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Insight

AI Accountability Part 2: Delaware Ruling & C-Suite Liability

The Delaware Chancery Court Ruling of 2023 expands fiduciary duty. CMOs, CROs & CDAOs are now liable. AI exposes risks—leaders must act now.
March 17, 2025
|
5 min read

The Delaware Chancery Court Ruling of 2023 is a wake-up call. CMOs, CROs, and CDAOs are now personally responsible for oversight failures, bad data, and poor decisions. AI, especially Causal AI, is exposing the truth. Lawsuits are already happening. If you lead a team, you need to assess your risks, clean up your data, and use AI to protect yourself. 

Takeaways

  • All officers, not just CEOs and boards, are now accountable, so if you’re in marketing, sales, or data, this applies to you too.
  • Negligence and complacency can get you sued. You don’t have to act maliciously to be held responsible.
  • AI is making everything more transparent, exposing flawed data and misleading numbers.
  • Shareholders are already suing executives due to CRM issues, data fraud, and bad reporting.
  • Don’t wait! Audit your risks, fix your data, use AI to help you, and get personal liability insurance.

What’s Going On?

In AI Accountability Part 1, Mark Stouse and I talked about how AI is making executives more accountable. Now, we’re looking at the Delaware Chancery Court Ruling of 2023, a decision that puts more responsibility on business leaders. If you’re a CMO, CRO, or CDAO, this ruling could affect you in a big way. Here’s what you need to know about AI accountability in corporate leadership and how AI-driven risk management for executives can help.

REWATCH: Part 1 and Part 2 on LinkedIn.

Why Isn’t This a Bigger Deal? (Sources & Context)

Mark Stouse, CEO of Proof Analytics, put it simply: “If this ruling is so important, why isn’t everyone talking about it?”

The ruling made headlines in The Wall Street Journal and Financial Times with a sexual harassment lawsuit against McDonald’s, but outside legal circles, it didn’t get much attention.

“Historically, fiduciary duty had a very high bar—you had to almost prove nefarious intent. That’s no longer the case. If you’re an officer of a Delaware-domiciled company, you can now be held personally liable for negligence, incompetence, or just not knowing what’s in your own systems.”
 
Mark Stouse

This ruling affects roughly 90% of venture-backed companies in the U.S. and two-thirds of the Fortune 1000. Even privately held companies are under scrutiny. 

If you’re in leadership, this matters to you.

What’s Changed?

  • It’s easier to get sued. Before, you had to prove someone acted in bad faith to hold them accountable. Now, feigning carelessness won’t hold up in court.
  • More executives are on the hook. Fiduciary duty used to apply mainly to CEOs and boards. Now, all corporate officers are responsible, including marketing, sales, and data leaders.

Real-World Impact

Mark shared a case where a company settled for a huge amount because of bad CRM data. In fact, CRM data integrity (or lack thereof) has become a meme. 

“I was supposed to be an expert witness in a case involving CRM data. The company settled for a lot of money out of court. The issue? The data was so flawed that it triggered fraud detection software. Sales reps had manipulated CRM records to hit incentives, creating a legal liability for the CRO, CIO, and CDAO.”
 
Mark Stouse

If your data is unreliable and you’re in charge of it, you’re responsible. Period. 

Saying “I didn’t know” won’t protect you. Delaware fiduciary duty ruling impact is already being felt across multiple industries.

AI Is Changing the Game

Each day AI is getting better and it’s making leaders more accountable.

“AI is going to be the great truth-teller inside corporations. Everything that can be known will be known or knowable.”
 
Mark Stouse

If your reports claim your marketing is driving revenue, but causal AI proves otherwise, that’s a problem.

What’s at stake for CMOs, CROs, and CDAOs?

  • Marketing budgets: If you can’t prove ROI beyond vanity metrics, shareholders can cut your budget—or sue.
  • Sales forecasting: Bad pipeline data can lead to legal trouble.
  • Data governance: If poor data quality slows down AI adoption, investors might argue you’ve cost them future growth.

