The Most Common Center of Excellence Examples

Building a high-performing team isn't always about hiring more people. Sometimes, it's about creating the right internal structure, and that's where a Center of Excellence (CoE) comes in.

This article breaks down the most common CoE models and how they’re applied across industries. You’ll see real-world examples of CoEs in IT, data, HR, and marketing, along with successful LATAM-based cases. It also covers how to build a CoE, what guiding principles to follow, and what trends are shaping their future.

Whether you're exploring a CoE for the first time or scaling an existing one, we’ll cover the frameworks, examples, and strategies worth knowing. Keep reading to learn more!

CoE Common Models Used Across Industries

1. Functional Center of Excellence:

A functional CoE centralizes expertise around a specific business domain, like IT, data science, or HR. It acts as a hub of deep knowledge, tools, and standards. Most enterprises use this model to avoid redundant efforts across teams.

For example, a global company might have a dedicated HR CoE that handles employee experience, talent management frameworks, and performance systems for all departments. This ensures consistency, especially in areas that require high compliance or regulation.

According to Deloitte, 85% of organizations with a functional CoE report improved operational efficiency and better alignment with strategic goals. If you’re working in a regulated industry like healthcare or finance, this model is often the go-to.

2. Federated Center of Excellence:

The federated model blends central oversight with decentralized execution. A core team defines best practices and governance, while business units maintain autonomy. It’s a strong fit for large or geographically dispersed organizations.

This model works well when departments have different goals but need to follow common standards. Think of a company where marketing teams in the U.S., Brazil, and Germany operate independently, yet align with centralized brand guidelines and performance metrics set by the CoE.

It promotes innovation without sacrificing consistency. Gartner notes that federated CoEs can reduce project duplication by up to 30% across business units.

3. Hybrid Center of Excellence:

A hybrid CoE combines features of both functional and federated models. It’s often the default choice for companies scaling CoE efforts. Some roles and decisions remain centralized, while others are delegated to embedded experts within business units.

This model creates flexibility. It supports innovation, especially in fast-moving industries like fintech and e-commerce. For example, a hybrid AI CoE might centralize data governance while allowing individual product teams to build and deploy custom ML models.

Many organizations shift to a hybrid model after testing a purely centralized CoE. It allows you to balance speed with control, especially during rapid growth phases.

4. Project-Based Center of Excellence:

Unlike permanent CoEs, project-based models are temporary. They form around a strategic initiative, like implementing a new CRM platform or launching an ESG program, and dissolve once the objective is met.

This structure brings together cross-functional experts to drive focused execution. It's ideal for companies that need specialized leadership without long-term commitment. You see this model in sectors like manufacturing or logistics, where transformation happens in waves.

IBM has used project-based CoEs for internal AI rollouts, rapidly testing models, training teams, and transferring ownership once stable.

5. Competency-Based Center of Excellence:

In a competency-based model, the CoE supports the development and scaling of specific skills across the workforce. Unlike functional CoEs, which own operations, this one focuses on coaching, training, and enabling.

L&D departments often lead these efforts. Think DevOps enablement, digital fluency, or agile coaching. Microsoft’s internal AI Business School is a classic example of a competency CoE that helps teams integrate AI into decision-making, regardless of their role.

This model is increasingly popular among enterprise organizations transitioning to digital-first operations. According to McKinsey, companies that focus on skills-based centers report 20% faster adoption of new tech stacks.

Real-World Center of Excellence Examples by Function

IT Center of Excellence Examples from Tech Leaders.

IT CoEs are some of the most established models in global organizations. They centralize governance, standardize technology stacks, and drive infrastructure modernization. Companies like Cisco, run enterprise-wide IT CoEs that guide everything from cybersecurity protocols to cloud architecture frameworks.

At Dell, the IT CoE oversees infrastructure scalability, ITSM standards, and system resilience planning. According to IDC, organizations that adopt centralized IT CoEs see a 40% improvement in digital transformation outcomes compared to those that don’t.

These CoEs are especially valuable when your business is transitioning to cloud-native operations or managing multiple platforms. They help ensure interoperability, reduce tech debt, and enforce consistent policies across regions.

Data and Analytics CoE Examples in Finance and Healthcare.

Data CoEs have become mission-critical as organizations move toward data-driven decision-making. JPMorgan Chase runs a centralized data and analytics CoE responsible for advanced modeling, data governance, and predictive analytics infrastructure. The team works across departments to standardize data definitions and enable access through governed pipelines.

In healthcare, Mayo Clinic’s data CoE focuses on clinical analytics, patient outcome modeling, and research support. This centralized expertise helps reduce redundancy and increase compliance with HIPAA and other data privacy standards.

AI and Machine Learning CoEs Driving Innovation.

AI CoEs are growing fast, particularly in sectors like manufacturing, retail, and logistics. These teams don’t just develop machine learning models; they define ethical standards, create reusable model architectures, and help scale AI across the enterprise.

