In today’s rapidly changing business landscape, organizations are constantly seeking ways to stay ahead of the competition and drive innovation. One approach that has gained prominence is to leverage a Center of Excellence (CoE) to structure cross-functional initiatives. A CoE is a dedicated entity within an organization that focuses on developing expertise, best practices, and innovation in a specific area or domain. Designing and launching a Center of Excellence (CoE) comes with its own set of challenges, but the benefits it offers can be transformational for the organization. In this blog, we explore these challenges and the remarkable benefits that await those embarking on this journey. 

Challenges in Designing and Launching a Center of Excellence for Change Leaders  

1. Define the Scope and Focus: One of the initial challenges faced by clients is defining the scope and focus of the CoE. Selecting the right domain or function that aligns with the organization’s strategic goals and offers the most significant potential for improvement is crucial. A company may launch a CoE to support “all change initiatives;” however, without prioritization, it becomes overwhelmed and unable to effectively support any single initiative.  
2. Establish Resource Allocation: Allocating resources, including budget, talent, and infrastructure, is a critical challenge. The CoE requires skilled professionals, technology tools, and ongoing investments to drive excellence. High-potential change professionals are tapped to work in the CoE, but their managers are reluctant to release them for cross-functional work, creating staffing gaps.  
3. Ensure Cultural Integration: Integrating the CoE’s expertise into the existing organizational culture can be challenging. Resistance to change and siloed mindsets may hinder the CoE’s ability to collaborate and influence across departments. The CoE provides best practice playbooks, but some business units may prefer “the way we’ve always done it,” ignoring centralized guidance.  
4. Gather Leadership Buy-In and Support: Gaining leadership buy-in and support is essential for the success of the CoE. Convincing leaders of the long-term benefits and demonstrating a clear return on investment, however, can be a hurdle as after the initial approval, executive sponsors may rarely attend steering committee meetings or advocate for the CoE across the business.  
5. Focus on Change Management and Adoption: Implementing a CoE necessitates change in processes and work methods. Change management efforts are essential to ensure smooth adoption and minimize resistance. Teams receiving CoE support may perceive it as added work rather than support because they aren’t trained in its tools or methods.  

Benefits of Designing and Launching a Center of Excellence 

There are a number of benefits that come from launching a Center of Excellence, including: 

1. Enhanced Efficiency and Productivity: The CoE optimizes processes and shares best practices across the organization. This leads to increased efficiency, reduced redundancy, and improved overall productivity.  
2. Strategic Alignment: By aligning the CoE’s focus with the organization’s strategic goals, clients benefit from targeted efforts that directly impact the bottom line and long-term success.  
3. Cross-Functional Collaboration: The CoE facilitates cross-functional collaboration by breaking down silos, promoting knowledge sharing, and fostering an environment for innovative thinking. It creates a unified platform for departments to work together towards common objectives.  
4. Talent Development and Retention: The CoE attracts top talent due to its reputation as a center of expertise. Employees value the opportunity to grow professionally within a knowledge-rich environment, leading to increased retention.  
5. Informed Decision-Making: The insights generated by the CoE provide data-driven decision-making for leadership. Well-informed decisions are crucial for steering the organization in the right direction.  

Final Thoughts 

At the end of the day, designing and launching a CoE requires overcoming several challenges, but the benefits it offers are unparalleled. From harnessing expertise and fostering innovation to driving cross-functional collaboration and strategic alignment, a CoE can be the catalyst for transformative change within an organization.  

By addressing the challenges proactively and leveraging the many benefits, organizations thrive in an increasingly competitive landscape. Discover how Clarkston Consulting’s Strategic Innovation Consulting Services can help your organization design and launch a successful Center of Excellence.