3 Things Most Successful Businesses Do Right

Source : Stella Marrison from Business News Daily

Most successful businesses have three basic building blocks in common.

Most successful businesses know how to optimize the resources available to them and understand the importance of focusing on the customers.
Successful companies have the organizational capability to support critical business objectives.
Successful businesses practice flexibility, set feasible goals and maintain authenticity.
This article is for business owners looking to learn what makes a company successful.

What do most successful businesses have in common?

According to a study from The Conference Board, an independent business membership and research association, high-performing organizations – regardless of industry or geography – share three similarities. This research defined these three key building blocks:

Use available resources to effectively execute business strategies.
Maintain a strong focus on the customer.
Structure the organization to support company objectives.

Let’s take a closer look at the three most successful traits, how these virtues help companies thrive, and some examples.

How the study was conducted

To better understand what traits link the best businesses, the researchers in this study identified 56 companies that rank high in leadership, financial performance and people management. Those companies include FedEx, Coca-Cola, Target and American Express. The study’s authors then surveyed 76 executives at 27 of those companies to learn how their businesses are run.

Amy Lui Abel, vice president of human capital research at The Conference Board and a co-author of the study, said that when you’re looking from the outside, it may seem as if these companies don’t have much in common.

“However, our survey of executives at those four high-performing organizations, and 23 others, revealed a layer of meaningful commonality underlying their success,” said Abel in a statement. “While the DNA of every high-performance culture is unique, they rest on a common catalog of ‘genetic’ elements that proactive leaders will identify, adapt, and incorporate into their own company’s identity.”

Based on their surveys, researchers uncovered these three “DNA elements” and strategies that successful companies have in common.

1. Successful businesses use resources effectively and efficiently to execute business strategies.

High-performing organizations prioritize efficiency to best meet their goals – big and small. Specifically, they follow these best practices:

Create a culture of rigor and high standards for financial stability.
Require processes around fiscal management, oversight and decision-making.
Execute strategies in an operationally efficient manner.
Align organizational structure to support business strategy.
Establish and maintain a culture of accountability.

2. Successful businesses focus on the customer.

Successful companies know that customers are what make their business thrive. To that end, they prioritize customer satisfaction and ensure that their larger goals align with consumer demands. Specifically, they follow these principles:

Deliver high-quality products and services.
Create a strong client-centric culture that pays attention to customer engagement.
Focus the organization’s processes and products on their customers’ needs.

3. Successful companies have an organizational structure that supports critical business objectives.

Focusing all moving parts on the same goal is crucial to organizationwide success. Each individual is an important link in the chain, and everyone’s strength comes together to achieve the company’s major objectives. More specifically, the businesses surveyed in this study had these common objectives:

Attract and retain talent through strong brand reputation.
Provide learning and development opportunities to all employees.
Require supervisors to set clear goals and oversee performance.
Raise worker engagement to drive productivity.
Develop a global mindset among leaders.
Reward and recognize employees based on the company’s business strategy.
Help managers create effective teams.

“In today’s globalized, competitive environment, a huge array of measures – from market capitalization to employee-engagement scores – is available to evaluate a company’s success,” said Rebecca Ray, executive vice president of human capital for The Conference Board and also a co-author of the report. “But such numbers alone reveal little about how an organization succeeds, or fails, in adapting to change, developing new capabilities and executing its long-term strategy.”

What are some additional factors in business success?

In addition to the aforementioned traits, these are some common contributing factors to business success.

Originality:One major factor in a successful business is the ability to test original ideas. Most successful companies begin with a brilliant idea that has been tried and tested.
Goals:Another major contributor to success is the ability to set the right goals. This includes developing effective leaders who can help grow your business and plan strategically. You want to be able to dream big, but at the same time, realistic goals and objectives attract success. Ensure the goals are practical and achievable in both the long and short run.
Flexibility: In keeping with that notion, you must be flexible and know when to make certain changes that are good for your business.
Technology:Going digital is not only good for the environment, but can also be great for your company. Although you may not be too excited about the initial costs, going digital can save money on office supplies – such as paper, ink and filing cabinets. While it may be easier to begin your business without these initial investments, making them early can save you time and effort down the line.
Authenticity:Another factor in success is building an authentic brand. Customers are tired of grandiose companies that tell them whatever they want to hear to make a sale. Successful companies find ways to spread a genuine message that attracts loyal customers.
Financial savvy:You must have a good handle on the financial realm to prosper as a company. It doesn’t matter how good your ideas are if you don’t fully understand how to make money from them. Successful businesses are skilled at creating multiple streams of income and optimizing them over time.
Gratitude:Very few companies last without loyal customers and supporters, so find a way to show your patrons you appreciate their business. Some examples are giveaways, sales for frequent customers and rewards programs. Any way you can give back to your customers and show appreciation is always beneficial.
Fearlessness:Last but not least, being fearless is one of the top ways you can become successful. Starting a business is not for the weak. It can be tiring, tedious and downright maddening at times. Nevertheless, those who stick with it often gain unforeseen rewards. They also are often not afraid to introduce new ideas and concepts that may seem radical or even taboo, in the name of growing their business and brand.

Examples of successful companies

For the study, The Conference Board interviewed some of the world’s largest and most successful companies to glean insights on their operations. Here’s a bit about four of the companies they interviewed and how their investments resonate with consumers:

FedEx

Since its founding in 1971, Federal Express has continually delivered on its promise to get packages and important documents transported on time around the world. FedEx has built a reputation focused on the importance – and quality of – their service. As the tagline goes, “When it absolutely has to be there overnight …” FedEx has continually upheld that guarantee for five decades, building a reputation of reliability and efficiency that gets packages where they need to be.

Coca-Cola

Few names are more synonymous with the global beverage market than Coca-Cola. Aside from its trademark sweet drink – and the large family of brands it’s accumulated in the decades since – Coca-Cola has built an empire on delivering a product that customers tried and wanted. It held suppliers to those same high standards throughout the decades, ensuring that everyone works toward the same goal of delivering the quality product fans around the world expect.

Target

Target has doubled down on investing in its staff in recent years. Team members in its stores have received salary increases, and the company expanded training and professional development to help deliver the best customer experience possible. At the corporate level, the customer remains the focus, as Target delivers according to consumer feedback.

American Express

American Express has a long history as a customer-friendly credit card brand. It has attracted the most affluent clients, intrigued by the spending perks and high level of customer service they can receive. The company builds upon the trust it has earned over decades in the business, funneling that back into its offerings and attracting new customers – and keeping old ones – in the process.

Chad Brooks contributed to the writing and reporting in this article.