The Market of One

By Ryan Heinl

IBM just released its Global CEO Study, a survey of more than 1,000 CEOs from around the world. I was particularly interested in this year’s results to find out what CEOs are thinking about the future of business, given our turbulent economic times. One of the leaders surveyed, the CEO of Cathay Pacific Airways, summed up the findings well—“Our customers want personalization of services and products. It is all about the market of one.”

Just consider the complexity that a market of one implies. All the services of an organization must be tailored to fit the individual preferences of millions of people around the world; preferences that change from day to day. It seems an impossible goal, and yet it’s a real one for many organizations.

This new height of customer customization also raises the requirements for organizational leadership and talent to heights yet unimagined. Most of the CEOs surveyed said that they didn’t think their organizations were even close to being ready, and that creative leadership in its broadest possible definition is the key. The report reveals glimmers of this leader’s necessary style and approach—influencing rather than commanding, encouraging experimentation, using an iterative strategy development processes, and the ability to make decisions in the face of paralyzing uncertainty.

These characteristics require significant changes in the way leaders traditionally operate. Leaders will have to fold a ribbon of creative thinking into their cultures (not just within R&D), and set direction based on a complex problem that needs to be solved rather than a clear destination.

If that wasn’t enough, the report also points out that few companies have the leaders and the management practices that can support the continuous leveling up of products, services, strategies and even business models that will be needed to compete in the market of one. This could not be more true. The companies who can quickly take stock of where their leaders stand on these types of capabilities and can close the gap will turn the corner on the recession like a rocket ship taking off.

So, how ready is your organization for taking on the market of one?

Ryan Heinl is a senior consultant for Development Dimensions International (DDI).

Comments

[Joseph George A]

Indeed, when technology takes over business processes, alienation of the employee is palpable. If people do not 'feel' in synch with the changes that the organisation takes up, withdrawal into personal shells ensues at varying rates. Change cuts different people differently. And the ONE in change needs to be aware. It is indeed a new zone of development that may unfold, and the giving professions may find the going overwhelming. Am also wary of the branding of such lonely, palpable spots of misfortune rather insensitive. A market for buying and selling salvation?