What You Need to Do Now

If you’re in leadership, here’s a step-by-step guide to protect yourself:

1. Get Your Legal Team Involved

  • Check if your legal team knows about this ruling. Many still don’t.
  • If they aren’t aware, send them this article and ask how it applies to your company.

2: Audit Your Risks and Data

  • Identify weak spots in your department—especially data issues.
  • Determine what’s broken, how to fix it, and what it will cost.
  • Document everything—it could protect you in court.

3: Use AI for Risk Management

  • If you’re not using Sausal AI, you’re already behind.
  • AI can reduce your personal liability by improving decision-making and risk assessment.
  • If someone asks, ‘Are you using causal AI?’ and you say ‘no’—you’re in trouble.
  • If you need a Causal AI tool, check out Proof Analytics

4: Get Personal Insurance

  • Your company might cover you, but it’s safer to have your own E&O (Errors & Omissions) insurance.
  • If something goes wrong, you don’t want to rely on corporate coverage.

5: Focus on Effectiveness, Not Just Efficiency

  • Cutting costs might boost short-term numbers, but AI is exposing how bad those decisions really are.
  • If you can’t prove cost-cutting won’t hurt long-term growth, you’re at risk.

Final Thoughts

Yes, the Delaware Chancery Court Ruling is a wake-up call. But it’s more of an opportunity to get ahead of potential litigation by cleaning up our data rather than fear-mongering. 

Use AI to protect yourself. If you act now, you can stay ahead of the risks, prove your value, and future-proof your business.

“This is only the beginning. Shareholders, especially activists, are using this ruling to sue executives. If you’re not prepared, it’s just a matter of time.”
 
Mark Stouse

In AI Accountability Part 3, Mark and I will dive into the wave of lawsuits already happening and what you can do to stay ahead.

Stay tuned.

REWATCH: Part 1 and Part 2 on LinkedIn.

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe for ongoing insights and strategies (enter your email below).

Cheers!

This article is AC-A and published on LinkedIn. Join the conversation!

Insight

AI Accountability Part 1: Why Every Executive Is On The Hook

AI is making executives personally liable for data governance. Learn how AI-driven audits and legal rulings are reshaping leadership risk.
March 10, 2025
|
5 min read

AI-driven executive accountability is forcing leaders to take responsibility for their decisions instead of relying on vague statements or outdated assumptions. A new Delaware ruling makes CROs, CMOs, and CDAOs personally responsible for data quality and governance failures. Executives need to tighten data oversight, audit regularly, and work closely with compliance because AI fact-checking is exposing governance failures in real time. 

Takeaways

  • AI is exposing weak data governance and poor decision-making.
  • The Delaware ruling expands liability beyond CEOs and CFOs—CROs, CMOs, and CDAOs are now accountable for data failures.
  • Poor CRM and business data can lead to fraud claims, shareholder lawsuits, and regulatory scrutiny.
  • Employees, investors, and stakeholders can verify statements with AI instantly—and they will.
  • Frequent audits and legal alignment are no longer optional—they’re survival strategies.

Why the C-Suite is on the Hook

In our latest LinkedIn Live session on AI Accountability, Mark Stouse and I dug into how AI is forcing radical transparency across the C-Suite.

For years, AI has been marketed as an efficiency tool, but it’s now putting executives under a microscope—especially the Chief Data & Analytics Officer (CDAO). AI’s impact on CDAO responsibilities is undeniable. The CDAO is at the center of it all, overseeing data quality, compliance, and legal risks that didn’t exist a decade ago.

Data quality is no longer an internal issue. AI-driven transparency is turning poor oversight into a legal and reputational risk. Get it wrong, and you could face lawsuits, SEC investigations, or worse.

Watch the full episode on LinkedIn.

The Illusion of Predictable GTM Models

Many executives have built go-to-market (GTM) strategies based on the idea that growth can be mapped out in a straight line. AI is proving them wrong.

“Roughly 20 to 25 years ago, founders and VCs decided they could remake B2B GTM into a deterministic, linear machine. They thought they could put a quarter in and get a gumball every time. That model failed—92% of those startups tanked.”
 
