We recently started a new CMO Executive Search, unfortunately prior to us getting involved, our client has made both of the mistakes we see companies make when going to market with a search. A little over 30% of the marketing executive searches we work on come to us after the first effort has failed.
MarketPro, having recently completed our 300th CMO executive search, is fortunate to have this opportunity, and we are well on the way to getting this client’s marketing moving in the right direction. Unfortunately for them, based on their own estimates, the failure of marketing due to their failed executive searches has cost them over $1 billion in revenue.
What went wrong and how can your company avoid the same mistakes when hiring your next Chief Marketing Officer?
Mistake #1–Using an Industry Specific Executive Search Firm
Our client went to market for the first time a little over two years ago and used an executive search firm focused on their industry. I cannot speak for other areas of the C-Suite, but for CMO Executive Search, this leads to failure around fifty percent of the time.
Challenge #1
The first challenge you have with an industry-specific executive search firm is you are significantly limiting your pool of talent. Standard practice for all executive search firms is we do not recruit from our clients, they are hands-off.
The goal in hiring a firm like this is they know your industry, they know who to recruit from and they have access to the top talent.
The reality is knowing your industry is of little value. Any good executive search firm understands how to do research and quickly assesses who are the top candidates in your industry. This is the easiest part of what we do.
But the better they are at being an executive search firm in your industry, the greater the chance you have severely limited your pool of potential candidates. When speaking with an industry-specific executive search firm and they are sharing their wins (placements) to build credibility with you, realize all the company names they mention are not places you are going to see talent from.
In some cases, you are only looking for someone from your industry in other searches blending talent into the shortlist from an adjacent industry can add real value. Based on our expertise in CMO executive search we know where this makes sense and when it does not, not something you will get from an industry-specific search firm. You might end up with a new perspective that is ahead of your competitors while still having a candidate who can hit the ground running.
Challenge #2
The second challenge with search firms that are industry-specific is they lack the knowledge necessary for marketing to be able to separate A-players from everyone else. Marketers who have gotten to a senior level by definition are good storytellers, you need a partner capable of separating fact from fiction. No matter how good they are at interviewing without a foundational understanding of marketing, they do not have a grading scale you can trust. You end up with a short list of candidates and you have no way of knowing if they are the best possible candidates or not.
Add to that in our client’s case, the executive team on their end did not have a marketing expert in the interviewing process and you can see why this process made a bad hire. Even if they did have a marketing expert in the mix interviewing candidates, they are still choosing from a slate that has not been properly vetted and unlikely to be the best possible shortlist.
Our client ended up with a candidate who did not have enough strategic marketing expertise to be successful and they also did not fit leadership style-wise or culturally.
Mistake #2–Going to Market Without a Search Partner
After the first search failed and they exited the CMO, they decided to try the search on their own. Ultimately this can be done well, but it is extremely difficult even for the most talented of HR teams.
Our clients’ HR team is great, they have done some very impressive recruiting for their sales team, and they have a real understanding of culture and how to utilize it for employee satisfaction. But not one person on the team had ever led a successful CMO executive search before and based on the pressure from senior executives to get it right, the process lacked structure and controls. Obviously, as excellent HR professionals, none of them were marketers.
They spent nine months scouring the local market, interviewing many candidates, and did not make a hire. Huge opportunity cost of going that long without marketing leadership.
Our client is about a $10 billion company based in Europe and looking for a CMO for the USA. Hiring practices in Europe are very different than the US and due to the pressure to get it right, candidates were asked to be a part of far too many interviews, which led to frustration from the people they spoke to. So even if they extended an offer, it was unlikely to be accepted. HR team knew the process was broken but was not able to speak about it based on the first search failing. Ultimately after all that time, effort, and expense they did not extend any offers. Now as we work the search the local market has a negative impression of the company, which is unfair they really do have an excellent culture on top of a great brand and product.
For us, these are all problems we have seen before and solved numerous times. Based on the location, company, industry, and other factors if we had received the search earlier at least half of our candidates could have come from the local market minimizing the possibility of having the expense and complexity of relocation. Now that the local market has been poisoned to a degree it has increased the likelihood we end up with a relocation.
Now our client has paid for one executive search which did not work out, used a large amount of time from internal resources recruiting for a CMO and that did not work so they have real hard costs that have been lost. The opportunity cost in the case is staggering which shows you how valuable marketing executive search when done right is to an organization.
Third Time Is the Charm
Now they have retained MarketPro to complete this CMO executive search and we are excited about getting them back on track. What is changing this time is they have hired a team of former marketers, who have completed over 300 CMO executive searches to do the research, vetting, and presentation of this opportunity to top talent. Most importantly we have the background and expertise to properly separate A players from everyone else which leads to a higher quality shortlist of candidates for our clients.
Since we are marketing-specific and not industry-specific, we have access to a much larger pool of talent than their initial search firm. Based on our expertise, and sometimes it just helps to be an outsider, we have the credibility to shape their hiring process for success.
Add to that we spend more time on culture and leadership fit than any other search firm we are aware of, and you can see how our expertise and process lead to success.
About MarketPro
MarketPro is the premier executive search firm for CMOs, marketing, brand, communications, and digital executives. As former marketing leaders, we have deep expertise in finding you A-players. What sets MarketPro apart is its team of seasoned former marketing executives who understand the ever-changing demands of marketing. Our strategic insider perspective allows us to connect organizations with innovative leaders who drive results and growth to help them stay ahead in a competitive environment.
With over 25 years of proven success, MarketPro has built a reputation for excellence in matching companies with the talent they need to achieve their goals. Whether your company is looking for a forward-thinking Chief Marketing Officer or a dynamic digital marketing executive, MarketPro is committed to delivering candidates who can make an immediate and lasting impact. With our extensive depth of marketing knowledge and with over 300 successful CMO executive searches completed, we will not just find you top talent but will also help you understand possibilities you had not considered.