation with customers and partners is a general practice 1 No retention program, poor recruiting 2 Marketing hiring focused on technical skillsAttract and retain top talent 3 Technical and business skills desired, retention programs in place Formal program for hiring and retaining skilled staff 4 4 5 Effective program for hiring and retaining skilled staff

4. Aspects of Marketing/Business Alignment Current Go Goal Marketing/Business Alignment IndexCommunications 3.0 3.5 Communications 5.0Metrics & Value-Measurement 2.7 3.2 4.0 3.0 Metrics & Human Value- ResourcesPlanning & Governance 3.6 4.1 2.0 Measurement 1.0Executive Level Sponsorship 3.0 3.5 0.0Systems & Technology 1.3 1.8 Systems & Planning & Technology GovernanceHuman Resources 4.3 4.8 Executive Level SponsorshipMarketing/Business Alignment Average 3.6 4.2 Aspects of Marketing/Business Alignment Current Go Goal Marketing/Business Alignment IndexCommunications 3.0 3.5 Communications 5.0Metrics & Value-Measurement 2.7 3.2 4.0 3.0 Metrics & Human Value- ResourcesPlanning & Governance 3.6 4.1 2.0 Measurement 1.0Executive Level Sponsorship 3.0 3.5 0.0Systems & Technology 1.3 1.8 Systems & Planning & Technology GovernanceHuman Resources 4.3 4.8 Executive Level SponsorshipMarketing/Business Alignment Average 3.6 4.2