CoEs VS. OpCos
The Big Corporate Marketing Dilemma
Maybe you’ve been here => You’re a part of a global marketing team tasked with unifying your brand’s message across multiple regions. HQ is buzzing with strategies but, on the ground, operating companies push back. They crave autonomy. Does this sound familiar?
The Challenge: Fractured Alignments
(Marketing) Centers of Excellence (CoEs) are crucial hubs of marketing expertise within a big company. They ensure brand consistency, best practice marketing tactics, and more across regions. However, they often clash with OpCos, which operate closest to consumers and demand flexibility in their approach,…
Opco’s can really think they’re special, more special than every other one thinking they’re more special than all of them…… haha ;)
… and all of them think they’re unique.
This tug-of-war will fracture strategic alignments, resulting in mixed messages, deviations, one-offs, that damage brand identity and hinder market penetration.
When support from a central CoE is perceived as a threat — due to fears of budget cuts or reduced authority — OpCos may resist collaboration. Been there seen it happen, not uncommon.
At all.
This friction prevents brands from presenting a unified front, leading to inefficiencies (and too many alignment meetings) that hurt global marketing strategies.
The Human Element
The impact is not just operational; it’s also emotional. The push to adopt centralized marketing strategies can make OpCos feel like they’re losing control. Imagine being asked to hand over a part of your budget for another team that’s gonna make choice for you. That causes resent, frustration, politics, delay, resistance. It’s gonna be breeding tension within teams and detracting from operational excellence in marketing.
Building a Strategy That Allows for Harmony
Can CoEs and OpCos align for strategic impact? Of course. It requires mutual understanding, effective communication, and a clear strategy:
Define Roles and Scope: Clearly outline the roles and specify the scope of initiatives. Ensure OpCos understand how leveraging a Marketing Center of Excellence can enhance their efforts rather than diminish them. If you’re in a CoE, it helps a lot to illustrate how you free up their time and resources to ultimately be more creative and effective.
Encourage Dialogue and Flexibility: Establish channels for OpCos to share local market insights. Empower them to influence CoE strategies to better fit consumer variances. This not only fosters collaboration but also ensures that local nuances are integrated into global strategies. It can also provide some spotlight for an Opco to shine in front of their peers.
Pilot Joint Projects: Start with small-scale joint projects to demonstrate tangible benefits. When OpCos experience enhanced outcomes, they are more inclined to buy into broader strategies. For instance, a pilot project could involve a CoE providing centralized support for a localized marketing campaign, showcasing how this collaboration can drive better results. It also can be both a bonus for an Opco, and a good test, learn, scale opportunity for the CoE.
Celebrate Shared Successes: Give credit for successes collaboratively. Celebrate achievements as a cohesive unit, reinforcing that collaboration amplifies individual and collective victories. This approach helps in building trust and aligning goals between CoEs and OpCos.
By providing a structured framework in which CoEs and OpCos co-create strategies, businesses can build a marketing symphony — a harmonious blend of global strategy and local insight. This approach addresses power dynamics and fears, setting the stage for growth and improved market penetration.
The Role of CoEs in Global Marketing
A Center of Excellence in Marketing is often a cross-functional team or unit within an organization that defines, implements, and maintains best practices, standards, and processes related to marketing.
The primary goal of a CoE is to ensure that marketing initiatives and direction are aligned with the organization’s overall strategy, improving marketing efficiency, insights, effectiveness, and ROI.
In the context of marketing in a global company, CoEs play a critical role in standardizing marketing processes and best practices across different regions. Without going for a one-size-fits-all approach.
This is crucial: A CoE, needs to make sure whatever it tries to roll out and bring to any opco allows for local context, cultural relevance, etc.
They’re a central hub for all marketing activities, platforms, data, insights and resources. They help to provide a clear understanding of the company’s overall marketing objectives, strategies, and KPIs.
Alignment with Operating Companies
Operating Companies, or Opco for short, are the frontline entities of a company that should guard local relevance and execute marketing strategies in their respective market(s).
They possess invaluable insights into consumer behavior, local preferences, and market dynamics. However, their (perceived level of) autonomy can sometimes lead to fragmented marketing efforts if not aligned with the central CoE.
To align CoEs with OpCos effectively, it is essential to create a culture of collaboration and mutual respect. Here are some strategies to achieve this:
Market Research and Adaptation: Conduct thorough market research to understand local market dynamics, cultural norms, and consumer preferences. This research should be shared between CoEs and OpCos to ensure that marketing strategies are tailored to meet both global and local needs. It also creates respect for the highly culturally influenced impact a market will show.
Flexible Marketing Mix: Develop a marketing mix that is flexible enough to accommodate local market conditions, locally relevant media, while maintaining the global brand’s core values and message. This could involve customizing products or adjusting marketing efforts to resonate with local customs and languages.
Continuous Feedback and Adaptation: Global marketing strategies are not one-time efforts; they require continuous adaptation and coordination. Excellence really should be synonymous with an iterative approach to continuously strive for: Excellence. Marketing managers have to stay informed about changing market conditions, emerging global vs local trends, and shifts in consumer preferences across different geographical locations. Regular feedback and input from OpCos is crucial here.
Real-World Examples
Several global brands have successfully harmonized their CoEs and OpCos to achieve remarkable marketing success:
Coca-Cola: Known for adapting its brand message to local tastes while maintaining its core values, Coca-Cola exemplifies how a consistent global brand strategy can be tailored to local markets.
Heineken: I was part of the HQ commercial department. It’s a prime example of how to think globally, act locally. In various areas of expertise, last mile for instance. Asia has a ton of local shops doing last mile delivery, while in Ireland this is pretty much irrelevant as 97% of all beer is consumer in the pub.
Issues That WILL Happen
The alignment between CoEs and OpCos isn’t without its challenges. Here are some points that are more likely to happen than not:
Centralization vs. Autonomy: A debate between centralized support and local autonomy is gonna be ongoing. While some will argue that centralized support ensures brand consistency and efficiency, others believe it stifles local creativity and adaptability.
Budget Allocation: Fear of budget cuts and reduced authority is a significant barrier to collaboration. Question for anyone in a situation like this: How can organizations ensure that the benefits of centralized support are clearly communicated and valued by OpCos?
Cultural Sensitivity: Adapting global marketing strategies to local cultures is crucial but also challenging. How are you going to ensure that your marketing efforts are culturally sensitive without losing the core brand message?
Challenge That is Sure to be a Great Experience
Harmonizing these Marketing Centers of Excellence with Operating Companies is a complex but for sure rewarding endeavor,…. even though there are gonna be plenty of moments you’ll catch yourself thinking: “What are we even doing this for?”.
By setting clear expectations, allowing for plenty dialogue and showing flexibility, celebrating shared successes, businesses can create a unified front that enhances brand identity and market penetration.
Overall you have to remember that a mutual understanding and effective communication are key here.
What are your experiences / challenges with this?
