WHAT MAKES A HIGH-PERFORMANCE BUSINESS?
Business Owners are expected to realise the goals of the Business by achieving outstanding performance. Thus, they are constantly under pressure to deal effectively with the current business environment, which is characterized by continuing changes in the environment and demographics, which create uncertainty, an increasing impact of technology on business and society, and a continuing demand for more transparency and information increases. At the same time, they are always short on time because of the numerous demands on them and therefore, they need a strong focus on what really matters to improve the performance of the Business.
As a consequence, business owners have become strongly interested in knowing the characteristics of high performance, as these will help them in their quest for excellence.
THE SUCCESS FACTORS OF A HIGH-PERFORMANCE BUSINESS
Unfortunately, age-old sure-fire management strategies that used to work – or seemed to – now don’t seem to be doing the job anymore. Download A High-Performance Business / Business … What is it? For free Instead of improving, many Business struggles to stay afloat simply. Yet, when the practices of High-Performance Businesses or High-Performance Business s (HPOs) are adopted, the situation stands a chance to dramatically change in a positive direction. Based on my multi-year research, aimed at identifying what ‘makes’ a High-Performance Business, I have discovered five critical factors for a sustainable High-Performance Businesses.
The three things all high-performing companies do to become Fit for Growth?
What sets the world’s best-performing companies apart from their rivals? In our work with many leading UK construction companies, it comes down to three things:
- They focus on a few differentiating capabilities — what they do better than any other company.
- They align their cost structure to these capabilities.
- The PLAN and PREPARE for growth.
Companies that follow this Fit for Growth approach build competitive muscle while cutting the business fat that weighs down other companies. They take proactive and strategic actions (as opposed to reactive and tactical ones), freeing up time and funds to reinvest in those parts of the business that are most important for growth.
At the same time, they put in place an organizational fabric that guides employees to do the right things day in and day out.
Sticking with this formula means making tough decisions. Business Leaders may decide to exit an entire business or product line that does not profit from the company’s differentiating capabilities and therefore is not at the heart of its identity. They may opt to outsource support functions that do not have to be world-class to enable their strategy. They may defer or stop projects in one area so they can funnel investments to a higher-priority area. Such decisions have real consequences for real people, and making them is never comfortable or easy. But the sense of purpose and energy that this sort of strategic clarity and coherence delivers to a business cannot be overstated. It is those companies that stick to this guiding philosophy that demonstrate market-leading revenue and high margin returns year after year.