Scott M. Davis: Chief Growth Officer | Prophet https://prophet.com/author/scott-davis/ Wed, 19 Nov 2025 21:11:48 +0000 en-US hourly 1 https://prophet.com/wp-content/uploads/2022/05/favicon-white-bg-300x300.png Scott M. Davis: Chief Growth Officer | Prophet https://prophet.com/author/scott-davis/ 32 32 Balancing Brand and Demand: A Growth Leader’s Perspective https://prophet.com/2025/11/balancing-brand-and-demand-a-growth-leaders-perspective/ Wed, 19 Nov 2025 20:57:38 +0000 https://prophet.com/?p=37488 The post Balancing Brand and Demand: A Growth Leader’s Perspective appeared first on Business Transformation Consultants | Prophet.

]]>

BLOG

Balancing Brand and Demand: A Growth Leader’s Perspective  

Uncommon Growth Leaders is an article series featuring bold leaders driving faster, smarter, more sustainable, more human and more actionable growth—what we call uncommon growth. 

Fred Ehle is no stranger to big brands, bold ideas and transformational growth. With leadership roles at McDonald’s, Redbox, Pulte and Rocket Mortgage, he has lived the tension between long-term brand building and short-term performance and has strong views on how marketing must evolve to truly drive enterprise value. 

In this candid conversation with Scott Davis, Chief Growth Officer at Prophet, Fred shares insights on the CMO’s changing role, aligning the C-suite around brand, the real impact of AI and how Rocket’s “Own the Dream” campaign came to life at the Super Bowl. 

Let’s start with your journey. What led you to Rocket Mortgage? 

Fred Ehle: I’ve had a great run across both agency and client-side roles. When the opportunity with Rocket Mortgage came up, it was a compelling moment. The company was already a major player in the category, but they were looking to evolve from a high-volume lead-gen machine to a modern, full-funnel marketing organization. 

Jonathan Mildenhall had recently joined as CMO, and he was setting out to build a marketing function that could drive both brand and business results. The chance to help shape that transformation—and to bring together brand, creative and growth under one roof—was too exciting to pass up. 

Many reports suggest that CMOs are losing influence—shrinking budgets, short tenures and fading confidence in the role. What’s your take? Is this cyclical or something deeper? 

FE: It’s something deeper. Marketing’s been losing ground in the C-suite for a while—and in some cases, we’ve done it to ourselves. As I often say, Marketing has a marketing problem.  

First, we’ve allowed the definition of marketing to get fuzzy. The function has blurred into areas like digital and IT, making it harder to define our value clearly. Then there’s our own jargon—terms like “growth marketer.” What does that even mean? Shouldn’t we all be growth marketers? 

Second, many CMOs don’t control all the levers of growth – pricing, product, distribution—and yet we’re still held accountable for outcomes we can’t fully drive. That disconnect erodes credibility. 

Third, there’s often a lack of alignment between business strategy and marketing KPIs. Too often, we’re measuring activity, not outcomes.  

And finally, some CMOs lean too heavily into communications without commercial sensibility. CEOs want profitable growth. If the CMO doesn’t understand how the business makes money, or doesn’t speak the language of finance, then the seat at the table becomes very fragile. 

So, what does good look like? What’s the silver lining? 

FE: It comes down to alignment. At Rocket, we had that rare moment where business strategy, brand strategy and marketing execution were completely in sync—from the CEO to the board to every team member. We had real clarity around who we were targeting, what our value proposition was and the resources to bring it to life. 

The “Own the Dream” platform we launched at the Super Bowl wasn’t just a campaign. It was the manifestation of that alignment. We built it from segmentation up: deep customer understanding, clear value prop and a singular creative idea that laddered all the way to business impact. 

And we proved it. Our brand health metrics tied directly to lead generation and revenue. When the brand score moved, leads followed—six months later.  

Brand marketing often struggles to win over CFOs. How do you make the case for investment to build trust? 

FE: Data and testing. We ran small-scale full-funnel experiments that demonstrated clear efficiency gains. At Rocket, nothing got funded unless it tied to measurable KPIs—brand health, leads, conversions, or share growth. 

By connecting brand health scores to downstream business results (like share gains six months later), we created a line of sight from brand to revenue. That kind of evidence earned CFO support and unlocked real investment. 

Let’s talk brand and demand marketing. That debate is louder than ever. How do you approach it? 

It’s not either/or—it’s both/and. That sounds simple, but the execution is hard.  

The reality in our business is, up to 95% of your potential customers aren’t in-market at any given time. If you spend all your dollars chasing the 5% who are, you’re ignoring tomorrow’s demand. 

The key is balance. In some businesses, it’s 60/40 brand-to-performance; in others, 40/60. But leaning too far into performance just drives up customer acquisition costs as competitors bid on the same eyeballs. That was happening at Rocket before we pivoted to a more balanced approach. Full-funnel marketing ultimately proved more efficient, not less. When people recognize your brand and trust you, the funnel gets more efficient. But you have to prove that with data, especially to the CFO 

Let’s rewind to the Super Bowl campaign. “Own the Dream” was a big swing. What made it work? 

FE: We had a powerful emotional insight: 91% of people want to own a home, but 53% of first-time buyers cry during the process, and not tears of joy. 

That insight drove everything. Our creative agency brought us “Own the Dream,” and it clicked. It honored that tension—between aspiration and frustration—and gave us a rallying cry. 

The Super Bowl spot itself was powerful, but the in-stadium activation was the magic. Fans singing along to “Take Me Home, Country Roads” created this emotional, collective moment. It generated over a billion earned impressions. Social sentiment was 90% positive, cutting across demographics and political lines. And it felt like Rocket—authentic, optimistic, human. 

What role does AI play in all of this? 

FE: AI is an enabler, not a strategy. But it’s a powerful one. 

At Rocket, we used AI to remove friction from the mortgage process. We already allow customers to refinance without talking to a human if they choose. That’s real transformation. 

From a marketing lens, AI helped us get to insights faster, segment smarter and personalize at scale. But again, it’s not about the tool—it’s about what you do with it. 

But AI doesn’t replace critical thinking. AI can surface a trend. It can write the first draft. But it can’t feel what will resonate. That’s still the human job. 

Last question. What advice do you have for fellow CMOs trying to lead through this complexity? 

FE: Three things: 

  1. Don’t abandon fundamentals. Segmentation, positioning, emotional resonance, they matter more than ever. 
  2. Get close to your CFO. Tie brand health to business outcomes. Don’t just show marketing metrics – show impact. 
  3. Be the Voice of the Customer. Bring the outside in. Share insight with your peers. Help the business make better bets. 

      And one bonus: Run small tests. When you’re at odds with your CEO or CFO, don’t argue—test. Let the market decide.  


      Fred Ehle is a senior marketing leader recognized for driving business and brand success through major inflection points from turnarounds and rebrands to scalable growth. With a career spanning Fortune 500, private equity and privately held companies including Rocket, Jockey International, Redbox, McDonald’s and PulteGroup, Fred consistently delivers top- and bottom-line impact. His approach blends deep consumer focus with fearless, data-driven decision-making and strong cross-functional leadership. A Gold Effie and Cannes Gold Lion winner and three-time OnCon Top 100 Marketer, has shaped strategy, innovation and omni-channel execution for more than twenty brands—launching breakthrough products, redefining business models and building high-performance teams that drive lasting growth. 


      FINAL THOUGHTS

      Fred’s perspective underscores a fundamental truth: growth leaders must master the balance between brand and demand. The CMOs who win today are those who blend commercial rigor with creative courage, aligning business, brand and customer strategy to deliver measurable impact. Whether leveraging AI to accelerate insight, building trust with the C-suite through data, or creating emotionally resonant campaigns like Rocket Mortgage’s “Own the Dream,” success comes from discipline and balance. The message is clear—great marketing doesn’t just build brands; it builds businesses. 

      The post Balancing Brand and Demand: A Growth Leader’s Perspective appeared first on Business Transformation Consultants | Prophet.

      ]]>
      Turning Uncertainty into Opportunity: 5 Takeaways from the 2025 ANA Masters of Marketing https://prophet.com/2025/10/turning-uncertainty-into-opportunity/ Wed, 29 Oct 2025 15:46:51 +0000 https://prophet.com/?p=37206 The post Turning Uncertainty into Opportunity: 5 Takeaways from the 2025 ANA Masters of Marketing appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      Turning Uncertainty into Opportunity: 5 Takeaways from the 2025 ANA Masters of Marketing

      How leading CMOs are transforming uncertainty into a catalyst for growth, creativity, and human connection.

      This year’s ANA Masters of Marketing Conference felt a little different. As Adweek put it, “The Masters of Marketing conference is trying to pivot away from case studies toward forward-looking action.” 

      That shift—from looking back to moving forward—was palpable across the main stage. And it resonated deeply with us at Prophet, where our purpose is to help clients unlock uncommon growth—growth that is faster, smarter, more human, actionable and sustainable. There are many ingredients which marketers can turn to—customer insights, brand, creativity, data, human-centered use of technology like A.I.

      Prophet is a flagship sponsor of the new ANA Brand Practice. Our team was in Orlando, and here are five big themes we took away: 

      Image: Mathilde Delhoume-Debreu, Global Brand Officer at LVMH

      1. Uncertainty is Opportunity in Its Rawest Form

      The Excitement of AI Spills Into Our Everyday

      Author and innovation expert Peter Hinssen opened the week with a challenge: “Innovate when you can, not when you need to. If you wait, you’ll be too late.”

      In his keynote on the never normal, Hinssen reminded marketers that innovation follows a familiar rhythm—slow, fast, then normal again—but today’s cycle due to advances in AI is accelerating. His advice: make the “never normal” your friend. 

      His formula for thriving amid uncertainty felt tailor-made for today’s leaders: Anticipate. Adapt. Build resilience. 

      Because uncertainty, he said, isn’t chaos—it’s opportunity in its rawest form. 

      The next day, Shelly Palmer, founder of Palmer.ai, offered a complementary—and more provocative—take. His talk framed AI not as a technology problem, but a leadership challenge. 

      He walked the audience through the evolution from AI to AGI (Artificial General Intelligence) to ASI (Artificial Super Intelligence), warning that machines are already outpacing humans in narrow domains. But the bigger story, he said, isn’t fear—it’s focus. 

      “The language of code is English,” he quipped. “And every morning, you wake up in a world where technology is a little better than it was yesterday.” 

      As automation continues to eat away at operational and executional work, leaders must reclaim what is uniquely human: strategy, storytelling and systems thinking. Palmer’s point was clear—the power is not in the algorithm, but in how we choose to direct it. 

      Then he ended with a deceptively simple question that hung in the air: “In the future—who gets this email?”

      Together, Hinssen and Palmer reframed the week’s mood: this is not a moment to fear disruption; it’s one to design for it. 

      2. Humanity Is the Antidote to AI

      Why Emotional Connection Still Reigns 

      Despite the relentless pace of AI talk, the most powerful stories in Orlando were deeply human. Time and again, the brands that stood out were the ones that built intimacy, trust and meaning—not just efficiency. 

      Timothy Ellis, CMO of the NFL, reminded everyone that even the biggest brands need to stay personal. With access to massive budgets and cultural reach, Ellis could easily lean on spectacle. Instead, his focus is on humanizing the league—literally by “unhelmeting” players to show who they are and what they care about. 

      By spotlighting their personalities, passions and causes, Ellis has deepened emotional connection between fans and players—and even more strategically, between new generations of fans and the sport itself. “Our sweet spot,” he said, “is reaching people before they turn 18.” 

      He also took a refreshingly mature stance on brand voice in a divided culture: “I have 200 million fans,” he said. “I’m not going to make them all happy all the time.” 

