Good morning. When CFOs and CMOs work together, they can drive revenue growth.
This was the topic of a conversation I had with McDonald’s Global CFO Ian Bowden and Global CMO Morgan Flatley. We spoke following a panel session at the Cannes Lions Festival of Creativity on Monday morning.
“We thought of marketing as a black box, a murky part of the business that wasn’t very visible or transparent,” said Bowden. In 2019, McDonald’s eliminated the global CMO role, only to reinstate it less than a year later. luck Reported previously.
Today, McDonald’s (No. 162 on the Fortune 500) is “spending a lot of money on marketing,” he said, “and frankly, it’s one of the most important growth investments we make,” adding that it’s key to driving big sales growth.
Flatley joined McDonald’s in 2017 as U.S. chief marketing officer and digital customer experience officer. She was promoted to global chief marketing officer in 2021 and took over as head of new business in 2023. Bowden said marketing has really excelled under her leadership.
Borden, who will serve as global CFO from 2022, has worked at McDonald’s for more than 25 years, leading markets and functions on a global scale. Borden’s views on the changing role of the CFO: You can’t be a purely financially focused CFO anymore.
“Certainly in my own career, the fact that I’ve run markets, worked and lived all over the world, run an entire international business, I think the breadth of experience that I have helps me understand the breadth of the business,” he said.
Bowden continued, “Working together like Morgan and I do, in these relationships, gives us a much deeper understanding of what executives are trying to do and what we can do to help them.”
CFOs “always get a little nervous” when they can’t see the work behind the results, Bowden said. “My advice to CMOs is to collaborate with your CFO and your finance leaders,” Bowden said. Be transparent about data and metrics, he said.
As a CMO, Flatley explains, “You have to be a well-rounded business leader. You have to be able to speak to different areas of the business to be effective in your role and be respected.”
She also pointed out the value of technology: “A long time ago when I got into marketing, there were only a handful of channels to connect with consumers, and now there are hundreds of thousands,” she said. “I had to really learn about technology and the digital environment, because that’s how you’re going to connect with consumers in the future.”
Flatley added that it’s a “CMO’s dream” to hear her CFO talk about the power of creativity and the importance of taking risks. “I feel so lucky to be in an environment where that’s recognised and supported,” she said.
To learn more about how marketing is a key driver of McDonald’s success and the company’s key metrics, read the full article here.
Cheryl Estrada
cheryl.estrada@fortune.com
Leader board
Samantha L. Stoddard Stoddard has been appointed CFO of JELD-WEN Holding, Inc. (NYSE: JELD), effective July 1. Stoddard succeeds Julie C. Albrecht as EVP and CFO, who will retire effective June 30 and serve in an advisory role for an extended period of time. Stoddard currently serves as JELD-WEN’s North America CFO and head of global financial planning and analysis. Stoddard joined JELD-WEN in 2020 as vice president of finance for North American operations. Prior to joining JELD-WEN, he served as CFO of Honeywell’s Personal Protective Equipment business.
Gregory D. Cameron Cameron was named EVP and CFO of CF Industries Holdings, Inc. (NYSE: CF), effective June 17. Cameron succeeds Christopher D. Vaughn, who was recently promoted to EVP and COO. Cameron most recently served as president and CFO of Bloom Energy. Prior to that, he spent 26 years at General Electric Company, where he held a series of senior roles, including president and chief executive officer of Global Operations, a GE Company.
Big Deal
“Hybrid work-from-home arrangements improve retention without compromising performance,” says a new paper published in the journal Science. NatureResearchers found that hybrid working increased job satisfaction and reduced turnover by one-third, with the drop in turnover most pronounced among non-managerial employees, female employees, and those with long commutes.
Going deeper
A new article in Wharton Business Review, “Market Dignity: The Hidden Drivers of Customer Engagement,” includes an excerpt from a new book co-authored by Wharton’s Kate Lamberton that identifies three levers marketers can use to maintain customer engagement, loyalty, and satisfaction.
Stories I’ve heard
“Human psychology remains important. If people don’t feel empowered to overcome the barriers that are put in their way, then no amount of AI will help them move up the income ladder. The same is true about the importance of meaning and purpose in life. If these are missing, no amount of AI tools can create them.”
—Gonzalo Schwartz, president and CEO of ArchBridge Institute, writes in a new article. luck An opinion piece titled, “AI can contribute to human prosperity, but there are some things AI cannot replace.”