Organizational Design and Trends in Marketing Organizations

Patrick Mosher & Thomas Dominakus

Our Discussion Today

• Fundamental Goal of Marketing Organization Design

• Organization Design Guidelines• The Good, The Bad and The Ugly

‒ DISCUSSION : How organization design facilitates or inhibits that goal

• Key Considerations for Marketing Organization Design in 2013

• Final Thoughts / Wrap-Up

Key Strategic QuestionsDISCUSSION

What Key Strategic Questions do you want to answer with your

Marketing organization design?

Help Marketers Market!!

Organization Design Guidelines

1.Customer Centric Organization Design Begins with the Customer2.Organization Design Does Not Equal Organization Charts 3.Organization Models Show How the Work Flows4.Every Separation Requires Integration5.Define only Minimum Critical Specifications6.Overlaps Are Better than Gaps7.Constructive Conflict is Good8.Balance Standardization and Customization9.Organization Design is Iterative10.Test the Organization Model with Real Business Scenarios

Confidential - Do Not Distribute

An Agile Marketing Organization will…

… invest in capabilities that deliver scale and flexibility

… enable Monitoring and Analytics that drive competitive advantage

… use customer profiling and analytics to deliver relevant experiences at scale

… deliver content across all existing and emerging channels (e.g., Mobile)

… be seamlessly Integrated across channels

… create Networked and Collaborative communities

Sample Organization Model

Analytics / Insights / Learning

Face-To-Face Engagement

Alternative Channel

EngagementCont

ent C

reati

on

Commercial Operations

R&D

Input

Input

Input

Input

Customer Operational

Plan (Go to

Market)

Brand Value Prop /

Positioning

Brand Strategy

Customer Insights

Customer Strategy

Customer

Brand Insights Customer Insights

Content Insights

Channel Insights

Operational Insights

How is a Service-based Model Different?

Assets Reports Workflows

Business Needs Business Outcomes

Deployed Markets Brand Campaigns

Today – Standard Model

Plan

Build

Deploy

Run

Support

Business Needs

Ongoing amortization of costs

• Point solutions recreated for new markets, brands & users• Multiple vendors managing platforms and services • Lack of end-to-end process across marketing services

Tomorrow – Service Based Model

Engagement

Requirements

Service Approval

Service Delivery

Easy scaling of resources depending on need

• Accelerated, scalable global solutions custom to local markets

• Single vendor to engage with internal and external customers and manage process

• Integrated services across transformation, service & technology

The Business Services model is a faster, more flexible way to define, design and develop business outcomes.

Agency & Marketing Vendor Model OptionsIndustry Experience Suggests…

• No one perfect model exists for all companies/brands - each one has benefits & risks

• There is no exact number of agencies – based on business needs and tolerance for change

• Defining the right long-term governance & adoption plan drives success of any model

• Clear understanding of current state & baseline sets up success

Not an Exact Science…An Evolutionary Model

Common Barriers to SuccessBarrier DescriptionLack of Ownership Owners from Marketing, IT and Operations must have power of mandate for

implementationLack of Buy-in Key stakeholders (Marketing, Advertising, IT) must be aligned and committed to

the decoupled model, which requires a communication plan and management to the business case targets

Agency Influence Without clear mandate, influence of creative agencies can create unnecessary obstacles. Agency accreditation and contractual commitments are critical to securing the right inputs to production team

Shallow Commitment to Model

Testing and pilots have a place in implementation, but there needs to be a commitment to making the model work

Reluctance to Adopt Process Change

Particularly important within agency and project management organization, process adherence is key (while recognizing where process must be modified to meet critical timetables)

Global Market Hesitation

It’s important that outreach efforts include focus on regional and local markets who are typically reluctant to adopt global standards that originate from U.S. market

The Good, The Bad and The UglyDISCUSSION

DISCUSSION A: How does organization design inhibit marketers effectiveness?

DISCUSSION B: How does organization design facilitate marketers’ effectiveness?

Key Considerations Marketing Organization Designs in 2013

• The “Always On” Customer• Seamless Integrated Customer Experience• Customer Contact Governance• Digital Marketing• Marketing Content Production

– Insource versus Outsource– Outsourcing Agency Management

• Role of Analytics in Marketing– Key skills – Center of Excellence versus embedded in marketing

Final Thoughts and Wrap-up

THANK YOU!

Session Description

Change is inevitable… and within any marketing organization this is a given that strongly holds true.

• Digitization has changed traditional marketing models, especially as companies deal with their own marketing organizations and work with agencies to become more effective and efficient in the marketplace.

• Marketing organizations are redefining their structures as they are asked to increase performance with the same budgets or perform the same with decreased budgets.

• If a company does not have the right marketing organization and processes in place, it becomes at risk to lose profitability in this new evolving marketing world.

• Companies are faced with the difficult tasks of appropriately designing the right organizations and managing agencies to increase market effectiveness while still transforming their businesses into high performers.

Learn about the good, bad and ugly of organizational design for a marketing organization in this open and facilitated discussion by consultancy senior executive, Patrick Mosher. He will share client examples from a variety of industries on key considerations for successes and war stories of failed approaches. They invite audience members to share their experiences for an intimate “real talk” session.