      Hernan Tantardini, CMO at Pepsi, brought a similarly human lens to scale. He spoke about creating intimacy with consumers by knowing “every cluster” of them—across needs, moods and micro-occasions. It’s not about one big brand story, but a mosaic of connections built from deep empathy and insight. 

      From the B2B world, Mimi Turner and Jann Schwartz from the LinkedIn B2B Institute made the case that “radical humanity” is just as critical in business marketing. Their research on buyability revealed a surprising truth: 40% of B2B deals get stuck not because of weak propositions, but because the buying team can’t agree. Fear of messing up outweighs fear of missing out. 

      Their point: understanding human emotion—even in committee—is as vital to conversion as any feature or benefit. 

      And then there was Mathilde Delhoume-Debreu, Global Brand Officer at LVMH, who took the crowd on a visual journey through The Art of Crafting Dreams. Through stories from LOEWE, Hennessy, Tiffany and Belvedere, she shared LVMH’s “4Cs of Luxury”: 

      • Exceptional Craft
      • Elated Customer
      • Extraordinary Creativity
      • Elevated Culture

      Her message was elegantly simple: “In luxury, you can’t simply meet customer needs—you must surprise and elate them.” 

      Her presentation was a love letter to imagination, proving that even in a data-saturated world, aspiration and artistry still matter most. 

      Finally the theme echoed in Todd Kaplan’s session from Kraft Heinz, The Case for Brand Building in a Data-Driven World. His rallying cry: “There’s a human behind every click.” 

      Kaplan warned against mistaking precision for persuasion. “Data can tell us who we reached,” he said, “but not whether we truly connected.” 

      Together, these leaders reinforced a truth marketers sometimes forget in their pursuit of optimization: the more digital marketing becomes, the more human it needs to feel. 

      3. Move Fast—and Don’t Break Things 

      Culture, Creators and the New Rules of Agility 

      If there was one theme that had both energy and laughter, it came from Maggie Schmerin, CMO of United Airlines. Her talk, “Move Fast and Don’t Break Things”, was a masterclass in how to balance speed with integrity. 

      “We can’t break things,” she said, flashing the now-legendary “United Breaks Guitars” video to a knowing audience. “We learned that the hard way.” 

      Since then, United has rebuilt its brand around the mantra Good Leads the Way. Schmerin shared how that philosophy informs every creative and cultural decision. “Post-pandemic,” she said, “we came back like Michael Jordan returning to basketball—different.” 

      United now operates with an internal model that embeds legal, creative and communications together—allowing the team to move quickly and stay aligned. The results speak for themselves: contextual, culture-driven work like “Mean Girls” Day activations and collaborations with Travis Kelce’s podcast that feel both timely and true to brand. 

      The power of cultural fluency also came through in Deutsch Family Wine & Spirits’ story. CMO Dan Kleinman described the challenge of connecting with Gen Z and millennial drinkers who view wine as either intimidating or irrelevant. Their solution: start with deep insight, then innovate with both rigor and playfulness. 

      They launched Josh’s Seaswept, a light, accessible wine designed for casual, small-group moments. Then they went all-in on creators—embedding their message inside micro-communities rather than broadcasting from above. The payoff? Authenticity, reach and even a viral moment: a limited-edition Josh wine backpack that sold out in six hours. 

      Meanwhile, the creator economy itself is exploding. Nicola Mendelsohn, Head of Global Business Group at Meta, stunned the crowd with numbers: creators now generate 2 trillion minutes of content across Meta platforms every year, and the sector is projected to grow by $500 billion over the next four. 

      She was joined by top creator Hailey Bailey (Kalil), who gave an insider’s perspective on the new creative ecosystem. “Every brand is different,” she said. “How we work together depends on what you’re trying to achieve.” 

      Her advice for marketers learning the new rules of the game? 

      “Scroll.” 

      Spend time in the ecosystem you’re trying to influence. Observe how people talk, behave and share. The key to cultural marketing is participation, not prescription. 

      And yes, Meta also provided a little magic. During Thursday’s lunch, Christy Cooper demoed the new Ray-Ban Gen 2 AI glasses—and lucky attendees found golden tickets under their seats to take home a pair. 

      4. Transformation Demands IQ, EQ and CQ 

      Reimagining How Marketing Gets Done

      Transformation was a constant refrain throughout the week—not just as a buzzword, but as a lived experience. Marketers shared stories not about adopting new tools, but about changing how the work happens. 

      Norm de Greve, Global CMO of General Motors, described GM’s creative rebirth as both operational and emotional. Once “the Apple of its time,” GM had lost some of its swagger. Its comeback began not with data, but with rediscovering its soul. 

      By shifting from buyers of marketing to makers of marketing—building in-house capabilities across brand, creative, and analytics—GM has regained control of its story. The results: 

      • +20% brand consideration for GMC in under a year 
      • Cadillac now the fastest-growing luxury brand in the U.S. and #1 in luxury EVs 

      At Newell Brands, Melanie Huet, President of Home, showcased a different angle: their AI-powered iHub innovation center has tripled their innovation funnel while saving hundreds of thousands in research costs. 

      Huet explained how Newell uses synthetic personas and generative design tools to test and refine ideas faster—proving that automation and creativity can coexist beautifully. “AI doesn’t replace imagination,” she said. It accelerates it.” 

      Rahul Malhotra of Shell and Kayall Mai of Esquire Bank added another layer, emphasizing that transformation is also a human journey. Both leaders spoke about hiring and development practices shifting away from “what people know” to “how people work.” 

      They underscored the importance of soft skills—influencing, collaboration, resilience—and argued that as AI automates rote marketing tasks, the premium will increasingly be on empathy and orchestration. 

      As Malhotra put it, “AI can teach skills. Leaders must nurture behavior.” 

      Across industries, a new equation for capability is emerging: 

      • IQ for data and systems 
      • EQ for leadership skills, empathy, resilience 
      • CQ for creativity and cultural intelligence 

      Mastering that balance, the speakers agreed, is what will define tomorrow’s marketing organizations. 

      5. Think Like a Superhero: The Brand Multiverse 

      Building Interconnected Ecosystems That Grow Stronger Together 

      One of the week’s most imaginative metaphors came from Bill Leiser, CEO of WPP Media, who suggested that brands should start thinking more like Marvel. 

      “Brands need to move from tactical activation to interconnected ecosystems of stories,” he said. “Not a campaign—but a universe.” 

      It’s a metaphor that works on multiple levels. Like Marvel, great brands have consistent characters, recognizable voices and clear codes—but they evolve through fresh, interconnected stories that reflect the culture around them. 

      Marc Pritchard of P&G reinforced that lesson. He urged marketers to resist the temptation to constantly change direction, pointing to enduring platforms like Charmin and Old Spice that have expanded their worlds over time without losing their core. 

      The takeaway: brand consistency isn’t about staying the same—it’s about staying true. 

      And for the first time, measurement may finally enable this vision. Bill Tucker, CEO of Aquila, unveiled the ANA’s ambitious Cross-Media Measurement (CMM) initiative—an advertiser-owned platform backed by Google, Meta, Amazon, TikTok and others. 

      The new solution aims to fix two chronic blind spots in the industry: 

      1. Understanding unique reach across platforms to reduce wasted frequency. 
      2. Measuring true impact across walled gardens. 

      “When the industry measures together,” Tucker said, “the industry moves forward.” 

      Why it matters? Because better measurement unlocks better growth—through more efficient media spend, improved ad experiences and superior outcome data. 

      As Tucker put it, “When the industry measures together, the industry moves forward.” 


      FINAL THOUGHTS

      This year’s Masters of Marketing wasn’t about incremental improvements—it was about transformation and the idea that uncertainty and transformation are two sides of the same coin.

      From LVMH’s dream-making to GM’s soul-searching to United’s agility, the brands that will lead are those who can combine clarity and creativity, rigor and imagination, and above all, the courage to act before they have to.

      In the “never normal,” that balance may be marketing’s greatest superpower. 

      The post Turning Uncertainty into Opportunity: 5 Takeaways from the 2025 ANA Masters of Marketing appeared first on Business Transformation Consultants | Prophet.

      ]]>
      Uncommon Growth: A CEO-CMO Dialogue on Brand, Integration and the Future of Marketing https://prophet.com/2025/09/a-ceo-cmo-dialogue-on-the-future-of-marketing/ Mon, 08 Sep 2025 17:44:14 +0000 https://prophet.com/?p=36959 The post Uncommon Growth: A CEO-CMO Dialogue on Brand, Integration and the Future of Marketing appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      Uncommon Growth: A CEO-CMO Dialogue on Brand, Integration and the Future of Marketing

      Uncommon Growth Leaders is an article series featuring bold leaders driving faster, smarter, more sustainable, more human and more actionable growth—what we call uncommon growth. 

      Under the banner of “Uncommon Growth,” we’re exploring what happens when CEOs and CMOs truly see eye to eye—not only in vision but in execution. In this conversation, we speak with with Chris Michalek, CEO and Erica Sniad Morgenstern, CMO of Personify Health, who share their unique experience in merging two distinct organizations, launching a new brand and leading with aligned purpose in an evolving marketplace. 

      Personify Health is the first and only personalized health platform, created through the merger of Virgin Pulse and HealthComp. Bringing together health navigation, holistic wellbeing and benefits administration in one place, Personify empowers employers to deliver a better health experience for their peoplethrough customized coaching, simplified benefits, and engaging programs. By optimizing investments in people and improving health outcomes, Personify is redefining what it means to build healthy businesses. 

      To start, when you launched Personify, what were the core goals you set out to achieve?

      Chris: Whenever you bring two companies together, especially ones from different sectors, you hope one plus one equals three. We wanted the combined capabilities to accelerate growth that neither could have reached independently. We see that today – clients are buying capabilities across both legacy companies, and that cross-pollination is creating real value. 

      For example, we’re now selling our well-being solution into the TPA market in a way we wouldn’t have otherwise. And vice versa, well-being relationships are opening TPA opportunities. All of this should drive a growth rate one to three percent better than what others are seeing in the market. 

      Erica: And we knew early on we needed a net-new brand to signal to the market that this wasn’t a legacy offering. This is a new category, created to solve a massive market need. The brand had to reflect that ambition from the outset. 

      What has been the biggest challenge in trying to create a new category in the market? 

      Chris: Teaching buyers to buy differently. They’re used to segmented purchasing, often through brokers. We’re telling them: “You can buy a holistic solution now, not siloed pieces.” That’s a mindset shift—and your value proposition must be airtight to succeed. 

      Erica: Time is also a challenge, specifically, buyers’ time and attention. You must break through quickly. These were two very different buyer groups and we’re asking people to reframe how they think. That takes effort, so we needed a brand and a go-to-market strategy that hit hard and fast to earn that extra moment of consideration. 

      Let’s talk about change management. You had to launch and integrate during buying season. What did that effort look like internally and externally? 

      Chris: We prioritized integration—but recognized over time that both businesses needed to thrive independently too. We pushed hard to unite, and now we’ve stepped back slightly to ensure both legacy businesses are strong independently. That’s part of managing change—knowing when to push and when to pull back. 

      Erica: We also had to pace the change for our clients. Internally, we moved fast. Externally, we were thoughtful—still using legacy app names where needed—so we didn’t disrupt their experience. There were moments when Personify was public-facing, but the Virgin Pulse app was still in use. That was intentional. We needed to manage the “pain of change” for our clients respectfully. That dual-speed transition was key to protecting our relationships. 

      How would you describe the growth goals for Personify? Was it about exponential growth or steady progress? 

      Chris: I call it smart growth. That means targeting the right customers and leveraging synergies to tell the story of how our capabilities make us better across the board.  For example, positioning ourselves as the most technology-forward TPA by leaning into well-being engineering capabilities. Or using our TPA data depth to position our well-being offerings as more informed and effective. That synergy makes each side stronger. 

