Selecting an Org Structure for Marketing

1. Selecting an Org Structure for Marketing SELECTING AN ORG STRUCTURE FOR MARKETING HOW-TO GUIDE

2. 2 Selecting an Org Structure for Marketing How-to Guide Does your marketing department have a solid infrastructure? Do all of your company’s marketing professionals understand their role/function in the organization? Is the chain of command easily understood or only loosely communicated to marketing staff? Organizational (org) structures provide a framework within a company that ensures all employees are aware of their role and how they fit into the ecosystem of the business. Org structures present themselves on a spectrum anywhere from a traditional, top-down approach to more collaborative, flexible approaches. Org structures vary by company size, industry, and business needs. Ideally, each company will create its structure based on their specific requirements, and continue to update the org structure as changes occur, both internally and externally. As marketing departments become more complex, with new technologies and initiatives appearing all the time, it is important that Marketing builds and maintains an org structure that will enhance their current and future plans. This How-To Guide was designed to help you understand what the common org charts look like, the pros and cons of each structure, and how to select the best org structure for your company. HOW-TO GUIDE Selecting an Org Structure for Marketing 2 Selecting an Org Structure for Marketing How-to Guide Does your marketing department have a solid infrastructure? Do all of your company’s marketing professionals understand their role/function in the organization? Is the chain of command easily understood or only loosely communicated to marketing staff? Organizational (org) structures provide a framework within a company that ensures all employees are aware of their role and how they fit into the ecosystem of the business. Org structures present themselves on a spectrum anywhere from a traditional, top-down approach to more collaborative, flexible approaches. Org structures vary by company size, industry, and business needs. Ideally, each company will create its structure based on their specific requirements, and continue to update the org structure as changes occur, both internally and externally. As marketing departments become more complex, with new technologies and initiatives appearing all the time, it is important that Marketing builds and maintains an org structure that will enhance their current and future plans. This How-To Guide was designed to help you understand what the common org charts look like, the pros and cons of each structure, and how to select the best org structure for your company. HOW-TO GUIDE Selecting an Org Structure for Marketing

3. 3 Selecting an Org Structure for Marketing How-to Guide The most common org structures for a marketing department are Centralized, Marketing Services, Center of Excellence, Decentralized, and Circular. The five figures reviewed in this section do not show the entirety of each structure; however, they do provide a glance at how each structure is arranged. Here are graphics of five common marketing org charts: Common Organizational Structures FIGURE 1: CENTRALIZED ORG STRUCTURE FIGURE 2: MARKETING SERVICES ORG STRUCTURE CMO CEO VP, Demand Generation President, Business Unit A Budget Budget Budget Director, Content Marketing Director, Event Marketing VP, Strategic Communications President, Business Unit B VP, Customer Success President, Business Unit C Director, Customer Engagement VP, Marketing Ops and Finance Marketing Services HOW-TO GUIDE Selecting an Org Structure for Marketing 3 Selecting an Org Structure for Marketing How-to Guide The most common org structures for a marketing department are Centralized, Marketing Services, Center of Excellence, Decentralized, and Circular. The five figures reviewed in this section do not show the entirety of each structure; however, they do provide a glance at how each structure is arranged. Here are graphics of five common marketing org charts: Common Organizational Structures FIGURE 1: CENTRALIZED ORG STRUCTURE FIGURE 2: MARKETING SERVICES ORG STRUCTURE CMO CEO VP, Demand Generation President, Business Unit A Budget Budget Budget Director, Content Marketing Director, Event Marketing VP, Strategic Communications President, Business Unit B VP, Customer Success President, Business Unit C Director, Customer Engagement VP, Marketing Ops and Finance Marketing Services HOW-TO GUIDE Selecting an Org Structure for Marketing

