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Marketing Team Reorgs: Why So Many and How To Survive

February 23, 2024
in Digital Marketing
Reading Time: 4 mins read
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How long has it been since your marketing team got restructured?

Wearing our magic mind-reading hat, we’d guess it was within the last two years.

Impressed by the guess? Don’t be.

Research from Marketing Week’s 2024 Career and Salary Survey finds that almost half of marketing teams restructured in the last 12 months. (And the other half probably did it the previous year.)

Why do marketing teams restructure so often? Is this a new thing? Is it just something that comes with marketing? What does it all mean for now and the future?

CMI chief strategy advisor Robert Rose offers his take in this video and the summary below.

Marketing means frequent change

Marketing Week’s 2024 Career and Salary Survey finds 46.5% of marketing teams restructured in the last year — a 5-percentage point increase over 2023 when 41.4% of teams changed their structure.

But that’s markedly less than the 56.5% of marketing teams that restructured in 2022, which most likely reflected the impact of remote work, the fallout of the pandemic, and other digital marketing trends.

Maybe the real story isn’t, “Holy smokes, 46% of businesses restructured their marketing last year.” The real story may be, “Holy smokes, only 46% of businesses restructured their marketing.”

Put simply, marketing teams are now in the business of changing frequently.

It raises two questions.

First, why does marketing experience this change? You don’t see this happening in other parts of the business. Accounting teams rarely get restructured (usually only if something dramatic happens in the organization). The same goes for legal or operations. Does marketing change too frequently? Or do other functions in business not change enough?

Second, you may ask, “Wait a minute, we haven’t reorganized our marketing teams in some time. Are we behind? Are we missing out? What are they organizing into? Or you may fall at the other end of the spectrum and ask, “Are we changing too fast? Do companies that don’t change so often do better?

OK, that’s more than one question, but the second question boils down to this: Should you restructure your marketing organization?

Reorganizing marketing

Centralization emerged as the theme coming out of the pandemic. Gartner reports (registration required) a distinct move to a fully centralized model for marketing over the last few years: “(R)esponsibilities across the marketing organization have shifted. Marketing’s sole responsibilities for marketing operations, marketing strategy, and marketing-led innovation have increased.”

According to a Gartner study, marketing assuming sole responsibility for marketing operations, marketing innovation, brand management, and digital rose by double-digit percentage points in 2022 compared to the previous year.

What does all that mean for today in plainer language?

Because teams are siloed, it’s increasingly tougher to create a collaborative environment. And marketing and content creation processes are complex (there are lots of people doing more small parts to creative, content, channel management, and measurement). So it’s a lot harder these days to get stuff done if you’re not working as one big, joined-up team.

Honestly, it comes down to this question: How do you better communicate and coordinate your content? That’s innovation in modern marketing — an idea and content factory operating in a coordinated, consistent, and collaborative way.

Let me give you an example. All 25 companies we worked with last year experienced restructuring fatigue. They were not eager creative, operations, analytics, media, and digital tech teams champing at the bit for more new roles, responsibilities, and operational changes. They were still trying to settle into the last restructuring.

What worked was fine-tuning a mostly centralized model into a fully centralized operational model. It wasn’t a full restructuring, just a nudge to keep going.

In most of those situations, the Gartner data rang true. Marketing has shifted to get a tighter and closer set of disparate teams working together to collaborate, produce, and measure more efficiently and effectively.

As Gartner said in true Gartner-speak fashion: “Marginal losses of sole responsibility (in favor of shared and collaborative) were also reported across capabilities essential for digitally oriented growth, including digital media, digital commerce, and CX.”

Companies gave up the idea of marketing owning one part of the customer experience, content type, or channel. Instead, they moved into more collaborative sharing of the customer experience, content type, or channel.

Rethinking the marketing reorg

This evolution can be productive.

Almost 10 years ago, Carla Johnson and I wrote about this in our book Experiences: The 7th Era of Marketing. We talked about the idea of building to change:

“Tomorrow’s marketing and communications teams succeed by learning to adapt — and by deploying systems of engagement that facilitate adaptation. By constantly building to change, the marketing department builds to succeed.”

We surmised the marketing team of the future wouldn’t be asking what it was changing into but why it was changing. Marketing today is at the tipping point of that.

The fact that half of all marketing teams restructure and change every two years might not be a reaction to shifting markets. It may just be how you should think of marketing — as something fluid that you build and change into whatever it needs to be tomorrow, not something you must tear down and restructure every few years.

The strength in that view comes not in knowing you need to change or what you will change into. The strength comes from the ability and capacity to do whatever marketing should.

HANDPICKED RELATED CONTENT:

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Cover image by Joseph Kalinowski/Content Marketing Institute



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Tags: MarketingReorgssurviveteam
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