Insights

  • CMOs are Taking a Page from CTO and CIO Playbook

    by Todd Metzger | Nov 08, 2011

    With the latest economic news, CTOs and CIOs are once again seeking opportunities for short term cost savings. Outsourcing critical services to specialized vendors has been a favorite strategy of the CIO under pressure to reduce costs and improve service. Now CMOs are looking to steal a page from their business team rivals. Progressive CMOs are reexamining the productivity of dedicated marketing teams for SEO, content development, social media, web support, eMarketing and eCommerce, and are reducing costs by outsourcing these specialized business functions.
    CIOs turned to outsourcing in early 1990, and again in 2001 and 2008, seeking an alternative to providing business services in-house, particularly when those services are not considered to be within the core competency of their business. IT executives have allowed third parties to work closely within the business units to provide expertise, meeting a clearly defined service level. As a result, the IT department could reduce fixed headcount while preserving the option to add staff externally as business changed. This flexibility allowed for greater efficiency. And in most cases, the specialized management of the process provided improved service.

    This time, CMOs are seeking the same opportunity for a wide variety of functions now caught in the soft area between the IT function and the marketing organization. These functions require technical skills, proven processes and dedicated teams. Outsourcing combines the advantages of the work being done by an agency with specialized skills and the close working relationship and knowledge retention achieved with in-house teams. CMOs gain an advantage by outsourcing these specialized business functions to a new type of professional services firm.

    Recently, CIO Magazine advised CIOs to avoid fast-tracking sourcing negotiations and invest savings to improve operations while shedding old processes that don’t help the brand. At Trellist, we think this is sound advice for the CMO, as well. An analysis of marketing operations will allow the CMO to determine which functions will achieve the greatest gains through outsourcing.
    CMOs now get it, and they are looking very closely at this new approach to productivity and flexibility. To support this demand, Trellist Resource Management Division provides Outsourcing for more than 30 different professional service functions within the Trellist core competencies. This segment is the fastest growing area inside the Resource Management Division. Now both CIOs and CMOs have access to specialized outsourcing teams to leverage creative cost reduction within their business units.

  • The Importance of the Kingmaker

    by Tom Falgiano | Jun 22, 2011

    My father was one of the best story tellers I ever knew, legendary in some circles. When I was a child, he asked me, “Who has the most important job in the castle?” I answered, “the king.” “No,” he said. “The king dies and his son becomes king. The most important job is the kingmaker. It’s their job to select and train the best person to run the kingdom.” It was one of those ah-ha moments, when I realized that having the job of putting the right person in the right position is key to the success of any kingdom.

    The days of powerful kings are long gone, but the principles of the kingmaker still apply to today’s business world. Getting talented people in the right positions and retaining them for the long haul is critical for success, and one of the biggest investments a company makes. It is a process that requires successful human capital management as well as effective selection and retention strategies.

    The cost of losing an experienced, seasoned employee can be substantial. It’s a generally accepted figure in the HR industry that the cost to replace an exempt employee equals 150% of their annual salary. An average replacement cost for an employee earning $50,000 per year would be $75,000. With the national employee turnover rate at 14.4% annually, a company with 100 employees with average salaries of $50,000 would spend more than $1million on turnover costs, a substantial and often unnoticed hit on profitability from employee attrition.

    Finding the right candidate for a position is a complex assignment. Not only does the candidate need the necessary skills, they need the proper disposition and expectations that will enable them to become part of the organization. Only then can they be expected to remain with the firm for the long-term. Identifying these traits is the key to successful hiring. Trellist Resource Management has helped many enterprises find the right candidates for some of their most difficult to fill marketing, design, and technology resource needs. By applying 15 years of industry experience, a rigorous screening process including industrial psychological testing (as appropriate), and a thorough understanding of our clients, Trellist will continue to recruit and retain the right people; one of whom may someday become their “king”.

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