Selecting the Right Competitive Intelligence Organizational Model
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Selecting the Intelligence Organizational Model Right Competitive By Clifford Kalb, C. Kalb & Associates Jan Herring, Herring & Associates EXECUTIVE SUMMARY Successful intelligence programs are designed to achieve their missions. This process begins by identifying the decision-maker’s needs (Key Intelligence Topics), followed by an assessment of the firm’s current intelligence concerning the intelligence unit’s location, the budgeting capabilities. The best intelligence system design will meet process, and the role of outsourcing. those needs, utilize the company’s current competitive intelligence capabilities, and fit the corporate culture. Ultimately this leads to choosing an appropriate THE VISION AND MISSION organizational model, and introducing it in a systematic Successful competitive intelligence programs virtually way. The selected model is far more likely to succeed in always begin by establishing a clear mission statement. In the long run when it establishes (preferably in the first world class organizations, this often derives from a vision year of operation) the three basic intelligence operations: expressed by the management champion or program information services, intelligence collection, and analysis sponsor concerning the intelligence function’s expected actionable that produces intelligence. role. In our corporate experience, we have been fortunate In our collective experience, any of eight proven to have such visions articulated by two chief executives: organizational models can be employed when applying this process. The choice of the “right” one depends on the outcome of rigorously conducted preliminary work. These As business begins to compete on a more global scale, models should be considered progressively applicable corporations, like national Governments, are going to to small, mid-size and large companies, and offer a need intelligence systems. Those who use the product framework for considering the unique circumstances of of intelligence will be better prepared to decide and each organization. In this article we describe and evaluate to act. the eight organizational models in the order of their Bob Galvin, Chairman, Motorola, Inc. increased size and complexity, and offer some concepts 22 www.scip.org Competitive Intelligence selecting the right CI model Business intelligence is the industrial equivalent Eight proven organizational models can fulfill this of military intelligence. As military commanders process. The choice of the “right” one depends on the are dependent on a constant flow of relevant and outcome of rigorously conducting this preliminary work. understandable intelligence to plot strategies and For the most part, these models can be progressively tactics, so too, do captains of industry need adequate applied to small, mid-size or large companies in the intelligence to achieve their commercial goals. In both sequences they are presented. They should be considered as cases, knowledge is not only an instrument of power, framework for evaluating the unique circumstances of each it is essential insurance against disaster. organization. Henri Lipmanowicz, President, Merck & Co., Inc. 1. THE INTELLIGENCE AD-HOC TEAM From these senior management visions, a mission This is the simplest of all models, and companies statement can be crafted to meet the expectations of and select it for a variety of reasons. Some managers simply do serve the entire management team. This sample corporate not believe they require a full-time competitive intelligence intelligence mission statement reflects these concepts. function, but from time to time they do need well- prepared intelligence products for strategic planning or Provide the CEO and senior managers with timely and key decision-making. This situation is more likely to occur appropriate intelligence upon which to make sound in small firms or business units which are a part of larger business decisions, develop effective strategies, and act corporations. with foresight by: Some companies purchase outside competitive intelligence related services on an on-going basis, but form an internal intelligence team to conduct special projects • Monitoring the competitive environment in which such as war games or strategic planning scenarios. Such the company operates. ad-hoc teams are created for the purpose of studying a • Gathering and analyzing information concerning specific issue or proving the value of having an intelligence strategic changes in that environment. function. They are not permanent and are often referred to • Forecasting future developments and assessing their as a task force or a committee. implications for the company. The skills and experience the team requires include an understanding of the user’s perspective, subject matter expertise, intelligence process knowledge, information Successful programs are expressly designed to source and research expertise, human source collection, achieve their missions. This begins by identifying the analysis and production capability, and business and decision-makers’ needs (Key Intelligence Topics), and is competitive assessment experience. The number of followed by a survey of the company’s current intelligence individuals needed to provide these skills and experience capabilities. The proposed intelligence system design varies for each project, and the required skills often reside will best meet those needs, utilize the company’s current in various team members rather than in one individual (see competitive intelligence capabilities, and fit the corporate Figure 1). culture. Finally, this leads to choosing an appropriate organizational model, which can then be introduced The Intelligence Ad-Hoc Team model usually through a systematic and phased development. The produces good analytical results, is a time-effective use of selected model is far more likely to succeed if it establishes resources, and can develop pragmatic recommendations. within the function’s first year these three basic intelligence It may work particularly well in small organizations or operations: business units. However, this team often lacks the ability to produce intelligence insight or foreknowledge, may lose its intelligence focus, has no means for creating an 1. information services institutional memory, and offers no central knowledge 2. intelligence collection repository for capturing outcomes. This model also cannot 3. analysis that produces actionable intelligence provide an early warning capability. While it is certainly not an ideal model, it is an option that can be considered. Volume 15 • Number 1 • January/March 2012 www.scip.org 23 selecting the right CI model Figure 1: The intelligence ad-hoc team model. 2. THE PROCESS MANAGER – THE SINGLE manager, president or CEO so work can focus on the key PERSON OPERATION intelligence topics (KITs) of the highest corporate priority The second model is quite common and can be and operate under the authority of senior management. found at all levels throughout companies, such as This solo practitioner serves as the competitive department, division or strategic business units and even intelligence director, managing all phases of the in the corporate offices. This model primarily employs intelligence cycle through the assistance of others, both a single full-time intelligence professional. The key here internal or external. The director oversees all aspects of is to have this individual report directly to a general the intelligence cycle, and functions almost like the leader Needs Director of Intelligence Planning & Direction Decisions-Makers Library and Other Users Information Services INTELLIGENCE PROCESS Collection Dissemination Human-Sources Direct/Shared Internal/External Analysis Individuals and Ad Hoc Teams Figure 2: The process manager model 24 www.scip.org Competitive Intelligence selecting the right CI model of an orchestra (see Figure 2). All necessary resources 3. THE BASIC INTELLIGENCE SYSTEM –TWO are directed through the logical steps in the process to MINDS AND A LIBRARY ensure thorough and rigorous work. The results of these This model takes a step up and employs two full-time intelligence projects focus on decision-making through intelligence professionals who depend on a library, either their direct link to clearly defined KITs. inside or outside the company (see Figure 3). Intelligence This Process Manager Model has its own weaknesses users or “consumers” provide direction and set priorities as well. It generally only works when there is a limited for the intelligence work. Well-defined client needs (KITs) number of projects, is weak on providing early warning, are first addressed via secondary source research. Then the and does not serve to institutionalize intelligence human source collector, a primary research professional knowledge well. While this model’s output generally meets who gathers intelligence from employees and from select management needs, in most cases solo operators eventually individuals outside the company, expands the search. The fail, usually due to limited time and resources or a lack of gathered intelligence is then either reported to those in required skills andexperience. the organization who requested it or given to a dedicated and trained intelligence analyst who combines the findings In addition, senior management may view the then prepares and delivers intelligence assessments, alerts, intelligence director’s ability to manage an important briefings or reports to management and other decision- project as a test of leadership skills