Lead Right for Your Company’s Type

Four Types of Enterprises

Organizations can take four general forms, but each company has its own distinctive culture, leadership style and promise to customers. Of these interdependent components, customer promise matters most. A firm’s culture and leadership depend on it. The four types of companies are:

1. “Predictable and dependable” – These companies provide reliable products or services that fulfill basic needs. They need well-defined policies, practices and operational systems. They are capital-intensive and operate with slim margins based on economies of scale. About 60% of the 100 largest American companies fit this category. Among other features, their management approach generally includes “vertical de-integration, activity-based costing, zero-based budgeting, lean manufacturing” and “statistical process control.” These companies often have a robust leadership pipeline. Examples include Federal Express and Walmart.
2. “Enrichment” – These organizations are values-based. They operate with honorable goals and deeply held beliefs and principles. They seek to improve customers’ lives and help...