Review:  Your Perfect Business Match by Jack Tesmer

By Dennis Gallagher, Ph.D.

Your Perfect Busines Match by Jack Tesmer is a book worth reading. When I first started it, I thought it was just another "4- Box Theory", but as I continued, images of conversations I've had over the years with a number of clients kept popping into my head - the continual struggle about how to "help" a manager succeed in a new position. In my mind I kept hearing my client say something like, "I can't understand why Bob can't get this project off the ground. He was one of our best, most reliable managers, in his manufacturing job. I thought that taking this new product forward would be a great challenge for him. What can we do to help him and get the project moving?"

The honesty component comes through in every page of the book. Tesmer speaks of the necessity of having leaders with the "right' management style and experience to manage organizations in each of the four different marketplaces he identifies. If the manager, or the HR department is out of step with the needs of the organization in a particular kind of market, he suggests replacing them - quickly. For example, when describing the transition to a "Battleground" business, Tesmer says, "Create a new 'Warrior' culture based on the centralized issuing and carrying out of orders. With few exceptions, this can only be done by removing the person at the top and bringing in someone with experience as a leader of a 'Battleground' business." (p.140) "For some time the (HR) department has been supporting a culture that is no longer viable; quite naturally, then, many of its key people are as entrenched in the old system as are the managers they have served. Furthermore, in my experience, the required changes can only be made if a new HR director is brought in." (p.141 &142)

And, when talking about moving from a "Ruler" business to a "Hunter" organization, "Most ruler managers have a difficult time letting go of control; and, for some, it's downright impossible. Those for whom it is impossible must be reassigned to a different unit (one that operates in a Kingdom market), or else given notice." (p.112)

Your Perfect Business Match is a very practical book. The essence of the book is based on identifying the marketplace that your organization is operating in. Then, see if the management structure and processes are consistent with the competitive environment of the market place. Finally, look at how to move the organization into the proper business environment to create a "Match." The majority of the book is dedicated to looking at how to align the organization with the marketplace, its organizational structure and business practices.

Tesmer's model looks at three dimensions: the type of marketplace that the business is in; the structure of the organization and the transitions necessary to restructure the organization or move it into an appropriate market.

He identifies four different marketplaces:

1. Frontier:  New startup businesses, heavy emphasis on research and development, need to get recognition in the marketplace.

2. Jungle:  Competitors appear, mergers begin, finding a niche, heavy focus on satisfying each customer

3. Battleground: A few large competitors that remain after consolidation, shrinking margins, focus on volume, internal costs and responding to market changes

4. Kingdom:  Dominance in the marketplace, staying in touch with customers, eliminating competition and finding ways to grow the existing product lines

Each of the organizational structures that match those marketplaces is different:

1. Frontier: Requires somewhat loose structure that can support the technological growth and cost controls internally while getting known in the market place. There is a heavy emphasis on managing the financial resources of the organization
2. Jungle: The structure needs to continue to be innovative and tough on costs at the same time. Because the organization has to be extremely conscious about meeting the needs of all its customers and has to continually differentiate itself in the market, the structure must be very flexible while managing its costs and keeping its people highly motivated.
3. Battleground: This market environment requires a very flat organization with a high degree of coordination. The organization's task is to compete "head to head' with a few other organizations selling the same product (e.g. autos). The organization has to be able to respond very quickly and effectively to changes in the marketplace.
4. Kingdom: Usually develops a hierarchy and runs on inertia. The danger is that the organization may loose touch with their customers because of their focus on the product. They also run the risk of becoming arrogant because they think that no one else can compete with them.

The leadership and culture that is required for each organizational type to succeed is also unique:

1. Frontier organizations need leaders with a "Pioneer" set of skills. They have to forge new ground, develop markets, customers, identify the customers needs, develop a distribution system, refine their new product, produce the product, work with investors and keep everyone happy at the same time. The organization usually has very little money but tons of heart, energy and enthusiasm. There needs to be enough of a hierarchy to control the organization, with a great deal of "hands off" management so that the product can be allowed to evolve - a delicate balance to achieve.
2. Jungle organization needs a leader with "Hunter" skills. They have to identify the unique needs of potential customers and continually adjust the product and the organization to meet the needs of their customers. Their job is to respond quickly, develop customer loyalty, respond to the customer's changing demands and develop a unique niche in the market. The organization needs to be very flat, collaborative and responsive.
3. Battleground organizations need "Warrior" leaders. They are competing "head to head" with a few other organizations for the same customers with similar products. They need to differentiate themselves in the marketplace with high volume production, predictable delivery systems and a dependable product quality. Warriors are always finding ways to cut costs and increase very narrow margins. Their organizations are generally flat with high control.
4. Kingdom organizations need leaders who are "Rulers". They do everything possible to dominate the market and increase profit. The management is built around the thought that, "We are the only game in town," so they can, for the most part, do what they want to in the market place. The organization is usually hierarchically structured with individual product lines operating somewhat independently within the larger organization. Maintaining their market place dominance and maximizing profit are the primary tasks of the Kingdom organization.

Perhaps the most powerful part of this book is the "BGO" (Blinding Glimpse of the Obvious) that managers and executives who are successful in one marketplace environment and/or management structure, may not be successful in another. We all know that. But Tesmer has given me a new way to look at both the "why" they have trouble and the "what" to do about it.

Key to Tesmer's theory is that most if not all organizations will encounter multiple marketplaces in the course of a product's or the organization's life. He offers us some ways of predicting the problems that are likely to arise as organizations move through these different stages - innovative and creative Pioneer managers are a necessity in the first stage of a product or organization’s life - when it is in a new Frontier. Aggressive niche developers and customer focused Hunter managers are required if success is going to follow in the highly competitive Jungle market. As the product enters the Battleground through market consolidation, the managers will have to be Warriors - cutting and slashing costs and aggressively engaging the competition every step of the way. Finally, if market dominance has been achieved in the Kingdom marketplace, the Ruler manager's skills must include defending their market dominance, building for the future, maximizing profits and maintaining internal order in the organization.

Jack Tesmer's model and assessment process is a useful and understandable tool for consultants, managers and business students as they develop business strategies, design organizations and merge with or acquire other businesses.