Alliance Data Summary

An important facet to any successful business in today’s economy is the functions within the organization itself. Overall, an organizing function of management outlines the practice in which individuals within the organization interact and work with each other. The functions at Alliance Data have allowed the optimization of organizational resources to effectively and efficiently service their employees, their shareholders, and more importantly their internal and external customers. Alliance Data is an organization who has become highly successful by ensuring that they maintain a competitive edge by successful implementation regardless of diversions in their path.
Alliance Data Systems is an industry leader that delivers branded credit programs
– private label, co-brand, and commercial – that make it easy for customers to engage with their favorite brands. Their client roster spans top brands in retail and consumer-based verticals, such as travel and hospitality, elective medical, financial and petroleum. They recently became a Fortune 500 Company by expanding the organization into three lines of businesses which are made up of Alliance Data Retail Services, epsilon, and Loyalty One that focus on data-driven marketing and loyalty solutions. The three lines of business combined employ over 10,600 associates in 75 locations worldwide; with over $7 billion dollars in accounts receivable; and $12 billion dollars in credit card sales by working behind the scenes for the world’s best known and respected brands (ADS 2013).
Alliance Data’s organizational structure is that of the Functional design. The Functional design is the most commonly used by businesses. With the Functional design, the employees report to supervisors, who report to managers, who report to directors who then report to senior leadership. Alliance Data has a high level of adaptability in the services they provide. The communication lines flow without restraint allowing accountability from all parties involved. Alliance Data is centralized in the fact that the executive level of leadership formulates most of the organization’s decisions and pass them along to mid-level management for implementation. Alliance Data has three organizational functions which are Human Resources, Marketing and Operations. Human Resources’ role is the development of associates and to assist in the hyper growth of the company. Human Resources is integral as they ensure that the organization adheres to specific ethics and laws to protect not only the employees but the organization as well. The Marketing department leads strategic direction, revenue, brand development and market share. The Operations department is responsible for the quality control, logistics, evaluations, client renewals and client acquisitions.
Alliance Data has undergone significant changes within their management structure within the last twenty years which has assisted them in moving forward with their success.
Under the leadership of new CEO Ed Heffernan and President Melisa Miller the organization had grown exponentially and has been able to enhance the brand experience with award-winning customer care and ongoing technology investments(ADS 2013). Organizational functions such as marketing has a major impact on determining company’s organizational structures and this can be seen within the Alliance Data organization. New leadership came into Alliance Data and saw areas of opportunity in marketing and decided to make changes in how the brands were put into the hands of their customers and at what times. Once opportunities were identified Alliance Data was able to support clients, customers, and shareholders by managing credit portfolios from beginning to end. How? From the time a customer steps into their favorite store, applies for a credit card, Alliance Data will be there every step of the way to provide best in class service through customer care, web-site assistance and loyalty programs. Alliance Data is able to identify areas in which clients and customers can benefit mutually and set out to successfully implement solutions to ensure that clients’ businesses continue to grow and drive long-term customer relationships. Alliance Data has chosen to allow leadership to be broken up into departmental structure so that it is more environmentally structured for clients. Each department has a Director that has direct reports known as Department Managers, then Supervisors who report to the Department Managers and Supervisors who have associates who directly report to them. However, they all focus on servicing the customers and clients in which the organization serves. By implementing this structure they are closely connected with the customers with whom they have been cultivating relationships with for
more than 25 years. They have delivered credit and loyalty programs that build stronger relationships with customers and offer more meaningful benefits and a better experience – whether in-store, on the phone, or online (ADS 2013).
If Alliance Data were to run their organization on a Matrix design or a Product design the main focus of their organization would be lost: the customers and clients they serve. Both of these organizational structures work both with organizations that cater to one product such as physical products that you can touch or feel and purchase.
It is important to understand that each organization can use variations of organizational structures and there is not a specific one that may be perfect. Many organizations go through trial and error before finding the structure that works for them and aids in their success. The overall importance of organizational structure is communication and success.

REFERENCES:
ADS Inc. (2013). Mastering Mobility. Retrieved from Alliance Data Systems Incorporated