      We also doubled down on customers. Growth starts with retention. So first: retain and grow existing customers. Second: innovate. Third: enable a world-class commercial function. That’s how I think about growth. 

      What’s the role of AI in that growth strategy? 

      Chris: AI is central to our product innovation. It’s embedded into everything. From what customers see to how our engineering teams work. We’re using it to accelerate development and maintain competitive speed. If we don’t, we’ll fall behind—quickly. 

      Erica: From a commercial standpoint, AI was a huge accelerator. One of the first things we did was train an AI tool to match our tone of voice. That helped us scale brand execution. AI also became a key part of our innovation story—used as a brand differentiator in how we talk about our solutions. 

      You both clearly work in sync. What makes the CEO-CMO relationship work here—and why does that alignment matter? 

      Chris: It’s a continuum—we balance each other. Sometimes she brings the big idea, and I take a more practical approach. Other times it’s the reverse. We have a good mix of purpose and innovation. It’s not always easy, but we have mutual respect, and we trust each other. And we’re both willing to take risks or bring the team back to execution when needed. 

      Erica: Trust was there early on. We both came in aligned on what’s best for the company – not personal agendas. And I always back things up with data. That matters to Chris. He’s extremely metrics-driven. 

      Chris: And I’ll add—I’ve worked with marketing for 20 years, but today’s marketing is more complex than ever. I’ve had to admit that I don’t know as much as I used to. Erica’s helped bring me along. Things like lead generation are now multimodal, AI-driven, and operationally intense. I respect her ability to communicate complexity. 

      Erica, what advice do you have for other CMOs who want a real seat at the table? 

      Erica: Seek to understand friction, not fight it. I had to step back and realize there was an education gap—not just on their end, but mine too. I needed to explain our world better and understand his more deeply. My advice is: embrace mutual curiosity over adversarial dynamics. 

      Chris, what’s your advice for marketers trying to earn that CEO partnership? 

      Chris: Relationships matter more than reporting lines. Erica never demanded to report to me; she focused on building trust and driving impact. Second—results over activity. CEOs are always asked what’s driving growth. I need marketers who can give me those answers. Bring data. Bring outcomes. That’s what earns trust. 

      How did you define the role of brand in launching Personify—and what does it mean to employees? 

      Erica: Brand is demand. It’s the currency of trust and the start of every commercial conversation. So, we built a brand that could sell—but also one with emotional resonance and mission clarity. From day one, our core was putting people at the center. The brand had to reflect that. 

      Chris: Brand became our internal compass and external promise. It gave us a shared identity, and it helped our people rally around a unified mission. It helped us articulate values and culture. Even today, I keep the brand visible in my workspace because it’s meaningful. It was the right move, both short- and long-term. 


      Chris Michalak is a purpose-driven leader with three decades of experience in the health and human capital industry. Most recently, he served as CEO of Personify Health. Previously, he held leadership roles as CEO of Alight Solutions, global chief commercial officer at Aon Hewitt, and CEO of Buck Consultants. Now Executive Chairman at Personify Health, Chris leads growth initiatives, strengthens client relationships, and guides the Board of Directors. He has also served on several boards and is graduate of Northwestern University’s Kellogg School of Management and Michigan State University.  

      Erica Sniad Morgenstern is Chief Marketing Officer of Personify Health, where she leads marketing strategy, demand generation, product and client marketing, and corporate communications. She spearheaded the company’s successful rebrand to Personify Health, bringing creativity and impact to every initiative. Previously, she held senior marketing and communications roles at Welltok (acquired by Virgin Pulse) and Epocrates, the app of choice for half of all U.S. physicians. A graduate of the University of Florida, Erica is also an active member of Chief, Csweetener, The CMO Club, and Gator to Gator. 


      FINAL THOUGHTS

      This conversation is part of our ongoing Uncommon Growth series, where we explore what’s possible when senior leadership aligns not just on strategy, but on how to achieve uncommon growth. Personify Health’s journey – powered by a strong CEO-CMO partnership, a new brand, and bold thinking—offers a blueprint for driving performance through clarity, trust and creative disruption. 

      The post Uncommon Growth: A CEO-CMO Dialogue on Brand, Integration and the Future of Marketing appeared first on Business Transformation Consultants | Prophet.

      ]]>
      A Guide for New CMOs https://prophet.com/2025/08/a-guide-for-new-cmos/ Wed, 13 Aug 2025 19:31:48 +0000 https://preview.prophet.com/?p=13507 The post A Guide for New CMOs appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      A Guide for New CMOs

      For a crash course in what to do first, plan your listening tour and ask the right questions.

      Are you in a new role as chief marketer, or perhaps new to your category? This simple guide offers straightforward ideas and insights that can help you succeed.

      To start, think about what you need to do in your first 100 days. It is important to consider:

      • Do I need to develop a transformation agenda?
      • Can I create a more compelling go-to-market strategy?
      • How can I make our brand more relevant to customers?
      • Are there foundational tools to put in place, such as a documented customer journey or a marketing plan?
      • How does marketing support the organization’s business strategy?

      Given the rapid change in marketing and the greater need to prove immediate impact, we help new CMOs flex the most impactful levers including content, data and digital marketing, as well as reimagine their marketing organization for the modern era of growth engine marketing.

      Here’s a quick guide of what to ask, what to do and where to look in the first 100 days.

      What to Ask

      Asking the right questions up front can help craft the right agenda, identify potential initiatives and create an actionable roadmap. Below are six questions you should explore with your team, colleagues, and agency partners.

      1. How relevant is/are your brand(s) to your most important customers and stakeholders? How relentlessly focused on the customer are insights, strategies and tactics?
      2. Is the marketing strategy aligned to the business strategy? What is marketing’s contribution to the enterprise? How do the rest of the C-suite and the board see marketing’s role?
      3. Are brand and demand priorities clear and integrated—or in competition and at odds? Is there a portfolio marketing strategy in place or is the strategy purely product-focused?
      4. How are you going to engage and empower the sales, communications and product teams? Is there a shared end-to-end customer journey? What culture of collaboration exists or doesn’t exist?
      5. What is the maturity level within the marketing organization for key digital capabilities such as customer data, content, personalization and attribution?
      6. Is your marketing team organized in the most efficient way possible and around your business priorities? How might you set up your operating model? How can AI tools and agents help?

      What to Do

      Here are some recommended actions passed on from other leaders, proven to get you on solid footing and off to a smart start.

      1. Schedule your listening tour

      Meet with your direct reports and colleagues across the organization, and ask these questions: What do you want me to create? What do you need me to protect? What do you need me to prioritize? Be sure to share back the results and your plan.

      2. Create these CMO assets

      • Introduce Yourself Presentation: Prepare a “top 10 list” presentation that addresses these questions: Who are you? Why are you here? What kind of change initiative are you leading? What do you believe about marketing? What do you value? How do you like to work with others? What are your top priorities? What are key milestones for your first six months? What do you expect from your team? What can they expect from you?
      • Vision, Agenda and Roadmap: These are often created in a workshop over a few weeks with a suite of collaborations They should include a description in which the brand can fulfill the business potential, and the springboards, or starting places, that exist now. One key artifact to create is a dashboard to help track progress.
      • Growth Era Marketing Plan: This plan is a modern replacement for the integrated marketing plan and has many of the conventional elements updated for marketing’s new role as a growth engine for the enterprise. Topics include business vision, opportunities, strategies and tactics, customer data strategy, calendar, investment, and key enablers (e.g. content, technology, people, partners).

      3. Work in outcomes

      Translate your priority initiatives from marketing objectives to business impact. For example:

      • Reducing cost: Investing in a content strategy that leads to search engine optimization will, for the business, reduce the cost of digital marketing that may need to be done.
      • Increasing revenue: Engaging in brand and marketing campaigns that increase customer loyalty can, for the business, increase the share of wallet and customer lifetime value.
      • Improving efficiency: Improving digital experiences can be a reason for a prospective client to work with you, therefore improving the volume of incoming leads, lead quality, conversion rates and retention.
      • Product innovation: Customer insights gleaned from marketing activities and shared with product management can optimize product performance and uncover new opportunities.

      Ask your teams to quantify and report their work against broader business impact, not only marketing KPIs. A dashboard that integrates marketing KPIs and business performance can help sustain that conversation and connection.

      “When asked business questions (e.g. what have you delivered for the business?), don’t give marketing answers (e.g. NPS).”

      Raja Rajamannar, Chief Marketing & Communications Officer, Mastercard

      Where to Look

      Prophet helps new and tenured CMOs set an agenda and transform their marketing inside and out. Talk to Scott Davis, Mat Zucker, Marisa Mulvihill, Kate Price, Alex Whittaker and our brand and marketing strategy teams. Here are some additional resources which might be helpful:

      Books

      • Diary of a First-Time CMO, Alice de Courcy (2023)
      • The Next CMO: A Guide to Marketing Operational Excellence, Peter Mahoney, Scott Todaro and Dan Faulkner (2020)
      • Lies, Damned Lies and Marketing: Separating Fact from Fiction and Drive Growth, Atul Minocha (2021)
      • Chief Marketing Officers at Work, Josh Steimle (2016)
      • CMO Manifesto, John Ellett (2012)
      • Owning Game-Changing Sub-Categories, David Aaker (2020)
      • Creating Signature Stories, David Aaker (2018)

      Articles & Speeches

      Podcasts

      Communities 


      FINAL THOUGHTS

      The Chief Marketing Officer is a C-suite role that can lead, shape, and help deliver uncommon growth for the organization. Marketing is evolving fast, and every leader—new or tenured—needs the mindset and toolset to stay in front.

      Reach out to our brand and marketing experts for advice and support on getting started with your agenda. Have a resource we should mention?

      The post A Guide for New CMOs appeared first on Business Transformation Consultants | Prophet.

      ]]>
      What Forward-Thinking Brands Revealed About Growth at ANA’s Brand Masters “Revolutionaries” Conference https://prophet.com/2025/05/2025-ana-brand-masters-conference-recap/ Thu, 15 May 2025 18:04:24 +0000 https://prophet.com/?p=36369 The post What Forward-Thinking Brands Revealed About Growth at ANA’s Brand Masters “Revolutionaries” Conference appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      What Forward-Thinking Brands Revealed About Growth at ANA’s Brand Masters “Revolutionaries” Conference

      Prophet highlights learnings from leading marketers and modern brands on integrating culture, creativity and performance for long-term business growth.

      As we announced recently, Prophet is now the founding and flagship sponsor of the Association of National Advertisers (ANA) new Brand Practice. Given our new partnership, we showed up in forces at the ANA’s Brand Masters “Revolutionaries” conference, held May 7-9 last week in Los Angeles. 

      Marisa Mulvihill, who leads our CMO practice, hosted a breakfast with research partner WARC on brand and demand integration; Mat Zucker, our own CMO, spoke on stage about the opportunity in gaming for brands with Ashely McCollum, head of immersive media solutions at Roblox; and Prophet also provided every in-person attendee with a copy of our Vice Chair David Aaker’s Aaker on Branding, Second Edition released that week, giving them the first copies available in America.

      This year’s conference was exciting and showcased lessons from brands that are not often heard at national conferences. Over three days, ANA’s EVP Brand & Media Stephanie Fierman and team curated an experience for in-person and virtual attendees, in which, as she explained, “bold, innovative brands take center stage, breaking boundaries and redefining what it means to be a modern marketer.” In addition to Roblox, other presenters came from brands such as True Religion, Poppi, Converse, Saatva, and Target. Topics addressed the brand from every angle, including expanding the case for the brand, brand success at different stages of maturity, and the challenges marketers consistently face, such as brand measurement.  