Mark Stouse

AI won’t fix broken GTM strategies. It will expose bad assumptions faster and force leaders to adapt—or fail even sooner.

AI is also putting more and more buyers in control. Companies that cling to outdated demand-generation tactics will lose to competitors who use AI to adapt in real time, recognize genuine buying signals, and pivot quickly.

AI Fact-Checking: Leaders Under the Microscope

The CEO Who Got Fact-Checked in Real Time

Mark shared an interesting story about a CEO who walked into a town hall thinking he was in control—but AI had other plans.

Employees ran AI tools on his statements in real time. They compared his answers against past company reports and financial disclosures. Contradictions surfaced immediately. The Q&A turned into an awkward grilling session.

“Executives can no longer rely on ambiguity. The days of being able to say one thing today and another tomorrow without scrutiny are gone.”
 
Mark Stouse

Every word leaders say is recorded, analyzed, and cross-checked against financial disclosures, internal reports, and regulatory filings. AI is removing the gray areas that once gave executives room to maneuver. 

The only way to stay ahead? Make sure what you say is accurate before you say it.

Executives Are Now Personally Liable for Data

The 2023 Delaware fiduciary ruling for executives has changed everything. For the first time, leaders beyond the CEO and CFO—including CDAOs, CROs, and CMOs—are legally accountable for data quality and governance failures.

How One Lawsuit Changed the Game

The Delaware ruling isn’t just a legal theory. It’s already leading to lawsuits. Mark shared an example that illustrates just how serious this is getting.

"A recent shareholder lawsuit named the CIO, CDAO, and CRO over CRM data quality issues. During discovery, a fraud detection tool was used to analyze the CRM, revealing that two-thirds of the data was manipulated, often to take advantage of sales incentive programs. That level of individual accountability simply wasn’t a risk five years ago."
 
Mark Stouse

This case revealed a stark reality: CRM data is a mess, and the legal risks of poor data quality are growing. 

AI-driven audits are exposing fraud, inaccurate records, and manipulated pipeline data, which is leading to shareholder lawsuits and regulatory action.

CDAOs oversee data quality and governance, but CEOs, CROs, and CMOs are just as exposed. Bad data now impacts revenue, compliance, and investor confidence. 

What Executives Need to Do Now

Executives who ignore AI-driven accountability won’t just lose credibility, they can also face legal consequences.

  • Take Data Governance Seriously – Data integrity is a C-suite issue, not an IT function.
  • Audit Data Regularly – AI-driven audits should catch and correct data issues before they trigger lawsuits.
  • Work With Compliance Teams – Legal and risk teams must be involved in AI and data governance strategy.
  • Educate Leadership Teams – CDAOs need to help CEOs, CROs, and CMOs understand AI risk.

The companies that take AI-driven accountability seriously now will be the ones that stay ahead of lawsuits, regulators, and market shifts.

Final Thoughts

The AI accountability era has arrived. Executives who take data governance seriously will mitigate the inherent risks and avoid serious consequences.

In Part 2 of our next AI Accountability session, Mark and I discuss the legal risks executives face after the Delaware ruling.

Stay tuned.

Watch Part 1 on LinkedIn.

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe for ongoing insights and strategies (enter your email below).

Cheers!

This article is AC-A and published on LinkedIn. Join the conversation!

Execution

How to Build Sustainable Growth Without Gambling on It

Discover how B2B tech companies can balance brand and leadgen for sustainable growth, reduce acquisition costs, and avoid the short-term revenue trap.
March 3, 2025
|
5 min read

Many B2B tech companies focus too much on short-term revenue and neglect what builds lasting success. Growth happens when we balance short-term sales activation with long-term brand-building. Deeply understanding the market and shifting from reactive sales to proactive strategies helps us know when to invest in brand, how much to spend, and how to transition away from a lead-obsessed mindset. 

Takeaways

  • Without brand investment, customer acquisition costs rise, and growth slows.
  • Companies like Gong built brand equity early and now lead without competing on price.
  • When win rates drop, sales cycles lengthen, or competitors undercut you, it’s time to rethink your approach.
  • Based on the Binet and Field study, B2B companies should allocate 46% to brand and 54% to activation on average since B2B sales cycles require more direct activation, especially during early days.
  • Adjust budget and messaging over 6-12 months to prevent revenue disruptions.

