By: Thomas Young
Running a successful business operation may appear to be complex and difficult. However, once the basics are in place, the keys to success are actually common sense approaches known to all. They are, in fact, simple and easy-to-understand processes that involve relating with people. Yet, many organizations do not practice these important elements of business success. Many organizations function below their potential due to the fear and anxiety of leaders, managers and employees at all levels. Mistakes of the intellect, emotions or the ego block the fundamental laws of business success from being implemented. Otherwise, more companies would be the superstar organizations that are now so rare.
The root cause of many organizational problems stems from not adhering to the natural laws of business and individual relationships. It is important that all seven laws are followed. If one is left out, the others are not as effective and the organization suffers. These seven laws of business success are universal knowledge. When the leaders of an organization learn and adapt these seven laws, they will never be forgotten. They may be swept aside at times, but the core truth will always be present. Large and small companies can achieve excellent results and reach their goals by following these fundamental business truths.
Leadership as the Driving Force
The seven laws of business success begin with the position taken by the head of the organization. The leader of the company sets the tone for the culture and focus of the entire organization. The approaches taken by the leader flow throughout all levels of the company. Leaders must have a clear mission for their organization. They should effectively communicate this mission, along with their values and goals. The company can reach high levels of success if employees accept the mission statement and work toward making it a reality. Each individual associated with the company, including customers, understands why the company exists.
Relationships Built on Trust and Honesty
Successful organizations build relationships with employees, customers, and other stakeholders through the values of trust, integrity and honesty. Deception is almost always perceived on some level. Customers and employees have a low tolerance for dishonesty and environments that lack trust. Companies that can build trust will have the best employees and the most loyal customers. They will have customers who repeatedly buy their products or services and promote the company to others. These organizations will attract and hire highly motivated employees who feel valued because trust is present in the workplace. These employees will make the company great.
People Do What They are Rewarded for Doing
Organizational compensation, motivational programs and reward systems should be clear and in tune with the mission, values and goals of the company. When the company prospers, employees should benefit. Employee incentives and rewards should be evaluated from the perspective of the employee, not the company. The organization should ask, “What are we really rewarding our employees to do?” People have their own perceptions of how to accomplish a goal and best earn a reward. They also have their own perceptions of the reward itself and its inherent value to them. The key is to see motivation from the mind of the employee, not the company.
Value the Employees
Studies have shown that employees want to feel valued by their employers more than any other factor. They want to feel important and secure that their contribution is valued by the company. Business leaders must find ways to communicate how they value employees. This is important because employees make the business a success or failure. People are much more important than products, projects, equipment or other capital resources. Employees make decisions based on their emotions and thoughts –which are not rationale or logical, but abstract and unpredictable. This is the world we live in. No matter how hard a company tries to impose logic on employees, they will still behave like people. Money paid to staff does not express value in the long term. Employees want respect, recognition for their work and to be valued.
Customers Will Do What Makes Sense to Them, Not the Company
Most companies exist because they have customers who are willing to buy their services or products. Yet, many organizations make decisions based on the perception of the company and the impact as seen by the company’s managers. Decisions need to be based on the impact to the customer. The question to ask is, “How will this business decision impact our current and potential customers?” Company leaders and managers should get into the minds of their customers and make decisions based on what is valued by the people who pay their salaries — the customer. This is a subjective, ego-less perception that is based on meeting customer needs.
Marketing is at the Core
The focal point of a company is its marketing and sales efforts. The company as a whole should see itself as a marketing entity. Every employee plays a role in marketing. This is true of all types of organizations and absolutely necessary in today’s competitive environment. Consumers have many choices and will not hesitate to switch. Organizations must communicate how they add value to customers through integrated, company-wide marketing and sales efforts.
Success Happens In Between Sales Transactions
Companies will often times focus on making the sale or generating revenues. Managers look at the bottom line and make decisions. However, the true success of a company is determined by what happens before and after the sale or exchange of money. Success is established by the activities that occur before the next quarterly or monthly sales report. The seven laws of business success are the steps that companies can take to improve their bottom line and reach targets. There is great potential for organizations to grow, improve and become more successful. Those who follow the seven laws of success will prosper and achieve results beyond their expectations.
Tom Young, MBA is a sales trainer and marketing consultant in Colorado Springs helping companies increase revenues.