My first blog post illustrated the importance of daring to change in order to avoid organizational inertia. In that first post I highlighted a retailer I had grown up with in the UK: Woolworth’s. Once a household name, Woolworth’s failed to reinvent itself until it was too late. In this blog post I wanted to share 5 ways high performance companies rethink and reinvent their strategies before revenues from their current strategies start to decline.
- They invest in new capabilities: High performance organizations start developing new capabilities, before they lose their competitive advantage from their current ones. Apple is a great example of this.
- They focus on talent acquisition and retention: In this economy many companies have become complacent and lazy assuming that their employees can’t go anywhere. While this may be true for your mediocre employees, talent always has options and sooner or later may be gone. High performance companies continually focus on retaining and developing surplus talent that can help drive the business forward in the long-term.
- They continually scan the market: High performers don’t rest on their laurels, continually scanning the environment for new ideas in order to identify untapped consumer needs and improve their economic outlook. Like Jim Harbaugh of the San Francisco 49ers says, (shameless plug for husband’s hometown team), you are either getting better or you are getting worse, you never stay the same.
- They Innovate: High performance companies are risk takers who are not afraid of change. Successful managers recognize that the real risk is in not innovating, becoming stagnant and collapsing. These businesses have an internal environment that fosters creative thinking, and executives in these companies recognize that new progressive ideas can come from anywhere in the organization not just the C-suite. As a result employees are empowered by knowing that they have a role to play in shaping the company’s future success.
- They are agile: Today’s high performing businesses have agile organizational structures in order to be able to adapt fast to the increasingly unpredictable ever-changing business environment and take advantage of sudden market opportunities.
What do you think? Feel free to add to my list of characteristics of high performance companies in the comments section below.