4. 4 Selecting an Org Structure for Marketing How-to Guide FIGURE 3: CENTER OF EXCELLENCE ORG STRUCTURE FIGURE 4: DECENTRALIZED ORG STRUCTURE CEO Head of Corporate Comm and Marketing VP, Strategy and Branding President, Business Unit A VP, Marketing Programs - BU A President, Business Unit B VP, Marketing Programs - BU B President, Business Unit C VP, Marketing Programs - BU C CEO Business Unit Head A VP, Marketing Strat. and Programs - BU A Content Marketing Manager Content Marketing Manager Event Marketing Manager Creative Services Manager Business Unit Head B VP, Marketing Strat. and Programs - BU B Business Unit Head C VP, Marketing Strat. and Programs - BU C Event Marketing Manager HOW-TO GUIDE Selecting an Org Structure for Marketing 4 Selecting an Org Structure for Marketing How-to Guide FIGURE 3: CENTER OF EXCELLENCE ORG STRUCTURE FIGURE 4: DECENTRALIZED ORG STRUCTURE CEO Head of Corporate Comm and Marketing VP, Strategy and Branding President, Business Unit A VP, Marketing Programs - BU A President, Business Unit B VP, Marketing Programs - BU B President, Business Unit C VP, Marketing Programs - BU C CEO Business Unit Head A VP, Marketing Strat. and Programs - BU A Content Marketing Manager Content Marketing Manager Event Marketing Manager Creative Services Manager Business Unit Head B VP, Marketing Strat. and Programs - BU B Business Unit Head C VP, Marketing Strat. and Programs - BU C Event Marketing Manager HOW-TO GUIDE Selecting an Org Structure for Marketing

5. 5 Selecting an Org Structure for Marketing How-to Guide FIGURE 3: CIRCULAR ORG STRUCTURE CMO VP, Demand Gen Event Marketing Manager Customer Success Manager Marketing Ops Manager PR Manager VP, Customer Success VP, Strategic Comm VP, Marketing Ops and Finance HOW-TO GUIDE Selecting an Org Structure for Marketing 5 Selecting an Org Structure for Marketing How-to Guide FIGURE 3: CIRCULAR ORG STRUCTURE CMO VP, Demand Gen Event Marketing Manager Customer Success Manager Marketing Ops Manager PR Manager VP, Customer Success VP, Strategic Comm VP, Marketing Ops and Finance HOW-TO GUIDE Selecting an Org Structure for Marketing

6. 6 Selecting an Org Structure for Marketing How-to Guide Each org chart in the previous section has its own unique attributes. While each org structure has its pros, there are also cons that should be considered before implementation or restructuring. The following table details the key attributes, pros, and cons of each chart: Organizational Structure Descriptions Figure # Org. Structure Description Pros Cons Figure 1 Centralized Is the top-down approach traditionally used by mid-sized to large organ- izations. It relies on a singular, centralized marketing department that reports directly to the CMO/CEO. Provides an easily deciphered chain of command; Enables highly specialized job functions; Allows for continued growth as a company expands. Can create challenges with communication and adjustments to market changes if all departments are silo'ed. Figure 2 Marketing Services Marketing Services acts as an internal agency for all marketing activities and programs. This group obtains budget require- ments from each Business Unit (BU), and provides the Marketing function based on the requirements for each individual BU. This could be considered "internal outsourcing," BUs can be based on product, market segment, or geographic location. All marketing activities are executed and managed in the same "command center"; Can be easily scaled for growing companies; Remains cost effective with one main source of marketing activity. Marketing Services group does not control the budget; May be issues maintaining consistency across BUs. HOW-TO GUIDE Selecting an Org Structure for Marketing 6 Selecting an Org Structure for Marketing How-to Guide Each org chart in the previous section has its own unique attributes. While each org structure has its pros, there are also cons that should be considered before implementation or restructuring. The following table details the key attributes, pros, and cons of each chart: Organizational Structure Descriptions Figure # Org. Structure Description Pros Cons Figure 1 Centralized Is the top-down approach traditionally used by mid-sized to large organ- izations. It relies on a singular, centralized marketing department that reports directly to the CMO/CEO. Provides an easily deciphered chain of command; Enables highly specialized job functions; Allows for continued growth as a company expands. Can create challenges with communication and adjustments to market changes if all departments are silo'ed. Figure 2 Marketing Services Marketing Services acts as an internal agency for all marketing activities and programs. This group obtains budget require- ments from each Business Unit (BU), and provides the Marketing function based on the requirements for each individual BU. This could be considered "internal outsourcing," BUs can be based on product, market segment, or geographic location. All marketing activities are executed and managed in the same "command center"; Can be easily scaled for growing companies; Remains cost effective with one main source of marketing activity. Marketing Services group does not control the budget; May be issues maintaining consistency across BUs. HOW-TO GUIDE Selecting an Org Structure for Marketing