A Smarter Approach to Growth

Running a B2B company comes with constant pressure to hit revenue targets. We often end up chasing leads, cutting costs, and pushing sales and marketing harder with sales-led and product-led tactics. 

This desperate pursuit of “more for less” is really just a cycle that burns cash and limits potential. The brands that grow do things differently. They focus on three key things:

  1. Insight: Unearthing customer and market demand shifts before competitors do.
  2. Brand: Creating credibility and earning trust so out-of-market buyers remember you.
  3. Activation: Driving immediate action with direct marketing and sales support to convert in-market buyers. 

“B2B marketing has become one-dimensional, fixated on revenue. We’ve lost sight of what truly drives growth—market insight, brand building, and genuine demand.”
 
Emma Clayton, FCIM

And because time lag impacts sales, today’s revenue comes from marketing done months ago. Cut brand investment now, and you’ll struggle later. Building up and maintaining a strong brand also builds up a strong pipeline. 

Balancing Brand and Activation Drives Growth

What happens when you focus only on short-term wins?

1. Growth Takes Time—You’re Running a Marathon

Many B2B companies track leads, pipeline, and SQLs but ignore brand reputation, trust, and loyalty.

Traditional lead generation is getting less effective. Buyers act as groups and research for months before talking to sales. Scaling sales activation alongside brand awareness ensures your pipeline doesn’t dry up. (2024 Buyer Experience Report, 6sense)

2. Stop Reacting, Start Leading

Most business outcomes depend on external factors. If you only react to quarterly revenue dips, you’ll always be playing catch-up. 

“Two-thirds to three-fourths of business outcomes are driven by external market forces.”
 
Mark Stouse

Investing in brand lets you control the conversation instead of constantly chasing it.

3. Brand Investment Makes Growth Cheaper

When revenue slows, companies often make cuts in the name of “efficiency” and then double down on lead gen. That’s a mistake. 

Without brand marketing, sales activation gets harder and more expensive over time because memory and credibility fade. The cost to regain momentum is exponentially greater.

Gong logo

Gong is a good example of what it takes:

  • Ten years ago, they were unknown. 
  • Today, they dominate their category.
  • How and Why? Much like how movies are promoted before they’re released, Gong built their brand before they needed it. Now, they lead without having to compete on price.

When Should You Invest in Brand?

Not sure when to shift focus? Look for these red flags:

  • Win rates are dropping despite a strong pipeline.
  • Competitors keep winning on price.
  • Your brand isn’t recognized even after running campaigns.
  • Sales cycles are getting longer despite more outreach.

If any of these apply, it’s time to audit and update your GTM strategy.

How Much Should You Invest in Brand?

Based on the Binet and Field study, 46% Brand and 54% Activation is the optimal mix for B2B companies, as sales activation plays a larger role than in B2C due to longer, complex sales cycles.

Investing early keeps you from fighting for scraps later.

Binet & Field: B2B investment skews towards activation, since sales is harder.

How to Shift Away from Lead-Only Growth

Switching overnight isn’t realistic. Here’s how to rebalance without hurting revenue:

  • First 3 months: Track brand impact (search volume, direct traffic, brand recall) alongside demand metrics.
  • Next 3-6 months: Shift messaging to educate the market instead of just capturing leads.
  • Months 6-12: Gradually increase brand investment while keeping sales activation strong.

This approach keeps revenue steady while making sure future growth doesn’t stall. Sustainable revenue strategies for B2B companies take patience, but they pay off.

Final Thoughts

Short-term marketing isn’t bad—it’s just not enough. If you focus only on next quarter’s number, you’re setting yourself up for trouble down the road.

The best companies think long-term. They invest in:

  • Market insight to predict where demand is going.
  • Brand awareness to lower acquisition costs over time.
  • Sales activation to convert high-intent buyers when they’re ready.

