By Blake DuBose and Mike DuBose
Everyone seeks success, but how do some people (and companies) seem to always be at the right place at the right time, consistently making the right decisions to attain it?
At a Charleston, SC market, we saw a box with a lid that read: “The key to success is?” Inside was the answer: “HARD WORK!” Everyone knows the road to success is difficult, but is hard work the only way? We know of many entrepreneurs who overworked themselves and staff, only to go out of business!
Different groups within a company can define success in different ways. The company’s corporate definition may be different than those of teams or individuals within the business. When these three viewpoints merge simultaneously toward common goals, the chance of success increases; however, most companies do not have a clear vision that is shared by all. Expectations may be all over the board.
It is important that everyone in your organization understands what success means to them (your purpose), the vehicle that will take them there (mission), the big picture (vision), the behaviors everyone will exhibit to execute the mission (values), and the detailed steps to take them there (management plan). Combined, these components create a business plan or strategic plan. Unfortunately, most companies do not have one. It may be all in the owner’s head or they may be running their business on a day-to-day, seat-of-their-pants basis, which means that employees do not know where they are going or how to get there. Many companies chase profits anywhere and everywhere. They are like tankers in the ocean, engines revved to full speed but with no rudder. Then, they wonder, “What happened?” when they go out of business.
In 2007, we were stunned by an anonymous online survey indicating that employees in one of our very profitable companies were unhappy. Even though they had excellent salaries and liberal fringe benefits, 75% said they did not plan to be with us in five years. This experience taught us that leaders often miss the reality of what is going on in their companies. Thus, leaders should focus on continual improvement by conducting ongoing staff and customer surveys, then stepping back, facing the brutal facts, and using the findings to make positive changes.
We decided to do something about the discontent brewing in our companies. Inspired by Jim Collins’ bestseller Good to Great, we established the goal of building a family of four great companies and can humbly report that as of 2010, we have made substantial progress! Recent confidential surveys found that, because of major changes we made, 90% of employees are happy. They report being pleased with our new direction and revised leadership model that makes timely decisions and promotes execution. Independent assessments also revealed that 100% of customers said they received good-outstanding service from us (the desired outcome). We are not perfect, often stumble along the way, and still have a long way to go towards greatness, but we have learned that happy, engaged, passionate employees generate happy customers.
How did we achieve momentum toward building great companies? Well, it was simple but difficult; necessary but painful. It was a slow process that took years of well-planned, deliberate trial and error. We drew ideas from great business minds like Peter Drucker, Larry Bossidy, Jack Welch, Jim Collins, Marshall Goldsmith, and Ken Blanchard, combining them with common sense and a lot of input from our staff. Our goal was simple: to create a family of four great companies where employees look forward to coming to work each day, take pride in their high quality work, and keep every customer happy, while also generating reasonable profits. To succeed, it took all of us in a single boat, enthusiastically rowing in unison toward shared goals…and most importantly, having fun!
When we presented our new book The Art of Building a Great Business to a colleague, he looked at the cover and said, “It looks nice…but tell me five things I need to know to build a great company.” Initially, we were speechless, because we knew that many variables must be in place to build great companies. We can, however, give a snapshot of the five core elements that form a great company:
- Hire outstanding, passionate, can-do employees who fit into your culture and place them in the right jobs. After clearly defining your job descriptions, advertise for job candidates aggressively and hire tough and slow. Have at least three different staff members interview at least three different people, and interview each potential hire three times. If you don’t find the “right stuff,” advertise for additional candidates. Set high but realistic standards for current staff and then trust them to do their jobs. Coach weaker employees to improve, and if this is unsuccessful, help them find jobs outside the company.
- Employ a humble, ethical, caring management team whose members know how to lead (or can—and will—learn). There are many bestselling books that outline how great leaders should behave. I recommend Kouzes and Posner’s The Leadership Challenge, Ken Blanchard’s The One Minute Manager, and Marshall Goldsmith’s What Got You Here Won’t Get You There. Define your expectations, establish broad goals, and then trust them to lead.
- Build excitement by clearly defining your mission, vision, purpose, culture, and values. Employees need to know (and agree with) their unique niche in the company, what is expected of them, how they should behave, where they are going, and how they will get there. If an opportunity or activity doesn’t fit your business plan, don’t do it! Remember that people need something to strive for beyond just making a profit. They want to feel proud to be a part of something good—something bigger than themselves.
- Create teams that focus on winning! Successful teams always drink from half-full glasses. They have fun, balance their personal and professional lives, and always think of success. They anticipate and prepare for the future, predict and prevent failure, and bring mistakes out into the open to dissect and learn from them. To better understand teamwork, read the bestseller The Five Dysfunctions of a Team by Patrick Lencioni.
- Pursue fewer activities that you are passionate about, you know the most about, and that are most profitable for your company. Jim Collins calls this the company’s “Hedgehog Principle” in Good to Great. When these three areas unite, sparks fly!
If your company can get these five factors right, profits should follow. Of course, there are many more variables to consider in building a great company, but these are the fuel for champions! The bottom line: building a great company is an evolving process that will never end. It is a destination you will dream about but never quite reach— and that push for ongoing improvement is what makes successful companies.
And if profit ever becomes your mission, quality and customer satisfaction fail to be Job #1, and you arrogantly think you are great and invincible, remember: TOYOTA!