7. 7 Selecting an Org Structure for Marketing How-to Guide Figure # Org. Structure Description Pros Cons Figure 3 Center of Excellence Is similar to the Traditional model; however, the origanization is structured by Business Unit (BU). Busi- ness Units can be based on product division, market segment, or geographic location. In this model, the corporation (as a whole) maintains the strategy portion of Marketing, but the individual BU manages and monitors the unique programs and budget of Marketing. Provides a "command center" for Marketing strategy that is filtered down to each BU, which maintains some level of consistency across the entire company; Empowers each BU to market its product or its segment on their own with their unique knowledge. Can cause serious communication loss and transfer of know- ledge; Can provide each BU with too much autonomy and a chance to stray from the company's over- arching strategic goals. Figure 4 Decentralized Each Business Unit (BU) is responsible for Marketing in its entirety. Marketing strategy and programs are run by each BU. Allows each BU to utilize their knowledge of the specific division, market segment, or location to drive collat- eral and marketing programs that increase sales opps and closes. Creates a great deal of autonomy for each BU; Can cause an overlap in work if similar job roles are implemented to each BU to do similar programs. Figure 5 Circular Is a more organic organ- izational structure. It still provides a loose chain of command with the exec- utive/leader at the center; however, the ideology is that the exec/leader will "radiate" their vision and knowledge throughout the department. There are bands for each job level that indicate different levels of knowledge transfer and functionality. This model is typically seen in SMBs or start-up companies. Allows a free flow of knowledge and ideas throughout the organ- ization; Encourages constant communica- tion and collaboration. Employees may have a hard time deciphering their place in the organ- ization; immediate chain of command can be difficult to maintain. HOW-TO GUIDE Selecting an Org Structure for Marketing 7 Selecting an Org Structure for Marketing How-to Guide Figure # Org. Structure Description Pros Cons Figure 3 Center of Excellence Is similar to the Traditional model; however, the origanization is structured by Business Unit (BU). Busi- ness Units can be based on product division, market segment, or geographic location. In this model, the corporation (as a whole) maintains the strategy portion of Marketing, but the individual BU manages and monitors the unique programs and budget of Marketing. Provides a "command center" for Marketing strategy that is filtered down to each BU, which maintains some level of consistency across the entire company; Empowers each BU to market its product or its segment on their own with their unique knowledge. Can cause serious communication loss and transfer of know- ledge; Can provide each BU with too much autonomy and a chance to stray from the company's over- arching strategic goals. Figure 4 Decentralized Each Business Unit (BU) is responsible for Marketing in its entirety. Marketing strategy and programs are run by each BU. Allows each BU to utilize their knowledge of the specific division, market segment, or location to drive collat- eral and marketing programs that increase sales opps and closes. Creates a great deal of autonomy for each BU; Can cause an overlap in work if similar job roles are implemented to each BU to do similar programs. Figure 5 Circular Is a more organic organ- izational structure. It still provides a loose chain of command with the exec- utive/leader at the center; however, the ideology is that the exec/leader will "radiate" their vision and knowledge throughout the department. There are bands for each job level that indicate different levels of knowledge transfer and functionality. This model is typically seen in SMBs or start-up companies. Allows a free flow of knowledge and ideas throughout the organ- ization; Encourages constant communica- tion and collaboration. Employees may have a hard time deciphering their place in the organ- ization; immediate chain of command can be difficult to maintain. HOW-TO GUIDE Selecting an Org Structure for Marketing

