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By Spire

How to Set Up a Center of Excellence (CoE)

Learn how to avoid siloed transformation and scale success through structure with a Center of Excellence.

Topic
Operational Excellence
Solution
Operating Model Design
Industry
Cross-industry
Spire members
Brightfox

Key Takeaways

Structure beats silos

Centralize knowledge to eliminate duplicated effort and scale digital transformation across business units.

Support, don’t control

Build a CoE that gives teams practical tools and frameworks instead of creating administrative friction.

Focus on business value

Prioritize initiatives based on ROI, user adoption, and measurable business impact, not feature volume.

Fragmented knowledge slows digital transformation

Digital transformation is no longer a question of if, but when and how well. CIOs across industries are constantly being pressured to deliver innovation quickly. But lots of digital initiatives run in isolation. This leads to duplicates, inconsistent standards, and underwhelming impact.

The more complex the organization, the more likely it is for different business units to launch similar digital projects independently. In decentralized structures, each team picks its own tools, vendors, priorities, and governance rules. That sounds good at first, but the lack of a shared foundation leads to some issues:

  • Teams reinvent the wheel instead of learning from past rollouts.
  • Key architectural decisions happen in isolation, leading to technical drift.
  • Strategic alignment between IT and business teams breaks down.

This costs time and money while undermining project momentum. When results cannot be scaled across the enterprise, promising initiatives will lose credibility. To avoid this lack of credibility and get everyone on the same page, we recommend building a center of excellence.

68%
of CIOs cite knowledge fragmentation as a barrier to digital maturity.
Source: Gartner, 2025

What is a center of excellence?

A center of excellence (CoE) is a centralized team or framework that establishes best practices, shared tools, and clear governance across an enterprise.

Instead of acting as a command-and-control center, a modern digital transformation center of excellence functions as an internal multiplier. It connects business units, coordinates technology investments, and provides the frameworks teams need to deliver digital projects consistently.

How to build a high-performing center of excellence

Our approach avoids large reports and other bureaucratic bottlenecks. Instead, we co-create a center of excellence structure that enables change that lasts.

A high-performing CoE relies on six dimensions:

  1. Vision and strategy
  2. Hybrid teaming
  3. Focus on business value
  4. Knowledge and governance
  5. Agile growth
  6. Maturity and security

By considering all six dimensions and planning accordingly, you’ll be able to build a center of excellence that promotes innovation instead of stifling it.

CoE Core Team diagram showing Executive Sponsor, Project Management, Business Core Team, Support Services, and Steerco.

CoE Lifecycle

Discover
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Define
arrow_forward
Develop
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Deliver
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Operate
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Optimise

1. Define your CoE vision and strategy

Align the center of excellence directly with your organization’s mission, growth targets, and digital transformation roadmap. This makes sure the CoE stays grounded in business relevance rather than technology for its own sake.

2. Build a cross-functional CoE team

Form hybrid teams that combine business leads, technical architects, executive sponsors, and operational support services. Cross-functional representation creates shared ownership and speeds up decision-making.

3. Focus the CoE on business value

Base your project prioritization on concrete outcomes, not on feature volume. As a sort of backlog curator, a CoE focuses on user adoption, ROI, and measurable business value.

4. Establish CoE governance and knowledge sharing

Create reusable components, clear role definitions (such as RACI matrices), and shared ways of working. Effective governance isn’t about enforcing strict control, but about building operational consistency.

5. Create an Agile CoE operating model

Use short, iterative cycles to test, adapt, and improve. This Agile mindset applies to solution delivery just as much as how the digital transformation CoE itself operates and evolves over time.

6. Define CoE maturity and security standards

Set clear baselines and readiness assessments to evaluate how new digital initiatives are supported. Clear standards lower security risks and improve coordination across the enterprise.

What are the benefits of a center of Excellence?

When set up with clear intention, a center of excellence framework provides the connective tissue for enterprise-wide digital growth. organizations that implement a structured CoE experience clear center of excellence benefits:

  • Stronger alignment between IT and business priorities
  • Consistent governance and decision-making across departments
  • Reusable knowledge and component libraries that speed up future rollouts
  • Clear visibility into project ROI and strategic priorities
  • A scalable foundation for continuous digital improvement

Ready to break out of fragmented change?

Let’s build your Centre Of Excellence together – Let’s talk

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