In part two, we discuss how a CEO can work with a consultant to establish a cultural change in their organization.

Can CEOs inadvertently be standing in the way of an organization's growth?

I sometimes find leaders choosing to stand above the organization and feel that they're going to change it without it somehow profoundly changing them in the process. Effective change can only happen when leaders grow personally. The CEO has to ask themselves: "Am I prepared for some kind of change in me?" Because change in their organization starts in their office.

I remember a client saying to me once, "Chris, I realize that every instinct I have for this business is no longer relevant, yet they are the only instincts I have."

They had got to a very critical place in their own learning, the place of "I don't know." But then he moved forward, and made some difficult and risky choices, which may well not have worked. Without this almost mystical combination of humility and courageous vision in a leader, change is very hard to foster. I have said, "As grows the leader, so goes the change process." It seems that this is most often the case.

The Halo Group talked to consultant Chris Houston of The Change Alliance about when it is time to bring in a change agent and how a CEO can effectively lead an organization in a new direction.

How does the need for a change agent arise within an organization?

A leader always has two fundamental challenges. The first is to run the organization they have today; they have a responsibility to serve and deliver products to their current customers. The second is to change their model, so that tomorrow's performance is in some way different, better, or sustainable. And the difficulty is that both of these goals need to be achieved simultaneously. Often, the management process pays particular attention to one task or the other, usually today's performance - best reflected in the numbers that show the current economic strength of a corporation. But the results today are the outcome of previous decisions, so today's change agenda is intended to produce results for tomorrow.

The quarterly earnings cycle forces a transactional response. CEOs feel that they have to do something today - preferably Now! - which is why it is sometimes helpful to have an outside opinion and perspective, one not caught up in the issues of producing today's output. A change agent has an eye on the horizon as opposed to the immediate crisis. It's that ability to simply think beyond the immediate issues of today, but do so fully cognizant of the present realities.

For many CFOs marketing is the nebulous part of business. On the surface, it doesn't appear to mesh with their traditional short-term focus on improving productivity and reducing costs. The CFO is charged with prioritizing budgetary resources, balancing the needs of departments across the company, including marketing.

But is marketing effectively making its case?

Bells and whistles don't work unless there is someone behind them. It's exciting to launch an external campaign encompassing advertising, public relations, and promotions. But before you get caught up in great ideas and make any promises, you better be sure your employees are ready to keep them.
 
In order to reconnect your team and customers as part of a new initiative, you have to begin within your organization. Whether the repositioning of your brand stems from a merger or a desire to recapture lost market share, employees want to understand their role. So, tell them about the changes, why and what will change, and how it will affect them personally. That's how they can feel pride in what they do.

Here is how to make sure your brand is ready to deliver from the inside out.

When Richard Tait and Whit Alexander sat down to create the board game Cranium, they based it on a simple premise-"Everyone Shines." Some of us are good at crossword puzzles, while others might dominate at Pictionary. But the key is that everyone has a unique skill set that allows him or her to compete in a game based on a variety of challenges.

There is plenty of industry buzz surrounding the rising, falling and evolution of the CMO. He's the new corporate wizard, sitting at the strategy table, creating return on investment metrics and a one-on-one relationship with every customer. And in this consumer-controlled marketplace, it's his insight that will drive every department of the organization. So, really isn't the CMO the new CEO?

In days gone by, a CEO was well-equipped if he had solid operational and financial skills. Truth be told, marketing is what makes or breaks a company in today's marketplace. "America is no longer a country of manufacturers." Instead we brand everything  (see what William Gibson says about this). And a CEO has to adopt a marketing philosophy to determine if his brand resonates with consumers. He needs to understand his customers' behavior and govern every action - from new product development to sales to customer service to in-store merchandising - with a focused understanding of their needs.