Evolving Your RPA Strategy: When to Transition From Centralized to Federated CoE

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• Why Transition From Centralized to Federated CoE?
• Approach to Transition to a Federated CoE
• In Conclusion

In the fast-paced world of robotic process automation (RPA), organizations must continually refine their automation strategies to achieve scalability, efficiency, innovation and agility. For businesses already on their automation journey — particularly those experiencing growth or looking to empower individual business units — the decision to keep a centralized Center of Excellence (CoE) or transition to a federated CoE is crucial.

If you’re at a stage where your centralized approach is starting to show limitations or if your business units are seeking more autonomy, here you’ll find:

• An understanding of the strengths and weaknesses of both centralized and federated CoE models
• Learn when and why a transition might be beneficial
• Discover a clear approach to making the shift effectively

We’ll explore key considerations and strategic steps to ensure your organization’s automation strategy is resilient and primed for future success.

Key concepts

CoE’s role: A Center of Excellence (CoE) is the team and processes that oversee and manage automated projects, guiding them from initial planning and pipeline development through to deployment and ongoing operation.

Centralized CoE model: In a centralized CoE model, a single team is responsible for the development, implementation and establishment of best practices for automation programs across all departments or business units. This model represents a more traditional approach to building an automation program.

Federated CoE model: In a federated (or decentralized) CoE model, multiple teams are responsible for managing and developing the automation program. Each team assumes responsibility for decision-making and the enforcement of best practices within their respective department or business unit.

Why Transition From Centralized to Federated CoE?

Many organizations benefit from initially adopting a centralized CoE setup because it’s easier to support and it involves a single, dedicated team responsible for governing and keeping all aspects of RPA across the organization. This model offers consistency and control.

However, as organizations scale or business units seek greater autonomy, they could benefit from transitioning to a federated CoE. Decentralizing RPA governance will empower business units or departments to take greater ownership of their automation initiatives.

Benefits of moving to a federated CoE model:

• Scalability: As RPA implementations expand in scope and complexity, a federated CoE enhances scalability by distributing governance responsibilities across multiple teams. This allows for more tailored support for each business unit, fostering growth and adaptability across the organization.
• Business alignment: With closer alignment between RPA initiatives and specific business needs, business units can take greater ownership and accountability, as their unique requirements, priorities and processes are better catered to.
• Agility and innovation: A federated CoE model promotes agility by decentralizing decision-making and encouraging local experimentation and optimization. Empowering business units to drive their own RPA initiatives leads to faster decisions, more experimentation and increased innovation.

Approach to Transition to a Federated CoE

• Readiness assessment: Evaluate the current state of RPA governance, centralized CoE capabilities and the preparedness of business units to take on greater automation responsibilities.
• Stakeholder engagement: Engage key stakeholders — including senior leadership, business unit leaders, RPA teams and IT departments — to secure buy-in and alignment. Clearly communicate the benefits, risks and expected outcomes.
• Governance structure: Define the new governance framework, outlining roles, responsibilities, decision-making processes and communication channels between the central RPA team and decentralized units.
• Capability building: Equip business units with training, resources and support to effectively manage their RPA initiatives. Provide guidance on best practices, standards and tools.

Pilot implementation: Start with a pilot involving select business units. Assess the federated CoE model's effectiveness, gather feedback and refine the approach before wider rollout.

Considerations for the change

Several considerations need to be made to make this shift. Also, considering the effort to make this switch is critical.

• Culture and change management: Foster a culture of collaboration, trust and accountability to address resistance to change. Provide guidance to help teams adapt to the new governance model.
• Technology and infrastructure: Ensure business units have access to necessary RPA tools, infrastructure and support. Consider centralized platforms or shared services for consistency and efficiency.
• Performance measurement: Define key performance indicators (KPIs) to monitor the federated CoE's effectiveness. Track metrics like time-to-market, cost savings, productivity gains and business value delivered.
• Governance oversight: Keep centralized oversight to align with organizational goals and policies. Share best practices, lessons learned and success stories across business units.
• Continuous improvement: Regularly evaluate and refine the federated CoE model based on feedback and evolving business needs. Promote a culture of continuous improvement and collaboration.
• Risk management: Provide oversight to ensure compliance with regulations, data security and internal policies. Support business units in identifying and mitigating RPA-related risks.
• Change management: Implement strategies to manage the mindset shift needed for a more autonomous RPA model. Communicate the benefits of autonomy and foster buy-in from stakeholders.

In Conclusion

Transitioning from a centralized to a federated CoE model is key to keeping your RPA strategy scalable, agile and aligned with business needs as your automation efforts grow. While a centralized CoE works well initially, a federated model empowers business units to drive their own initiatives, leading to faster decisions, better alignment and more innovation.

This shift is most valuable when your automation program becomes too complex for a single team to manage effectively. By assessing readiness, involving stakeholders and piloting the change, you can maximize your RPA potential.

We hope this guide has provided you with valuable insights into the benefits and considerations of transitioning to a federated CoE model. If you found this information helpful, please let us know – and share it with others in your network!

If you have any experiences or tips on the perfect timing for making this switch, we’d love to hear from you in the comments.