The 5 components of longevity

Three in four businesses in the US fail to survive for more than 15 years - quite disappointing, isn't it? Assume only a quarter of parents could endure adolescence with their kid. So you might wonder, what is the difference between those who are actually able to operate on the long run compared to their less fortunate competitors?

1. Respect towards the culture of shareholders & employees ??

The people aspect of business should always be kept in mind with all of your partners having their own set of cultural beliefs and practices. Diversity should be celebrated, respected and integrated into the company culture, aside from the fact that is 'looks good', it also show that you value the person on the other side of the contract.

2. Work on sustainability & transparency ??

All markets are crowded with offers that continuously exceed each other in quality or design, so customers started to focus on the company behind a product. People expect brands to take a stand in social and political question, to raise their voices against discrimination and actively build a sustainable future. Consumers demand to be able to check how a company operates and who are they working with. In order to gain trust and loyalty, brands must provide insight into their production.

3. Take charge & focus on independency ???

Private ownership means that all decisions can be made in-house without having to report to someone only financially involved in the operation. While being in charge is enticing, it can mean a financial burden, as well as slower growth. Companies must find the sweet spot of having (semi) financial freedom without needing to compromise in significant matters - this is specific to your organisation and preferences. Short-term profit cannot replace authenticity if you mean to succeed on the long run.

4. Concentrate on quality & value ??

An aspect where no compromises should be made is quality, as it is well-known that a bad experience spreads way faster than a good one, which seriously damages a company's judgement leaving serious (financial) consequences behind. However, quality does not only refer to the product itself, rather works as a holistic approach to production, customer service and company culture. Focusing on quality in each step of the way ensures that you employees and customers are satisfied and your provide value.

5. Be agile & innovative ??

In order to keep up with the pace organisations must innovate and develop constantly and the best way to do it is agile. Agile is a set of principles, an approach to a way of working, with a number of processes that can be applied to put agile into action. It’s a foundation for teams to use to make decisions that result in delivering business value more often. Agile has proven itself useful not only in its original realm of software development, but more recently in product, service and process development, as well as in marketing and HR departments. Why not adopt it at your company?

Frontira provides hands-on support for lean teams inside established corporations, bringing customer centricity to the centre of business thinking. We generate growth for our clients by supporting them in the critical areas of success. Interested? Get in touch

Source: Harvard Business Review