Foundational and accelerating characteristics of High-performing businesses
In a previous blog post, we introduced an interesting read on how developing strategic planning as a capability can really bring your company strategy to life.
The article referred to below emphasizes that strategy is the absolute starting point, but looks beyond the planning process in building sustainable business success.
However critical to business results, strategic planning is only one element to realize organizational outcomes. What organizational outcomes should you aim for? Is there even a clear correlation between organization and business performance? And if so, what are the key organizational characteristics to develop first?
Survey results from 665 companies across industries around the world reveal that yes, high performing companies seem to have a common set of organizational outcomes.
High-performers - being identified as consistently in the top 20% over a five-year period in terms of growth, profitability and shareholder returns - score higher on 6 organizational characteristics:
Aligned with strategic priorities.
Align execution with strategy. We refer to one of our previous blog posts as an example of good practice.
Capable where it matters.
Ensure you excel in the capabilities that make you stand out, and focus on your key battles.
Effective at making and executing critical decisions.
Decision making knows different stages: info gathering, recommendations, agreeing, deciding and performing. Ensure roles and stage gates are clearly respected.
Adaptable in the face of rapid change.
Company growth also knows different phases with their own focus points. Company structure may have to evolve through these phases too. Structure is good, but only if it supports process. Avoid structure determining your process – agility is key!
Efficient to realize the benefits of scale and scope.
Streamline processes and reduce complexity by means of cost reduction.
Engaged to go the extra mile.
Employee engagement is important. Involve employees. Recognize them. Conduct active, visible sponsorship by being present on the floor, clear and transparent communications and build coalition throughout different management levels.
Where the first three elements serve as a foundation of strong business performance, numbers 4 to 6 serve as accelerators creating a competitive edge, provided the foundation is solid. How does your company score on these six ‘common differentiators’? Are your foundations as solid as you assumed, or do you think reflection might be appropriate?
Read the full article for some inspirational examples! (SOURCE: Bain & Company)
How can we at CMAST help?
CMAST's team of Supply Chain specialists can help you in identifying the key priorities for your company and boost your company’s performance.
Interested in our expertise in this matter?
Please do not hesitate to get in touch!