Why Reporting Lines Matter: Direct or Indirect Reporting Lines?
This is an issue that has come up several times in my career. Which is better or how do you make both reporting lines work? To start with let’s be clear that the structure of reporting lines can significantly impact the effectiveness of every aspect of your public affairs work, strategy execution, and overall outcomes. I want to delve into the pros and cons of both direct and indirect reporting lines and share my views on this;
Benefits of Direct Reporting Lines:
- Clarity and Efficiency: Direct reporting lines establish a clear chain of command and cascade, reduce ambiguity and streamlining decision-making processes in the PA function.
- Ownership of Resources: If the resources report to you then you have the final decisions over what happens to them or how they are deployed.
- Real Public Affairs Team: With direct reporting lines you can create a fully-fledged Public Affairs team / community that you are responsible for.
Challenges of Direct Reporting Lines:
- Risk of Silos: You can silo yourself away from the core business.
- Lack of Commercial Buy-In: By removing local commercial reporting lines you can disengage your (often) key internal stakeholders with whom you need to be close.
- Responsibility: Be careful what you wish for. If the organization decides to reduce HC by 30% everywhere you are now included.
Benefits of Indirect Reporting Lines:
- Enhanced Collaboration: Indirect reporting structures promote cross-functional collaboration, especially when this means local commercial (GM) reporting lines.
- Local vs. Central: Local reporting lines can foster more local ownership and engagement.
Challenges of Indirect Reporting Lines:
- Potential for Communication Breakdowns: Without a clear chain of command, miscommunication and misunderstandings may arise, leading to inefficiencies and missed opportunities (setting objectives / priorities / appraisals etc.).
- Decision-Making Challenges: In complex situations, the lack of a defined reporting structure can make it difficult to reach consensus or make timely decisions.
- Public Affairs secondary: Without direct reporting lines, accountability of local PA teams is to their local GM / market which may cause tensions or ‘going local’ phenomenon.
So, which is better? To be honest I think there is not a one-size-fits-all answer to this question. I have seen extremely high-performing Public Affairs functions in matrix organizations with dotted line reporting. I have also seen direct reporting lines lead to Public Affairs drifting away from an organization. I think it is important to carefully weigh the trade-offs and consider factors such as culture, goals, and the external environment an organization is facing. Success here lies in how you make both of them work – which is through a balance between reporting lines, alignment and linkages to the commercial business, access to resources and buy-in / support from and with senior management. Get these right and no one will notice the reporting lines.
