Five Foundational Principles for Business Success – Insights from Seasoned Industry Leaders across various Disciplines
Most consultants will tell you that they’ve seen a lot of companies inside out but only a few ones obsessed with the principles that ultimately dictate success. This post attempts to expose to you these success-making ideas.
Do not index
Do not index
Where simple ideas do the trick, overcomplicating a business is a highway to doom!
Most business people are obsessed. The good ones are. There’s an unconventional wisdom that, “until your business consumes your waking hours and your sleep alike, you’re not quite yet there” – there’s some truth to this. The most accomplished business leaders who have successfully navigated the complexities of the corporate landscape will attest to it; their business is their life!
Drawing upon their collective experiences (from much reading), I’ve outlined five (5) fundamental principles that expressly separate thriving companies from those struggling to find their footing:
1. Having a Data Culture: Fusing Data and Culture for Success
Data is the new oil. Gone are the days of the wild west rush for the black opium. Today we mine for data. Successful companies (and this isn’t just for Silicon Valley Tech giants) must recognise and cultivate a culture that values data. Recognising the transformative power of data can no longer be an after-thought. The best companies build a culture of accountability and data-driven decision-making. No serious organisation can operate for long in these markets in an environment where teams perceive hitting targets as an arduous task rather than a stimulating challenge. The best companies understand why they do what they do, because they have data to back their decisions.
2. Having a Clear Direction: Unveiling the Path to Long-Term Success
A comprehensive, well-defined long-term plan is essential for organisational success. This goes beyond a well-written strategy, nor your SOPs. It’s the embodiment of your entire organisation. What’s your unique story? Is it supported with robust data? The best leaders have learned that effectively communicating the strategic direction of your company at every given opportunity brings everyone on bold. And when everyone knows the overall direction and their direct contribution, noise turns into focus. That level of clarity empowers them to contribute meaningfully towards shared goals.
3. Process-Orienting Everything: Maximising Efficiency and Creativity
Operational Excellence 101 states that: Process over Output. Nothing could be more accurate. You know me, I’ve always been an advocate for automation, and continuous improvement. Separating repetitive work from creative work, and dedicating to a clearly mapped primary process streamlines any complex operation. Because with clear frameworks come standardisation or automation (it’s the obvious next step) and before long, previously stifled creative energies are liberated to focus on activities that truly drive impact. It’s why menial jobs pay significantly less than high-level roles. This means, as much as attainable, improvement efforts should be directed towards enhancing consistency in your approach rather than attempting to fix what is inherently flawed. Nothing else destroys a business than this.
4. Optimising Free Cash Flow: The Fuel for Sustainable Growth
Recognising the significance of cash flow can never be over-emphasized. I’ve seen startups with billion-dollar valuation potential blow through VC money in a couple of years because of terrible cash flow optimisation. The numbers don’t lie; successful companies prioritise optimizing their financial resources. The old saying, “Cash is king” may not be entirely relatable in this age of CashApps, and MoMo, but understanding the underlying rules on cash, will help you as a CEO or CFO align various processes and departments, to facilitate cohesive decision-making. Remember that whether in times of economic downturn or expansion, earned cash remains a vital enabler of strategic growth initiatives.
5. The Right People for the Right Job: The Foundation of High-Performing Organisations
I’ve been to offices where nothing moves; the people responsible for some critical functions don’t know half what the role entails. They have chock up the culture; depriving talented individuals from roles where they could make an impact. I’m no advocating that people be sent home, but the undeniable reality that securing the right talent for each role as a critical determinant of success should not be toyed with at the expense of egos. Your life depends on recruiting the right talent for the right positions - act like it. A single high-performing individual in the right position can surpass the collective output of a mediocre department, underscoring the importance of strategic talent acquisition and placement. Make every attempt possible to match your recruitment with your organisation’s core values, its industry and your desired growth.
My life mantra: “Nothing changes until we do”, juxtaposes in this instance that, adhering to these foundational principles allows businesses to fortify their strategies and drive sustainable growth. Growth that can propel them towards long-term success and maximise their potential impact on the global stage.
Fun fact: The most successful companies aren’t necessarily the ones with the best strategies, but the ones most willing to try the best strategies.
Weekly Product Find
With every post, I’ll share (a) remarkable product/s I discovered that may be a game-changer in its space:
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