This post is about the global impact of digital marketing, more specifically from an organizational structure point of view. When embracing digital marketing organizations are faced with the challenge of centralizing to ensure control, consistency, and economies of scale or delegating at the local level to offer a better-tailored consumer experience, which is best. After reading this post, you will be able to identify the best governance styles for your organisation discuss various techniques to enhance the effectiveness of your digital marketing team.
But let’s first look at the governance style found in organizations. Governance styles, governance styles, what are your current marketing teams to capture? At lower maturity levels? We often see a centralized approach while the most frequent structure for the more mature organizations is the hub and spoke model. Organizing for digital also needs to fit the way your company’s structured.
Think about shared matcher functions like HR Finance and they are decentralized distributed. Maybe it’s a mix. We usually see a progression in the global impact of digital marketing where digital starts from the edge of an organization as opposed to a top-down CMO or CEO mandate that is characterized by limited point-to-point connections between groups involved in digital marketing campaigns but without a single team acting as the center of gravity for digital business practice. Over time, many organizations begin with an ad hoc structure often due to the lack of senior leaders accountable for digital media then migrate to a centralized model to control organic growth, which might have the undesired side effect of over control, a slower pace, and Rogue initiatives and finally to a hub and spoke model. Once an enterprise-level strategy and governance system is in place that gives spokes autonomy to apply digital to their area. A company culture that is risk-averse, such as financial services and healthcare is more likely to be organized. As a centralized group, while organizations more accepting of risk are willing to organize around the oven spoke model, which grants autonomy to business units and functions. Even in the case of risk-averse mutations, we see an eventual migration to Hub and Spoke but it takes time to build governance practice. Even after considering these factors, know that your structure will likely evolve over time as your digital business measure and confidence to grant autonomy to departments outside the digital team grows.
The centralized approach often revolved around what is called a center of excellence.
Digital Marketing Center of Excellence: Evolution
A digital marketing Centre of Excellence is an organizational design approach that maximizes the potential opportunities of digital media and technology to meet marketing goals, encourage adoption of best practices, educate business stakeholders, and provide technology and insight across the organization.
1. Introduction to Standard Governance Processes
Initially, in the first stage, the team aims to define overarching guidelines by establishing fundamental policies like campaign management, rules, and guidelines, measurement standards true key performance indicators, or KPIs for short. Defined basic procedures for handling trouble tickets or requesting analysis help and implement the initial governance process.
2. Product and Test Infrastructure Utility
In the second phase of the digital marketing Centre of Excellence evolution, they will act as a product and test infrastructure utility. The Centre of Excellence will work as a shared service. Their goal is to console the cost and procurement they want to set up to maintaining the enabling capabilities of marketing. The team will aim to achieve training and certification.
3. Service Utility
In the third phase, the group will act as a central source of service and expertise for the entire organization. This includes domain-specific expertise, shared services teams for specialized activities.
4. Innovation Authority and Flexible Resource Pool
Finally, in the fourth phase, the group will act as an innovation authority and flexible resource pool. The Centre of Excellence functions as a service to business teams. They offer resources, methodologies, tools, expertise, governance, and cross-functional analytics expertise. Obviously, throughout those phases Change management is critical and onboarding members from the extended team is essential. One governance aspect touches on the breakdown of tasks related to campaigns.
So in this case, the approach was that a newly appointed VP of Marketing gave them some time to come up with their recommended KPIs and requirements. Seeing that it wasn’t really working and going anywhere, the manager eventually. They have lost their executive sponsor their champion.
Best Practice Example: Red Bull
As we see in this example, the concept of global versus slow coal is a matter of scale. In fact, we should talk about the centralized versus decentralized approach. Red Bull would certainly be an excellent choice. Red Bull is actually no Austrian company. The way to do it is one of their most successful tactics is to host extreme sports events all over the world from the Red Bull Indianapolis grumpy to the Red Bull hair race in the United Kingdom or the Red Bull Crashed Ice in Quebec City.Red Bull would probably not exist if it wasn’t for the digital economy, social media digital marketing, in fact, is Red Bull, really an energy drink company or an extreme sports promoter or a media company?
key Points of the Global Impact of Digital Marketing
The two main points to remember about the Global Impact of Digital Marketing are the following. What it is best to have a global digital marketing approach or a local one is largely determined by the size, type, and culture of the organization. Organizing around a center of excellence defining your marketing activity taxonomy and building a racy matrix of tasks roles and responsibilities. are some strategies to foster the effectiveness and collaboration of your digital marketing team.