How To Guide

Measuring Marketing Governance Maturity

Executive Summary:

Governance refers to formal management processes engaging cross-

functional steering committees for strategic planning, project
prioritization, and performance measurement initiatives.

For many large enterprises, Sarbanes-Oxley has been the catalyst for
implementing and refining these business processes.

Advanced Marketing professionals are capitalizing on the Governance

function by adopting their own formal processes to plan, select projects,
and monitor performance. By adopting Best Practice Marketing
Governance processes, you can better:

 Align your strategy and project selection with the business’

goals and objectives;

 Gain C-Level buy-in; and

 Measure project success using standardized tools and

methodologies.

Most North American mid-sized companies do not have a mature

marketing governance process in place. Use this report to learn the Best
Practices for Marketing Governance and follow the step-by-step action
plan to set up and maintain this function in your organization.

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Table of Contents Page

Introduction 3

Benefits of Marketing Governance 3

The Capability Maturity Model 4

The COBIT Standard 5

Establishing a Governance Benchmark 6

Developing Marketing Governance 6

Maintaining Best Practice Governance 7

Conclusion 7

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Introduction

Marketing has the unenviable reputation as the line of business that is

not held accountable for achieving specific, measurable, bottom-line
results. Finding a bean counter that does not view Marketing as a cost
center - producing intangible results - is a daunting task.

One of the primary reasons for this is the notable absence of a

Marketing Governance function in most organizations. This lack of
structure has led to decreased confidence among senior level peers,
reduced budgets, and a feeling around the boardroom table that
marketing should not be involved in “strategic” decisions. Establishing a
culture for Marketing Performance Management (MPM) requires that
sound infrastructure is in place for evaluating decisions and results.

What is Marketing Governance?

Marketing Governance is a structure of processes, procedures, and

policies used to optimize the management of Marketing functions.

What are the benefits?

 Aligned business & marketing strategy

 Goals & Objectives map to quantifiable metrics
 Increased accountability & support from senior management
 Ability to execute integrated multi-channel campaigns
 Established decision-making & prioritization processes
 Ability to measure marketing performance

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The Capability Maturity Model

In order to improve an organization’s marketing function it is important

to understand the maturity of its current processes and procedures. The
Capability Maturity Model (CMM), originally designed by Carnegie Mellon
University as a method for improving Software Engineering Process
Management, can be used to assess the maturity of other business
processes including Marketing Governance.

CMM (see diagram below) helps organizations understand and deploy

Best Practices related to process management. Since governance is a
business process, it can be plugged into the CMM model to provide a
benchmarking tool for companies wishing to systematically improve
organizational maturity in this area.

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The COBIT Standard

Another management tool that can be used to develop and refine

Marketing Governance is the COBIT standard. Developed by the IT
Governance Institute to help IT organizations address Sarbanes-Oxley
regulations, COBIT is a Best Practice framework for process
management that can be easily adapted for Marketing Governance.

Use the summarized & adapted COBIT framework below to understand

the Marketing Governance process management maturity levels.

For more information on COBIT, please consult: www.isaca.org/cobit/

 Level 0 – Non-Existent: No senior management oversight of

Marketing activities.

 Level 1 – Initial/Ad Hoc: Regular governance practices such as

review meetings, creation of performance reports, and
investigation into problems take place, but rely mostly on the
initiative of the Marketing management team.

 Level 2 – Repeatable/Intuitive: Senior management is involved

only when there are major problems or successes. The
measurement of Marketing performance is typically limited to
technical measures and only within the Marketing function.

 Level 3 – Defined Process: Specific procedures for management

covering key governance activities have been developed. These
include regular target-setting, reviews of performance, and
project planning and funding for any necessary Marketing
improvements.

 Level 4 – Managed & Measurable: Target-setting has developed

to a fairly sophisticated stage with relationships between
outcome goals in business terms and Marketing process
improvement measures now well understood.

 Level 5 – Optimized: The Marketing governance practices have

developed into a sophisticated approach using effective and
efficient techniques. There is true transparency of Marketing
activities, and the board feels in control of the Marketing
strategy.

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Establishing a Governance Benchmark

Developing Marketing Governance Review the Capability Maturity Model

in conjunction with the summarized COBIT Standard to identify what
level of maturity best describes your current state of Marketing
Governance.

Once you understand your current state, look at what processes and
procedures are required to move your organization to the next maturity
level. These points can be used as goals & objectives that guide your
steering committee.

Developing a Governance Benchmark

Follow this step-by-step action plan to adopt Marketing Governance:

 Understand the value of Marketing Governance

 Determine your organization’s current maturity level
 Establish sponsorship from the senior management team
 Build cross-functional steering committee of key executives
 Hold kick-off meeting & schedule quarterly conferences
 Set goals & objectives for improving Marketing Governance
 Determine how marketing results will be measured (ROI etc)
 Assign action items to the appropriate attendees
 Manage allocated responsibilities on a proactive basis
 Conduct next meeting to track achievement of objectives

Use Demand Metric's Steering Committee Charter Template to set

the direction and ground rules for your committee.

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Maintaining Best Practice Governance

Marketing professionals at mid-sized enterprises need to be disciplined

and keep their colleagues committed to governance. Holding quarterly
meetings to measure results on Marketing initiatives is a great way to
engage C-level executives and improve the profile of the marketing
function in the organization.

Use Demand Metric’s Meeting Agenda Template and Meeting

Minutes Template at each meeting. Make sure to distribute the agenda
to attendees before the meeting to facilitate the discussion. Periodic e-
mail updates on progress keeps the steering committee in-the-loop
with regard to their agreed priorities.

Demonstrate leadership by introducing standardized corporate

performance measurement systems like the Balanced Scorecard, which
is much more effective than ROI to illustrate how Marketing adds value,
and ensures Customer-Centricity is at the top of every executive’s
mind.

Conclusion

Governance is critical for improving marketing performance and

increasing the strategic role of the marketing function to the
organization. It establishes a framework for aligned decision-making and
results-driven action. Do not delay adopting these Best Practices in your
Marketing department.

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