      A Few Session Takeaways from Propheteers in Attendance: 

      • Allison Ellsworth’s story with Poppi showed how bold innovation, paired with culture-first, authentic marketing, can revive even the most stagnant categories. By reimagining soda as a functional, better-for-you product, Poppi disrupted the beverage industry and secured a significant deal with Pepsi.  —Clare Conroy
      • Aki Spicer of Monks and Danielle Spikener of KraftHeinz discussed the organic process of “flirtation through activation” that led to the breakthrough partnership between DJ Mustard and Heinz mustard. Capitalizing on the rap beef between Kendrick Lamar and Drake, Heinz moved quickly to tap into the cultural movement by promoting the authentic partnership between the beat-making grill connoisseur and the legendary condiment company. —Danny Pomerantz 
      • Emily Sly at Popsockets spoke about building a brand to maintain growth. She talked about the need to build the brand to extend beyond the successful product. She shared their brand purpose: Bringing radical positivity to our tech relationships. —Mat Zucker 
      • In a session about brand-led growth and the C-Suite, Audible CFO Cynthia Chu adopts an investment mindset, viewing marketing as a strategic asset rather than a cost center. She recognizes the importance of building trust between marketing and finance by setting aside her functional hat and adopting an enterprise perspective. For measurement, she doesn’t let people use bottom-funnel metrics to measure upper-funnel activity. Find other ways to do it, such as a brand lift study. Some are hard, she knows. They have a category called “feels right” for channels like experiential, which can be tough to measure. Instacart’s Laura Jones got rid of having a separate brand budget and a separate performance budget and collapsed them together. —Mat Zucker 
      • Joe McCambley spoke to Saatva’s in-house transformation and proved that brands can achieve greater efficiency and creative excellence by building internal teams deeply immersed in the product and customer. With the addition of a creative-only home studio and repositioning the brand for a re-defined target audience known as the “Research Junkies”, Saatva unlocked more focused, impactful storytelling.  —Clare Conroy 
      • Tim Parr, inspired by our own David Aaker’s frameworks and stories, explained how a laser focus on the underserved needs of aging Gen Xers enabled the huge growth of Caddis. Building a brand around “aging awesome”, creating a new category of “eye appliances,” and making the product sexy, stylish, and cool has earned Caddis an enviable price premium. —Marisa Mulvihill 
      • When Target rolled out its Holiday 2024 campaign, little did they know how the public would react. Target tells the story of what started out as an innocuous and updated Santa, who went incognito as Kris K, a Target employee, turning viewers on their heads when they all concluded that he was handsome, titling him “Hot Santa.” Target decided to roll with it, using their follow-up ads, which caused a viral internet sensation that appeared on primetime TV shows like The Tonight Show. It was a glimpse into a large company being caught off guard, bending to public response, and pivoting to a more humorous campaign theme versus the original holiday intention of family and the warmth of the season. —Kristi Yover 
      • Not from a brand, but certainly an inspirational expert and best-selling author, Dr. Marcus Collins discussed making meaning through our culture. “We see the world because of who we are.”  Marketers don’t make meaning. We signal it.” —Mat Zucker  

      Prophet is partnering with the ANA to help marketers elevate brand as a strategic growth and performance driver. We’ll be focusing on developing tools and insights to position brand as a measurable business asset, integrating brand and performance marketing, advancing brand ROI frameworks to support marketing intelligence and C-suite decision-making, breaking down silos to unify brand, media, and performance teams and enabling agile, journey-based strategies rooted in audience insights.


      The post What Forward-Thinking Brands Revealed About Growth at ANA’s Brand Masters “Revolutionaries” Conference appeared first on Business Transformation Consultants | Prophet.

      ]]>
      Seven Growth Moves for Marketers in Uncommon Times https://prophet.com/2025/05/seven-growth-moves-for-marketers-in-uncommon-times/ Mon, 12 May 2025 16:19:42 +0000 https://prophet.com/?p=36232 The post Seven Growth Moves for Marketers in Uncommon Times appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      Seven Growth Moves for Marketers in Uncommon Times

      Seven bold moves to help marketers lead through uncertainty and unlock uncommon growth—no matter the conditions.

      You might be feeling the squeeze. 

      From one side, there’s inflation, tariffs, planning whiplash and fragile consumer spending. From the other, it’s pressure to grow despite fewer resources and sharper scrutiny of every investment. 

      And in the middle of it all? You—the Chief Marketing Officer. 

      Meanwhile, AI is rewriting the rules of marketing—redefining what customers expect, changing how teams work, and fueling a new era of marketing mayhem. Our report, The Rise of the AI-Driven Consumer, puts it all out there.  

      You’re driving near-term ROI and long-term relevance. Keeping teams energized through high-pressure deadlines. Working around and through the constraints of legacy systems and trying to figure out what emerging tech can do for your business. And doing it all with clarity, confidence and composure in the face of intense pressure to show measurable results. 

      But here’s the truth: these uncommon times aren’t all that uncommon. Consider just the last few decades—global conflicts and cultural tensions, a global pandemic, the global financial crisis, and the dot-com crash and well, you get it. If anything’s predictable, it’s instability. 

      Now take a breath. The good news is that we’ve been here before. And every era of uncertainty offers disproportionate growth on the other side—growth that sparks the next wave of disruptors. Need proof? Check your phone and you’ll see some of them: PayPal, Spotify, Uber, Calm. 

      Our take? There’s no sense waiting for stability. It is better to start leaning into the goal of Uncommon Growth, no matter the macroeconomic conditions. Because that’s how Uncommon Growth happens. It’s breakthrough, repeatable, market-leading and category-shaping growth that’s rooted in clarity, relevance, and resilience—and not at all dependent on perfect conditions.  

      So how do brands unlock Uncommon Growth in uncertain times? It starts with action—clear, purposeful, and well-timed. Because while growth is easier in the “easy times,” waiting for them is a losing game. The best brands don’t pause. They move with intent, agility, and confidence. And they’re rewarded for it.

      We’ve outlined seven moves—shaped by our work with clients across market cycles—to help you grow not in spite of uncertainty, but because of it.

      Driving Uncommon Growth 

      Uncommon Move 1: Focus on Clarity, Not Certainty

      You can’t predict what’s next. But you can make it clear where you stand—and where you want to go. 

      • What this means for the business: In moments of ambiguity, a clearly articulated purpose, brand positioning and strategic direction give your teams a relatable, sustainable north star. Clarity fosters faster and more confident decision-making. 
      • What this means for the people: Employees don’t expect perfect answers, but they do want to know the why behind the what. Transparency and consistency reduce anxiety, build trust and boosts engagement and commitment across teams  

      Uncommon Move 2: Integrate Brand and Demand

      This isn’t a time to pick sides—it’s a time to orchestrate both to work harder for you. 

      • What this means for the business: Resilient growth comes from integrating long-term brand equity with proven demand tactics that drive revenue in the near term. CMOs must bridge silos, build shared KPIs and optimize both engines in parallel. 
      • What this means for the people: Marketing teams often feel pulled in opposite directions. Help them see how their work contributes to a connected system, not just a single, standalone workstream. Our Brand and Demand playbook shows how you can make it happen.   

      Uncommon Move 3: Invest in Experience—Even While Cutting Costs

      The first instinct is often to trim the surface. But the right move is to protect what your customers and employees actually feel.  

      • What this means for the business: Prioritizing investments in experience lens means protecting the “moments that matter”—the key touchpoints that deliver real value and reinforce key brand equities. More intelligent prioritization builds loyalty without overspending. 
      • What this means for the people: Experience budget cuts often impact people first. Involve teams in reshaping the most meaningful experiences. Empower teams to simplify and refine, not just scale back. 

      Uncommon Move 4: Double Down on Employee Engagement

      In uncertain times, your people need more than direction—they need care, communication and a reason to believe. 

      • What this means for the business: Attrition is expensive and damaging in moments of instability. A strong employee valuable proposition, flexible policies and visible leadership help retain talent and maintain momentum. 
      • What this means for the people: As people navigate volatility in their own way, flexibility, empathy and purpose-aligned leadership help them stay motivated and committed. 

      Uncommon Move 5: Plan for What-if, Not Just What is

      When uncertainty is the norm, scenario planning can be an optimistic, forward-looking growth strategy—not a defensive risk exercise. 

      • What this means for the business: Smart CMOs are pressure-testing plans against multiple futures, so they can move quickly and pivot nimbly when conditions shift. Scenario planning isn’t about predicting perfectly. It’s about being ready. See our approach for Scenario Planning in Marketing.
      • What this means for the people: Your team doesn’t need certainty. They need to know there’s a plan. Exploring a range of scenarios can give people confidence and a sense of control—especially when everything’s in motion, all at once. 

      Uncommon Move 6: Embrace the Unfamiliar

      Creativity often thrives within limits—and uncertainty can open the door to your next great idea. 

      • What this means for the business: Disruption often creates whitespace—nimble teams can spot it and move first by testing new formats, tools, partnerships and messages.
      • What this means for the people: Trying something new can make people feel vulnerable. Normalize experimentation, celebrate smart risk-taking and make it safe to stretch. 

      Uncommon Move 7: Experiment Small to Win Big

      Quiet innovation becomes a superpower and speaks volumes in times of uncertainty. 

      • What this means for the business: In turbulent times, smart CMOs run small, fast experiments to reduce risk and build momentum. Innovation doesn’t need to be loud if it’s fast and focused.
      • What this means for the people: Testing new ideas can energize teams and clarify what works. Small wins start a virtuous circle of forward progress and rising confidence. 

      FINAL THOUGHTS

      Even in the most turbulent times, some companies manage to achieve and sustain growth. Some even manage to unlock uncommon growth.  And while growth has always favored the bold, bold doesn’t mean reckless. It means clear thinking over knee-jerk reactions. Zooming out for the big picture. Acting with intention, clarity and confidence, not fear and hesitation. We help businesses and brands do that every day. Talk to us. 

      The post Seven Growth Moves for Marketers in Uncommon Times appeared first on Business Transformation Consultants | Prophet.

      ]]>
      Proceed With Caution https://prophet.com/2025/03/proceed-with-caution/ Mon, 24 Mar 2025 15:20:02 +0000 https://prophet.com/?p=35955 The post Proceed With Caution appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      Proceed With Caution

      Prophet’s 2024 Corporate Earnings summary, with 2025 implications.

      2024 came in like a lion, with optimism and a return-to-growth mandate across sectors despite interest rate uncertainty and global unrest. After a challenging 2022 and 2023, consumers and companies resumed spending. Markets bounced back. In fact, in our 2024 summary, “Year of Resilience,” companies researched saw a 85% year-over-year net income increase across all the companies and sectors analyzed.

      With new policies and a more favorable M&A environment, companies saw promise for 2025. And so did we as we analyzed year-end earnings reports of more than 50 of the world’s largest, fastest-growing and most relevant companies.

      Our goal was straightforward: understand how leaders experienced the highs and lows of 2024 and uncover implications for 2025. As we listened and researched, most companies still see growth opportunities but CEOs and CFOs understand the need to remain vigilant—cautiously monitoring hypercomplex economic challenges in real time.

      With that in mind, first, we’ll look back at the 2024 cross-company and industry drivers of growth as well as a few of the issues that kept leaders up at night. Then, we’ll look at what that might mean for 2025.

      A Relentless Drive to Unlock Uncommon Growth 

      Last year, companies around the globe made confident and at times uncommon growth moves. Some invested in new customers. Netflix, for example, gained 19 million paying users by cracking down on subscription sharing and Airbnb invested $250 million to expand its core app usage. Others explored new territories. AB InBev poured millions of dollars into nonalcoholic brewing technology and Uber and Waymo expanded their autonomous ride-hailing offerings to more cities. In sustainable growth, Hyundai launched its “HTWO” brand to represent its world-leading hydrogen fuel cell system. The commitment to innovation reflects a broader mindset, well expressed by Ford CEO Jim Farley: “Our relentless focus on executing the Ford+ plan has delivered strong results, positioning us well for continued growth in 2025 and beyond.”

