Case Study: Is Your Business Model Outdated

Posted on December 29, 2008
Filed Under Management Styles |

This is a great article outlining the difficulties that specific business models face as they grow and develop. This example focuses on architectural and engineering firms in the Ft. Worth area, who, according to the report, are largely very old, founded by one or two principles, and very informal in management styles and structures. As these firms grow, however, their informal management styles are ineffective in dealing with a growing workforce, changing technologies and a shortage of qualified candidates:

From the Ft. Worth Business Press: “Businesses must cope with evolving management styles”

“The common challenges of these firms center on the fact that most are 50-60 years old, founded by one or two principals and have grown significantly during the years. Their management styles have basically been informal and even casual with decisions made by the principals without much employee input. The organizations were flat with no clear lines of authority, little specific career development, few individual goals and no regular performance discussions. Their culture is so “family” oriented that no structure was necessary or even considered.

“As the firms grew, the principals passed along their management styles to those who succeeded them. However, as the workforce changed, managers have begun to realize that these management styles don’t fit the newer generations of employees. Employee retention issues have begun to become problematic, exacerbated by the growing shortage of engineering graduates. The top performers are getting the same bonuses as those whose performance is sub-standard because “that’s the way it has always been done”.

“Additional research data from various employee surveys shows a pattern that clearly indicates that today’s workforce is not motivated by yesterday’s management styles and many businesses today are experiencing these same concerns.”

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