Companies move through a series of stages of evolution depending on a variety of strategic and operational considerations.
Stage One: Product or Functional Silos
This structure usually suffices for smaller and/or highly focused companies. The limitations are exposed when markets become more complex and customers’ needs become more diverse. Common indicators of problems are growing conflicts within the organization over product and market priorities and a lack of accountability to customers.
Stage Two: Informal Coordination
The addition of product managers and a few key account managers improves coordination of customer-connecting activities, since these roles require creating networks and bridging functional silos. A customer relationship management system helps by providing an integrated view of previously balkanized and dispersed customer data.
Stage Three: Formal Coordination via Integrating Functions
This stage involves more alignment with market segment managers, “heavyweight” customer teams and key account managers.i Their jobs are to use deep understanding of the customers within segments, to identify unmet or emerging needs and to better coordinate assorted customer-connecting activities. Internal customer advocates derive influence from their knowledge and persuasive ability, since they seldom have direct control over resources.
Stage Four: Fuller Structural Alignment
This can be achieved by: (1) strengthening the customer dimension of the organization matrix with empowered segment managers or (2) adopting a hybrid design with strong customer-focused front-end units that offer... To read the complete article, login or sign-up using the form below.
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