The Centre of Excellence – latest developments

Centres of Excellence (CoEs) originated as a way of concentrating specialist expertise, standardizing practices, and improving efficiency by sharing resources across dispersed business units. Early CoEs were mainly in functions such as HR, IT, and R&D, where grouping experts together reduced duplication and improved service quality. Over time, their purpose expanded beyond efficiency to include innovation, capability building, and global knowledge sharing. The concept evolved into a versatile model applied across healthcare, education, research, industry, and technology. Modern CoEs function as hubs for best practices, high‑impact research, and strategic transformation. Find out more about the challenges of matrix management in our comprehensive guide.

What has changed in centres of excellence since 2021?

Centres of Excellence (CoEs) have undergone significant evolution over the past five years, driven by digital transformation, growth of Global Capability Centers (GCCs).

In 2024, EY’s GCC Pulse Survey highlighted that GCCs—which often mature into CoEs—now focus heavily on innovation, research, and digital capabilities, making them pivotal to enterprise transformation.

CoEs are no longer just an efficiency play; they act as strategic assets driving AI adoption, technology modernization, and best-practice development. The emergence of AI-first platforms and integrated digital process has significantly enhanced how CoEs coordinate global expertise.

CoEs often form part of an overall matrix management approach within HR or across the whole business.

What skills do we need in modern CoEs?

Success in CoEs relies on effective matrix management and cross-functional collaboration.

CoEs support matrix effectiveness by providing shared standards, enabling aligned decision-making frameworks, and offering specialist expertise accessible across multiple teams. As employees increasingly operate on multiple teams simultaneously, CoEs act as stabilizing forces offering consistency in tools, methods, and technical knowledge.

Global CoEs operate across barriers of distance, culture, time zones, through technology and across organizational boundaries. They require sophisticated matrix and remote management skills.

What new operating models are emerging?

As leading global centres evolve, McKinsey’s 2025 analysis shows a shift in three stages: earning the right to play (delivering quality and efficiency), right to partner (enhancing enterprise processes), and right to lead (driving strategic priorities like innovation and customer experience). CoEs today are more integrated into corporate strategy than ever and often provide an instrument of change and backbone for digital transformation programs.

How do technology trends impact CoEs?

Digital transformation remains a primary driver. CoEs increasingly mobilize agile methodologies and integrated collaboration platforms, which support real-time knowledge sharing and decision-making—an essential requirement in matrixed environments. With remote and hybrid work models becoming standard, CoEs have adopted global digital platforms for capability-building, R&D collaboration, and virtual solution design.

How CoEs contribute to solving matrix challenges

CoEs help mitigate typical matrix pain points such as conflicting priorities, inconsistent decision-making, and collaboration barriers across geographies. They do this by:

– Establishing globally consistent standards

– Providing shared platforms and knowledge systems

– Developing broader global people capability

– Creating reusable assets that reduce duplication across teams

These capabilities directly address the ambiguity and overload commonly cited as matrix-management challenges.

What best practices define high-performing modern CoEs?

Current best practices include strong governance models, clear focus area selection, and alignment with enterprise strategy. Resourcing models now emphasize multi-skilled teams with capabilities in analytics, AI, design, and systems thinking. CoEs operate best when supported by executive sponsorship and integrated with broader transformation efforts.

How organisations can strengthen CoEs for the future

To maximize impact, organizations should:

1. Align CoE objectives with long-term enterprise strategy.
2. Invest in digital tools and data platforms that enhance CoE collaboration globally.
3. Clarify decision rights and governance frameworks, especially within matrix structures.
4. Embed CoE specialists into major transformation initiatives from inception.
5. Continuously refresh knowledge, leveraging external benchmarks and research.

Checklist for leaders enhancing CoE effectiveness

– Do your CoEs have clear mandates and performance metrics?

– Are CoE skills aligned to emerging strategic priorities?

– Is collaboration friction low across your cross-functional operating environment?

– Are digital platforms enabling high knowledge flow between CoEs and business units?

Conclusion

Over the past five years, Centres of Excellence have transformed from efficiency and cost enablers into strategic accelerators capable of shaping enterprise-wide performance. When integrated effectively with developing matrix management skills, CoEs strengthen organisational agility, enhance collaboration across boundaries, and drive innovation at scale. They are now essential components of modern operating models, helping organisations navigate complexity with clarity, coherence, and capability.