      Transitioning to M&A, although it was a more muted landscape in 2024, we saw several strategic deals that signaled uncommon growth opportunities, including Exxon Mobil’s acquisition of Pioneer, Capital One’s pending acquisition of Discover that aims to redefine its role in the financial ecosystem and Verizon’s acquisition of Frontier Fiber, the largest pure-play fiber internet provider in the U.S.

      As we move through 2025, leaders appear to be swinging big in innovation, market expansion and M&A as many expect their competitors will be quieter due to market uncertainty. Relative to M&A, exciting times are ahead with an estimated global deal value reaching $3.5 trillion. According to Morgan Stanley CFO Sharon Yeshaya, “This will not just be a blip on the radar, as M&A pipelines remain healthy and diversified.”

      A Pivot to Leveraging AI as a Commercial Building Block 

      From “talking about AI” to “scaling AI” to “AI as a commercial driver of success,” the evolution of artificial intelligence since the early 2020s is striking. Beyond boosting efficiency, AI is being harnessed as a business engine. Tech giants, as expected, are broadcasting the generative AI enhancement of their product lines, providing relevant and tangible benefits—Apple Intelligence, Meta Glasses, Amazon’s Alexa+ and Tesla FSD cars, to name just a few. Google CEO Sundar Pichai stayed true to this trend, stating, “Scaling Gemini on the consumer side will be our biggest focus next year.”

      Beyond the tech sector, other market leaders are also pushing AI-driven innovation. Chevron is utilizing its novel FaultAssist program to forecast disaster prevention. Pfizer is propelling AI-powered drug discovery and optimization of its back-end processes, enabling faster medication deployment. Lyft is using AI for driver support and troubleshooting, estimating a total of 28,000 hours saved in support time.

      Amid the widespread and ongoing AI acceleration to date, leaders are anxious to push their AI agendas forward in 2025 while recognizing the need to clarify what their businesses truly need—both operationally and commercially. For instance, Delta CEO Ed Bastian is taking a more deliberate approach, ensuring alignment between core operations and the brand’s overall promise: “[Our] focus on AI is to learn, and to listen, and to make certain that we’re ready before we jump in with both feet.”

      An Obsession with Being Market Back and Customer-Centered 

      Consumers are focusing on simplicity and speed. Fueled by what Accenture calls the “impatience economy,” they are siding with brands that are quick to market and bespoke in their offerings. From the fastest shipping to fast fashion, brands like Amazon and Zara are first in line. Fortive CEO James Lico shared, “The reason for [their] five-year track record of success is a commitment to their Fortive Business System … [which] helps identify unmet customer needs, develop new products and get them to market faster.”

      But speed has its costs such as sustainability. A key focus of last year’s report, sustainability appears to have become more of a nice-to-have than a differentiator for 2025. Instead, consumers are prioritizing other areas and companies are following suit. For one, getting healthier, as personal health brands like Hims & Hers and Novo Nordisk are expanding with GLP-1 weight loss medications. Second, consumers continue to seek out unique experiences. Brands like Travel + Leisure and Mastercard are already benefiting from increased interest in tourism and more cross-border payments (up 24% year over year for the credit card company) and Marriott is growing its room count, adding 123,000 rooms in 2024.

      Moving forward into 2025, we expect to see more innovation in the name of speed—from production to shipping to service models—as well as an effort to leverage customer data and feedback to further tailor offerings to meet unmet needs. Across offerings we also see an opportunity for more industries to get in on the health and overall self-betterment craze. As we touched on with AB InBev’s shift to nonalcoholic, we believe there’s room to succeed outside the obvious health-centric sectors.

      A Desire to get the Employee Value Exchange Right 

      Today, companies’ policies around remote work continue to evolve. Firms with competitive hiring practices like JPMorgan are more comfortable taking a firm stance on return-to-office mandates while tech giants Apple and Microsoft have remained committed to hybrid policies. And in places where the industry is split, unhappy employees are speaking out. For example, when AT&T adopted a strict return-to-office policy, it sparked employee backlash on social media allowing Verizon to capitalize by recruiting AT&T employees with hybrid and remote offers.

      The ongoing discourse around DEI in the workplace has further complicated the employer-employee value exchange, as has the perceived role AI will play in the workplace, tied to job displacement and uncertainties about adapting and pushback against AI adoption.

      As highlighted in our research, these debates only intensify tension in the job market as talent shortages persist across industries. As the population ages, CEOs are expecting labor market shifts, with a large population of skilled laborers beginning to retire, leaving a void of qualified talent. In health care, CVS is making strides to address pharmacist shortages. In the aviation industry, American Airlines and United both paused hiring due to the high cost of training and aircraft shortages, in part due to Boeing’s departing engineers. On the positive side, Delta celebrated its profit-sharing day, distributing $1.4 billion to its employees promoting corporate culture.

      A quarter into 2025, it’s clear that companies need to take a fresh look at their employee value proposition, their employee experience and what it will take to recruit and retain top talent.

      A Strong Belief that Resiliency and Agility are now Operational Cornerstones 

      On a macro level, the global economy’s resilience has continued to be put to the test: interest rate debates, high inflation and geopolitical conditions created uncertainty, yet unemployment remained low and consumer spending persisted.

      2024 proved to be a period of optimistic resilience. Eastman Chemical was hit by weak end-market demand, fluctuation in raw material prices and regulatory pressure. Yet, through innovation and the adoption of advanced technologies, it found ways to reach its earnings goals. Lockheed Martin faced supply chain disruptions and high material costs but expanded its engineering manufacturing facilities to meet rising demand. On the other hand, Exxon Mobil and Boeing felt the squeeze of fluctuating demand and material prices, leading to dips in net income—a reminder that even industry titans must continuously adapt.

      Now, in 2025, some companies are demonstrating the importance of adaptability under the policies of the new administration to drive success. Apple plans to invest $500 billion to move a manufacturing facility from Mexico to Texas, avoiding the effects of cross-border tariffs. Amazon similarly continues to invest in data centers across the U.S.

      With shifting economic policies, evolving regulatory landscapes and global market fluctuations, the true impact of these bold investments remains uncertain. As companies navigate this unpredictable environment, their ability to showcase cautious resilience will define their success in 2025 and beyond.

      Acknowledgments: Bridget Mitchell, Hannah Anderson, Mary Kovacs and Samuel Pinchback.


      FINAL THOUGHTS

      It is evident that the navigation, success and resiliency of the companies we studied will continue to look different in 2025 compared to 2024. As the year progresses, companies will aspire to achieve positive outcomes; however, as variability remains high, it is imperative to err on the side of adaptability and to continue to proceed with caution. 

      The post Proceed With Caution appeared first on Business Transformation Consultants | Prophet.

      ]]>
      Defining Uncommon Growth https://prophet.com/2025/02/defining-uncommon-growth/ Tue, 18 Feb 2025 19:09:33 +0000 https://prophet.com/?p=35680 The post Defining Uncommon Growth appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      Defining Uncommon Growth

      Uncommon Growth is high-impact, sustainable growth that is faster, smarter, more human and more actionable—requiring organizations to increase speed to market while building the right capabilities, culture and business models to outpace disruption and drive lasting impact. 

      Empowered, informed and demanding customers. Relentless tech advancement and disruption. Unmanageable data volumes. Geopolitical conflict and macroeconomic volatility. Shifting competitive vectors and intensifying regulatory oversight.  

      Welcome to the new normal – about which there is nothing normal. 

      But for all the change, there’s one constant for business leaders: intense pressure to deliver growth, quarter after quarter, year after year. Given today’s extraordinary challenges and complexities, however, these business leaders now recognize that yesterday’s best practices no longer apply. In other words, uncommon times require uncommon approaches to drive uncommon growth.  

      So, what do we mean by uncommon growth? First and foremost, it’s high-impact growth that’s faster, smarter, more sustainable and more actionable. Breakthrough product innovations – whether from start-ups or well-established brands – are perhaps the most visible examples of uncommon growth. But these are exceedingly rare. Similarly, bold acquisitions can drive uncommon growth, but relatively few firms have the capital to pursue this option.  

      In mature industries with tight margins, uncommon growth can mean outpacing the competition by a point or two. Or grabbing market share via smarter marketing, more attractive offers, better experiences or new sales channels. Or reshaping a brand or core value proposition for increased relevance to changing customer behaviors. To some extent, uncommon growth is a function of boosting returns on investments in transformation and innovation programs.   

      Uncommon growth takes many forms. Consider how a leading drug store chain (CVS) transcended its successful retail heritage through a disruptive new home care business, with existing brand equity energizing its entry into an adjacent sector with a brighter growth outlook.  

      A legacy entertainment brand, PENN Entertainment, shifted to an omnichannel business model to engage more customers across a fragmented media landscape. A software provider remixed its portfolio of 100+ products for delivery via a cloud-based platform for the future. There is no singular path towards uncommon growth but despite varied success, all companies need to find ways to unlock uncommon growth today and in the future.  

      The Action Plan for Uncommon Growth

      Unlocking uncommon growth can be as much about the “how” as the “what.” The combination of building new capabilities, securing organizational alignment and developing muscle memory can power companies to launch new products, services and experiences, devise new business models, and execute growth strategies faster and more repeatably than in the past. The priorities include: 

      Increasing Organizational Velocity

      Uncommon growth typically starts with speed. That means shortening the time from insights to decisions and from execution to impact. And accelerating go-to-market timelines, with faster design-build-test cycles and a quicker pace for launching MVPs and releasing updates. It’s a huge leadership challenge because most businesses today simply aren’t built to keep up with rapidly shifting market demands or seize opportunities that come and go faster than many firms can act.  

      Taking the Holistic View

      There are multiple levers leaders can adjust in pursuit of uncommon growth – and they should explore them all. Product and service offerings will be priorities, but product bundles and subscription models may move the needle. Refreshed customer experiences, with personalization and customization features, can drive significant value, too. New technology may be deployed to unlock new distribution channels or enhance specific touchpoints (e.g., Generative AI tools for tailoring recommendations and offers).   

      Energizing the Culture to Promote Risk-Taking and Experimentation

      For many organizations, that means making collaboration and co-creation (with partners and customers and across functions) the norm, rather than an exception for special projects. Similarly, innovation must be operationalized as a business-as-usual process and function (like finance and HR). These are not easy changes to enact, but they’re necessary to remove internal and cultural barriers to growth.   


      FINAL THOUGHTS

      It’s all about speed to growth which can only be achieved through speed to insight, speed to strategy, speed to market, speed to impact and speed to commercial scale. So why are we sharing our thoughts about uncommon growth? Because that is what current conditions require, and what the future will demand.  

      And because we are The Uncommon Growth Company.  

      Explore our solutions and services or talk to one of our experts about how we can help you, your team and your organization unlock Uncommon Growth. 

      The post Defining Uncommon Growth appeared first on Business Transformation Consultants | Prophet.

      ]]>
      2024 Brand Winners and Losers https://prophet.com/2024/12/2024-brand-winners-and-losers/ Thu, 12 Dec 2024 20:58:57 +0000 https://prophet.com/?p=34412 The post 2024 Brand Winners and Losers appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      2024 Brand Winners and Losers

      From Walmart, Nvidia, YouTube, Bitcoin and the WNBA to Jaguar, Boeing, Starbucks, Ticketmaster and X.

