Latest news with #SpencerStuart
Yahoo
20-05-2025
- Business
- Yahoo
How smart CMOs are turning marketing into a launchpad to the corner office
The path to the CEO seat has traditionally run through finance, operations, or legal. But as consumer behavior shifts, digital disruption accelerates, and brand trust becomes a strategic imperative, a new contender is rising: the chief marketing officer. The CMO-to-CEO leap is still rare—only about 10% of Fortune 250 CEOs have marketing backgrounds, according to Spencer Stuart, far fewer than those from finance or ops. But that number is growing, particularly in sectors like retail, consumer tech, media, and digital-first businesses, where customer experience and growth are core to strategy. Today's top marketers are no longer just brand stewards or ad buyers. They're responsible for growth, product, customer experience, digital transformation, and data. Their scope often expands into hybrid titles—chief growth officer, chief customer officer, president of revenue—making them viable candidates for the top job. Examples are mounting. Mary Dillon went from CMO of McDonald's to CEO roles at U.S. Cellular, Ulta Beauty, and now Foot Locker. Andrea Jung served as Avon's CMO before ascending to CEO, with a stop as COO in between. Kristin Dolan rose through media and marketing to become CEO of AMC Networks. Starbucks' Brian Niccol and McDonald's Chris Kempczinski both held senior marketing roles on their way to the corner office. Crucially, they weren't just running campaigns—they were running growth. And in industries where brand and product are inseparable, that distinction matters. What sets these marketing heads-turned-CEOs apart is operational credibility. Many owned P&L responsibility—a near-universal trait among CEOs—and led cross-functional teams across product, tech, and strategy. Their digital fluency, crisis communication chops, and mastery of brand narrative are also additive skills in a volatile business environment. Still, barriers persist. Some boards continue to view marketing as tactical rather than strategic, which may explain why CMOs have among the shortest tenures in the C-suite. A lack of exposure to finance or supply chain can also be a limiting factor for most. But the pipeline is widening. Of the Fortune 500 CMOs who left their roles last year, 10% became CEOs, per Spencer Stuart. And 37% of current Fortune 500 CEOs have some functional experience in marketing. The takeaway: The modern marketing leader—fluent in digital, steeped in growth, and wired for customer insight—is no longer a long shot for the top job. Because in today's economy, a CEO isn't just a strategist. They're a storyteller, too. On that note, my Fortune colleagues and I will be hosting our flagship event at Cannes Lions this June, bringing together the world's most influential minds for thought-provoking conversations on what's next in creativity, innovation, and leadership. For speaker inquiries, contact Naomi Cykiert at feel free to shoot me a line. Hope to see you there. Ruth This story was originally featured on
Fast Company
06-05-2025
- Business
- Fast Company
Succession planning: Strategy first, people always
In my many conversations with manufacturing industry leaders, succession planning consistently emerges as a critical challenge. When business owners start thinking about succession, it's often because a founder or CEO is contemplating retirement or exit. That entrepreneurial, innovative, and sometimes scrappy leader might not represent the personality needed for the next phase of the business, which might require different skills in building organizational structure, scaling operations, or moving into new markets. At my firm, we use the mantra 'Strategy first, people always.' Succession planning only works when we start with a clear understanding of business goals and stakeholder objectives. In many cases, these are businesses owned and managed by the same people or perhaps the same family. This strategic alignment ensures that succession planning connects with overall business goals and future direction. When talent strategy flows directly from business strategy and is driven by business leaders collaborating with human resources (HR), we see much better engagement and outcomes. Business leaders need to own these conversations about cost reduction, market expansion, technology transformation, and the talent implications that flow from these strategic imperatives. 'The share of externally hired CEOs surged in 2024, representing 44 percent of all new S&P 1500 CEO appointments,' according to research by Spencer Stuart. 'While outsider appointments increased in all segments of the S&P 1500, mid-cap companies led the way, with 58 percent of new CEOs hired externally and only 42 percent promoted from within the company.' When considering external candidates, it's crucial to build relationships early while carefully considering potential impacts on company culture and morale. External candidates can bring fresh perspectives and new ideas, particularly valuable when the business strategy requires significant transformation. The key is to ensure any external hire aligns with the organization's values while bringing the necessary skills and experience to drive future growth. It can be a very rocky road when you get an external hire wrong. Assessing candidates leveraging tried and tested assessments can help avoid costly mistakes. TIMING AND TRANSITIONS Every succession plan needs a schedule, and timing is critical. Plan well in advance—there are numerous examples of companies that started too late and faced significant challenges. Consider the age demographics across the leadership team and the whole organization. Having most of the leadership team near retirement age means potentially recruiting for multiple positions simultaneously, a challenging scenario that can destabilize the organization. With leadership transitions, it's not simply one out, one in. Create overlap periods for knowledge transfer when possible, allowing the incoming leader