“A top consulting firm recommended a reorg and now our CMO reports to the CRO,” shared a stunned senior executive from a S&P 500 company. A funeral dirge drummed in my head not just for the CMO but for their whole department. Rant to follow.

A Demotion in Disguise

When a CMO reports to a CRO after having reported to the CEO, that’s a demotion.

And a demoralizing demotion at that. The CMO has to explain to their team why their department no longer has a seat at the executive table. And how do you do that when you can’t explain it to yourself? Most self-respecting CMOs will pretend to accept the decision publicly while privately alerting their favorite recruiters that they’re ready to move on.

CMO Exit Countdown

Most likely, that CMO will leave in the next 6 months.

That will hurt the company a lot more than they realize. First, finding a qualified CMO to replace the old one will be time-consuming and expensive. Second, experienced CMOs, who are accustomed to having a seat at the “grown up's” table, won’t take a job that reports to a CRO. Third, it will take the new CMO time to get up to speed, and inevitably, they will make mistakes that the former CMO wouldn’t have. And finally, key staffers will also seek new opportunities, perhaps following their former CMO to their next gig. They’ll want to work at a place that respects marketing as a critical growth lever.

The CRO Problem

Most CROs have no experience in marketing.

Let me say that again. Most CROs have no experience in marketing. They are salespeople. Maybe even great salespeople. They could sell ice to penguins. No doubt, they are effective hunters and closers. They may even understand the inherent benefits of selling a product or service that is better known than competitors. But they sure as heck don’t know what it takes to build a marketing engine or run a highly diverse team with varied expertise (brand, martech, comms, content, product marketing, websites, etc).

Even a Former CMO Doesn’t Fix This

If the CRO is a former CMO, does that change the discussion?

Not really. Even if that particular CRO has a great understanding and appreciation for marketing, it doesn’t change the fact that the CMO is no longer part of the leadership team driving strategy. It might even be a fantastic job for many marketers. It’s just not a CMO role. Call it a VP of Marketing. And there’s nothing wrong with that title.

Is There More to Debate Here?

Perhaps. Last month my friend Erica Seidel tackled this topic with Daniel Incancela and Sandra Lopez (here’s an article on that). The discussion centered on the five critical considerations for CMOs before accepting this unacceptable reporting structure.

Written by Drew Neisser