4 Components of Highly Effective Organizations
By: Brent Neal
It is a fact that effective organizations stay in business longer, make more profit, have higher employee retention, and are more attractive to consumers, vendors, and potential employees alike. These companies transform industry culture when compared to others in the marketplace. Household names like Google, Apple, and Amazon are firms that others often try to emulate when building a successful enterprise. Modeling your business to be like theirs may help your company succeed… but wait, let me stop you there. You cannot compete on the same scale as these companies, so stop trying to. Your goal is to build your effective organization, tailoring the business around what you do and who you are, not build theirs. At their core, all successful companies have four components in common that make them highly effective: Purpose, People, Possibilities, and Performance.
Purposed companies are more effective. A company’s purpose is the reason it exists. Purpose is the underlying reason or goal for the business. A purpose is more than selling a product, making money, or providing jobs. It is also more than a Mission Statement. Purpose is the soul of the organization and unifies people behind a singular cause. It creates a doctrine or the reason why people do what they do and almost without effort, gives them the desire to accomplish. Organizations that have a strong unified purpose are exceptional and achieve extraordinary success. Purpose causes them to move forward in a clear direction and aligns every single part of the company.
People are the life-blood to any business venture, including great leadership and well-organized structure which exudes communication, collaboration, and unity. When combined with “Purpose”, the company’s culture becomes united in its approach and generates natural momentum to achieve its goals. People are an investment. You must develop people-focused initiatives that empower, promote teamwork, align your organization, and unify the workforce. Research shows that people who are trusted, engaged, and allowed to “create,” repeatedly produce more, are retained longer, and care about the business’s success.
The word “possibilities” is powerful. When I hear that word, it causes me to imagine great things about possible ideas, outcomes, and future realities. A company must have a vision, goals, and a future state to work towards. It must have clear direction. Consider a company whose leadership and personnel are all unified behind one cause, have a succinct purpose, have a desire to realize great things, are motivated to perform, and have the proper tools to achieve the job. That’s right, they will be successful! They will grow and impact the world.
Performance is the action of doing, working, or getting the job done. We want our workforce to be efficient, determined, and cooperative. Businesses must develop systems that balance people, customer service, and productivity. Performance is not only the efficiency of the system, it is the outcome as well. It is the result of what you want to see and includes the entire process and the deliverable to the customer. To make a quality product, you must have a high-quality process that delivers customer satisfaction on the end-product. Customers should enjoy what you sell.