      2024 was another year in which brands surprised, delighted, shocked and disappointed us. From major tech players making headlines to beloved brands stumbling, it’s been another year that shaped the landscape of business and culture. Whether it was Nvidia becoming synonymous with AI, Apple’s new AirPods destigmatizing hearing aids, Logan Paul bringing down Mike Tyson and Netflix simultaneously, or Coca-Cola ending the year mired in greenwashing and AI controversies, 2024 was a year to remember.

      This year may have officially marked the beginning of the end for some “legacy” brands, with Red Lobster, Bed Bath & Beyond, TGI Fridays and Spirit Airlines all operating under Chapter 11, facing massive downsizing and losing brand relevancy by the day. Many would argue that it’s time Ticketmaster joined them. The platform found new ways to alienate consumers with the fallout from Taylor Swift’s Eras Tour debacle and, more alarmingly, the silence surrounding a massive data breach affecting 560 million users. In fact, 2024 was the year data breaches became chillingly routine, with companies like Disney, The BBC, Microsoft and Dell scrambling to contain damage to both their systems and reputations. Even trusted institutions like Columbia, Harvard and The Washington Post faced PR crises, proving no brand is untouchable.

      Elsewhere, collaborations and comebacks stole the spotlight. Crocs teamed up with Post Malone, UGG strutted down Fashion Week runways and Birkenstock joined forces with Gucci, sparking speculation: are dad Merrells next? Abercrombie & Fitch transformed into a leading fashion and stock icon, while Victoria’s Secret tried to recapture relevance with #bodypositivity, and Gap saw its Met Gala denim moment revive buzz. On the M&A front, UBS emerged victorious with its Credit Suisse acquisition and equally successful “Banking is our craft” positioning strategy, deployed globally, featuring Lewis Hamilton, June Ambrose and a very cool horologist experiential event.

      2024 also saw Ozempic continue to be the king of weight loss (really type 2 diabetes), while Wegovy, Trulicity and Tremfaya all caught fire tied to their relentless advertising, memorable jingles and bottomless pharma ad budgets. Volkswagen tugged at heartstrings by relaunching its nostalgic electric minivan, while Jaguar misfired with a rebrand that had critics questioning its future. And Mattel? After its Barbie triumph last year, it stumbled spectacularly with the “Wicked Dolls” packaging debacle, accidentally directing kids to a pornography site.

      Even giants like Apple weren’t immune to missteps. Its ill-conceived iPad Pro Crush campaign—which featured creative tools crushed under an industrial press—backfired spectacularly, alienating artists, creators and loyal fans alike before being swiftly pulled with a public apology.

      Women’s sports had a banner year, with the Olympics, WNBA and NWSL driving momentum for female athletes and edging closer to long overdue equality. Let’s hope 2024 is remembered as the year the tides truly began to turn.

      When it comes to 2024, I must ask: where wasn’t Snoop? Why can’t every day be Charli XCX’s Brat Summer? Did Taylor Swift really just save Target from becoming a potential takeover target? Can Michael Cera help all brands like he did with CeraVe’s Super Bowl triumph? Did you know that Liquid Death, the audacious “water in a can” startup, is now worth $1.4B? Will we be talking about how Bluesky became the social media platform that supplanted X and Threads? Will Glicked be as popular and award-worthy as Barbenheimer?

      And on a lighter note, will there ever be a feel-good reality season like we just saw on the Golden Bachelorette? No wonder the entire cast of Vanderpump Rules was dumped for new cast members. Bravo, Bravo!

      With all of that being said, I once again turned to my Prophet colleagues from around the globe to get their take on 2024’s biggest brand winners and losers, and there was very little debate on which rose to the top and which sunk to the bottom. Without further ado, here are our takes on the 2024 brand winners and losers.

      2024 Brand Winners

      Nvidia

      Nvidia solidified its dominance as a tech powerhouse, driving innovation across industries. Its graphics processing units (GPUs) remained the backbone of AI and machine learning, powering advancements in generative AI and data center growth fueled by demand for cloud computing. In gaming, Nvidia set the standard with high-performance GPUs, while its DRIVE platform gained traction in autonomous vehicle development. Strategic partnerships with top tech firms and research institutions expanded its influence, and a stellar stock performance reflected investor confidence. Balancing innovation with responsibility, Nvidia also advanced sustainability initiatives, reinforcing its role as a leader in tech and beyond.

      Bitcoin

      Acknowledging crypto as a legitimate investment is no longer in question. Bitcoin, the face of cryptocurrency, has become one of the most powerful brands in the world. Beyond having first-mover advantage and an incoming administration that is “crypto-friendly,” Bitcoin has finally become universally acknowledged and accepted as a store of value and a high-performing long-term investment, with both national governments and financial institutions including Blackrock and Fidelity recognizing the asset class. At the time of publishing this article, we are waiting to see if Microsoft will add Bitcoin to its balance sheet, following MicroStrategy, Tesla and Block.

      YouTube

      In 2024, YouTube reaffirmed its dominance in the digital landscape, emerging as a powerhouse in both short- and long-form content. With 2.5 billion monthly active users—nearly one-third of the global population—the platform secured a 10% share of U.S. connected TV viewership and saw explosive growth in Shorts, amassing an astonishing 70 billion daily views. Ad revenue surged, fueled by the skyrocketing popularity of Shorts and live streaming, further positioning the platform as a leader in content. By enhancing monetization options for creators, YouTube fostered an explosion of high-quality, diverse content that deepened viewer engagement and cemented its status as the go-to platform for creators and audiences alike.

      Additionally, its strategic foray into educational partnerships with leading institutions further solidified its role as a hub for learning and innovation, underscoring its staying power in a crowded market. With plans to expand its global reach, refine monetization opportunities and foster stronger creator-audience connections, YouTube is poised to continue winning with its trinity of creators, advertisers and viewers in 2025 and beyond.

      Duolingo

      Duolingo soared to new heights, redefining what it means to be a cultural juggernaut in the edutainment space. Duo the Owl, its mischievous mascot, has transcended app functionality to become a global icon of humor and accountability, capturing hearts and sparking conversations far beyond language learning. This year, the brand made waves with a bold Super Bowl debut, airing a quirky five-second ad featuring a farting owl that ignited social media buzz and reinforced its irreverent yet strategic marketing approach. Duolingo kept the momentum going with headline-grabbing activations like the limited-edition “Duo Butt Briefs” and a collaboration with celebrity surgeon Dr. Miami, proving its ability to turn the unconventional into marketing gold. As Adweek aptly put it, “Duolingo isn’t just an app; it’s a blueprint for building a culture-driven brand.” By transforming education into entertainment, Duolingo has cemented itself as a global phenomenon, making learning an experience rather than a task.

      TikTok

      TikTok’s cultural dominance showed no signs of waning, with the platform continuing to experience explosive user growth, particularly among Gen Z and Millennials. Influencers like Charli D’Amelio, Alix Earle and Keith Lee kept TikTok at the forefront of music, fashion and viral trends, each commanding massive followings and shaping consumer behavior across industries. Beyond its influence on pop culture, TikTok emerged as a powerful tool for political campaigns, with candidates using the platform to authentically connect with younger audiences and drive grassroots engagement. TikTok also tripled its U.S. shopping sales to more than $100 million on Black Friday through its TikTok Shop e-commerce feature, drawing more than seven billion views between Black Friday and Cyber Monday. Whether sparking viral challenges, fostering meaningful social discourse or becoming a social commerce challenger, TikTok solidified its position as a cultural epicenter and a brand to be reckoned with.

      Walmart

      Walmart demonstrated why it remains a retail juggernaut by capitalizing on e-commerce growth and innovation. The retailer expanded its same-day delivery capabilities and seamlessly integrated its physical and online stores, meeting consumer demand for convenience. Sustainability took center stage as Walmart introduced more eco-friendly products and committed to reducing its carbon footprint, a move resonating with environmentally conscious shoppers. Meanwhile, its steadfast focus on competitive pricing ensured loyalty from budget-conscious consumers, positioning Walmart as a leader in navigating economic uncertainty.

      WNBA

      The WNBA continued its meteoric rise, setting viewership and attendance records while securing a wave of high-profile sponsorships. Social media platforms, particularly Instagram and TikTok, amplified player narratives, creating a deeper connection with fans. The addition of Caitlin Clark, whose transition to the league brought unprecedented attention and captivated a younger audience, further solidified the WNBA’s position as a cultural and commercial force. With savvy marketing strategies and game-changing talent, the WNBA is proving it has the momentum to transform women’s sports.

      2024 Brand Losers

      Jaguar

      Jaguar’s brand reinvention missed the mark, drawing criticism for prioritizing a diversity campaign that failed to resonate with its audience or tie back to its vehicles. The automaker’s inability to clarify its market positioning left consumers perplexed, while global sales continued to decline amidst dealership closures. In an increasingly competitive luxury market, Jaguar’s struggles and apparent abandonment of its storied history highlight the need for clear messaging and a stronger connection to its core brand identity.

      Boeing

      Boeing’s turbulent year was marred by ongoing production delays and quality control issues, further damaging its reputation as a reliable aviation giant, with whistleblowers and lawsuits becoming the story instead of the machinery it puts in the skies. Financial losses mounted as airlines turned to competitors to meet demand underscoring Boeing’s failure to address customer concerns. With past safety controversies still casting a long shadow, 2024 reinforced the urgent need for Boeing to rebuild trust and prioritize operational excellence to maintain relevance in a high-stakes industry.

      Starbucks

      Starbucks found itself at the center of labor unrest as unionization efforts and employee dissatisfaction exposed cracks in its carefully curated brand. Coupled with rising competition from boutique coffee shops offering personalized experiences, Starbucks struggled to maintain its premium image. Price hikes intended to counter inflation sparked widespread customer backlash, raising questions about the company’s ability to balance profitability with customer loyalty in an increasingly competitive market. All of this makes new CEO Brian Niccol’s promise of “my hope is we can get you a brewed cup of coffee in less than 30 seconds” seem both daunting and improbable.

      X (formerly Twitter)

      X continued its downward spiral with user engagement and active accounts in freefall. Under Elon Musk’s controversial stewardship, the platform faced relentless criticism for sweeping changes that alienated advertisers and long-time users alike. A sharp decline in ad revenue and a muddled vision for the platform’s future left X struggling to compete in the social media landscape. Once a cultural mainstay, X now risks becoming a cautionary tale of mismanagement and lost potential.

      Ticketmaster

      Ticketmaster’s 2024 was defined by intensifying consumer frustration and mounting regulatory scrutiny. Persistent issues with service fees, opaque pricing and ticket availability eroded public trust, while emerging competitors offered more transparent and user-friendly solutions. Legal challenges and customer complaints further spotlighted Ticketmaster’s systemic problems, leaving the brand on shaky ground in a rapidly evolving marketplace where user satisfaction is paramount.


      FINAL THOUGHTS

      One thing is clear: 2024 was one for the brand winner/loser record books. We would love to hear from you – which brands did you think were the biggest winners and losers this year?  

      The post 2024 Brand Winners and Losers appeared first on Business Transformation Consultants | Prophet.

      ]]>
      Return to Growth: A Corporate Earnings Summary https://prophet.com/2024/04/2023-earnings-report-back-to-growth/ Wed, 10 Apr 2024 15:23:46 +0000 https://prophet.com/?p=34162 The post Return to Growth: A Corporate Earnings Summary appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      Return to Growth: A Corporate Earnings Summary 

      After a year of deep cuts and belt-tightening, recession fears have given way to confident resilience. 

      The past four years have been tumultuous, with executives, across industries, forced to navigate market-wide headwinds, high-interest rates and a weakening labor market. Thankfully, the recession many feared, never materialized. Yet, leaders prepared for the worst, with 2023 widely considered the “Year of Efficiency.” Companies minimized and cut costs, optimized productivity and — at times — restructured their organizations to get closer to the market and remain above water.  

