What is interesting about the data on a CI unit's location is how the situation changed over a period of almost a decade. In a 1993 survey, the rank order of areas of work was reported as follows: ^[4]

• strategic planning

• market research

• corporate information

• marketing

• competitor intelligence unit

The last element of location is the relationship between the CI unit and one or more end users. Research on reporting relationships has tended to focus on how many levels of bureaucracy are between the CI unit and the firm's board of directors. ^[5] Although the findings are interesting, especially in that they show that almost 50 percent of the units are within two levels of the board of directors, the question is deceptive. That is because it presumes that the appropriate end users are the directors. That is correct if the CI unit provides strategy-oriented or target-oriented CI. However, there are other end users in other locations that are, or should be, receiving one or more forms of CI.

The most appropriate location for the CI unit, experience shows, is to report directly to the end user. If there is more than one end user, the CI unit ideally should be within one level of its best or most important end user. The reason for such a relationship is that the CI unit (see Chapter 9) must be able to work with the end user on an ongoing basis, not only to ascertain his or her CI needs, but also to have access to him or her during the conduct of any CI assignment. The reason for such access is that, contrary to some popular misconceptions, the best CI is not provided when the unit is tasked and sent out to report at the end of the assignment. Rather, it is produced when the end user and the CI staff are in continuing communication during the process of conducting the assignment.

This need for ongoing communications has generated an additional recommendation on "location." In this context, that means answering the question, "Where should the CI unit be physically housed?" The answer is, "as close as is possible to the physical location of the primary or most important end user." The goal is to generate what is sometimes called "hall friction," that is, frequent one-on-one unscheduled contact between the CI end user and those producing the intelligence. If the CI unit cannot be located in close proximity to this end user, then it is better for the unit's manager to be close to the end user than it is to be close to the CI unit's staff.