Illuminating the Future:

Leading Lights: Donovan Neale-May, Founder of the CMO Council

Donovan Neale-May is leading the charge for something he calls “authority leadership.” He is the president and managing partner of GlobalFluency, Inc., a global organization of independent marketing and communication firms with 70 offices in over 40 countries. But he is perhaps best recognized as founder and executive director of the Chief Marketing Officer Council, a global affinity network made up of more than 3,000 marketers. He has further driven the concept of “affinity networks” by launching such groups as the BPM Forum and the Coalition to Leverage and Optimize Sales Effectiveness (CLOSE). Neale-May defines peer-based affinity networks as “highly respected membership groups and communities that serve as critical global channels of insight, access and influence.” He argues that such networks represent a powerful way to “enable companies to initiate strategic conversations and knowledge exchange with key stakeholders and purchase influencers.” His work on authority leadership is the means by which he helps clients strengthen their market positioning by staking out a compelling point of view. Britton Manasco interviewed  Neale-May recently for his take on key trends in the B2B marketing arena:

Let me just start by getting your perspective on what you called “authority leadership.” What is it and why is it important?

What we’re doing is, in effect, making an argument for why the solutions and services companies are offering something relevant and valuable – something that addresses pain, vulnerabilities and risks. So the whole point of authority leadership is to have an advocacy position, a point of view. It’s about being able to speak to what is contextually relevant to the customer, not just about your products. For years and years companies focused on their products, functions, features, speeds and feeds.  But nobody has been painting the mural. Nobody has been addressing the key issues, challenges, problems, needs, requirements that truly concern customers. Companies need to directly focus on these issues.
The problem with too many marketers today is they don’t look at the marketplace strategically.  They don’t build platforms that establish credibility. They don’t take the steps necessary to establish authority in the marketplace.

So they aren’t producing relevant and valuable content? They aren’t staking out a compelling point of view?

Exactly. They’re not equipping their executives.  They’re not equipping their sales organization or their channel with meaningful, relevant content.  And it is about content.  It’s about intellectual capital. But most companies today are pretty poor at producing it.

Your content has to be well-packaged.  It has to be shipped and distributed effectively.  Sometimes it’s sliced and diced and presented in different formats so it can be consumed quickly and efficiently.  It may have a very limited shelf life.

Content generation is really what is important today in the marketplace when it comes to complex B2B. That’s because today’s decisions are based on business value propositions, performance requirements and process improvement mandates. They’re not necessarily made from a technical standpoint.  So you’ve got to have an argument for why your solution is going to help increase the efficiency, the effectiveness, the competitiveness or the differentiation of a company.

What then is the payoff for the B2B service or solution provider that embraces this perspective?

Secrets of the Guidance Economy

We are clearly going through a wrenching economic transition. But what comes next? The next economy, as I see it, should be thought of as the guidance economy. 

What do I mean by this?

Our economy has evolved from commodities to products to services over the years. It then split off into different directions. Some spoke of the knowledge economy. Some focused on the experience economy. The rise of new technologies and extraordinary corporate valuations put the focus on a new economy of ill-defined substance for a fleeting period at the turn of the millennium.

The thing that defines an economy, however, is the offering that represents distinction. When the offering is commoditized, companies must rise to the next level of economic sophistication to remain profitable and competitive. 

What seems to be happening right now is that there is a divergence between the considered purchase and the impulse purchase. While there are exceptions, most business-to-business transactions are complex and considered. Most business-to-consumer transactions involve less consideration and shorter decision cycles -- though a consumer's financial, health and real estate decisions, for instance, can be very complex and demanding.

When the decision is complex and demanding, there is a great deal of exploration, learning, comprehension, comparison, analysis and due diligence that must be undertaken before an investment can be confidently made. While little is at stake when you purchase an iPod or a new brand of shampoo, there's much at stake when a family considers its investment in a college education or a company assesses what enterprise software solutions are most appropriate.