8. 8 Selecting an Org Structure for Marketing How-to Guide HOW-TO GUIDE Selecting An Org Structure For Marketing Since there are so many ways that a company can organize their infrastructure, there are several characteristics each organization must consider in order to properly select the right org structure for their needs. As mentioned previously in this guide, an org structure must be specific to each company’s size, industry and business needs. Consider the following items when implementing an org structure or restructuring your company: The chain of command indicates exactly how an organization is structured from the top of the organization (i.e. CEO) all the way down to the bottom. A chain of command can be long (i.e. CEO to SVP to Director to Manager to Specialist) or short (i.e. CEO to Manager). It can also be rigid (see Figure 1) or loose (see Figure 5). How To Select The Right Org Structure Chain of Command SMB: The majority of small to mid-sized businesses will most likely see a short chain of command since there will be less employees than the standard Enterprise. SMBs should consider the benefits of both rigid and loose chains of command. A loose structure provides more flexibility with communication, reporting, and adding new roles. A more rigid structure will provide a solid backbone if your company is gearing up for rapid growth. Enterprise: Large corporations will typically have long chains of command as there tend to be more responsibilities that need to be covered. The majority of Enterprises will prefer a more rigid structure as well to ensure all employees are aware of their direct reports. 8 Selecting an Org Structure for Marketing How-to Guide HOW-TO GUIDE Selecting An Org Structure For Marketing Since there are so many ways that a company can organize their infrastructure, there are several characteristics each organization must consider in order to properly select the right org structure for their needs. As mentioned previously in this guide, an org structure must be specific to each company’s size, industry and business needs. Consider the following items when implementing an org structure or restructuring your company: The chain of command indicates exactly how an organization is structured from the top of the organization (i.e. CEO) all the way down to the bottom. A chain of command can be long (i.e. CEO to SVP to Director to Manager to Specialist) or short (i.e. CEO to Manager). It can also be rigid (see Figure 1) or loose (see Figure 5). How To Select The Right Org Structure Chain of Command SMB: The majority of small to mid-sized businesses will most likely see a short chain of command since there will be less employees than the standard Enterprise. SMBs should consider the benefits of both rigid and loose chains of command. A loose structure provides more flexibility with communication, reporting, and adding new roles. A more rigid structure will provide a solid backbone if your company is gearing up for rapid growth. Enterprise: Large corporations will typically have long chains of command as there tend to be more responsibilities that need to be covered. The majority of Enterprises will prefer a more rigid structure as well to ensure all employees are aware of their direct reports.

