The course describes 10 theories attempting to describe an organization. All of the theories is “incomplete” as they do not describe the organization fully. However, several theories in a combination can give a good understanding of the analyzed entity and help manage the organization.
One of the new terms from the course:
Bounded rationality is the idea that in decision-making, rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.
Though understanding that humans do not act as rationally as previously believed is prevalent in economics (and definitely used by marketing 😉 ), it is a good prism through which we can view organizations.
Some of the theories seem to me particularly insightful.
Organizational anarchy or garbage can theory explains a decision making process in an organization as a “garbage can” where problems and possibly independent solutions are thrown to be considered by different parties. Though it may not be the ideal way of describing a business and more likely to apply to a government entity or an association, the theory explains some processes within large corporations 😉
Organizational learning theory describes two interesting elements – communities of practice and network of practice.
Very insightful class – many things to ponder 😉
Absolutely love the book!! This is a much needed guide for the companies that are still on the beginning stages of the Revenue Marketing journey. The book can be the guide with a wonderful description of the steps and possible pitfalls, and inspiration from marketers who reached the destination. We are all lost – as an author was lost a few years ago. Hopefully, our journey will be easier – we have the guide.
Definition of the revenue marketing:
The combined set of strategies, processes, people, technologies, content, and results across marketing and sales that does four things:
- Drops sales-ready leads into the top of the funnel
- Accelerates sales opportunities through the sales pipeline
- Measures marketing based on repeatable, predictable, and scalable (RPS) contribution to pipeline, revenue, and ROI
- Transforms marketing from a cost center to a revenue center.
A very important point highlighted through the book – the journey might take several years – particularly for large established organizations.
I absolutely love the progression stages – they make so much sense and placing your own organization at a specific stage is easy. And thought-provoking… to realize where your organization currently reside 😉
Though most marketers understand very well that sales involvement is critical, it was a pleasure to read the arguments and reasoning to use at the office 😉
A very interesting point – to find a disruption (around sales) which can be used to introduce the start of the initiative. In one case a company found that majority of the sales were done by the elite group of reps, and the rest of the field could not reach quotas and suffered from high turnover. The revenue marketing initiative was positioned as an attempt to bring more reps to the quota and help new reps to adjust faster.
The metrics chart explains the progression of marketing metrics through the journey – and show the “goal” set of metrics (what is typically difficult to explain to management before the system is functioning).
Another interesting point is highlighting the role of Marketing Technologist and the fact that IT should report to Marketing for the best business results… The author (and many of us) was very impressed by the Motorola’s move to CIO reporting to CMO.