Which gets us to the divergence. While it may indeed be the "experience" that represents economic differentiation in the arena of impulse purchases (mostly B2C), something else seems to be happening in the arena of complex, considered, high stakes decisions (mostly B2B).

In this arena, buyers have much at stake. Too often, however, they lack the knowledge, evidence, experience, trust and confidence necessary to invest and commit. More than anything, they are seeking reliable guidance that will give them the confidence to move forward successfully.
No one likes change, of course. But no one likes standing still -- and being left behind -- either.

It is with this in mind that an opportunity emerges for today's sellers, suppliers and solution providers. They can differentiate themselves and drive growth by making consultative guidance a core element of their overall economic offerings.

This is what buyers want most. In decades past, companies were far more insulated from competition by geography, regulation and other barriers to market entry. No more. Global trade, outsourcing and Internet commerce have reconfigured markets -- forcing some enterprises to operate in a far more lean fashion. They no longer have the technical resources to fully assess new opportunities, conduct necessary due diligence or smartly manage the implementation of complex solutions on their own. Nor can they afford to pay top dollar to have independent consultants manage all these tasks either.

And yet, these tasks all must be undertaken if buyers are to invest in high stakes solutions. This is where sellers must get much smarter.

The Case for Compelling Perspectives

To set yourself apart in today's guidance economy, it's increasingly critical to demonstrate  you have a clear and engaging point of view on issues that matter to your prospects and customers.

I call this a compelling perspective.

By presenting a vivid perspective, you give your audience a better understanding of key trends and market dynamics. This helps them see that change is happening around them and shouldn't be ignored.

You diagnose and clarify the costly challenges that they may be facing. This helps them see the consequences they face if they choose to ignore the changes and challenges now closing in on them.

And then you illuminate the range of possible solutions your audience members might embrace to address these challenges. This helps them see there are sensible ways to address their existing concerns and problems -- and that these solutions have proven payoffs.

This perspective or point of view may take many forms. You might deliver it in a speech or an online presentation. You might present it as a white paper, an executive report or an authoritative article. It may be the foundation for a lively exchange in an online forum. You might draw on it to clarify your position in a sales conversation.

The point of developing a compelling perspective is to act as a true thought leader and put your stake in the ground. It's about clarifying your position on a key issue -- giving your audience members something to consider, evaluate, contest, refine, embrace. The more compelling your perspective, the more it draws people in and provokes them to offer their own views. That's what you want. That's when they are engaged.

But it can't be about you. It's about them. Your perspective must be presented in a way that lays out the findings of your research or investigation. You are building a case. You are, in many ways, like a trial attorney laying out the evidence for the consideration of the jury. This trial, however, does not revolve around guilt or innocence. This trial is about change. It's an argument for upsetting the apple cart and challenging the status quo. And it better be compelling. Who, after all, wants to change? Change is hard. Change requires commitment and investment. 

In the absence of compelling perspectives, one is forced to compete on products and services alone. The prospective buyer, who is desperately seeking reliable  guidance, is left to contemplate a dizzying array of features and functions, pitches and promises. This is how markets get commoditized and buyers are taught to put price first. 

Compelling perspectives, however, enable companies to distinguish themselves as trusted authorities, lead change and defend their value premiums. By building a powerful case and closing the guidance gap, they earn the trust and confidence of prospective buyers -- and that's what it takes to win in a hyper-competitive guidance economy.

Who Gets the Irving Thalberg Award?

The Irving G. Thalberg Memorial Award is presented periodically at the Academy Awards ceremonies to "creative producers, whose bodies of work reflect a consistently high quality of motion picture production."

The award is named for the legendary head of the Production Division of Metro-Goldwyn-Mayer, who developed the company's reputation for sophisticated and successful films. Past recipients have included Clint Eastwood, Steven Spielberg, Ingmar Bergman, Alfred Hitchcock and Walt Disney.

