10th Mar 2016
The Institute of Customer Service’s research shows that sustained service excellence can be achieved by organisations with very different models. So it should come as no surprise that firms are increasingly looking at hybrid business models. These seek to combine the strengths of different model types, such as partnerships, mutuals and franchises, to exploit new opportunities and improve customer service.
This hybrid approach can give businesses the flexibility to tap into the benefits of a different business model and address weaknesses in their current model. But adopting hybrid models is not without risks. Here, we outline three factors that organisations need to consider if they are to manage an integrated approach effectively:
Companies need to have a clear purpose and rationale for adopting a hybrid approach, and therefore need to be aware of the benefits that other business models can bring. The Institute’s research, which analyses the pros and cons of five different business models, can help with this.
It is also important to assess how the new or hybrid model will affect or interact with an organisation’s existing structure. An organisation needs to understand the impact changes might have on its existing business culture, to ensure the hybrid model does not undermine its current strengths.
Across all business models, the best performing organisations are those that understand the potential strengths and weaknesses of their ownership and governance structure. They develop their leadership, employee engagement and organisational structure to exploit the strengths in their model and mitigate potential weaknesses.