4.5 minute read
Business Strategy “Good to Great” Top 10 Tips
It’s 20 years since Jim Collins published his archetypal business strategy book “Good to Great”, a study on why some companies make the leap to success… and others don’t; it is still a great read today. Central ideas from the book which studied 28 US companies that had outperformed concluded that disciplined people, disciplined thought, and disciplined action were central to success if combined with ‘Level 5’ CEO leaders, defined as those with deep sector expertise, very open and without ego, so fundamentally better able to listen, steadfast and humble. Many of these attributes and approaches still resonate 20 years later in Avondale’s top ten list of “Good to Great” business strategy moves as we see them today:
- Say no: Say no more quickly. Get to no more quickly. Understand which customers work and which don’t. Which initiatives need dropping and which need enhancing. Stop trying to appeal to everyone and focus on a niche you can own.
- Research the competition: Spend more time studying your competition so you can understand what niche you can own and where you can be a world-class leader.
- Technology: Every business is today a technology business. Sit technology at the centre to ensure productivity, technology is the hub, not a spoke.
- Get simple: Remove complexity by reducing peripheral product/service range.
- Flatten the pyramid: Reduce the management ‘layer-cake’ and build faster decision-making protocols. Increase the top team’s accessibility to listen and be available by removing the slavery shackles of outlook, sorry Microsoft.
- Standardise your business strategy – Review your ways of working objectively, backed by better tracking, data, and dashboards. What few key reports do you truly need and how do you make them world-class to show what is working and what is not?
- Review roles and responsibilities. Be clear who does what. Upgrade the job descriptions even for long servers and make it clear who is accountable for what. Don’t abdicate, track but hold accountable. Where skills deficit occurs invest or replace. The right people are in the right seats as Jim Collins expressed.
- Talk to customers: What do they say is working or not working. Wherever possible get close to yourself don’t rely on researchers. Who are your future customers and what new products will they need?
- Seek flow: It doesn’t matter whose idea is the best, nor whether things are going well or badly. Have a deep commitment to the vision and work hard at it, every day step by step with determination and focus. Let the bad stuff go, and don’t get complacent about the good stuff. Avoid distraction, especially the media.
- Stick to the plan: Agility and reactivity rage like wildfire. Instead, design a fire break and get back to basics. A simple clearly articulated plan cascaded throughout, where you can be first in class but not fighting on too many fronts. Be clear where your breakthrough points are and make sure the team understand the mission simply.
About Avondale’s Business Strategy Programme
Avondale is a leading business strategy advisor that helps ambitious owners buy or sell companies, secure investment, grow their business and enhance shareholder value. Audacious, authentic, and ambitious partners of exceptional quality, delivering your success. We have been advising dynamic entrepreneurs and companies for almost 30 years, both locally and globally.
If you are looking for advice, Avondale runs a business strategy programme. For an exploratory discussion without obligation, please contact us on +44 (0)1737 240888, our Contact Us page or email us at email@example.com for further information? Alternatively, you are invited to join our next discussion by registering here for our next webinar The perfect “trade” sale on the 24th of May 2022.