to understand the nuances of the role and build key relationships. Always maintain contingency plans for unexpected departures; succession planning isn't just about planned transitions. CULTURAL FIT AND CHANGE MANAGEMENT Culture is fundamental to business success, often stemming from the founders' vision. The challenge lies in preserving cultural strengths while enabling necessary evolution and fresh perspectives. My experience shows that successful transitions depend on clear communication and shared accountability. While leadership teams often share similar views on challenges and opportunities, they frequently lack the frameworks to discuss them openly. Creating structured opportunities for dialogue can surface these shared insights and concerns. What often appear as personality conflicts usually stem from different working preferences and communication styles. Understanding these differences early allows for smoother transitions. I find that a focused approach using targeted assessment tools and direct business-focused conversations can create alignment in as little as four weeks. Succession planning isn't a one-time exercise. Regularly evaluate your succession plans and measure their efficacy. Update plans based on changing business conditions—unexpected market disruptions can shift the demand for certain leadership capabilities. The COVID-19 pandemic, for example, underscored the need for leaders with strong digital transformation and remote team management skills. Monitor potential successors' progress regularly and adjust development plans as needed. The health of the succession pipeline needs constant assessment, with corrective action taken when gaps appear. This ongoing review process better ensures that the organization maintains readiness for both planned and unplanned transitions. BETTER PLANNING, BETTER OUTCOMES This succession challenge is particularly acute in the electronics manufacturing industry. It's my observation that many electronic manufacturing services (EMS) groups are run by executives in their fifties, sixties and even seventies, where choices narrow to succession or exit. Any exit strategy may be seriously impacted by a lack of succession planning or real bench strength across the leadership team inside organizations. One of the biggest mistakes I see organizations make is that they have a one-for-one approach with limited optionality. This approach is fraught with risk. You need to have at least three to five candidates who you're nurturing. Here's why. Burnout is real, and many leaders suffer from significant health issues at the age that they are ready for CEO positions. Missteps are real. I've seen candidates make significant missteps in business, which takes them out of the race. Finally, some candidates just decide they are out and the role is too much to take on. THE GOOD NEWS My colleagues and I have observed that EMS organizations with strong succession planning tend to command a premium in valuations. They stand to win more business based on team quality and culture and may gain increased wallet share from existing clients who have confidence in the leadership pipeline. This reflects the market's recognition that strong succession planning correlates with better business outcomes and reduced organizational risk. Making this investment matters to both the top and bottom lines. Through conversations with industry analysts, I've seen how organizations with strong succession planning consistently outperform their peers. They are better positioned to handle market transitions, more attractive to potential clients, and more resilient in the face of leadership changes.
Reuters
14-04-2025
- Business
- Reuters
Most CEOs were doubting their boards even before Trump's tariff turmoil, survey finds
NEW YORK, April 14 (Reuters) - Even before U.S. President Donald Trump's tariffs threw markets and companies into turmoil, global CEOs were already unhappy with the support they were getting from their boards of directors in navigating uncertainty, a survey showed on Monday. Just 22% of the corporate chief executives surveyed in late 2024 by the consultancy Spencer Stuart felt their boards were providing the help they needed in an increasingly uncertain business environment, the study found. Directors, while happier with their own performance, also saw ample room for improvement, with just 43% saying they felt boards effectively supported top managers in a "rapidly evolving and complex" business environment. Spencer Stuart surveyed 787 CEOs and 1,694 directors. Trump's sweeping levies on goods entering the U.S. have upended markets, sent governments scrambling to respond and left many companies pondering only bad options. Global trade issues and navigating differences of opinion on policies have made the CEO's job harder in recent weeks, said Spencer Stuart's head of CEO and board practice, Jason Baumgarten. "In this moment of need, CEOs are reaching out to their boards to get counsel," Baumgarten said. "It's really stress-testing the relationship between the board and the CEO." Boards are often composed of current and former executives from other companies, and typically meet four times a year. They have a legal duty to fire top managers on behalf of shareholders if they underperform, and a recent study indicated they were becoming more willing to do so. But those heightened expectations are also being turned on them, according to one CEO quoted in the report. "In normal times, the quarterly advisory nature of boards is just fine, but in volatile times... it would be great to feel like your board is operating with an 'all-hands-on-deck' attitude when they see you and your team working incredibly hard day and night and weekends to deliver for them," the CEO said. More companies than ever before want to fill their boards with active CEOs, in part because COVID-19 taught them valuable lessons about virtual work and managing supply-chain disruption, Baumgarten said. "Many boards have fewer active executives on them than in prior decades," he said.