If you want lasting growth, stop betting on quick wins. Invest in brand and activation together—because if you wait until you need brand, it’s already too late.

Build for the future, not just this quarter.

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe for ongoing insights and strategies (enter your email below).

Cheers!

This article is AC-A and published on LinkedIn. Join the conversation!

Insight

AI and SEO: How Search Will Change in 2025 and Beyond

AI is reshaping how people search, reducing reliance on traditional SEO. Learn how businesses must adapt to AI-driven search and website optimization.
February 24, 2025
|
5 min read

AI-powered chatbots and search assistants are reshaping how people find information online, reducing reliance on traditional SEO. Instead of ranking pages based on keywords, AI now delivers direct answers, making structured data and credibility more important than ever. Businesses must adapt by optimizing for AI discovery, using chatbots, and prioritizing clear, trustworthy content.

Takeaways

  • AI provides direct answers and reduces reliance on traditional SEO.
  • Websites should focus on structured data and credibility to stay relevant.
  • AI chatbots and assistants will eventually replace traditional site navigation and search bars.
  • The shift from SEO to AI optimization means brands must rethink their digital strategies.
  • Sales and marketing teams must work together to ensure AI search visibility leads to measurable conversions.

That Was Then. This Is Now.

SEO has been around since the ‘90s. The idea was simple: use the right keywords, rank high on Google, and get free traffic. 

But times have changed… fast.

AI-powered chatbots and language models (LLMs) are changing how we search. Instead of clicking through search results, we now get answers instantly. 

SEO is evolving and businesses need to rethink how they show up online.

How AI is Changing Websites

People no longer browse through multiple pages to find what they need. They ask AI and get an answer right away. 

More than ever, websites will need to prioritize interaction over static content. 

  • Conversations, Not Pages: AI chatbots replace traditional menus and search bars. Customers ask a question, AI responds instantly.
  • Clarity Over Keywords: Instead of chasing Google’s algorithm, businesses need to provide clear, accurate information.
  • Anticipating Needs: AI doesn’t just wait for questions—it predicts what users are looking for and offers answers first.

Why Traditional SEO Is Fading

Google has long controlled how businesses get found online. AI search assistants are changing that.

  • AI Trusts Structured Data: Rather than ranking pages, AI pulls from sources it recognizes as reliable.
  • Less Website Traffic: Since AI provides answers directly, fewer people are clicking on search results.
  • Information, Not Clicks: AI processes large amounts of data and delivers concise responses, reducing the need for users to visit multiple sites.

How AI Search Impacts Lead Generation

The rise of AI-driven search means fewer organic visitors, but does it affect lead quality?

Businesses must shift from relying solely on high-ranking pages to owning structured, AI-friendly content.

  • AI search might reduce overall site traffic, but the leads it delivers could be more qualified if the content is optimized correctly.
  • Companies should track conversion rates from AI-driven search vs. traditional organic search.
  • To compensate for traffic loss, consider AI-specific ad placements, direct brand queries, and partnerships with AI-friendly data sources.

How to Rank in AI-Driven Search

If AI is answering users’ questions directly, how can businesses ensure their content is cited?

  • Ensure AI models recognize your brand by creating structured, machine-readable content.
  • Use AI-specific SEO tools to monitor how AI-driven search assistants reference your company.
  • Increase domain trust signals through backlinks, industry mentions, and verified content.

What Happens If You Ignore AI Search?

Failing to adapt to AI-driven search could mean disappearing from key buyer journeys.

Some risks include:

  • Losing organic visibility as AI search favors structured, authoritative data.
  • Declining inbound leads as users get answers without clicking on websites.
  • Increased reliance on paid ads due to decreased search traffic.

How Sales and Marketing Teams Should Adapt

AI-driven search isn’t just a marketing concern—sales teams must adjust too.

  • Sales teams should use AI insights to understand buyer intent from search queries.
  • Marketers must shift focus from rankings to optimizing AI-friendly knowledge bases.
  • Track new KPIs, such as AI citations, chatbot-driven conversions, and structured content performance.
  • Enable sales teams with AI-powered tools that provide real-time insights into customer needs.
  • Personalize outreach based on AI trends—for example, by integrating AI-driven chat insights into sales pitches.

