Communication Department Organizational Design

1. IABC 2010 World Conference: Session T 7 – Tuesday, June 8th 2010 Communication Department Organizational Design Preliminary Findings from an International Study FUNDED BY:

2. Communication Department Organizational Design StudyTeam Members • Krishnamurthy Sriramesh Ph.D. / New Zealand - is professor of public relations in the School of Business at Massey University • Fraser Likely M.A. / Canada - is president and managing partner of Likely Communication Strategies Ltd.  • Maria Aparecida Ferrari Ph.D. / Brazil - is associate professor of public relations, advertising and tourism at Methodist University • Bert Regeer / Netherlands - is vice president of communications planning, operations and CI for Shell International B.V. • Danny Moss Ph.D. / United Kingdom - is Bank of America professor of corporate and public affairs at the University of Chester

3. Communication Department Organizational Design StudyStudy Objectives • To identify the factors that influence communication department structure. • To identify the communication department structural models that seem to work effectively in light of these factors. • To identify if there is a link between communication department structural models and the type of organization, the size of the organization, an organization’s culture and/or the organization’s geographic location.

4. Communication Department Organizational Design StudyStudyDesign - Methodology • Literature Review • Executive Interviews • On-line Survey • http://formicweb.chester.ac.uk/webforms/?TAG=IABCinternational

5. Communication Department Organizational Design StudyLiterature Review: Preliminary Findings • The literature review draws on works from across a range of disciplinary fields, including: • Organizational Behaviour • Organizational Strategy • Management • Communications and Public Relations • Very limited attention has been paid to the role of the communication function in the literature on organizational structure. • Much of the thinking about structural design has taken a static snap shot view rather than examining structural change over time.

6. Communication Department Organizational Design StudyLiterature Review: Preliminary Findings

7. Communication Department Organizational Design StudyLiterature Review: Preliminary Findings • The topics of organizational and communication departmental structure have received very limited coverage within the academic and practitioner communication/public relations literatures. • Excellence Study • Subsequently, there has been little research on the range of new thinking about organizational structures and their relation to communication function structure within the communication/public relations literature.

8. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Executive Interviews • Over 25 interviews have been completed with communication department CCOs, from profit and non-profit organizations. • CCOs are from organizations that have their headquarters in various locales around the globe, with all 5 continents represented. • CCOs are from a diverse group of organizations that work in a great variety of business and non-profit sectors. • CCOs were chosen by reference, forming a convenience sample - chosen based on factors such as participant accessibility, availability and willingness to participate as well as location.

9. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: Which communication sub-functions report to you? Directly? Functionally?

10. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: Which communication sub-functions report to you? Directly? Functionally? • For approximately 50% of the organizations studied, all functions reported directly. • In 25% of the cases, communication functions located in business units, regions and/or internationally reported functionally. • In another 25% of cases, communication functions located in business units, regions and/or internationally did not report directly or functionally, but were independent.

11. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: To whom do you report? Where does that person rank in the organizational hierarchy?

12. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: To whom do you report? Where does that person rank in the organizational hierarchy? • Approximately 70% report right at the top • 25% report to an executive who reports to the top person • 5% report to a manager who reports to an executive who reports to the top person

13. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: How does the organizational structure for the communication department relate to the organizational structure for the organization itself?

14. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: How does the organizational structure for the communication department relate to the organizational structure for the organization itself? • Parallels the structure more or less exactly: 65% • Entirely different structure: 30% • Hybrid, some parallels some different aspects:5%

15. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: What factors do you think have the greatest influence on the communication function and structure in your organization?

16. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: What factors do you think have the greatest influence on the communication function and structure in your organization? • CEO/executive team influence: 45% • External environmental factors: 23% • Type of business/strategy of business we are in: 13% • Organization’s financial situation: 10% • Staff capabilities/competencies: 9%

17. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: What was the rationale for your current communication structure?

18. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: What was the rationale for your current communication structure? • Changes brought on relatively soon when new CCO hired • Changes enacted by CCO over time • Upsizing/downsizing changes in the organization • CEO direction • To have Communication more closely mirror organization & its business • Reaction to external environmental factors

19. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: How much of the communications work do you do in-house and how much of it is done by consultants, if at all?

20. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: How much of the communications work do you do in-house and how much of it is done by consultants, if at all? Communication work performed in-house: • 90% + in-house 30% of respondents • 80 - 90% 15% • 70 - 80% 5% • 60 - 70% 15% • 50 - 60% 15% • Less than 50% 20%

21. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: In what way does the structure of the department help to make the PR/C department a high performing one?

22. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: In what way does the structure of the department help to make the PR/C department a high performing one? • Its flexibility, allowing communication support at all levels: corporate; business line; and region. • It enables good communication and information exchange across the whole communication function. • It supports good and/or standardized management and professional practices across the function. • It overcomes the barriers of an organizational structure that is in silos, thus fostering organizational integration.

23. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: What are the major trends relating to communication department structure?

24. Communication Department Organizational Design StudyExecutive Interviews: Preliminary Findings • Interview Question: What are the major trends relating to communication department structure? • Structures that support staffing flexibility to move people between units and teams • Structures that support communication as one integrated function, with clear direct and functional reporting lines that cross the organizational structure • Structures that support flexibility in staffing, to add and subtract human resources as the need arises.

25. Communication Department Organizational Design StudyOn-line Survey: • URL: http://formicweb.chester.ac.uk/webforms/?TAG=IABCinternational Thank you!