Poll: What is the Most Effective Organization Structure for the IP Function?

Creating the right organization is a critical part of a successful IP function. While companies may have long-established structures, some are re-evaluating what the best organizational model should be in order to meet their company’s IP needs and objectives.

In this week’s poll (x=237) we asked our IP professional benchmark group their thoughts on the most effective organization structure for the IP function. Interestingly, the results were almost equally split between a “centralized” approach (55%), and some variation of IP being located within the business (45%).. For those not centrally located, 27% reported a “hybrid” model, while the remainder worked either entirely within the business (10%) or regionally (8%)

Designing and implementing the right organization considers the reporting structures as well as the staff’s physical location. While there can be a myriad of factors that drive such decisions, our sense is that companies are looking for ways to achieve better business alignment while simultaneously optimizing work efficiency. The more progressive approach includes some aspects of the hybrid model.

In this approach, professional staff are located within the business where the can work directly with the client. While IP Ops and Admin, on the other hand, are centralized. This allows not only better staff efficiency, but also helps establish standards and derive higher work quality.

Ultimately a company must weigh all their factors, and will often have to consider existing company-wide requirements that may require compromise and a fair amount of ingenuity.