Example of AI-Friendly Content vs. Traditional SEO

Traditional SEO Content

  • Keyword-stuffed blog posts
  • Clickbait-style headlines
  • Long-form content with filler
  • Ranking based on backlinks

AI-Optimized Content

  • Structured, AI-readable FAQs
  • Direct, informative responses
  • Concise, data-driven insights
  • Ranking based on AI trust and authority

Action Plan for B2B Companies

To future-proof your digital strategy, consider this roadmap:

Immediate Actions (0-6 months):

  • Optimize existing content with structured data and AI-friendly formats.
  • Add AI chatbots to improve website engagement and direct answers.
  • Test AI-driven paid advertising to compensate for organic loss.

Long-Term Strategy (1-3 years):

  • Train AI models to recognize your brand’s authority by publishing consistent, high-value data.
  • Build relationships with AI search engines to increase credibility.
  • Monitor AI search results for shifts in ranking factors and adapt accordingly.

Final Thoughts

Websites aren’t disappearing per se, but they are quickly evolving. AI-driven experiences are becoming the norm. Businesses that adapt will thrive, while those that don’t will struggle to stay visible.

In the next 2-3 years, expect to see:

  • AI-powered websites with minimal navigation.
  • Automated sales funnels guiding customers from curiosity to purchase.
  • SEO shifting from keyword strategies to training AI models on brand data.

Sources for this article:

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe for ongoing insights and strategies (enter your email below).

Cheers!

This article is AC-A and published on LinkedIn. Join the conversation!

Strategy

The Human Factor in Sales Effectiveness

Sales effectiveness isn’t just about process and tech—it’s about people. Explore key insights on leadership, AI, and accountability from Mark Stouse.
February 15, 2025
|
5 min read

Last week, Mark Stouse and I continued our Sales Effectiveness discussion and tackled one of the most overlooked aspects of sales effectiveness: people. While technology, process, and efficiency often take center stage in sales discussions, it’s people who drive success—or derail it.

Takeaways

  • Technology and process provide structure, but human behavior determines success.
  • Gut-driven decision-making is fading fast as AI and analytics eliminate ambiguity.
  • Staying relevant means constantly learning, adapting, and embracing accountability.
  • Doing things right is useless if you’re not doing the right things.
  • Great leaders make tough choices while keeping the human element in mind.
  • Watch the full discussion on LinkedIn.

Sales Effectiveness Lives and Dies with People

People—not process or technology—are the wild card in sales effectiveness. While process provides structure and technology accelerates execution, it’s our own behavior that makes or breaks success.

  • Ego and control are major obstacles. Too often sales and marketing leaders and teams resist change, clinging to past experiences rather than adapting to new realities.
  • Process isn’t governance—it’s guidance. Organizations often implement processes to create predictability, but if it’s too rigid, people will resist.
  • Technology rarely changes process. More often than not, it merely speeds it up. Look back at any of the 5 industrial revolutions and you’ll see that plain as day. If a broken sales process exists, AI and automation won’t fix it; they’ll only amplify its inefficiencies.

AI, Analytics, and the Death of Ambiguity

AI increases transparency because it forces alignment. In many companies, quarterly reviews expose disconnects between sales and marketing, where each side presents conflicting narratives. AI and analytics provide a single source of truth, cutting through the politics and making alignment non-negotiable.

AI and analytics are already eliminating the gray areas that once allowed for ambiguity and gut-driven decision-making.

The increase in accountability and transparency means business leaders and procurement teams now have deeper insights into a vendor’s performance, trustworthiness, and reliability.

  • Accountability is tightening across organizations. Legal rulings by the Delaware Court of Chancery have refined the fiduciary responsibilities of senior officers. This change aims to bring officers’ liability more in line with that of directors.
  • Data science exists to improve decision-making. Yet, many sales and marketing teams still resist analytics, relying on outdated instincts rather than provable insights.
  • AI is reducing the space for guesswork. If leaders don’t adapt to data-driven decision-making, they risk becoming obsolete.

