People Management Systems
Systemic Organization Dynamics - Market Share
Form and function - those that have a significant market share and those that do not.
Industry leaders, those with dominant market share have more to lose. They already have a favorable relationship with a significant portion of the market customer base....something worth protecting. Market leaders: tend to centralize decision making; manage by consensus at the organization's lower levels; install information systems designed to primarily provide senior management with the data to make major decisions; adopt a rigid organization structure; elevate control functions like finance, legal, and product quality control; and culturally they tend to reward employee behavior as opposed to employee performance.
They maintain and gain market share by focusing on observing the market, benchmarking, and the innovation of smaller competitors. Tactically companies with dominant market share, can manage their human resources to discourage competitors. For example, a market leader will consider paying overly competitive wages, if they can pass the cost on to the customer and benefit from discouraging others from entering into the marketplace.
Those looking to grow market share are quite often best served by taking a different management approach. Risk is encouraged but, in smaller more manageable units....people are encouraged to innovate. Performance is rewarded at least on par with employee behavior and the organizational structure supports seizing small opportunities at all levels. Before computer technology, a decentralized flat organization structure was the most effective in growing market share. Today however, even centralized organization structures are successful in capturing market share as long as they are flexible and quick to react.
With customer segmentation techniques business realize that they are dominant in some segments and looking to significantly grow in others. The best organization and management practices for one segment is quite often the bane of the other. We excel at inculcating different approaches into a coherent corporate culture. Let us help you find the best way to manage your workforce.
Org Dynamics - Employee Population Org Dynamics - Industry Maturity
Balancing Family and Business Create the Culture Define & Develop the Legacy