What intrigues me about Thalberg was his gift for transformative action. Indeed, he took extraordinary steps at MGM to turn what was then a craft business ruled by idiosyncratic, tyrannical and  self-absorbed directors into a powerful and profitable industry that would dazzle us all and forever change the way we see the world. I think something similar may now be happening in the world of marketing.

Thalberg, an ambitious young man who rose to head of production for Universal City by the age of 21, examined the way Hollywood was run in the early 1920s and decided he could do better. After he left Universal for Louis B. Mayer Productions (which would soon thereafter link up with Metro Pictures to form MGM), Thalberg launched a series of innovative moves that would transform the Hollywood studio system. Among them:

• Bringing Order to Creative Chaos. Where once directors such as Erich Von Stroheim and Cecile B. DeMille set the terms under which films would be made and produced, Thalberg wrested control over new productions, diminishing the relative power of directors and actors over the final product. In the process, he made it possible to produce films that were far more successful and profitable at the box office.
• Success through Specialization. An admirer of Henry Ford's principles, Thalberg organized the studio much like an industrial enterprise. Directors, actors and film production experts could shift easily between movie projects on the studio lot. With increasing specialization, they could work on far more films within a given period of time than previously possible. 
• Leveraging Your Assets. Not only was Thalberg more productively employing his human assets, he made the most of physical assets such as his studio sets and film equipment. Instead of making several films a year, MGM was at one point producing 50 films annually -- meeting the box office's ravenous appetite for more content. By 1930, the percentage of Americans attending a weekly movie was 70%. 
• Measuring and Refining for Maximum Results. Thalberg was the first to rigorously deploy the technique of screening films to select audiences before releasing them to the public. Through this approach, he learned how to refine films for maximum effect. No doubt, he saved the studio enormous sums by turning flat endings into triumphant finales. 
• Turning on the Publicity Machine. Thalberg also is recognized for developing a system for elevating his studio's stars and raising their visibility. His PR team would produce glamorous publicity stills, conduct press tours and actively promote films throughout America.

Thalberg had created an industrial powerhouse to eclipse what had previously been a vulnerable craft. He turned an art form prone to booms and busts, extraordinary budget overruns and box office flops into a science of sorts. He had created a high performance content factory, capable of generating a high volume of quality product to meet the desires of theatergoers nationwide.

Memorialized in F. Scott Fitzgerald's The Last Tycoon, Thalberg died young at the age of just 37. But his enormous contributions to the film industry continue to be remembered and recognized.

As I see it, Thalberg should be a great inspiration for today's thought leadership marketers. Challenged to create content factories of their own and produce measurable results, they can look to his example for ways of turning a dark art into a powerful discipline. Like Thalberg, today's marketers must challenge the status quo and take on the vested interests who represent it. But I'm certain those who do will one day have a chance to claim their own magnificent rewards.

InfusionSoft Demonstrates the Power of Hub Mentality

In their recent e-book The Hub Mentality, Carl Wooston and Stephen Palmer provide a compelling case for engaging customers in a new fashion that goes beyond tending leads and working sales.

Prospective customers are no longer willing to be interrupted or intruded upon. "Your job is to cultivate trust, build community, and interact with your customers on an ongoing basis," they write. "Your job is to become a hub, a center of influence that creates value for your customers on their terms."

So what's the key to building a hub? As they explain, it's, first and foremost, about creating relevant and engaging content. "Relevant information is the new power," as they explain. "You're no longer trying to make one-time sales through hard closes. You're trying to cultivate trust. This is done by giving prospects massive amounts of free content in the form of blogs, videos and digital downloads such as e-books, podcasts, white papers and books. And this free content can't be skimpy or salesy: It must be substantial and create genuine value. It must be educational in nature and keep them engaged with you as the hub."

One example they offer is the software company InfusionSoft, which develops customer relationship management software for fast-growing businesses. Founded in 2001, it quickly became an Inc. 500 member and now serves 5,000 smalll businesses.