Zawya
14-04-2025
- Business
- Zawya
Most CEOs were doubting their boards even before Trump's tariff turmoil, survey finds
Even before U.S. President Donald Trump's tariffs threw markets and companies into turmoil, global CEOs were already unhappy with the support they were getting from their boards of directors in navigating uncertainty, a survey showed on Monday. Just 22% of the corporate chief executives surveyed in late 2024 by the consultancy Spencer Stuart felt their boards were providing the help they needed in an increasingly uncertain business environment, the study found. Directors, while happier with their own performance, also saw ample room for improvement, with just 43% saying they felt boards effectively supported top managers in a "rapidly evolving and complex" business environment. Spencer Stuart surveyed 787 CEOs and 1,694 directors. Trump's sweeping levies on goods entering the U.S. have upended markets, sent governments scrambling to respond and left many companies pondering only bad options. Global trade issues and navigating differences of opinion on policies have made the CEO's job harder in recent weeks, said Spencer Stuart's head of CEO and board practice, Jason Baumgarten. "In this moment of need, CEOs are reaching out to their boards to get counsel," Baumgarten said. "It's really stress-testing the relationship between the board and the CEO." Boards are often composed of current and former executives from other companies, and typically meet four times a year. They have a legal duty to fire top managers on behalf of shareholders if they underperform, and a recent study indicated they were becoming more willing to do so. But those heightened expectations are also being turned on them, according to one CEO quoted in the report. "In normal times, the quarterly advisory nature of boards is just fine, but in volatile times... it would be great to feel like your board is operating with an 'all-hands-on-deck' attitude when they see you and your team working incredibly hard day and night and weekends to deliver for them," the CEO said. More companies than ever before want to fill their boards with active CEOs, in part because COVID-19 taught them valuable lessons about virtual work and managing supply-chain disruption, Baumgarten said. "Many boards have fewer active executives on them than in prior decades," he said. (Reporting by Isla Binnie; Editing by William Mallard)
Yahoo
14-04-2025
- Business
- Yahoo
Most CEOs were doubting their boards even before Trump's tariff turmoil, survey finds
By Isla Binnie NEW YORK (Reuters) - Even before U.S. President Donald Trump's tariffs threw markets and companies into turmoil, global CEOs were already unhappy with the support they were getting from their boards of directors in navigating uncertainty, a survey showed on Monday. Just 22% of the corporate chief executives surveyed in late 2024 by the consultancy Spencer Stuart felt their boards were providing the help they needed in an increasingly uncertain business environment, the study found. Directors, while happier with their own performance, also saw ample room for improvement, with just 43% saying they felt boards effectively supported top managers in a "rapidly evolving and complex" business environment. Spencer Stuart surveyed 787 CEOs and 1,694 directors. Trump's sweeping levies on goods entering the U.S. have upended markets, sent governments scrambling to respond and left many companies pondering only bad options. Global trade issues and navigating differences of opinion on policies have made the CEO's job harder in recent weeks, said Spencer Stuart's head of CEO and board practice, Jason Baumgarten. "In this moment of need, CEOs are reaching out to their boards to get counsel," Baumgarten said. "It's really stress-testing the relationship between the board and the CEO." Boards are often composed of current and former executives from other companies, and typically meet four times a year. They have a legal duty to fire top managers on behalf of shareholders if they underperform, and a recent study indicated they were becoming more willing to do so. But those heightened expectations are also being turned on them, according to one CEO quoted in the report. "In normal times, the quarterly advisory nature of boards is just fine, but in volatile times... it would be great to feel like your board is operating with an 'all-hands-on-deck' attitude when they see you and your team working incredibly hard day and night and weekends to deliver for them," the CEO said. More companies than ever before want to fill their boards with active CEOs, in part because COVID-19 taught them valuable lessons about virtual work and managing supply-chain disruption, Baumgarten said. "Many boards have fewer active executives on them than in prior decades," he said. Sign in to access your portfolio
