Crowded Marketplace and the Planning Mode
A. Crowded Marketplace Growth Phase
Developmental Objectives: Contend with a market that has become much more competitive. Increase efficiency and product reliability. Leverage limited expertise. Increase scale of production and improve margins. Integrate with external business world.
Typical Number of People Involved in Decision Making: 20 and up
Expertise Profile of Personnel: Some highly specialized expertise, some relatively low expertise.
Important Customer Class: Late Majority
Characteristics of Customer Demands: Competitive features, low price, and high product reliability.
B. Management Style of Ideal Leader: Engineer (with backup management style depending on the nature of the business)
C. Mode of Operation: Planning
Product Strategy: Standardized products, Competitive features and price. Reliability.
Preconditions for Using Planning Mode -
a) Commercially viable product or products, b) Reside in or can move to a sufficiently stable and predictable business environment to allow for extensive use of defined structures and processes, c) Operational practices that can remain or will become effective when they are institutionalized in formal rules and processes, d) Access to personnel with appropriate technical expertise in specialized areas.
Organizational Structure: Hierarchy of Functional Groups
Typical Themes: Measure twice, cut once. Let the data drive decisions. Select the right ruts.
Cultural Priorities: Data-driven decisions. Deep analysis. Use of specified strategies. Functional training. Cost reduction. Consistency and reliability.
Important Controls: Organizational hierarchy, formal procedures, plans and processes.
Typical Impact of Control Levers - Planning Mode
Personal Control Levers, subtotal: 10%
0% - Hands-on Doing and Spending
5% - Direct Supervision
5% - Vision and Mission
Organizational: Hard Control Levers, subtotal: 60%
5% - Specific Goals and Objectives
25% - Organizational Hierarchy
30% - Formal Plans and Processes
Organizational: Soft Control Levers, subtotal: 30%
10% - Expertise of Personnel
10% - Cultural Priorities and Game Rules
10% - Formal Evaluation and Feedback
100%
Ideal Management Style: Engineer (with backup management style depending on the nature of the business) (Mr. Spock, assisted by Depends on nature of business)
This management style can be thought of as a composite mix of two of the four decision-making and problem-solving approaches.
Dominant Approach: Mr. Spock
Elements that exemplify Spock's decision-making and problem-solving approach:
<> Data-driven management
<> Precision
<> Focus on logic and robust analysis
<> Seeks optimal solutions based on the facts
Backup Approach: Depends on nature of business
Elements that exemplify 's decision-making and problem-solving approach:
<>If the business is tilted toward manufacturing, a Commanding approach is effective as a backup.
<> If the business is tilted toward services or where success depends on effective interaction between your personnel and customers, the Collaborating and Envisioning approaches may be more effective.
This mix of approaches describes the ideal leaders for this phase.
