Why every brand needs an operating system in the age of fractional CMOs

The fractional CMO topic has surged in popularity this year. A quick look on LinkedIn and you’ll find over 55,000 leaders with this title in APAC alone. With the likes of Singapore’s Fractional and Australia’s Tumbleturn launching dedicated fractional CMO services, it seems like this trend is here to stay.

As senior leadership changes become increasingly frequent, a brand operating system is essential to provide strategic continuity and drive long-term business momentum.

The fractional concept is simple. Freelance CMOs are brought in to help businesses, but are only there for a fraction of the journey. The advantages for companies are many. It’s cheaper as they don’t fund a full-time salary or pay for benefits. They can bring in CMOs with different specialisms to meet their specific needs at any moment. Plus, it injects a recurring dose of fresh thinking and energy into the organisation.

But there are drawbacks, too. The fractional CMO trend continues what we’ve seen for years: high turnover among C-suite marketers. In 2017, the Harvard Business Review ran an article titled ‘Why CMOs Never Last’ pointing out that CMOs have the shortest stint in the C-suite, and that “the churn can lead to serious internal business disruptions.”

The revolving door isn’t so surprising when you consider that CMOs are tasked to think like a CEO, CFO and CTO. They’re expected to grow the brand; introduce product innovations; drive sales; transform the customer experience; increase loyalty; leverage emerging technologies; improve MROI; and do it all with fewer resources. For many, it’s mission impossible, as they either fail or burn out trying to succeed.

As the job has become harder, the rise of short-termism has accelerated. Each new CMO races ahead with a new agenda to quickly implement before their time is up. Short-term goals, short-term results, short-term CMOs.

Yet, it’s well established and proven by the “Godfathers of Effectiveness” Les Binet and Peter Field, that long-term brand building increases profitability and lowers price sensitivity. That’s what makes all these leadership changes and never-ending pivots so dangerous – they can undermine the continuity the business needs for the long run.

Which is why we believe every business needs to hardcode their brand strategy and create tools, not rules, that empowers the whole organisation to bring the brand to life in new and exciting ways over time, with or without the CMO. We call it a brand operating system.

The brand operating system

An operating system is a concept from the world of technology. It’s the core software that acts as the interface between the user and the computer. It manages resources, enables interaction, and provides a platform for other applications to run. Most importantly, it iterates and improves as bugs are fixed and new features introduced.

Similarly, a brand operating system guides internal decision-making across the organisation, enables the visual, verbal, and behavioural brand experience for all stakeholders, and continuously improves as new upgrades and updates become available.

A brand operating system is easy to build, easy to get running, and can help every CMO, new or not, determine where to focus next. It enables more agility, cross-functional collaboration, and ultimately serves as an innovation flywheel for any organisation.

This article was written by Brady Ambler, vice president, executive strategy director, Asia and BDC, R/GA.