Licensing teams

Licensing Leadership and Strategy

The leadership team decides which brands go to market, in which categories and territories, and against what targets. It owns the licensing P&L and reviews performance through each term. At the end, it decides which deals renew.

Every other team works from this plan, so it has to live where everyone sees the current version.

Career track
Executive
Owns
12 of the 60 steps on the licensing map
Receives from
Ip owners, legal and the market
Hands off to
Every other team

Scope

What does the leadership and strategy team own?

  • Which IPs enter the program, and which are excluded
  • The program strategy, targets and category and territory plan
  • Briefing commercial, creative, legal and agents when the strategy changes
  • Performance reviews during the term and the yearly program review
  • Decisions to continue, update or end a program

On the licensing map

How the work flows through this team

Every step this team owns, in order, with its decisions, the handoffs where programs break and the work beyond the classic map. Grey boxes show where the work moves to other teams. See the full flow across all six teams.

Step, numbered as on the 60 step mapDecision pointHandoff where programs breakWork beyond the classic map
1 Plan the programStep 1: IP portfolio listed1IP portfolio listedStep 2: Potential IPs identified2Potential IPs identifiedStep 3: IP potential evaluated3IP potential evaluatedDecision: Worth licensing?Worth licensing?NoStep 4: IP excluded from the programStep 5: Program strategy drafted5Program strategy draftedStep 15: Strategy finalized15Strategy finalizedStep 16: All stakeholders informed16All stakeholders informedStep 17: Strategy execution started17Strategy execution startedHandoff 1, Strategy to execution: Strategy is shared as a document, so nothing downstream can check itself against it, and agents work from a copy that ages.1Handoff where programs breakStrategy to executionThen the work moves toContracts and IP: read moreContracts and IP, steps 6 to 9, 14, 32 to 33Creative and Brand Assurance: read moreCreative and brand assurance, steps 10 to 13, 35 to 44Commercial and Partner Management: read moreCommercial and partners, steps 18 to 31, 45Royalties and Finance: read moreRoyalties and finance, steps 34, 46 to 519 Manage and renewStep 52: Performance evaluated during the term52Performance evaluated during the termHandoff 10, Operations to strategy: Performance reaches leadership as a pack assembled by hand, weeks after the period it describes.10Handoff where programs breakOperations to strategyForecast and budget: Licensee forecasts, reviews and budget varianceBeyond the classic mapForecast and budgetDecision: Reporting correctly?Reporting correctly?NoStep 53: licensee auditDecision: Renew the agreement?Renew the agreement?YesStep 54: agreement renewalNoSteps 55 and 56: expires, new licenseeThen the work moves toContracts and IP: read moreContracts and IP, step 57Step 58: Program performance evaluated58Program performance evaluatedDecision: Continue the program?Continue theprogram?YesStep 59: strategy updated, back to planningNoStep 60: program ended

Scroll sideways to see the whole flow.

Show the steps as a list
StepWhat happens
Step 1IP portfolio listed
Step 2Potential IPs identified
Step 3IP potential evaluated
Step 4IPs excluded from the program
Step 5Program strategy drafted
Step 15Strategy finalized
Step 16All stakeholders informed
Step 17Strategy execution started
Step 52Performance evaluated during the term
Step 58Program performance evaluated
Step 59Strategy updated
Step 60Program ended

Team setup

Where the team sits

The work is the same in every licensor. Who does it changes with size and business model.

Small licensor

A founder, brand owner or one head of licensing who also runs most deals.

Enterprise

A head or VP of consumer products with directors per category or region, reporting to the business unit or the CEO.

Agency

Agency leadership sets strategy with each client licensor and owns the agency's own P&L across clients.

People

Roles in this team

Each role page covers the duties, individual KPIs, skills and career path. This page covers the team as a whole.

Roles on the executive track
Roles that work with this team
  • Executive sponsor, such as the CEO or business unit lead, who decides on investment

Handoffs

How work flows in and out

Receives
From IP owners, legal and the market

The IP portfolio, protection status, and signals from agents and licensees.

This team
Licensing Leadership and Strategy

Which IPs enter the program, and which are excluded

Hands off
To every other team

The strategy and targets, the guidelines brief, and the decisions that follow each performance review.

Handoffs to watch
  • Strategy to execution: Strategy is shared as a document, so nothing downstream can check itself against it, and agents work from a copy that ages.
  • Strategy to prospecting: The target licensee profile is written in prose, so prospect fit is judged by feel instead of scored.
  • Qualification to conflict check: The double licensing check depends on someone remembering the whole rights position. This handoff has the highest cost of failure.
  • Operations to strategy: Performance reaches leadership as a pack assembled by hand, weeks after the period it describes.

Tools and methods

How the work gets done today

  • Spreadsheets and slide decks for strategy, plans and board packs
  • Market research, retail visits and trade shows such as Licensing Expo and Brand Licensing Europe
  • BI dashboards and a licensing platform for performance by brand, category and territory
  • Weekly reviews with commercial, creative and finance
  • Quarterly business reviews with key licensees and agents

Measures

KPIs for the leadership and strategy team

Flowhaven recommended measures for the team as a whole. Individual KPIs sit on each role page.

KPIHow to calculate it
Royalty revenue against planRoyalties and guarantees earned per brand, against the annual plan
Guarantee coverageSigned minimum guarantees as a share of the revenue plan
Revenue concentrationShare of royalty revenue from the ten largest licensees
Launches on timeShare of planned product launches that reach retail in their window
New white space openedCategories and territories signed for the first time this year
Products per licensing FTEApproved products in market per person in the licensing team

AI and the work

How AI is changing this team

Reviews and briefs arrive before anyone asks for them. Leaders spend less time assembling reports and more time deciding what to grow next.

Today. Through an integration, a leader can ask the portfolio a question in plain language, such as which categories and territories are still open, and get a program health digest with every figure linked to its record.

What we are exploring next
  • Signals that flag a drifting brand, category or partner ahead of the review
  • A forecast that explains its own numbers
  • White space suggestions from open categories, territories and past performance

Flowhaven

How Flowhaven helps the leadership and strategy team

  • One record set for brands, agreements, approvals and royalties, so the numbers in the review come from the work itself
  • Brand, category and territory structure set up at onboarding, with parent and child reporting
  • Dashboards by brand, category, territory and licensee, with year on year comparison
  • Actuals against forecast and guarantee for every agreement

Good to know. The strategy itself still lives outside the platform. There is no plan object to set targets against yet.

“We’re always looking for ways to confidently plan for the future, and forecasting is an immensely important function as it helps us recognize shifts in consumer appetite and retail demand.”

Martine Berreitter SVP of Operations, Striker Entertainment

About this guide. Written by Kalle Torma, founder and CEO of Flowhaven. Kalle’s 2017 research, Brand Licensing Processes and Workflows, maps brand licensing as 9 workflow segments and 60 steps, and the licensing flow on these pages builds on it.

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