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SOPHISTICATION IN ORGANIZATIONAL DESIGN
This document discusses organizational models for global marketing. It begins by outlining Lionbridge's capabilities in language services and its work with major brands. It then discusses common pain points companies face like inconsistent branding and high costs. The document examines different models like dispersed, center of excellence, hub and spoke, and honeycomb. It argues that the answer is a balanced approach combining centralization and decentralization. A strategic approach to vendor management in three tiers is suggested to improve governance, focus, consistency and scalability. Technology standardization and an integrated partner ecosystem are also presented as important factors for success.
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SOPHISTICATION IN ORGANIZATIONAL DESIGN
- 1. SOPHISTICATION IN ORGANIZATIONAL DESIGN. THEFUTURE OF GLOBAL AGENCY AND SPECIALIZED VENDOR ALIGNMENT, A VIEW FROM THE FRONT ROW.
- 2. Our Global Reach • Marketleader in language, global digital and technical writing services • 6,000+ Employees • 50 offices in 27 countries • $560 million annual revenue (2015) • Clients across 10 industries • Over 800 brands served • 64 of Interbrand’s Best Global 100 Brands • Supporting 380 languages for 100+ markets
- 3. 64 of Interbrand’sBest Global 100 Brands trust Lionbridge
- 4. “This is nota conversation about Global Marketing” .
- 5. “It´s a conversationabout the teams that make Global Marketing happen.”
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- 7. “We’re a bunchof marketing islands, with our own language and ways of doing things.” CMO – Global Auto Firm « »
- 8. CUSTOMER FOCUS In ourline of business this happens when both language and content are culturally fit without losing the creative power messaging.
- 9. ALL ASSETS –GLOBAL READY
- 11. Applying the appropriatestyle of cultural adaptation
- 12. Have you hada conversation with your CMO about your companies global marketing pain points and roster of marketing vendors worldwide? Is your organization design built for global scale?
- 13. Technology Stack Look forprocesses with: • Reliance on spreadsheets. • Collaboration via email. • Documents/Design elements shared on local file directories. • Time-intensive, manual steps.
- 14. We understand the painpoints … Global Content Creation Limitation Branding Inconsistency Poor Campaign Management Governance & Increasing Costs No Local, Nor Context Relevant Content
- 15. This increased complexityleads to: • Multiple service providers • Wasteful duplication of services • Increased time spend managing suppliers • Confusion on roles and responsibilities • Inefficient use of resources internally and externally
- 16. A Strategic approachto supplier rosters • Think of it in three levels or tiers: • StrategicPartners - those suppliersthat influence the development of marketing or communication strategy. • Specialist Service Providers - those specialists essential for strategy in their particular field. • General Service Providers - those suppliers of often commodity services. Strategic Partners Specialist Service Providers General Service Providers Tier 1 Tier 2 Tier 3
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- 18. We need tostart rejecting the centralize vs. decentralize debate, and realize that the answer is “both” Many CMOs seem to be channeling their inner Hamlet thesedays trying to figure how best to evolve theirmarketingfunctions. They ask themselves: to centralize or not to centralize. To have a marketing organization that does a better job of coordinating across units and gaining efficiencies in shared services. Or one that decentralizes marketing activities to the units where they can be closer to the customers and business unit priorities they are meant to support? « »
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- 21. “We’re a bunchof marketing islands, with our own language and ways of doing things.” « »
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- 23. Take away • CampaignCycle time: FAST at local level • Client side effort: HIGH • Corporate governance: LOW • Total Cost of solution: HIGH • Global campaign consistency: LOW • Branding consistency: LOW • Local context: HIGH • Technology: Non standard
- 24. COE (Center ofexcellence)
- 25. Take away • Heavydependent on a large amount of vendors at a local and regional level. • This model requires the hiring of specialized talent that will set the gears in motion for more advanced sourcing practices. • Two-fifths (42%) of respondents on a recent E-consultancy survey indicated that digital marketing resource team is currently structured in this way in their organisation, revealing a remarkably consistent overall picture
- 27. Hub and SpokeModel
- 28. Multiple Hub andSpoke Model
- 29. TAKE AWAY • This‘hub as strategy, spoke as execution’ concept allowed companies to reap the benefits of centralization, including improved governance, consistency, focus, scalability and leverage, whilst accommodating discrete or localized needs, and better dissemination of knowledge across the business.
- 30. “but there´s acatch… What is really needed for this model to work? ”
- 31. A Strategic approachto supplier rosters • Think of it in three levels or tiers: • StrategicPartners - those suppliersthat influence the development of marketing or communication strategy. • Specialist Service Providers - those specialists essential for strategy in their particular field. • General Service Providers - those suppliers of often commodity services. Strategic Partners Specialist Service Providers General Service Providers Tier 1 Tier 2 Tier 3
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- 36. Take away • 1.Governance and control. • 2. Focus, emphasis and clarity. • 3. Consistency, efficiency and scalability.
- 37. Dispersed COE (Center ofexcellence) Hub and Spoke ModelMultiple Hub and Spoke Model Fully integratedHoney Comb
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- 39. “I hope toone day execute our global marketing campaigns management as BAU.” .
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