      However, the tide is shifting, and 2024 is widely regarded as a return-to-growth year in which resiliency will reign supreme. To better understand what is behind this sense of optimism, Prophet analyzed over 50 corporate earnings reports from some of the world’s largest businesses, across industries. 

      Our research found that last year’s “doing more with less” strategy paid off for most organizations, creating 85% year-over-year growth in net income across the companies studied. That’s a drastic improvement from similar research we conducted last year, which found a 22% decrease in earnings in 2022. 

      Now that companies have optimized their organizations, they are getting back to the basics of growth. They are investing in flexible growth strategies that can endure beyond cost-cutting initiatives and efficiency maneuvers, and, thus, 2024 is shaping up to be the “Year of Resiliency.” 

      Five Top Learnings From This Pivotal Earnings Season 

      1. Leaning into Growth, Once Again 

      “Efficiency” and “budget cuts” were the flash words that bounced around in the first half of 2023. Now, “innovation” and “expansion” are center stage. This earnings cycle saw exciting announcements for new products, services and experiences that transcend traditional industry boundaries.  

      In retail, for example, Target announced Target Circle 360, its new paid membership program. It is pulling a page out of Amazon’s and Walmart’s playbooks and living up to CEO Brian Cornell’s promise of “making sure that we make Target a growth company again.” After Walmart’s year of optimizing, it witnessed a significant 23% year-over-year growth burst in e-commerce sales, bolstered by the announcement of a new B2B purchasing site, Walmart Business. 

      Others are also expanding their portfolio of offerings and innovating their go-to-market strategies. Apple is rolling out a new B2B service platform, Apple Business Connect. Pfizer is extending its expertise (and brand) beyond respiratory as it goes deeper into oncology. And Peloton is launching “Peloton for Business.” These expansions represent the beginning of an accelerating trajectory toward growth.  

      2. Embracing GenAI as a Strategic Growth Lever 

      Almost all the companies in Prophet’s study say GenAI is a top priority, playing a role in driving not just efficiency but sustainable growth. Major technology players are paving the way, both as exemplars of “moving from talking about AI to applying AI at scale” within their business to launching new products like Microsoft Copilot, Google Gemini, and Amazon Rufus that allow other industries to use AI to power growth.  

      EdTech company Chegg is embracing GenAI by developing automated, higher-accuracy question-and-answer services. In entertainment, DraftKings is using GenAI to lower customer acquisition costs and improve its targeting capabilities across its marketing efforts, resulting in it raising its 2024 revenue guidance. In the energy sector, GenAI has helped ExxonMobil leverage automated deep-sea drilling and optimize its widely dispersed field assets, helping it beat earnings expectations. 

      To be clear, GenAI faces challenges, with mounting social concerns — and lawsuits — tied to privacy and cybersecurity issues. And then, there are the massive costs associated with training, upskilling and managing new systems. While introducing new technologies into an organization is not new news, GenAI is at a scale that requires massive paradigm shifts for most companies to maximize its positive impact while minimizing the downsides mentioned.  

      3. Harnessing Customer-Centricity to Fuel World-Class Experiences 

      Companies with the most substantial potential to break through increasingly competitive interconnected marketplaces are discovering ways to harness technologies to enhance customer-centricity, establish deeper levels of relevance and deliver unmatched value. 

      In healthcare, CVS Health realized 11.9% revenue growth by harnessing advanced analytics, machine learning, and process automation to predict customer needs and generate tailored care services, such as its ExtraCare loyalty experience. It provides personalized health and beauty products, and members can choose “benefits that best fit their needs.” MetLife uses advanced technologies to create personalized insurance products that cater to specific customer needs and risk profiles. United Health Group, Walgreens and Cigna are all leveraging technologies to coordinate value-based care, enhance digital offerings and improve the patient experience. As a result of these investments, every healthcare company in Prophet’s analysis beat analyst estimates for revenue and earnings in the fourth quarter. 

      In transportation, Ford Motor Company brought in a former Apple executive, Peter Stern, to help adapt to the changing EV landscape and build customer experiences through Ford+. CEO Jim Farley describes that hire as “transformational for this strategically vital part of our business.” 

      In another way to get closer to customers, GE HealthCare is acquiring MIM Software to complement Predix, its industrial manufacturing cloud platform. MIM Software’s AI and analytical capabilities across practices are reshaping the possibilities of precision care for patients and providers, enabling GE to “meet customers’ most complex and pressing needs, today and into the future,” says CEO of MIM Software Andrew Nelson, proving once more how customer-driven solutions continue to elevate experiences.  

      4. Driving Next-Generation Employee Value Propositions 

      It is no secret the workplace has vastly changed as executives grapple with the COVID-induced remote-hybrid debate, the repercussions of mass lay-offs and quiet quitting and the undeniable risks posed by rapid automation. Executives in Prophet’s analysis believe their talent are the critical lynchpin to driving the transformative growth most are seeking. Accordingly, many companies are backing up their claims with significant investments and shifts in compensation, development and employee well-being. 

      The Home Depot’s 2023 decision to invest approximately $1 billion in annualized compensation for its frontline, hourly associates — even in a down year — illustrates the importance of nurturing what it considers its key differentiator: the “Orange Aprons.” This strategic move underscores the company’s recognition that maintaining a satisfied, skilled, and motivated workforce is essential for navigating economic uncertainties and securing sustained growth. It is paying off, too, with meaningful improvement in attrition rates and an increase in its customer service score by 600 basis points. 

      In leisure, Hilton adapted to the changing dynamics of work by launching the innovative “Hilton Work Anywhere” initiative. By enabling corporate employees to work remotely from its global network of hotels, Hilton taps into the growing demand for flexibility and remote work opportunities. Comparatively, Cisco focused on building external economic resilience by partnering with global HR services company Randstad to equip over 25 million people with digital skills through Cisco’s Networking Academy. Such partnerships and reskilling programs are pivotal in powering the future of innovation, growth and global competitiveness. 

      5. Moving to Profitable Sustainability Impact 

      While sustainability has continued to be a top priority for consumers, more companies in Prophet’s analysis are now proving that “doing the right thing” isn’t the only benefit of pushing an innovative sustainability agenda. For instance, building materials and provider Holcim set a goal of achieving 100% renewable energy in U.S. operations by 2050, and its eco-friendly solution ECOPact concrete, now accounts for 19% of Holcim’s ready-mix net sales. The company is also “driving fast-paced growth in circular construction” through its waste-minimizing ECOCycle practice, helping it differentiate and grow as a leader in sustainable construction. 

      Eastman Chemical is working to solidify its position as “a leader in creating a circular economy,” capitalizing on customer demand and growth opportunities by replacing plastics with recycled-content-made products and innovative molecular recycling facilities.  

      By embedding sustainability into their core growth strategies and moving beyond 2030 or 2040 Net-Zero Carbon commitments, companies are addressing pressing environmental challenges and positioning themselves as forward-thinking leaders in their respective industries, setting a new standard for corporate responsibility and innovation…and driving sustainable growth. 


      Acknowledgments: Jason Tan, Jane Lee, Zach Lipkin, Mae Mourtisen, Will Littlejohn, Erik Muenster 


      FINAL THOUGHTS

      The cost-cutting, optimization and efficiency-grabbing efforts of 2023 have set the stage for a new and potentially powerful growth year. Many companies are at an inflection point, moving from a reactionary state to focusing on the future. Business leaders must have a long-term strategy to position themselves for sustainable, transformative and purposeful growth. They need to bring new products, services and experiences to market, keep AI at the forefront of their agenda, invest in their people across all dimensions of well-being, and fully integrate sustainability into their business model. Hopefully, when we return to you a year from now, we will be writing about the Year of Accelerated Growth! 

      The post Return to Growth: A Corporate Earnings Summary appeared first on Business Transformation Consultants | Prophet.

      ]]>
      2023 Brand Winners and Losers https://prophet.com/2023/12/2023-brand-winners-and-losers/ Thu, 14 Dec 2023 16:52:32 +0000 https://prophet.com/?p=33823 The post 2023 Brand Winners and Losers appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      2023 Brand Winners and Losers: From Taylor Swift, Ozempic and Open AI, to Elon Musk and X, WeWork and Delta Airlines 

      See our annual list of the most relevant brands and those that missed the mark.

      In the dynamic landscape of 2023, the year unfolded with notable brand winners and losers. From AI formally entering our daily lexicon to Elon leaving most of us scratching our heads, the year was truly memorable. To start, noteworthy comebacks were observed with Peloton, UGG, and Cameo (tied to its new savior, George Santos), while Dollar General gained relevance among millennials. On the flip side, Macy’s, Rite-Aid, and Bed Bath & Beyond faced waning – even disappearing – relevance. Once again, we saw Marriott rule the world, launching its 500th luxury hotel, while stalwart brand winner Unilever admitted it lost its purpose-based way. J.P. Morgan seamlessly absorbed First Republic Bank, while Goldman Sachs and Apple had a breakup, in which the financial powerhouse got the short end of the PR stick. The MLB had its Ohtani moment, the NFL continues to have its pop-star moments, the NBA and NHL welcomed new teenage superstars, Victor Wembanyama of the Spurs and Connor Bedard of the Blackhawks, and Messi continues his enduring reign in the soccer world by joining MLS. 

      BeReal, a darling a year ago, is now facing BeReality, similar to both Impossible and Beyond’s daunting market growth challenges. And no one’s sure what to make of the streaming platforms in 2023 as they continue to multiply, fragment and push confusing price tiers. Although the O.G, Netflix, continues to hum along, with revenues growing to $33 billion, and its wildly successful (and somewhat controversial) ad-supported plan coming in for the bargain price of $6.99. Speaking of an O.G., Bravo certainly had a year for the ages, with its massive Scandoval zeitgeist moment on Vanderpump Rules. In contrast, Marvel had its worst year since before Iron Man, who may need to come back and save the day, and Max bid farewell to its older sibling, HBO.   

      Speaking of the big screen, who had Beyonce and Taylor Swift’s box office grosses rivaling those of their concerts or A24 being a studio with a business model that would survive two crushing strikes? We can’t talk about brand winners and losers without mentioning Amazon, a multi-year past brand winner, which, in a testament to its enduring prowess, surpassed $35 billion in BTB sales, a marketplace not officially launched until just over five years ago. Or TikTok, which just launched their e-commerce shop with the potential to disintermediate traditional big-box players – we’ll be looking to 2024 to see how this one shakes out.  

      To get to the best and worst brands, I once again turned to my 600 global Prophet colleagues for their take on 2023’s biggest brand winners and losers. Unsurprisingly, there was very little debate on which brands ended up on top and which sunk to the bottom. Without further ado, here are 2023’s brand winners and losers. 

      2023 Brand Winners 

      Taylor Swift

      Taylor Swift ‘enchanted’ us all this year, achieving brand strength and longevity that few, if any, can match. Her widespread appeal transcends generations and demographics, even extending into sports where although she may be dating Travis Kelce, the NFL has its own love story with the pop megastar. Swift’s dominance in the entertainment industry is indisputable, with her Eras tour poised to become the first to gross over a billion dollars and subsequently generate substantial economic impact in the cities and countries visited, a phenomenon coined the “Taylor Effect.” As Time Magazine articulated in its Person of the Year article, “She’s the last monoculture left in our stratified world.” 

      Ozempic

      Dubbed “the worst-kept secret in Hollywood,” the soaring popularity of Ozempic and other semaglutide medications has become an industry spectacle. Originally conceived to assist diabetes patients in blood sugar management, the unexpected side effect of rapid weight loss has led to skyrocketing popularity. The medication is now in high demand, not only from those who can genuinely benefit but also from individuals seeking a swift solution for shedding extra pounds.  With weight loss industry leaders such as, WeightWatchers and Noom taking notice, and strategically integrating semaglutide into their 2023 offerings, we likely won’t see the last of the Ozempic craze in 2024. 