Bosch’s AI CoE employs over 300 experts globally and manages internal tools, LLM initiatives, and AI ethics governance. Unilever has a similar unit focused on automating the supply chain and marketing insights using machine learning.

AI CoEs often partner with data science and IT teams but operate independently to explore R&D, build proof-of-concepts, and support AI upskilling.

Human Resources CoE Examples: Enhancing Talent Strategy.

HR CoEs are typically structured around key domains like talent acquisition, employee development, compensation, and performance management. These units define company-wide policies and optimize the employee experience using data-backed insights.

Adobe’s HR CoE, for example, manages a unified performance system and uses workforce analytics to drive DEI outcomes. They also oversee leadership training programs tailored to each level of the organization.

In many firms, HR CoEs also collaborate with People Analytics teams to model attrition risk, forecast hiring demand, and guide reskilling efforts. The Society for Human Resource Management (SHRM) notes that HR CoEs can reduce time-to-hire by 30% when paired with automation and consistent workflows.

Marketing and Digital Experience CoEs in Global Brands.

Marketing CoEs help organizations stay consistent in branding while empowering local execution. Coca-Cola operates a global marketing CoE responsible for creative strategy, brand voice, and digital content frameworks. Each regional team can localize assets, but they align with centralized standards.

At Procter & Gamble, the marketing CoE runs internal analytics platforms that test campaign performance and inform media spend in real time. It also supports experimentation with generative AI tools for content generation.

Digital experience CoEs often overlap with marketing teams. They optimize customer journeys, manage web architecture, and A/B test content across markets. Forrester research shows that companies with digital CoEs grow customer retention by up to 25% more than those without a structured CX approach.

The Key Characteristics of a High-Performing CoE

1. Strategic Alignment With Business Objectives:

A high-performing Center of Excellence (CoE) doesn’t operate in a silo. It aligns closely with enterprise goals and delivers measurable business value. Whether you're improving operational efficiency, accelerating digital transformation, or driving innovation, the CoE must be tethered to your strategic priorities.

The Harvard Business Review reports that CoEs delivering direct business impact are 3.4x more likely to receive long-term executive backing.

Strategic alignment also ensures the CoE avoids becoming a bureaucratic bottleneck. It moves from being a governance checkpoint to a growth enabler.

2. Clear Governance and Accountability:

Strong CoEs are built on well-defined governance structures. They have a charter, decision-making frameworks, escalation paths, and documented roles. Without this, you risk confusion, overlap, and slow execution.

Ownership matters. Top-performing CoEs often have an executive sponsor, a steering committee, and a program management team that ensures consistency across initiatives.

3. Dedicated and Skilled Talent:

A high-functioning CoE brings together domain experts, operations leaders, and change agents. These aren’t just subject-matter experts, they're enablers who train, coach, and build internal capabilities.

Leading CoEs often have hybrid teams with rotating roles from different departments. This helps spread knowledge and build trust across the organization.

4. Knowledge Sharing and Standardization:

Effective CoEs document everything: frameworks, templates, playbooks, KPIs, and decision trees. They serve as a source of truth, reducing duplication of effort and increasing institutional learning.

The goal is not to hoard knowledge but to spread it. High-performing CoEs create reusable assets, host internal communities, and continuously publish best practices. This boosts productivity and creates long-term scalability.

Internal benchmarking, retrospectives, and transparent dashboards are also part of this loop.

5. Agility and Continuous Improvement:

Top CoEs are not static. They regularly evolve their mission, tools, and engagement models based on feedback and changing business conditions. They apply agile principles to drive value faster, without getting stuck in long approval cycles.

Netflix, for example, adjusts its internal data science CoE quarterly, based on learnings from teams using its tools and APIs.

Continuous improvement isn’t a side effort, it’s part of the operating model. Iteration, retrospectives, and KPIs keep the CoE accountable and forward-moving.

6. Performance Metrics and ROI Tracking:

What gets measured gets managed. A high-performing CoE defines and tracks clear performance indicators, both leading and lagging. These might include adoption rates, project velocity, cost savings, training hours, or business outcomes like revenue growth.

According to BCG, organizations with CoEs that quantify ROI are 40% more likely to secure long-term funding and influence enterprise strategy.

Reporting should be transparent and shared regularly with key stakeholders. It’s not just about proving value, but about reinforcing the CoE’s role as a strategic asset.

Looking to Set Up a Center of Excellence in Latin America?

Center of Excellence models are no longer reserved for global enterprises. Mid-sized companies across LATAM and beyond are launching CoEs to accelerate innovation, standardize operations, and scale critical capabilities.

At BOT LATAM, we provide the BOT model to help businesses manage their operations in LATAM in a high-performing way tailored to their business goals. Whether you're focused on data, process automation, or tech enablement, our proven frameworks and LATAM-based talent can help you reduce operational friction, improve performance visibility, and drive long-term ROI. Our teams have successfully helped to deploy BOT operations across many industries. With localized expertise and global execution standards, we can give you the strategic support needed to launch or optimize your solutions. Are you ready to start your brand-new CoE or BOT hub? Get in touch!