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Business Excellence and Winning

In the most general of terms, success in business requires:

The Excellence Streak

When we discuss the imperatives of business success these set the scene for what "must be". We accept things that "ought to be done" (normative opinion) to make the business successful. We reference the competitive world.

Competitive pressures in a global economy with free market forces are real. These statements serve to

They offer a justification for what managers and owners of the business do - and the policies of government in encouraging business.

The managers of a business may thus reference the precepts of the "in search of excellence school" to shape the values, attitudes, behaviours and expectations of the organisation.

If we compare two well-known sets of recommendations, the criteria for a successful business are:


Peters & Waterman
(In Search of Excellence - 1982) 		Goldsmith & Clutterbuck
(Winning Streak - 1985).
  1. Bias for action: Prefer doing something - anything - rather than cycle ideas endlessly through analyses and committee reports.
  2. Stay close to customers Learn their preferences and cater to them.
  3. Autonomy and entrepreneurship: Organise the corporation into small, semi-autonomous companies. Encourage independent thinking and competitiveness.
  4. Productivity thru people Create employee awareness that best efforts are essential and that they will share (rewards) in organisational success.
  5. Hands-on, value-driven Insist that executives keep in touch with the essential business. Promote a strong corporate culture.
  6. Stick to the knitting Remain with the (core) businesses the organisation knows best.
  7. Simple form, lean staff Few administrative layers, few people at the upper levels.
  8. Simultaneous loose-tight properties Fostering a climate with dedication to the organisation's central values plus tolerance for all employees who accept those values.
  1. Leadership Visible top management, clear Board objectives and creation of an organisational environment in which managers can lead.
  2. Autonomy Encourage entrepreneurial spirit and action amongst members of the organisation.
  3. Control Entreprenuers - yes - but maintain tight controls on areas that matter. Balance strict controls with flexibility needed to react to market conditions/opportunities.
  4. The Involvement Factor - generate high levels of commitment amongst management and push this commitment down to the shop floor.
  5. Market Orientation - understand (ask, listen) and interact closely with "the market" (customers) with quality control intrinsic in everything.
  6. Zero Basing i.e. keep in touch with business fundamentals. Successful companies either never get away from the basics of the business or, if they do, are quick to revert to them.
  7. The Innovation Factor - have a continuous interest and commitment to things new, to the process of change.
  8. The Integrity Perception - build integrity into ways of doing business. It is not out of place to talk of a "passion for integrity". It applies equally to employees, customers, suppliers and the community.

Michael Porter
Competing Forces & Generic Strategies

In addition to the above, Michael Porter suggested that businesses must respond to five competitive forces. He recommended three generic strategies to out-perform competitors or maintain a market position against competition.

Written by Chris Jarvis for the BOLA project