Leadership in the Accountability Era

As AI gets better, it will continue exposing inefficiencies and inconsistencies and putting leadership under more scrutiny than ever. 

The role of leadership is evolving. The days of managing based on perception rather than reality are coming to an end. Some leaders may need to ask themselves if they’re still qualified to lead.

  • Past experience doesn’t guarantee future relevance. The world is changing too fast for leaders to rely on outdated playbooks.
  • Leadership must embrace learning—and unlearning. Those who refuse to adapt will struggle to lead effectively in the AI-driven era.
  • The best leaders balance effectiveness with empathy. Tough decisions—like layoffs or restructuring—must be guided by both data and humanity.

Mark shared a powerful story of empathy from his former boss, HP CEO, Mark Hurd:

“About 20 years ago, during an interview, a reporter asked Hurd, who was tough as nails, if it was hard to lay off 15,000 employees before the holidays. I’m paraphrasing but Hurd’s response was striking:  ‘No, it’s not. In fact. If it were 50,000, it wouldn’t be hard. That decision was based on the best evidence of what needed to happen. But when you start thinking about all the impacts on all these individual families, at that point, it becomes really hard. I’m not exactly a teary guy, but tears kind of came to my eyes. I think that if that doesn’t happen, you’ve lost your humanity.’ Then very quietly and without any fanfare, Hurd allocated all of his roughly $15M HP stock options to improve the severance packages of the most needful people being laid off, some getting as much as $4,000 on top of their severance.”

Great leaders make the hard decisions, but they don’t lose their humanity in the process.

Final Thoughts

In the next 12-18 months, AI will make the truth undeniable. Organizations that once operated in ambiguity will soon face clear, data-backed accountability.

  • Tribal wisdom won’t save anyone. Companies that rely on outdated industry beliefs will struggle in an era where AI exposes inefficiencies.
  • Marketing and sales must align on reality, not perception. True alignment comes when both functions respect and understand their roles in the revenue engine.
  • If leadership isn’t adapting, they’re falling behind. In the next two years, we’ll see a significant “weed-out” of leaders who fail to embrace the AI-driven shift.

“Gravity is real. You can jump off a building and say you don’t believe in it, but it won’t change the outcome.”
 
Mark Stouse, CEO, ProofAnalytics.ai

Watch the full discussion on LinkedIn.

If you like this content, here are some more ways I can help:

  • Follow me on LinkedIn for bite-sized tips and freebies throughout the week.
  • Work with me. Schedule a call to see if we’re a fit. No obligation. No pressure.
  • Subscribe for ongoing insights and strategies (enter your email below).

Cheers!

This article is AC-A and published on LinkedIn. Join the conversation!

Insight

Sales Effectiveness: Why Efficiency Isn’t Enough

Focusing on efficiency without effectiveness is a mistake. Learn how marketing multiplies sales and why short-term thinking kills long-term success.
February 10, 2025
|
5 min read

Chasing efficiency without first ensuring effectiveness is a mistake. Marketing multiplies sales, making it 8x more effective and 5x more efficient. Cutting marketing too soon kills momentum, and short-term thinking leads to long-term failure. Causal AI proves marketing’s impact, helping teams invest smarter. If you want predictable, scalable sales success, focus on effectiveness first, then efficiency.

Takeaways

  • Marketing makes sales up to 8x more effective and 5x more efficient.
  • Efficiency does not equal effectiveness—prioritize value creation over cost-cutting.
  • Chasing immediate revenue without considering long-term impact is risky.
  • A sustained marketing investment builds brand and reputation, making sales easier over time. 
  • Causal AI can help GTM teams understand what drives revenue and why.

Are We Cutting Costs or Cutting Value?

Last week, Mark Stouse and I dug into a growing issue in B2B sales: why efficiency alone doesn’t achieve sales effectiveness. This is a recap of that conversation.

In a nutshell, you can’t measure efficiency without knowing if what you’re doing actually works. 

