Does Reporting Structure Matter?

Reporting Structure . . . a topic that leads to people pulling their hair out and banging their heads against walls.

It's the thing that often makes zero sense, changes regularly, and negatively impacts success of the function, even unintentionally.

The misalignment factor

I've seen it all - I think. Let's test out that theory. What's seen most often?

• Internal Comms. reports to HR,
• PR reports to Marketing,
• Executive Comms. doesn't exist - it's being handled by Executive Admins,
• Public/Government Affairs reports to Legal.
• Investor Relations reports to Finance.
• Corporate Citizenship or Community Relations . . . ha! That's not a thing (not REALLY)! It's handled as a "side job" by someone with no experience but "has a passion for it."

The buried factor

Then there's the times the Communications functions are buried below a function that doesn't understand a function. Follow me?

• Internal Comms. reports to an HR director who reports to the CHRO who reports to the COO who report to the CEO.
• PR reports to the director of marketing who reports to the CMO who reports to the Head of Strategy who reports to the CEO.

Are your heads meeting your desks yet? Are you pulling your hair out in frustration.

Hang in there.

We haven't even gotten to the centralized vs. embedded communications structures yet! I think I'll save you all and just share it in my next email. (Shameless plug: Sign up at https://taramcdonagh.com/levelup if you want in on that.).

Centralized structures

Am I a fan of centralized reporting structures? Yes. Absolutely.

But there are stages where it doesn't make sense to have a centralized structure ... yet. It often depends on a few factors including size of the business, level of autonomy to operate independent of the "parent" function, and level of connection between the various functions (do PR and Internal Comm already work together well?).

Earlier stage companies and teams with leaders that offer a good volume of autonomy can often work just fine as decentralized functions.

But one thing is certain. Buried communications functions never work. The company at this stage is often cheaping out and looking for order-takers not business advisors. This is why when you're looking for a job in Communications - reporting structure is one of the top questions everyone asks. It tells you a ton.

Unfortunately, Communications functions often shift around from group to group and never really find a "home" until they are centralized under a Corporate Communications or Corporate Affairs (depending on what you call it) leader who is well versed in the various aspects of Communications and can lead the function with a seat WITHIN the executive team.

THAT is when the business, including the CEO, truly experiences the full value of the Communications function.

Some of you might balk at this assessment. You might say to yourself, it would never work at your business. But are you questioning the alignment of the function or the humans involved? Because I'm guessing most of you see the benefit of a central, connected function, but you are looking at the people in your organization and thinking, "I'd NEVER want to work with/for/in the same team with THAT person."

Let's play a game here - if you could pick your leader - maybe someone new to your organization who's already amazing in the field already - or maybe it's YOU - then, you'd LOVE to centralize. It's true. Because you know the benefits are there, it's just human ego and bad behaviors that are getting in the way.

Answer the question!

Ok, I can hear you yelling now, "Answer the question already!"

Does reporting structure matter? It's complicated.

The short answer is: Yes, but different structures CAN work under many different circumstances.

Is there an ideal to aspire to? Absolutely.

But here's the most important takeaway for everyone reading. Don't let reporting structure get in the way of your continued advocacy for yourself, your team, your business, and this field. Don't let it stop you from continuing to do the right thing. Push to be in the rooms you need to be in. Point out what's missing and how it could be fixed.

It's not an opportunity to throw up your hands and say it doesn't work! It's an opportunity to use those hands to mold and shape the system that would work. Put your influence and education skills to work. And if you don't know how to do this, or where to even start, then get help with it. This is what many consultants and coaches do in this field, including me.

Episode 15: Does Reporting Structure Matter?

In this episode of the Communications Business Advisor? podcast, host Tara McDonagh explores the complexities of reporting structures within organizations and their impact on the effectiveness of communications professionals. Dive into the debate about where communications should fit within a company's hierarchy and the potential challenges and opportunities that arise from different reporting scenarios.

Tara delves into:

• Why centralized communications structures may benefit some organizations more than others.
• How reporting to different departments like HR, Marketing, or Finance affects the role of a communications leader.
• The unique challenges faced by communications leaders in advocating for their role and resources.
• Real-life examples illustrating the critical decision-making and crisis-prevention roles that communications professionals play.
• How the undervaluation of communications can sometimes lead to missed opportunities for strategic business advice.

Packed with Tara’s candid insights, this episode encourages communications leaders to advocate for their field despite the hurdles posed by misunderstood reporting structures.?

For more insights and tips on communications-related topics, sign up for Tara’s Level Up: Be Extra newsletter at taramcdonagh.com/levelup.

If you enjoyed this episode, please share a rating or review. It helps others discover our podcast and join the movement to elevate the communications profession.

Listen to Episode 15: Does Reporting Structure Matter?

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Tara McDonagh is a Communications as Business Advisor? activist, advisor to Fortune 500 communications leaders and their teams, and Founder of Raise the Tide? for women in Comms. She helps Comms. teams elevate their reputations as critical advisors while elevating our profession and the people in it. Visit: www.taramcdonagh.com