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June 21, 2018
How insights departments could be better organized to meet changing needs of stakeholder groups through new organizational model
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Editor’s Intro: In a two-part series, Alexander Linder presents some key issues with the way many client insights departments are organized, and how he would recommend reorganizing these departments to achieve greater “stakeholder centricity” and greater effectiveness. The first part focused on key principles of his proposed reorganization. This second part presents details of how insights should be organized for the future.
Taking into consideration changing stakeholder expectations leads to the conclusion that a functional organization CI model is not ideal.
A functional organization is one where the individual pillars are topic driven, e.g. consumer insights, market insights and brand insights. This setup is very prone to a silo-working mentality.
Different alternatives have been developed, matching the classical insights areas with the new stakeholder expectations, with the aim to change from a functional to a process organization and with the ambition to improve the collaboration of the insights individuals.
After a careful evaluation of different options, opinion gathering and sparring, the organization model, as depicted in Figure 1, turned out to be the best fit option. In this approach, an insights organization is divided into three pillars, that look at insights from an end-to-end perspective and it is guided by the stakeholder management philosophy. These three pillars are introduced in the following section.
Figure 1: The new Intelligence Organization
Insights Generation is the heart of every insights organization and has to secure the availability of the right insights at the right time to ensure operational and strategic fact-based decision making by means of a balanced research agenda, consisting of primary and secondary research.
In addition, it is important that the right seats at the relevant tables are “earned” to secure the insights department’s involvement in the right discussions with the right stakeholders. In this context, it is crucial to have a clear understanding and roadmap, how the team-members can become true business partners acting with the stakeholders. Key tasks and responsibilities of insights generation include:
Insights Excellence and Best Practice is a guiding function for insights generation with an outlook focus. It is about raising the awareness of the best-practice approaches developed in the insights industry, ensuring that those are understood and can be applied where meaningful for the sake of efficiency gains. Core functions of Insights Excellence and Best Practice are:
Insights Activation and Dissemination plays a key role in 1) disseminating existing knowledge, making it accessible and transparent to the organization, 2) assisting key stakeholders in how best to act upon this existing knowledge as well as 3) connecting different insights. These are the focal points:
One challenge relates to departmental size and head-counts – that this type of CI organization can appear too big, with too many employees. Resolving this depends on the company-specific CI philosophy: if everything is done in-house, the challenge appears justified. However, if trusted external research agencies become partners, working in mid- to long-term collaboration rather than on limited ad hoc projects, whereby standard processes can be outsourced to the research agencies who act as the extended arm of the internal CI department, such partnerships allow client companies to keep their CI departmental structures relatively lean.
By adopting this new organizational model, companies can expect a range of improvements from the insights function. Here are the most important ones:
Disclaimer
The views, opinions, data, and methodologies expressed above are those of the contributor(s) and do not necessarily reflect or represent the official policies, positions, or beliefs of Greenbook.
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