There is a clear and distinct difference between average, or often failing businesses, and World Class Companies. The difference shows up in the numbers. Not just sales and profit. It shows up in numbers that report “real” customer satisfaction. Is shows up in how employees “really” feel about the companies they work for. It shows up in how the owner “really” feels about the success of their business and how it positively or negatively impacts their life. It shows up in the value of the business. Most businesses are worth far, far less than what they could be.
Interestingly despite the marked difference between the numbers and performance of average versus world Class companies comes down to one thing.
World Class businesses and their people do what average people and businesses won't do.
The things that world Class businesses do that average businesses won’t do are often very simply things.
But not necessarily easy. Becoming a World Class business is simply, just not easy. It requires change, commitment, focus, discipline and perseverance.
It requires doing the right things over and over again.
So what are those right things that World Class Businesses do that ordinary don’t do?
Setting Goals
World Class businesses are clear about goals and expectations throughout the ENTIRE business. They don't just post a mission statement on the wall and leave it at that. They don't establish a revenue goal at the beginning of the year and forget about it.
World Class businesses are specific and intentional about the direction and goals for the business as a whole, each department and every position and person in the organization. They are also very clear about the purpose and goal of EVERY system, process and procedures in the business.
They simply know that if they are going to apply energy toward an action they better know what they are working to accomplish. They are remarkably intentional about everything they do. If it doesn’t have a clearly defined results or purpose, they just don’t do it.
This requires thoughtfulness and patience. It requires taking the time to define outcomes and objectives before we start any endeavor.
Most business simply won't do is to take the time and effort to define results continually and purposefully.
Knowing the Numbers
World Class businesses know the truth about the performance of the business, its people and the systems it operates. In other words, they understand that the things that get measured get done. Want to improve sales? Then carefully monitor and report sales results back to your sales people. If you want to improve profit in the business, monitor and report. Yes, defining results, establishing accountability and building quality systems are important too, but you must know your numbers.
Want to determine if there are opportunities to grow your business? Stop guessing and do a little research. Check the numbers carefully. And then respond appropriately based on good information.
Caution: World Class Organizations don't gather knowledge and information for the sake of having it. Only gather the information that is going to lead you to making effective, regular and timely decisions.
Creating the System
World Class businesses know how they are doing at achieving the company primary goals, goals and results of their people and the performance of their systems.
World Class businesses invest time and energy into the development of systems, processes and procedures. Fact is without becoming a system driven business, a company will be limited in its ability to grow, resolve problems, maximize profit and ensure high levels of owner and employee satisfaction.
When we talk about systems, we are not just talking about fulfillment and administration. We are talking about everything you do in the business from answering the phones to turning out the lights at the end of the day.
World Class businesses establish and implement a strategy to get their systems documented, make sure their people are trained, accountable and innovate those systems on a regular basis.
Quite frankly, despite the intense argument and logic behind become systems driven, most businesses will not apply sufficient energy and time to make it happen.
Get People Accountable
World Class businesses create an environment of trust through high levels of accountability.
They understand that in order for a business to function at its highest possible level they need to count on their people to follow-through with their commitments, responsibilities and assignments 100% of the time.
Not 85%, 93% but 100%.
Businesses that simply survive are never fully certain that their people will always do what they say they are going to do 100% of the time. Yes, their people are good at getting done most of what they agree to, but not all.
Without KNOWING you can count on your people how can you have complete trust?
World Class businesses establish the standard and expectation that requires that their people ‘Do What You Agree To Every Time’. Then they hold people to the standard.
Average businesses just don't have the guts to raise the standard and hold people to it. That's why they remain average.
Build a Self Sustaining Culture
World Class Organizations pay attention to their culture. What is culture? It is a commonly held set of beliefs and values that are reflected in the actions of the people in a group or society.
So what happens if you don't have a clearly defined set of beliefs and values that are accepted by the group or people in your business? Who knows! What I mean to say is that your culture could be anything. The fact is EVERYONE has personal values and beliefs that drive their behavior. So in a business without a clearly defined and threaded culture, the people will ACT and behave according to THEIR personal values.
This is where trouble happens. Not because people have values and beliefs. It is because their values and beliefs could be different or even conflicting with others in the organization. As a result we end up with conflicting actions in the business.