      Barbie/Mattel

      What an extraordinary moment for an iconic brand that had everyone embracing pink this year! The Barbie movie concluded its unprecedented 12-week run at the box office with an impressive $1.43 billion in ticket sales and multiple records – including highest-grossing film of 2023 and Warner Brothers’ all-time highest-grossing film. Barbie’s impact extended beyond the theaters too, creating a vast ecosystem of partnerships, media coverage, and consumer engagement.  From the Barbie Malibu Café to a real-life Dreamhouse available on Airbnb, curated experiences helped to drive engagement and connection to both the film and the iconic brand. 

      Open AI/Chat GPT/Sam Altman

      In November 2022, the San Francisco-based startup Open AI unveiled ChatGPT, a chatbot demonstrating the remarkable ability to generate human-like responses. Though not the first of its kind, ChatGPT’s meteoric rise was unrivaled, growing from a niche online phenomenon to amassing a staggering 100 million monthly users in only two months – a faster user growth rate than both Instagram and TikTok combined.  However, it’s important to note the past year has not been all smooth sailing as moral and privacy concerns continue to mount, around the use or misuse of AI.  Nonetheless, Open AI, ChatGPT and Sam Altman have collectively captured both our attention and imaginations. 

      Microsoft

      Despite the allure of flashiness, Microsoft has continued to impress, solidifying its position as a dominant force in the business world. Microsoft’s enduring spirit of innovation was put on display with its shrewd investment in OpenAI, highlighting a commitment to staying at the forefront of emerging technologies. With its adept handling of the OpenAI situation involving Sam Altman, and CEO Satya Nadella quickly jumping in to announce support for both parties, Microsoft’s brand image was cemented as THE leader in AI, further underscoring Microsoft’s strategic acuity. 

      2023 Brand Losers 

      Elon Musk and X

      In a span of just over a year, Elon Musk’s reputation transformed from eccentric billionaire to controversial narcissist, with disruptive influence on terrestrial and space domains. The pivotal shift occurred with his $44 billion acquisition of Twitter and subsequent rebrand to X. Musk, known for reshaping industries, overhauled X, eliminating checks and balances present on other social media platforms. This ultimately positioned X as a haven for conspiracy theorists– with Musk even personally amplifying attacks on traditional media.  And the reinstatement of divisive figures like Alex Jones eroded more goodwill in the past 12 months than I’ve observed in the past 25 years of studying brands. 

      Shein

      Despite its upcoming monumental IPO surpassing the $100 billion mark, its popularity on Instagram, and endorsements from influencers like Khloé Kardashian, the stark reality of Shein reveals a troubling history of human rights violations and an environmentally unsustainable business model. The fast fashion giant, as reported by Time Magazine, leaves a staggering 6.3 million tons of carbon dioxide annually in its wake, raising concerns about its impact on both the environment and employee rights, within and outside of China. As Shein’s financial success continues to rise, the question looms: when will consumers become more conscientious about the implications of supporting such practices? 

      WeWork

      Former brand winner WeWork filed for bankruptcy earlier this year, finally putting a pin in Adam Neumann’s world domination plans for good.  A combination of inflated egos, financial mismanagement, problematic leases, conflicts with landlords and realtors, unhappy tenants, and the impact of COVID contributed to the unraveling of WeWork’s grand plan to transform the workplace with stylish offices featuring perks like free beer, game rooms, and abundant food. While some iteration of WeWork may persist in the future, the company’s valuation, once at $47 billion just four years ago, has plummeted to $45 million, prompting a restructuring plan for 92% of the company’s secured debt. 

      Delta

      Sometimes a good business can have a bad brand year, and this is the case with Delta. The airline’s shift this past year towards a spending-based status system, coupled with restricted airport club access, encountered widespread social media criticism, helping competitors sweep formerly loyal customers.  Acknowledging the misstep, Delta’s CEO Ed Bastian, recently signaled a reevaluation, stating, “I think we moved too fast, and we are looking at it now.”  Yet, amid additional challenges such as a biohazard emergency on a flight from Atlanta to Barcelona and reported on-time performance issues, Delta continues to navigate brand setbacks, aiming for a more positive trajectory in the year ahead.   

      NCAA

      In 2023, the NCAA underwent a profound transformation, shifting from modest to sprawling and self-indulgent – prioritizing its interests over those of student-athletes. The advent of NIL deals for high school players, a dynamic transfer portal encouraging shifts from smaller schools to powerhouses, and burgeoning TV deals paving the way for 20-team super leagues resembling professional sports all mark a departure from collegiate ideals. Moreover, scrutiny is warranted on the substantial seven-figure salaries for college sports coaches and administrators. Amidst these changes, the question arises: when will this trajectory cease, and how will mid-tier athletes navigate the evolving landscape?  


      FINAL THOUGHTS

      As mentioned, 2023 was one for the brand winner/loser record books. I would love to hear from you – which brands do you think were the biggest winners and losers this year? 

      The post 2023 Brand Winners and Losers appeared first on Business Transformation Consultants | Prophet.

      ]]>
      Brand and Demand: Sheila Shekar Pollak on the Role of Creativity and Innovation in Marketing Today https://prophet.com/2023/11/the-role-of-creativity-and-innovation-in-marketing-today/ Thu, 09 Nov 2023 14:26:44 +0000 https://prophet.com/?p=33665 The post Brand and Demand: Sheila Shekar Pollak on the Role of Creativity and Innovation in Marketing Today appeared first on Business Transformation Consultants | Prophet.

      ]]>

      BLOG

      Brand and Demand: Sheila Shekar Pollak on the Role of Creativity and Innovation in Marketing Today

      The Chief Brand Experience Officer at Orvis shares insights about the challenges facing modern marketers including the importance of team dynamics, creative innovation and cross-functional collaboration. 

      Sheila Shekar Pollak is the Chief Brand Experience Officer at Orvis, a leading outdoor retailer.  

      Shekar Pollak brings over 20 years of experience growing and strengthening global, mission-driven brands. Previously, Pollak was with the Gap Inc. family of brands, including the CMO at Athleta where she drove double-digit revenue and earnings growth and launched the iconic ‘Power of She’ brand platform. 

      Scott: What are the primary concerns keeping you up at night as a leading marketer? 

      Sheila: Team burnout is my foremost concern. The relentless challenges our team faces, combined with the uncertain future, have led to exhaustion and stress. I worry about retaining our talented staff and keeping them motivated amidst these difficulties. We oversee all the marketing, creative and sales channels for our wholesale, retail, e-commerce and adventure business. It’s a lot and we have to find ways to celebrate small wins in this challenging environment. I try to be very intentional and focused on what I’m asking of my team. I am constantly thinking about how to motivate and keep people fired up. How do we stay focused and what can we let go of? For the past few years, it sometimes feels like we’re sprinting an Ironman, and it can be emotionally taxing. So, I’m really focused on the health and well-being of my team.  

      Separately, I think a lot about connecting with customers in a meaningful way amid economic uncertainties. For us, a specific challenge is the saturation of products in the market and how to tell a creative and compelling story that resonates with our customers.   

      Scott: How have your marketing priorities shifted in response to the current economic environment? 

      Sheila: Our focus has narrowed significantly. Coming out of Covid, we had the best years in our 167-year history. The outdoor boom led to unprecedented growth, but as we shifted back to a more typical business cycle, we had to rethink new ways to grow our business – both with current and new customers. We are relentlessly focused on emphasizing product excellence and refining our offerings to stand out in a competitive market.  

      Not only do we need to create great products, but we need to tell great stories. To do this, we’re really leaning into creativity and innovation. We’re putting a renewed focus on telling stories that speak to experiences that not only align with our purpose and values but also the nuts and bolts of the product. Our goal is to simplify everything down to making and selling truly great products. 

      We’ve always been customer-obsessed, and that continues to be a focal point for us. We’re very dialed into our customers and are constantly monitoring our retention and acquisition opportunities. We have strong customer loyalty but continue to look for new ways to drive customer acquisition. The top of the funnel hasn’t always been a core area of focus for us, and we’re reevaluating our strategy to find new ways to drive acquisition. I do think the current market conditions play a significant role as it’s harder to convince people to try new brands and to spend right now.   

      Scott: That’s an interesting point about not focusing as much on the top of the funnel, can you elaborate on why it wasn’t a focus in the past and how you’re shifting your strategy to emphasize the top of the funnel more?  

      Sheila: As I mentioned earlier, we saw incredible growth in 2020-2021, and I’d argue that was likely due in part to the natural tailwinds of the macro environment. To continue to drive growth, we’re taking a deep look at our business to make sure we have the foundational pieces in place to continue our forward momentum. We’d like to be the masters of our destiny, so to speak, instead of relying on the economic conditions. So that’s part of our focus on putting a renewed focus on product excellence. Marketing is partnering closely with our product team to create high-quality products that the market truly desires. We recently released a new dog bed that hit a nerve with customers, and we leaned into our storytelling and influencers to tell a story that people connected with. We’re looking for more moments like that to break through by using powerful creativity and storytelling.   

      Scott: Can you elaborate on your approach to balancing brand and demand in your marketing strategies? 

      Sheila: We’ve been heavily focused on demand, given the pressure to meet revenue goals. However, we also recognize the importance of brand awareness and storytelling. While demand strategies are necessary, creativity and innovation are crucial. I’m a big believer in the brand. We’ve started working with a PR firm and media influencers to share more stories about the conservation work we’re involved with. So, we’re exploring unconventional methods to capture attention and create genuine connections with our audience. It’s about finding the balance between driving sales and building a lasting brand image. Performance marketing alone can’t drive value. While demand will likely still play an outsized role in the near future, to drive real value, brand is a critical component of our marketing investment.  

      Scott: What role does AI play in your marketing efforts, and how do you envision its future in your strategies? 

      Sheila: We’re in the exploration phase with AI. While it offers real potential in customer targeting and optimizing experiences, I don’t think it’s a replacement for creativity and the human touch. Our brand is about creating experiences that connect people with nature and create lasting and memorable life experiences. I see a real opportunity with AI to enhance our strategies, especially in customer optimization and experience enhancement. However, I’m cautious about losing the genuine essence of our brand. That being said, we do recognize as a leadership team that AI is something we need to wrap our arms around pretty quickly. 

      Scott: And finally, how do you manage to break down internal silos within the organization to foster better collaboration across functions? 

      Sheila: It starts at the top. Getting leadership on board with the idea of cross-functional collaboration is crucial. Establishing a “first team” mentality, where everyone collaborates for collective success, has been transformative. Building strong relationships between functional leaders, based on transparency, empathy, and mutual benefit, has been instrumental in breaking down silos and achieving better outcomes. I’m lucky because our president is fully bought into this idea. And, with that support, I have been able to build an incredible relationship with our head of product. We’re constantly checking in with each other. It’s the best partnership I’ve ever had – and by adopting the “first team” approach, we’ve been able to accomplish much more, quickly, and with better outcomes. It’s an absolute game-changer when done right.  


      FINAL THOUGHTS

      Sheila’s insights offer a valuable perspective on the challenges faced by modern marketers and the strategies needed to navigate the evolving landscape. By emphasizing the importance of team dynamics, creative innovation, and collaboration, Sheila provides a roadmap for marketers aiming to thrive in a rapidly changing world.  

      Talk to our team today to learn more about building relevant brands that drive uncommon growth. 

      The post Brand and Demand: Sheila Shekar Pollak on the Role of Creativity and Innovation in Marketing Today appeared first on Business Transformation Consultants | Prophet.

      ]]>