Poor managerial performance is viewed more as structural rather than market factors. The mantra of the managements for increasing efficiencies and profitability is more often than not structural adjustments within the organization.

Structural adjustments at best produce short term results. Many of the change initiatives fizzle out after the initial spurt in productivity while management grapple with sagging morale and bottom-line. Managements initiate more change for the sake of keeping the trend going resulting in further worsening of the situation and attritions.

The major Change initiative needs to focus on the market forces and any internal change has to be specific to orienting the organization and its people towards the markets.

Some key factors that need to be addressed for market oriented change initiatives:

Globalization

Globalization has created a new scenario where capacity is no longer the constraining factor for any business. Huge capacities are available across geographical borders across product categories. Managements need to focus on the intangibles such as brand building and human resources rather than building capacities to expand markets. The phenomenal overcapacities available especially in high population countries with cheap labor creates price pressures which makes it detrimental for companies focused on capacity expansion.

Globalization has also created new levels competitiveness where price advantages alone may not be able to create the market advantages. The customer value-benefits vary across the borders. Organizations need to create products which satisfy the diverse needs of global consumers demanding a certain level of ethnic and geographical adaptation to meet local expectations and needs. The products can no longer be uniform and mass produced. Customization to market requirements and even to the level of individual customers is the pre-requisite. Some of the premium car companies have successfully adopted customization to meet customers