It’s easy to use “efficiency” as a way to justify cost-cutting. But slashing budgets, laying off employees, and stripping things down without understanding what’s really driving results is not efficiency. That’s just guessing.

“When you hear different leaders talking about organizational efficiency and using AI to become more efficient, for the most part, that is their attempt to reframe a narrative that is really about cost-cutting and has absolutely nothing to do with efficiency.”
 
Mark Stouse, CEO, ProofAnalytics.ai

If you’re interested, you can watch the LinkedIn Live recording.

Marketing as a Multiplier for Sales

Mark and I talked about this before, but it’s worth repeating: marketing is a multiplier for sales.

When done right, marketing makes sales 8x more effective and 5x more efficient, especially in mid-sized, growing companies. Sales follows a linear “value-add” formula. Add more reps, close more deals. 

But marketing isn’t linear. It generates demand and builds credibility over time. And when potential customers trust you, selling becomes a lot easier.

“Marketing by definition is leverage. It exists as a non-linear multiplier of the performance of other parts of the business, one of which happens to be sales. Sales without marketing is like fishing without bait. Sure, you might catch something, but it’ll take a lot longer and require a lot more effort.”

Cutting marketing and adding more salespeople won’t solve the problem if the foundation isn’t there. Without strong marketing, closing deals will always be an uphill battle.

The Efficiency Trap

There is a common misconception that efficiency equals effectiveness. But there is a difference between doing the right things versus doing things right. 

Many companies, especially in tech, prioritize efficiency—often a code word for cost-cutting—without first establishing whether their sales process is actually effective.

Cutting budgets and headcount without knowing what’s driving the outcomes doesn’t just make us leaner, it also makes us weaker. After all, 8 x 0 = 0. 

“If you don’t know your effectiveness, there is no way for you to know your efficiency or your cost-effectiveness.”

Short-Term Thinking Is Killing Startups

One of the biggest challenges in tech is short-term thinking. Many startups are built to burn fast and exit fast. VCs pump in money with the goal of flipping a company in 3–4 years, so founders prioritize fast revenue over long-term strategy.

“Some startups fail because they shouldn't have existed in the first place. The market wasn’t ready, and no amount of execution could change that. When a VC tells you to put the pedal to the metal, and if you need more cash to ‘just ask,’ there’s no room for efficiency—just growth at all costs.”

This “growth at all costs” mindset is why 92% of startups have failed since 2007. When the market shifts, companies that ignored building up their brand reputation struggle to survive.

The Danger of Turning Marketing On and Off

Mark used a great analogy: launching a rocket.

Most of a rocket’s fuel is burned just to get into orbit. Once it’s there, it can stay there with small adjustments. But if you cut the engines too soon, you fall back to earth—and getting back up is 10X harder and more expensive. 

“There’s only one shot at a first impression. If the market sees you go up and then come back down, they’ll be skeptical when you try to launch again. Cutting marketing too soon is like taking your foot off the gas in a race and expecting to maintain speed.”

Airbnb learned this the hard way. They built an incredible brand, then cut marketing to save money. When they tried to restart, they had to spend far more just to regain momentum.

Even if you scale back, staying consistent beats turning marketing on and off.

How Causal AI Proves Marketing’s Impact

Marketing budgets are always on the chopping block. If you can’t prove impact, expect cuts.

With causal AI tools, like Proof Analytics, companies can measure which activities drive revenue today and tomorrow, making adjustments accordingly.

“If you can’t show how marketing is creating real business impact, expect your budget to shrink. Causal AI is the way forward. Consistency beats the amount of money spent. Radical consistency in marketing wins every time.”

When GTM teams work together, using data to inform decisions, they’re able to prove exactly what drives sales. 

Final Thoughts

To achieve sales effectiveness, we need to know where to invest and why. And the more effective we are, the more efficient we become. 

AI and analytics make this easier than ever. Companies that use data-driven decisions to align sales and marketing will win. Those that cut marketing too soon, ignore brand investment, or focus too much on “efficiency” will continue to struggle.

Don’t just do things right. Do the right things.

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This article is AC-A and published on LinkedIn. Join the conversation!