GM's marketing leader reversed a trend of outsourcing key functions. He argued that relying too heavily on agencies underdeveloped internal skills, making the company slow and unaccountable. Bringing capabilities in-house, while challenging, was essential for transformation and agility.
GM created a tiered agency structure. A "foundational" agency handles high-volume, operational production work (the "60%"). This frees up smaller, specialized creative agencies for each brand to focus solely on distinctive, compelling creative without getting buried in executional tasks.
Agencies are optimized for efficiency, stifling the creative experimentation needed for platforms like Meta. Top-performing brands employ an in-house strategist whose sole job is generating a high volume of diverse, "wacky" ad concepts—a function that can't be effectively outsourced.
CEO Mary Barra has transformed GM's strategic planning from a rigid annual event into a more frequent and fluid process. This shift allows the senior leadership team to react quickly to new market data and technological learnings, preventing 'momentum' from pushing a program forward when a pivot is needed, a critical capability in the volatile auto market.
To modernize her team, Ally's CMO designed a new structure based on core capabilities (Insights, Execution, Creative, Measurement) rather than traditional functional silos. This model, benchmarked against other high-performing organizations, creates clearer ownership and a more effective workflow.
Amazon's CCO explains that at an agency, creativity is the core product. In-house, it's just one business function among many. This requires a humbling shift from "selling" ideas to deeply understanding the business constraints and priorities that drive decisions, moving from being listened to, to being the listener.
To gain the CFO's confidence, GM's marketing head involved the CFO's team in the steering committee for developing the marketing plan. This transparency and disciplined approach built a strong partnership and prevented budget cuts driven by misunderstanding.
GM's marketing chief advises leaders to balance high-level strategy with deep, hands-on involvement in the daily work. This "hands in the kitchen sink" approach ensures leaders stay grounded and connected to the realities of execution, which is critical for agility during periods of transformation.
Georgia Pacific built trust for marketing investments by bringing analytics and market mix modeling (MMM) in-house. This allowed them to not only highlight wins but also to act with credibility by quickly identifying and stopping underperforming tactics, demonstrating fiscal responsibility to leadership.
At large companies, decisions often gravitate toward optimizing near-term financial results, which can subtly degrade customer experience and creativity. GM's marketing head suggests a key role of the CEO is to actively shield the long-term creative vision from these short-term pressures.
In the AI era, shift from silos like 'Demand Gen' to cross-functional pods focused on outcomes like 'Brand Relationship' or 'Product Delight.' This model, inspired by product development, aligns teams to solve specific customer problems and better integrates AI agents directly into core workflows.