5 Reasons Why CMOs Will Move into the Corner Office

or, “CEO’s heirs apparent?  Clearly, the CMOs”

Handle the brand, and you can handle the top post.  One major influence has been the flawed accounting practice that ignored brands’ asset capabilities and held marketing communications in a second-tier rank within the corporate hierarchy.  Branding is now accountable because it no doubt contributes significantly to company value.  CEOs and Chief Financial Officers are now recognizing brand value as an asset that can be managed for growth. 

If you objectively analyze the CMO’s job and correlations to CEO-job requirements become quite clear.  CMOs are required to benchmark all business units market by market around the world, align the CEO’s vision with company culture and business processes, and consistently communicate this information to all stakeholders.  They need to project and justify budgets based on sound principles and to forecast return on investment.  And, they need to be sure all these activities contributeto the positive financial performance of the company, which includes increasing revenue and contributing in a measurable way to stock-market performance.  If this isn’t ideal training for the CEO position, I don’t know what is.

1.  Traditional accounting standards are passe’  New “fair-value” accounting methods will emphasize corporate growth on intangible assets.  Assets that used to be called goodwill are now understood to compose the corporate brand.

2.  CMOs are responsible for managing both product brands and the corporate brand  Understanding both side of this dual, value-creating equation provides a unique opportunity to harness the power of the money machine called the corporation.

3.  In their role, CMOs gain wider point of view of the corporation  than executives who are in the traditional management tracks to the CEO position.  Very few leaders who come from other disciplines have such a panoramic perspective. 

4.  CMOs have inquiring minds and are willing to try new things that will enhance the business  They also understand how to limit risk by testing marketing before larger bets are made.  There will be fewer bet the company gambles with a CMO at the helm.

5.  Boards are now more interested and responsible for examining the whole corporate panorama,  so they need a CEO who can paint the vision of the future and describe how all the parts are functioning for the good of the whole.  CMOs are well trained to articulate a vision.