Example: You have one person who believes it is more important to focus on the task at hand even if customers are present. Have you ever been in a store and the workers were busily stocking shelves while customers where trying to find something. On the other hand you might have an employee so busy helping customers and even looking for people to help, they don't get their tasks done.
So who is right? To each employee they believe they are right. But what is right for the business?
World Class businesses recognize that they must define the values and beliefs for the business and fervently articulate and communicate them so everyone in the business knows and understands them.
It is the employee’s responsibility to choose to adapt to the culture of the business.
In the end, a business with an intentionally threaded culture will outperform a business without a set of commonly held values and beliefs. Why? Because in a business with a strong, intentionally shaped culture, everyone is moving in the same direction with the same attitude and actions.
Effective Communication
World Class Businesses are intentional about communication. They understand that creating an enthusiastic collective focus within the organization requires diligent, creative and consistent conveying of the message.
They simply don't have a one-time company meeting, share the goals and direction of the company and then say, "OK, that should do it", and then go back to work.
They also have ears to hear, because communication is a two way street. By taking time to really listen to their people, they find that their people will take time to listen to them. Through effective and consistent upward communication employees feel valued and important.
World Class Companies consider the effectiveness of their internal communication systems and processes. By taking time and evaluating how, when and where your people relay information back and forth has proven to dramatically improve efficiency and quality of communication within businesses.
Finally, World Class Companies consider the impact of their external communication. External communication is essentially how you communicate to the world outside your business. They look at the quality of their marketing and lead generation messages with tremendous focus and intention. They look at every facet of their interaction with their clients, prospects and vendors. Essentially they step outside the business and consider what others see and perceive when looking in.
In the end, World Class businesses are masters at ensuring quality communication throughout the entire business.
Systematic Innovation
Innovation is the key to keeping a business or organization alive, relevant and growing. Without innovation and reinvention, eventually the business will die. OK, so no great big revelation there.
Over innovation can be equally destructive to a business. Over innovation leads to confusion and inconsistency. Over and over I have witnessed smaller or evolving companies struggle because they never settle on a model or way of doing business that works. It's not because they haven't discovered it, it’s because the owner or leader is an innovation junkie. Sorry if the truth hurts.
When a business over innovates, the people in the business are constantly trying to figure out what to do. They can never get settled into a rhythm. They never get settled into how to produce optimal results. Often, the employees shut down and begin to ignore the constant barrage and attempts of the business owner to drive change.
Ultimately the business owner is the only person engaged in innovation. They simply can’t enlist the cooperation and help of the people around them.
World Class Businesses are very systematic about innovation. It is not random and arbitrary. They implement a process of orchestrating change when it is timely and relevant. They know how to respond to situations that require improvement in an appropriate manner. And they know how to identify areas of the business that can be innovated effectively and efficiently.
The bottom line is entrepreneurs thrive and, by their very nature, embrace change. The best entrepreneurs know how and when to innovate so it best serves the business and its future. They know how to temper and control their over active innovative nature.
In Summary, World Class Organizations do seven things consistently well that ordinary business won’t do.
- They set and define goals throughout the business.
- They know their numbers and objectively evaluate performance.
- They build high quality systems and procedures that ensure consistent and predictable performance.
- They create an environment of high accountability and trust.
- They build and thread a self sustaining culture.
- They are intentional and highly effective in their communication within and outside the business.
- They are systematic when it comes to innovation and engage all their people when it comes to improving performance.
Time for an Honest Assessment
It’s been reported by most people that see the difference between what World Class Organizations that ordinary business won’t do, that they feel they too are doing those things.
It is easy to see how a business might feel that way. Largely because most of these seven activities described above take place in some way shape of form in every business.
The bottom line question is this, “How well is the business doing those things and is it done with intention or accident?” In addition, who is engaged in these actions? Has it been embedded throughout the entire business?
Take an honest look at your numbers. Are you achieving the financial objects that you believe you should be or would like to be? Then do a gut check and ask yourself the question, “Is the business all that I want it to be, it is genuinely serving my life or have I settled?”
Once you’ve addressed those questions you will have a better idea which category your business really falls into.
Are you World Class or just ordinary?
If you want to become World Class, then begin by implementing Level 7.