On the company's web site, one finds an online forum where customers can network with other small businesses while gaining access to an array of tools and content to support their own customer growth efforts. The site contains a number of useful white papers and e-books (such as "The Entrepreneurs Guide to Follow up") as well as a blog and resource directory. Some resources require registration, some not. The point is, the site becomes a one stop shop for resources to support the sales, marketing and customer care strategies of dynamic businesses.

In March of 2008, Infusionsoft launched its Double Your Sales campaign based on a guarantee to -- that's right -- double the sales of any new customer. The campaign demonstrated the power of compelling content and community engagement. Leveraging social media such as YouTube videos and blog posts, the campaign featured CEO Clate Mask’s e-book on the nine building blocks to double sales. Little surprise that InfusionSoft's customer conferences are now loaded with raving fans who hope to complement their online experiences by meeting their fellow entrepreneurs in person.    

Such stories are representative of the shift now taking place in marketing. As Wooston and Palmer put it, "Make a hard sell and you've sold a customer one time. Give them free content and get them in your permission-based database and they'll buy from you over and over again."

Who Will Fill the Vision Vacuum?

In the past, buyers might have relied on third-party sources such as the press, analysts and independent consultants for insights that would facilitate their decision-making efforts. They still do. However, there’s a growing gap between the types of research and advice that decision teams require to evaluate today’s complex solutions and the resources that are readily available.

That creates an opportunity for thought leaders -- future-focused companies that provide valuable insight and guidance to support decisions.

So what's changed? While B2B marketplaces become ever more varied and nuanced, there’s seemingly a dearth of experts available to explain current trends and issues. One significant factor is the continual downsizing of today’s business media. As advertisers pull away from print-based publications and move their dollars into more measurable online campaigns, many media organizations have been forced to cut back.

Whether it’s layoffs at the New York Times or InformationWeek Magazine, it’s clear that traditional media have taken a serious hit. Daily newspaper readership fell 50% or more among individuals aged 18-34 between 1970 and 2006, according to the Newspaper Association of America. It’s symptomatic of the shift from traditional media to more targeted media.  

As ad spending on publications stagnates, there are fewer and fewer resources devoted to studying and reporting on trends in today’s business marketplaces.

Even research firms in many markets have consolidated or slimmed down. Take information technology research. Recognized firms such as Gartner, Forrester and IDC certainly play an invaluable role as advisors and trend watchers. But it’s an inadequate one. There are many market segments that receive little or no coverage – and much of the coverage that is available is not specific enough to address the particular concerns of buyers in various stages of a decision. Yet another problem is the sky-high cost of research licenses and prohibitions on sharing the research with non-subscribers. Decision teams often don’t have access to the research content or the analysts that produced it.

The absence of relevant content is driving sellers and suppliers to step into this vision vacuum. Their customers need insight to build business cases and make successful decisions. They need evidence and perspective to help make sound judgments. If third-party sources are unable to meet all these needs, then the sellers must step into the role of thought leader –- acting as consultants, researchers and publishers on their own.

Even as marketers draw back from advertising in traditional publications, they continue to aggressively invest in custom media. This enables them to create relevant content that speaks directly to their intended audiences, helping them develop new business and strengthening existing client relationships.

One study from the Custom Publishing Council (CPC) and Publications Management said the average U.S. business spends $912,532 on custom publishing or content marketing activities. In 2008, there were more than 143,000 unique custom publications, an increase of 14.5% from 2007, according to CPC.

Of course, this is not an either-or question. Third-parties such as media and analysts will always play a necessary function. However, sellers are now learning that they must seize the mantle of thought leadership on their own if they are to be recognized as credible solution providers in the years to come.

Why White Papers?

White papers, which I like to call "position papers," have become an essential element in the B2B marketing toolkit in recent years. But should they be?

As a new study from Information Week suggests, the answer is unquestionably yes. The research -- based on a survey of 542 professional IT buyers -- argues that "decision makers continue to rely heavily on this information format." As the report puts it, white papers "are one of the most beneficial online resources available to technology decision makers," enabling them to make "intelligent purchase decisions."

