Six key factors separate successful companies from struggling ones, according to Pikay Richardson, a professor at Manchester Business School, who was in Dubai recently to hold a seminar. He outlines the differences here.
What separates successful companies from struggling ones?
We've done a lot of research on this and we have found about six differences. The first one is successful companies do the right things, whereas poorly-run companies do things right. These are the same words, but when you swap the words around their meanings are different.
Can you give an example?
Before 1992 Nokia was a conglomerate of many small businesses. In 1992, the chief executive said we can't be a jack of all trades. Mobile telephones were just beginning and this guy was remarkably clairvoyant. He said in a globalising world we'll very soon be nothing. He sold all of the other divisions and put the money into the small electronics division and said I am going to build this into the biggest mobile phone company in the world, and he did.
What are the other factors?
Satisfying customers. Success comes from acquiring customers, retaining customers and having a workforce dedicated and skilled to deliver excellent service. Third, in a world that is changing very fast, customers are always changing the goal posts. Today they want you to supply them in packages of 20, tomorrow they will want them in packages of 15. Number four is competitor understanding. In a world of competition, the only way you can beat your competitor is to understand how they compete.
Good internal communication is the fifth. Why?
In the yesteryears of business, communication was always top down 'I'm the boss, do what I say'. In the fast changing environment, you (the boss) cannot be around all the time. So top down is not good enough. It must be bottom up, also. If you allow information to also come up, and you create an environment where even the cleaner can come talk to you, it is amazing what sort of ideas you get.
The last factor is strong leadership. What do you mean by that?
(It is a) leadership which is able to look into the future, a leadership which is able to scan the marketplace and see the changes going on to move the organisation in the direction of success, having convinced everyone that's the way to go.
And how does a leader convince everyone their way is the right way?
A good leader is one who can stand in front of people and get them on board. You need to deliver the message in such a way, so passionately that people think if you don't follow, we're all dead. Winning the hearts of people is a leadership skill. Telling people to pack bottles of water is a management thing.
* Gillian Duncan
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