The True Business Principles Behind Excellent Organisations
To achieve excellence in delivery of Business Objectives the following needs to happen:
- Commitment for Action: being able to mobilise immediate action when an opportunity arises. This involves taking the whole issue and then assembling a specifically chosen team to deal with the opportunity by breaking it down into its constituent parts. This makes the process manageable and generates some fluidity which encourages action. Review of performance is managed by that team against specific Objectives. The smaller the task given out the more likely it is to generate success and understanding.
- Being close to the customer: the customer dictates product, quantity, quality and service. The critical success factors here are all about quality, service and reliability, remembering that no part of the business is closed to the customer. Excellent organisations get new ideas for products and services just by listening to what the customer is saying and doing so on a regular basis. A direct orientation towards the customer continually drives business growth.
- Autonomy and Entrepreneurship: regardless of size, entrepreneurial spirit is an essential growth factor as staff have the freedom to experiment and develop ideas. By having such an approach staff “own” their ideas and promote them as such.
- Productivity through People: by respecting staff and treating them well, staff have a sense of belonging and contribute more. People are the primary source of quality and productivity gains, not technology and processes.
- Hands-on, value driven: organisations should be clear about what they stand for and use this to shape their value proposition. Everyone in an excellent organisation should be driven by the values of that organisation, where the senior staff drive that from the front and communicate this as one voice, regularly.
- Stick to what you are good at: acquisition or internal diversification for its own sake is a distraction and excellent companies avoid such reckless strategies. Do what you know best. Acquisitions should always be in the fields related to core activities and should never be in business es that the company does not know how to run.
- Simple business model with lean staff: keep processes basic and small. Minimal people are needed in the “Product Division” model where a lean staffing contingent at middle and senior levels is required, giving fewer administrators and more “doers”.
- Mixing up a tight structure with flexible capability: excellent organisations operate a business form that uses tight control over its activities yet also have a degree of flex which allows for experimentation and development of new ideas. This process encourages innovation, autonomy and entrepreneurship where staff know that they have the freedom to experiment and innovate inside the organisational assessment of any new ideas or processes not threatening quality, targets and the customer.
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