As the survey found, white papers facilitate decision-making.

• 76.3% use white papers for general education on specific technology topic or issue
• 73.8 % use white papers to investigate possible solutions for the business/technology need
• 68% use white papers to learn about a specific vendor and their solution technology

White papers also are seen as being as popular as ever. The study found that 44% of respondents download a lot of white papers and more than one-third (38%) are reading more white papers than they have in the past. (Only 11% claimed infrequent usage of white papers.)

The study found that IT buyers typically read white papers produced by technology vendors.

• Technology vendors produce the majority of white papers read by IT buyers (72%)
• Research firms/analysts (46%) and Independent analysts (38%)
• White papers generated by media brands make up one‐third of those read by IT buyers (33%)

Further, it found that there is no one source for finding valuable white papers.

• 51% visit vendor websites to find white papers
• 43% find them at IT Professional Organizations
• 33% said they find white papers on B2B media brand sites and libraries

Yet another interesting finding is that white papers are used to engage key stakeholders.

• 93% of IT buyers pass‐along up to half of the white papers they read/download
• 48% of IT buyers are most likely to share white papers with vendor or product info, technology implementation or case studies

This research is very much in line with other recent studies from MarketingSherpa, TechTarget and Junta42. The picture that is clearly emerging is that white papers have a vital role to play in today's marketing endeavors.

They represent a proven vehicle for clarifying a company's point of view on a key issue that's relevant to prospective customers and positioning it as a thought leader while providing insight to support complex decisions. Why white papers? Why not?

Leading Lights: Casey Hibbard, Author of Stories that Sell

“Customer stories open doors to big accounts, expand opportunities with existing customers, help organizations land financing or grants, secure stories in major trade media, teach sales reps the value of solutions, reinforce for employees why their work matters, and support hiring,” writes Casey Hibbard in her new book Stories that Sell: Turn Satisfied Customers into Your Most Powerful Sales and Marketing Asset. In the book, Hibbard introduces an approach she calls Success-Story Marketing to guide organizations through the process of creating and capitalizing on their customer stories.  I spoke with her recently to learn more about her system and the payoffs it can deliver.

What’s changing in today’s marketplace that places a premium on these stories?

There are a couple of things going on.  For one, the nature of trust has changed. Now, so much of what we do happens online and we are less likely to see the customers face to face.  It’s a lot more global.  It’s more competitive. And people are more skeptical of marketing messages. Buyers are now looking for real experiences. That’s what they trust above all else. If there is no real experience to back up your marketing messages, then it’s a hard sell. Finally, the challenges in today’s economy make it even more important to help buyers validate their position for purchases.

So they want to validate their investments to a greater level.  This always happens in downturns, of course. There’s greater emphasis on justification and validation.

Exactly.  You always need to do it but it just seems that, if anybody is going to invest in anything right now, they have to know that the investment will ultimately pay off and they’ll get something in return.

What do you think are the chief hurdles that have prevented companies from fully capitalizing on their customer success stories?

A couple of them. One is just the fear of asking customers to participate in the creation of a success story. They don’t want to ask their customers because it seems like a favor.  Or their customers say no. They’re not willing or able to participate.  But I think most of the time marketers are not approaching it from a win/win perspective.  They tend to ask their customers, “Would you be willing to do a case study for us?  We’d really appreciate it.” What they should be saying is, “We have this great joint-marketing opportunity.” You have to make it clear to customers what’s in it for them. “We’ll highlight you for your best practices,” you might say.  “You could be featured in a trade publication.”  You have to sell it to them based on what they consider important.

Why haven't marketers put more effort into capitalizing on their success stories? It seems like the payoffs would be pretty obvious.

Compelling Insights Build Brand Equity

Too often, B2B marketers fail to recognize that their own thought leadership is essential to market leadership. The top companies - Microsoft, SAP, Accenture, Cisco, IBM - recognize this fact and tend to invest heavily in thought leadership activities.