9. 9 Selecting an Org Structure for Marketing How-to Guide HOW-TO GUIDE Centralization Product/Market/Geographic Needs Single Product/Market/Location: Organizations that do not handle more than one of these should not concern themselves with this characteristic unless new products, markets, or geographic locations emerge. Multiple Products/Markets/Locations: Companies that handle more than one of these should consider Figure 2, Figure 3, and Figure 4 from the previous section. Each of these structures have their merits, and help multi-faceted organizations divide up responsibilities and knowledge in order to properly serve all customers. In order to determine how centralized your org structure needs to be, you will first need to under- stand where the decision-making power lies. A centralized org structure (Figure 1) indicates a main source of decision-making power, while a decentralized org structure (Figure 4) suggests that the decision-making power is spread out through different parts of the organization. Figures 2 and 3 show a combination of the two, with parts of Marketing being shared between a “command center” and other parts of the organization. Both SMBs and Enterprises may fall anywhere on the spectrum based on the number of business units required, the number of departments needed, and/or the specialization/formalization of job roles. Organizations that offer more than one product, serve more than one market segment or do busi- ness in more than one location (i.e. regions, countries, continents) must consider how marketing strategy and programs may differ for each product, market, and/or location. As your company grows, encounters internal changes, and/or sees developments in the market- place, you will need to re-evaluate your org structure to supplement business needs. An organ- ization’s marketing infrastructure can help or hinder business development, sales success, and customer engagement. Selecting An Org Structure For Marketing Organizational structures are a critical asset of any company. They promote an understanding of job role/function, a guide for how information should disseminated through the company and a framework for responsibility and reporting. Marketing departments are no exception to the need for an org structure. In fact, as more technologies and programs are introduced into the marketing space, it is imperative that Marketing considers how their functions are arranged and managed. CEOs, CMOs and marketing leaders should review the specific requirements of their businesses in order to properly structure the marketing function for productivity and growth. Bottom Line 9 Selecting an Org Structure for Marketing How-to Guide HOW-TO GUIDE Centralization Product/Market/Geographic Needs Single Product/Market/Location: Organizations that do not handle more than one of these should not concern themselves with this characteristic unless new products, markets, or geographic locations emerge. Multiple Products/Markets/Locations: Companies that handle more than one of these should consider Figure 2, Figure 3, and Figure 4 from the previous section. Each of these structures have their merits, and help multi-faceted organizations divide up responsibilities and knowledge in order to properly serve all customers. In order to determine how centralized your org structure needs to be, you will first need to under- stand where the decision-making power lies. A centralized org structure (Figure 1) indicates a main source of decision-making power, while a decentralized org structure (Figure 4) suggests that the decision-making power is spread out through different parts of the organization. Figures 2 and 3 show a combination of the two, with parts of Marketing being shared between a “command center” and other parts of the organization. Both SMBs and Enterprises may fall anywhere on the spectrum based on the number of business units required, the number of departments needed, and/or the specialization/formalization of job roles. Organizations that offer more than one product, serve more than one market segment or do busi- ness in more than one location (i.e. regions, countries, continents) must consider how marketing strategy and programs may differ for each product, market, and/or location. As your company grows, encounters internal changes, and/or sees developments in the market- place, you will need to re-evaluate your org structure to supplement business needs. An organ- ization’s marketing infrastructure can help or hinder business development, sales success, and customer engagement. Selecting An Org Structure For Marketing Organizational structures are a critical asset of any company. They promote an understanding of job role/function, a guide for how information should disseminated through the company and a framework for responsibility and reporting. Marketing departments are no exception to the need for an org structure. In fact, as more technologies and programs are introduced into the marketing space, it is imperative that Marketing considers how their functions are arranged and managed. CEOs, CMOs and marketing leaders should review the specific requirements of their businesses in order to properly structure the marketing function for productivity and growth. Bottom Line

10. . 10 Selecting an Org Structure for Marketing How-to Guide 1 2 3 4 Review Org Charts In Figures 1 To 5 Arrange Or Rebuild? Build Your New Org Chart Share Your Organizational Plans Review the org charts in Figures 1 to 5 and the corresponding descriptions. Identify which org chart is most closely oriented to your current structure. Action Plan STEP 1 - Review Org Charts In Figures 1 To 5 Study the Org Charts and Compare them to Your Business

11. . 11 Selecting an Org Structure for Marketing How-to Guide 1 2 3 4 Review Org Charts In Figures 1 To 5 Arrange Or Rebuild? Follow the guidelines in the “How to Select the Right Org Structure” section of this guide and relate it to the associated org charts above. Action Plan STEP 2 - Arrange Or Rebuild? Build Your New Org Chart Share Your Organizational Plans Plan the Adaptations or Rebuild of Your Infrastructure

12. . 12 Selecting an Org Structure for Marketing How-to Guide 1 2 3 4 Build Your New Org Chart Action Plan STEP 3 - Build Your New Org Chart Share Your Organizational Plans Use the Modern Marketing Department Structure Here Utilize our Modern Marketing Department Structure as a foundation to build your own organizational plan. V I E W R E S O U R C E Modern Marketing Department Structure Arrange Or Rebuild? Review Org Charts In Figures 1 To 5

13. . 13 Selecting an Org Structure for Marketing How-to Guide 1 2 3 4 Share Your Organizational Plans Share your organizational plans with key executives and begin to disseminate roles, functions, and responsibilities through your new channels of leadership and communication. Action Plan STEP 4 - Share Your Organizational Plans Build Your New Org Chart Set Responsibilities with Clear Plans and Communication Arrange Or Rebuild? Review Org Charts In Figures 1 To 5

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