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1422128768 Spanning Silos: The New CMO Imperative ~ David A. Aaker

Haas Marketing Professor Emeritus David Aaker shares insights from his recently published book, Spanning Silos, at the Haas School of Business, UC Berkeley. Aaker explains how organizational silos — defined by products, countries, or functions — have become barriers to effective and efficient marketing and strong brand development. This lecture is part of the Dean’s Speaker Series and the David Aaker Distinguished Lecture Series in Marketing.

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How to create a "road map" for marketing success in a "hot, flat, and crowded" world

 

 Spanning Silos: The New CMO Imperative ~ David A. Aaker

by Robert Morris - Dallas, Texas

Over the years, David Aaker has published more than 100 articles and 14 books, including Managing Brand Equity, Building Strong Brands, Developing Business Strategies, Brand Leadership, Strategic Market Management, From Fargo to the World of Brands, and Brand Portfolio Strategy. In this his latest book, he examines a subject of special interest to me: organizational "silos." I agree with Aaker that there are situations in which they can have substantial value. Aaker uses a silo as a metaphor for "organizational units that contain their own management team and talent and lack the motivation or desire to work with or even communicate with other organizational units." The largest organizations are collections of silos that can be classified according to the country in which they are located, the product(s) for whose marketing they are primary responsible, or their operational (non-marketing) function such as IT and HR. As companies such as P&G, GM, HP, and Unilever demonstrate, there can also be silos within silos. Up to a point, a decentralized structure that not only allows but indeed supports silos is desirable.

But there can also be problems with silos, especially in a world that Thomas Friedman has characterized as "hot, flat, and crowded." According to Aaker, "relying on unfettered decentralized organizations with highly autonomous silo units is no longer competitively viable. The world has changed...Silo-spanning brands increasingly require consistency and synergies. There is a drive for marketing accountability that is inhibited by the silo structure. The need for deep expertise in cutting-edge marketing disciplines, difficult to achieve in a fragmented organization, is emerging at a rapid pace. There is also an increasing intolerance of inefficient and ineffective marketing that is coupled with an increasing ability to discern when they are around and about. Marketing is called on to do more with less and the inherent inefficiency of silos has become a significant burden...There is just too much at stake to allow silo interests to inhibit or prevent the effort toward achieving strong brands and effective marketing. That does not mean that the answer is to disband silos." Rather, organizations must determine how to eliminate the problems caused by silos without losing the benefits they can provide. Aaker advocates the need for a chief marketing officer (CMO) who concentrates on achieving that worthy objective.

Throughout his narrative, Aaker responds to questions such as these:

1. What are the major silo issues?
2. How have various global organizations done about them?
3. What has worked? Why? What hasn't? Why not?
4. What are the best-practice approaches?
5. What insights has his extensive research revealed, including interviews of dozens executives revealed?

What Aaker provides in this book is a "road map to success" for CMOs and their associates. He identifies the major silo structure-driven problems, the most important action items and the key barriers facing CMOs. He also identifies indicators that decentralization is out of control and recommends corrective initiatives that encourage more and better allocation of marketing resources, clarity and linkage in silo-spanning brand strategy, silo-spanning marketing offerings and programs, marketing management competence, leveraging success, and communication and cooperation. The material is carefully organized so that a CMO will be well-prepared to determine what the right role and scope for her or him will be, how to gain credibility and buy-in, how to use teams and other means to silo linking, how to develop a common planning process and information system, how to adapt the master brand to silo markets, how to prioritize brands in the portfolio, and finally, how to develop winning silo-spanning marketing.

My frequent use of the word is "how" is deliberate. Aaker briefly and skillfully identifies the "what" in the first chapter or two, then focuses almost all of his attention on the "how." He is a relentless empiricist and a diehard pragmatist. For example, drawing in part from a study of some 55 successful virtual task forces and teams, he offers ten suggestions in Chapter 3, Pages 90-92. In the next chapter, he provides seven specific recommendations to increase usage participation within an organization, to make it more widespread, on Pages 121-122. And then in Chapter 6, Aaker focuses on what he characterizes as a "Brand Priority Framework" for determining the relevant brand set, selecting brand assessment criteria, completing brand evaluation, prioritizing various brands, developing the revised brand portfolio strategy, and then designing and implementing the migration strategy.

In my opinion, this is David Aaker's most important book thus far. His brilliant use of various reader-friendly devices such as dozens of "Figures," check-lists, key points identified by italics and/or bold face, charts, and a "For Discussion" section at a chapter's conclusion all add substantial value to the rock-solid content. Bravo!

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1422128768 Spanning Silos: The New CMO Imperative ~ David A. Aaker


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