Question

Topic: Career/Training

Org Structure For Parent Company & Subsidiary

Posted by marketgirl76 on 5/5/2013 at 8:26 AM ET 500 Points
Hi - After meeting last week on how many direct reports I have in marketing (my last question), we've decided the structure needs to change to allow me to focus and provide the most value.

Has anyone been involved with or have any advice on what a marketing department structure should look like for a parent company with 4 subsidiary companies? I work for the parent (and am the highest up in marketing). My team is all shared across all subsidiaries with different allocations. THere is only one subsidiary that has a dedicated marketing specialist. The thought was to appoint a marketing manager for that subsidiary, BUT I just feel this might not be the full answer as I still have 6 more people that are shared across all subsidiaries - so I'm still the first line manager for all of them. Should there be a marketing manager under me at the parent level or should I be trying to structure that there is a marketing manager for each subsidiary over time? It just still leaves the shared resources out there with me to assign their tasks and allocations and being accountable for questions etc. on a daily basis.

Appreciate any input. I have a planning meeting with our company owner this week and want to have some proposed structures to put in front of him. They are very open to hearing my proposal.
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RESPONSES

  • Posted on 5/5/2013 at 12:37 PM Accepted
    I think I might have one person specifically assigned to each of the subsidiaries, along with shared responsibilities for the group. The thinking is that they would become more deeply involved with a specific business unit and the unique circumstances/markets they each serve. As appropriate you can have the other two people take on specific marketing responsibilities that cross subsidiary lines -- perhaps internet/digital marketing, pricing strategy, sales support, etc. -- depending on their skills and interests.

    Ultimately you would migrate to having each of the subsidiary specialists managing one other person, and you would just have 4 direct reports -- the subsidiary specialists. Of course, initially (and during the transition) everyone would have to wear a few different hats so that short-term projects do not suffer ... and you will still have more direct reports than you want for several more months.

    This gives you a direction for reorganizing the marketing group. You may change the plan somewhat as you gain experience with this, but at least it will impose a logical structure on things and set the stage for you to free up some of your time to address the strategic issues and provide more concrete development guidance for your direct reports.
  • Posted by Peter (henna gaijin) on 5/5/2013 at 7:53 PM Accepted
    Certain positions do well focusing on markets or products. Others do well focusing on the skills they have to do their job. For example, marketing managers often focus on a group of products or specific business segment. They need to know the customers and how the products meet their needs. So if there is enough work to justify, you would have a marketing manager handle one or a few subsidiaries.

    But other areas, like marketing communications, would do well focusing on the skills of putting together literature and keeping the look and feel the same across subsidiaries (when appropriate) , so usually can be a corporate marketing function. Web manager may fall under this also, but social media may go back to subsidiaries (that knowledge of customers).

    How this all splits out depends on the type of work, amount of work, and specialization needed for each subsidiary. For example, while it may make sense to have a marketing manager for each product, if the subsidiaries don't have enough work, they may share a marketing manager among a few subsidiaries.
  • Posted by SteveByrneMarketing on 5/5/2013 at 9:35 PM Accepted
    Let's step back for just a moment.

    Did this organization start with the existing parent company? If yes, what products or services did/does it provide? For what target market(s)? What products or services do each of the four subsidiaries provide? For what target market(s)? ... etc etc and I could go on for several more pages, but you get the point. Where is your written plan for everything?

    There are hundreds of questions that should have been "asked and answered" during the business plan writing process many months/years ago, for the parent company, the subsidiaries/business units with strategy sections, marketing sections, the whole nine yards. Instead, you have posted multiple times on this forum asking for (overlapping) input without providing very many specifics for us to really match your "big picture" needs. You get some thoughtful but hypothetical and restricted advise that may or may not really be leading to a result, a plan.

    I suggest an alternative approach. Do some research (including reading the top expert's profiles here) and find the best marketing professional (as a right fit for you) to guide you through a comprehensive planning program. You will have much more success and satisfaction by doing it the right way as soon as possible.
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