Aligning an organization for omnichannel success through the implementation of a fool-proof omnichannel operation is no easy task. Omni-proofed means your business is able to provide the personal, seamless and connected experience that your consumers have come to expect.
The move toward omnichannel operations is influencing a major wave of change in the organization, and there are a wide variety of structures in place as companies struggle to meet the challenge.
We’ve been asking the wrong question
For years retailers and brands have debated the organizational structure of the ecommerce department.
With the explosion of consumer touch points and the move to omnichannel commerce, challenges are more complex than ever. Add mobile and social, and we have a Pandora’s box of questions and conflict around organizational structure.
Building a successful omnichannel organization requires a broader view of the traditional organizational chart, and a good understanding of your ‘current state.’ Organizations evolve over time and can be defined in three phases – Incubate, Expand and Integrate.
Incubate
Most organizations decide early on to keep ecommerce as a standalone department, and for good reason. It can serve as the only way to get the proper level of focus in a company traditionally oriented toward brick and mortar or wholesale.
The first priority for fostering a winning incubation stage is building a strong ecommerce organization.
Roles and titles can vary, but the team should always be supported at its core by individuals who can integrate tightly with other key areas of the business, such as merchandising and marketing.
Ecommerce talent is hard to find, but it’s important to create a team that mixes company knowledge with outside expertise and prior digital experience. Equally important to success is the ability to effectively leverage partners where it makes sense. Whether it be for social or mobile, or for specialty areas like testing and analytics, partners can greatly expand your skillsets and accelerate your progress.
The second priority is strengthening collaboration. This can be achieved through seeding the ecommerce team with ‘A’ players to build better credibility and understanding between teams. By dedicating the time and resources to define roles and responsibilities across teams, accountability becomes clear and work becomes more effectively streamlined.
The third and final priority for the incubate stage is educating and evangelizing. Retailers must integrate key web metrics into overall business reporting – comparing the metrics against other stores and business lines.
Regular communication on progress and results is critical. Educate the senior team about the direct and indirect impact that online has across the business and identify online growth as a major strategic initiative.
Expand
Organizations in the expand phase are learning how to plan across channels to drive better results in all areas. In this phase, the ecommerce organization has built credibility, and digital interactions are having an impact on traditional operations.
The first priority for winning in the expand phase is obtaining C-level sponsorship. This is key as re-affirming executive sponsorship changes the lens of how employees view the business. The ecommerce team must continue to educate and evangelize to help others see that omnichannel is a new way of doing business.
Second, recognize that change is hard, so start small and keep pushing forward. Digital technology is constantly changing how consumers shop and buy from you, so find the pockets of your organization that have a natural affinity for understanding the power of omnichannel and communicate with them to build momentum and support.
Lastly, focus on less talking and more measuring. Real change only happens at the day-to-day level with shared goals and commitments. Pilot a few programs with shared goals and publish the omnichannel results. Teach the organization about the added value of an omnichannel consumer.
Integrate
There is a point where an organization’s functions and structure reach a tipping point. Collective attention has shifted beyond just web sales, and the impact on overall business is significant.
Companies that have reached this phase already have a fairly successful omnichannel organization. They need to focus on continuous improvement, including a strong focus on innovation.
To measure improvement, establish and maintain an omnichannel dashboard. Expand the key omnichannel metrics you track across functional areas – it’s the only way to keep the proper focus and balance of resources.
Updating your omnichannel strategy regularly is critical. Taking the time to document and update your plan will help everyone understand how change will continue to impact your organization.
The last priority is staying on top of innovation. Thoughtful review of ‘what’s next’ and ‘what’s important’ with a small set of dedicated resources will help you anticipate how to make the necessary adjustments to the organization.
Make the most of your investment
In order to turn organization structure into an omnichannel silver bullet, the right level of skills, processes and collaboration must be in place to make the most of your company’s ‘people’ investment.
Some companies will spend years in one phase or another and be reasonably successful. However, the real winners are the organizations that are adequately integrated. Organization structures will vary, but they will all have strong linkages across functions in serving the omnichannel consumer.
Most importantly, leaders will understand not only how to paint the vision, but also how to drive accountability and execution. It’s the only way to survive and thrive long term in our connected world.
Monica Gout is the Client Success Leader at eBay Enterprise