How to Ensure ABM Success via Organizational Structure
The B2B
marketing world is so excited about ABM's potential, that we sometimes overlook
a basic business maxim: Structure follows strategy.
Many marketing organizations lack the organizational structure to
energize and optimize an ABM strategy and program. In some ways, Marketing's
traditional org chart may actually hinder ABM success.
ABM as a Strategy
If we are going to consider changing part of marketing's org
chart, let's begin by defining why ABM is
a strategy, not a tactic.
ABM is
not just a set of marketing campaigns; it is a companywide strategy for how to
work with accounts. And it's a new strategy that uses a wide-angle lens to view
the complete customer journey, not just the beginning. ABM as a strategy also
incorporates marketing both to new accounts and to current accounts.
ABM as a
strategy also requires a close working relationship between Sales and
Marketing, but also among all elements of your company that touch the customer.
Getting everyone, including Marketing, to adopt a broader view of the customer
is a strategic move for any company.
Current Marketing Org Charts Support Leads,
Not Accounts
As
companies incorporate ABM as a strategy, Marketing needs to embrace and support
a broader set of responsibilities around customer engagement. Yet, Marketing is
often stuck in and hampered by a "leads" mentality and an org chart
that supports that mentality.
Think
about today's typical marketing org chart. It is focused on lead production for
the top of the funnel and for passing "Sales-ready leads" to Sales.
There is a demand generation function, and it is measured by funnel velocity
and MQL metrics for the top of the funnel. Marketing's entire perspective is
based on a funnel-centric view of the world.
ABM,
however, shifts the center of the marketing universe from leads or MQLs to
accounts. New measures are centered on customer engagement—both wide and deep
in an account.
As that
very strategic shift occurs, marketing organizations stuck with a
funnel-centric approach and organization end up trying to apply part-time,
lead-centric resources to the ABM strategy. Yet, lead-centric marketers often
lack the required skills, and even more often they don't have the required
organizational support. The result: at any ABM effort is less than optimal.
Potential ABM Structures
Over the
last two years, I've seen some fascinating org-chart changes as Marketing
acquires new responsibilities for ABM. Here are four:
1.
The ABM team functions like an overlay organization.
2.
The ABM team includes a full-time cross-functional liaison role.
3.
Marketing owns its own team of business development representatives
(BDRs).
4.
The ABM team reports to the VP of sales.
ABM as an Overlay Organization
ABM
requires a lot of coordination across functions. Optimally, Marketing, Sales
and Customer Support would working as one finely tuned engine.
Just as
some companies with complex products set up product-overlay specialists, a few
companies elevate the ABM team to an overlay organization working with Sales,
Marketing, and Customer Support.
The
overlay team provides strategic direction and strong coordination and collaboration
while leaving the systems and tactics to the various functions. The overlay
function typically works very closely with Marketing and Sales operations to
make data-driven decisions and recommendations.
Elevating
the ABM team to an overlay organization ensures that ABM is seen as being
strategic and essential to company success.
ABM Team Includes a Full-Time Cross-Functional Liaison Role
More
common than the ABM overlay team is a full-time cross-functional liaison role
on the ABM team.
I first saw
this role on a Marketing Operations team. This liaison was responsible for all
communication and communication systems between Marketing and Sales. More
recently, I've seen the liaison role apply to an ABM team. In one particular
case, that person was responsible for both coordinating and really leading the
collaborative effort required for ABM success.
It's is
not a junior role; to bring the credibility needed, the liaison role requires
knowledge and experience in both marketing and sales.
Marketing Owns Its Own BDR Team
A huge
part of ABM success is having an intimate understanding of all elements in the
account, resulting in an intimate level of personalization and touch. An
effective way of doing that well is to connect the ABM team to the BDR team. I
am a huge believer in having Marketing own some element of sales, and ownership
of the BDR team is a great place to start.
That
ownership accomplishes several goals:
·
First, it helps Marketing adjust its mindset from being an
activity-based department to a results-based department.
·
Second, when Marketing has some "skin in the game," it
is viewed as a credible partner by Sales.
·
Third, it sets up a better scenario for ABM success.
ABM
requires working closely with Sales to optimize both the overall account approach
and the specific set of actions to be taken regarding each account. By owning
the BDR team, Marketing is closer to the data; it can therefore set up more
experiments that will optimize ABM goals.
I've seen
marketing organizations become much more agile and revenue-focused once they
own a BDR responsibility, and the requirements of an ABM strategy are perfect
for that combination.
The ABM Team Reports to the VP of Sales
Given the
description of the success in combining the ABM team with the BDR team, I
suspect we'll begin seeing some VPs of Sales who want to own this function. In
the last few years, I have begun to see the demand generation function report
into the sales organization. It seems that once that switch is made, Marketing
becomes very revenue-focused. Because ABM is a strategy that involves the key
accounts of an organization, I'm sure there is a VP of Sales somewhere who
already owns that function or leans heavily on the ABM overlay team or the
full-time ABM liaison team to optimize all ABM activities and results.
The Times They Are A-Changing
As more
and more responsibilities fall to the marketing team, we will continue to see
new organizational structures. ABM is just one example. The real question for
marketers is, Will they step up to those new responsibilities with new
marketing structures, or will they abdicate those responsibilities to someone
else's org structure?
ABM is a
wonderful opportunity for Marketing to work cross-functionally to make a real
impact on the business. ABM as a strategy helps align Marketing and Sales (and
customer success) around a common set of goals. In that collaborative
environment, Marketing earns the credibility and trust that have long been
denied it.
Owning
ABM, including the supporting org structure, ensures a bright future for any
marketing organization.
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