Octagon Sports Organizational Structure and Strategy

Overview of Organizational Structure and Octagon's Mission

The most fundamental tool for establishing a successful organization is its organizational structure. Organizational structure refers to the hierarchical arrangement of lines of authority, rights, duties, and communications within an organization, defining how powers, roles, and responsibilities are assigned, coordinated, and controlled, and how information flows between the various levels of management. All these aspects are directed toward the attainment of an organization's aims and goals. An organization's structure depends on its core objectives and strategies. There are two broad categories of organizational structure: (i) centralized structure and (ii) decentralized structure. Within a centralized structure, top management owns most or all of the decision-making powers, as well as firm control over the organization's departments and divisions. In a decentralized organizational structure, decision-making power is distributed more broadly across the organization's divisions, and each department may possess a different degree of independence. This paper analyzes Octagon Sports' organizational structure by defining and examining its existing structure and modes of performance. Octagon is one of the global organizations piloted through a decentralized structured system.

Octagon is the sports and entertainment marketing arm of the Interpublic Group of Companies, Inc. (Octagon Worldwide, 2013). It is one of the world's pioneering marketing services and advertising agency organizations (Job, Woods & Howard, 2008). The organization holds recognition as one of the most powerful and dominant global sports marketing companies. Through its annual global marketing revenues, it generates in excess of $300 million (Staffa, Lewis, Braham & Griffins, 2011). The two principal divisions making up Octagon are Marketing and Athletes and Personalities. The Athletes and Personalities division is further separated into sport divisions, primarily handling event management and corporate sponsorships. According to Octagon Worldwide (2013), the aim of Octagon's athlete marketing department is to establish and maximize off-field corporate relationships with every client. The organization pursues its corporate opportunities tactfully and aggressively at regional, local, national, and international levels (Octagon Worldwide, 2013). Octagon's personnel develop a distinctive, individualized marketing plan for every customer; this strategic approach aids the organization in maximizing clients' earning capabilities throughout their playing and entertainment careers (Octagon Worldwide, 2013). Career enhancement is achievable through the provision of enjoyable off-field and community-related activities in which clients participate. Octagon's ultimate mission is to create new avenues for professional and personal fulfillment that provide both short-term and long-term opportunities enhancing the development of an individual's character and community life (Octagon Worldwide, 2013).

Octagon's core commitment is to combine the resources, power, and relationships of international sports organizations with the highest levels of personal attention and dedication to clients — a behavior commonly associated with traditional small firms. The organization strives to deliver the highest level of personal attention to its clients by offering them direct access to each staff member at all times (Staffa, Lewis, Braham & Griffins, 2011). While Octagon takes pride in negotiating over one million U.S. dollars in NFL and marketing contracts, it also takes pride in providing both quantity and quality of personal attention to each client's needs (Staffa, Lewis, Braham & Griffins, 2011). Ultimately, the organization's success is measured through the quality of the comprehensive relationships it maintains with its clients. This commitment to personal attention extends to any additional individual recommended for direct access to the organization's management. Only by maintaining control over the organization's size and scope of practice is it capable of delivering such guarantees for the length of a client's career, both on and off the field.

Octagon's main objective in public relations is to establish and maintain a favorable image, persona, and brand that can help leverage its marketing efforts on behalf of its clients (Octagon Worldwide, 2014). Octagon believes that establishing a strong public image for every client is a vital component of career development, both on and off the playing field. The first image is developed as a client performs on the field, and is subsequently reinforced by building a healthy relationship with the media and the public off-field. As an individual professionally grows within the NFL, Octagon strongly advocates assuming a leadership role within the community. Participation in community-driven programs and charitable foundations results in the most rewarding and satisfying experiences of a client's career. Through its decentralized structure, Octagon is committed to assisting its clients in developing and implementing programs that encourage an individualized realization of personal impact within the local community.

Through the success of its management and organizational strategies, Octagon celebrates its 31st anniversary as the world's principal sponsorship consulting practice, serving hundreds of corporate marketing clients and managing over 13,300 events annually. According to Staffa, Lewis, Braham & Griffins (2011), it manages and influences approximately $3 billion in sponsorship-related spending yearly, with approximately 1,000 employees globally. The organization's presence is particularly dominant across the Asia-Pacific region, pioneering athlete and personality management and representation, and working with over 800 athlete and personality clients.

References

Hoffer, C. W., Hunt, C., & Collins, W. (2009). Strategic approach to sports globalization. Journal of International Marketing, 12(1), 57–74.

Job, P., Woods, J., & Howard, C. (2008). Description of roles of sports agencies, operational and educational programs to prepare for a successful organizational and field performance. Journal of Sports and Entertainment, 45, 27–34.

Octagon Worldwide. (2013). Octagon executive biographies. Retrieved March 15, 2014, from

Octagon Worldwide. (2014). The Octagon announces strengthened senior management structure and new leadership appointments. The Octagon Sports Marketing, 9(4), 17–24.

Staffa, P., Lewis, D., Braham, G., & Griffins, W. (2011). The laws of returns under competitive sports conditions. Economic Journal, 36(2), 35–50.