They invest in market-clarifying research, give powerful and compelling presentations, write insightful positioning papers, profile their clients in interesting ways, author books and articles, and distribute newsletters that deepen relationships.

Clients and prospects look to them for vision, perspective and a strategic framework for future growth and opportunity. They are not simply buying software or technology; they are buying ideas. They are not simply investing in a consulting methodology; they are investing in the company that provides it.

Unfortunately, many firms tend to treat thought leadership as a side issue that requires no substantial investment or thought. While they don't realize it, these firms are stripped bare by their web sites.

When prospects begin to compare competing solutions, they have rapid access to resources that demonstrate thought leadership - and they are starting to expect it. Companies that fail to demonstrate industry leadership in the realm of ideas look thin and insubstantial.

This is a strategic mistake. Market leaders recognize that they must take a proprietary perspective toward thought leadership. They must make it their own and tell it in their own voice. They must communicate their ideas in multiple arenas and formats -- and they must constantly reinforce their positions.

As one marketing executive recently noted in a conversation, it's about building equity in one's brand. By developing rich and compelling insights and branding them as their own, companies position themselves not only as product or even solution providers, but as advisors, coaches and consultants. They give their prospective buyers a reason to believe and the confidence to invest.

Upside of a Downturn: How Thought Leadership Can Set You Apart

Why should you invest more in thought leadership during a recession? That's the question posed and addressed by Chris Koch, associate director of research and thought leadership at the ITSMA , in a recent webinar. His answer: It will differentiate you and drive profitable growth.

To be more specific, he says thought leadership can reduce sales costs (cutting the cost per order dollar) and enable you to reach prospects at an earlier stage in the buying process -- both desirable goals for companies who are trying to strengthen their position in a tough market.

According to ITSMA research, some companies are now cutting back heavily on marketing while maintaining or even increasing sales budgets. The problem, says Koch, is that sales is merely being thrown into a lead generation and nurturing role that can be more efficiently handled by marketing. What's more, buyers are not eager to hear aggressive sales pitches in today's down market.

Rather, customers seek perspective and education in the earliest stages of a buying cycle. They conduct research on the Internet and elsewhere -- initiating buying cycles on their own. ITSMA's research shows that 69% of respondents first conduct research to find an appropriate solution, while only 31% expect the solution provider to contact them first.

"We think this shift toward the more energized customer gives marketers the opportunity to engage them earlier than ever before," says Koch, noting that sellers and solutions providers have an opportunity to position themselves as as advisors in these early stages of a decision.

"While thought leadership marketing delivers value at every stage of the buying cycle, it’s at this early stage of the process where we think it can be especially effective," he explains. "The right combination of ideas and research at this point can spark an epiphany so customers realize a business need they never knew they had. And, by being engaged with customers when they have these epiphanies, companies can help customers shape any potential projects that develop out of them and perhaps become the preferred provider going into the later stages of the buying process." 

To be successful in this endeavor, Koch contends that marketers must commit themselves to building "thought leadership content engines." The key is to develop and disseminate insights -- on a consistent and continuous basis -- that encourage prospects to explore relevant issues, consider their options and ultimately take action.

ITSMA research further suggests that this is indeed happening. Survey respondents say they are investing more in thought leadership work and less in activities such as trade shows. And while they are in the early stages of experimenting with social media and other Web 2.0 tools, Koch believes they represent a powerful method for developing, refining and distributing a compelling point of view.

Somewhat controversial is Koch's definition of thought leadership. He believes its value lies "in the eye of the beholder." While some insist that true thought leadership is founded on rigorous research and fundamentally new and provocative ideas, he contends that one doesn't necessarily need to break new intellectual ground to be a thought leader -- one can merely repackage existing ideas in new and compelling ways. As Koch puts it, "The trick is to create compelling content that mobilizes a group of people you want to reach into thinking and acting."