Essential Attributes Of Great Companies
Although there is no single formula for what creates a good - or great - company, there are some shared attributes.
Greatness, like many objectives, is in the eye of the beholder. One simple test for greatness is how a company is experienced by its constituents - its customers, its associates, its owners, and business partners. Great companies treat all of their constituents well and, in their own unique ways, aspire to greatness.
- Ambition
The leadership team of every good company has a great ambition for the company - usually one that addresses an unmet customer need. The ambition is not one of personal greed; it's about building a company that delivers on its promise and does it with a unique quality.
- Customer
Every good company begins by meeting a customer need. That need is often deeply understood by the company's founder because they themselves experienced the need - and saw how that need was not being well met. Sometimes the founder hands off the leadership of the company to someone else who operationalises the idea.
- Focus
Good companies stay focused on what they know and can do well. When companies search for new ideas, they often drift into unknown territory and get in trouble. Good companies just keep growing and expanding into familiar territory. Niches can be very large markets.
- Execution
Satisfying a customer requires relentless attention to execution. Building a company's capability to deliver makes the difference between turning a great idea into a business or failure. But execution is not just about delivering a product. It's also about service.
- Inspiration
Smart companies engage all of their associates in building the business, from idea creation through delivery. Ideas don't just come top-down; they also come bottom-up and from every other direction. Everyone in the company feels that they own a piece of the action and are accountable for how the company performs.
The inspiration for a company starts at the top, but good leadership drives that inspiration deep into the company by engaging people broadly in decision-making. People are more than mechanical parts of the enterprise, and the more they are allowed to see customers, the better their business sensibilities.
Author Credits
Jim Champy is one of the leading thinkers in business. His first book, 'Reengineering the Corporation: A Manifesto for Business Revolution', helped transform the corporate world. His global best sellers also include 'X-Engineering The Corporation: Reinventing Your Business in the Digital Age'; 'Reengineering Management; and The Arc of Ambition'. His latest book is 'Outsmart!', a concise, fast-paced book that shows how you can achieve breakthrough growth by consistently outsmarting your competition. He is the Chairman of Perot Systems' consulting practice, and the company's head of strategy. For more information, please visit http://www.jimchampy.com/.