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5 Principles of Enduring Success

  Aug 12, 2011
 

Strathmore Business School was the hub of information during the TOP 100 breakfast session held at the business school and sponsored by Victoria Furnitures on Thursday 11th August. The key note speaker, Prof. Christian Stadler addressed the 2010 Top 100 SMEs during a breakfast session dubbed ‘5 Principles of Enduring Success in Your Business.’

The 5 Principles of Enduring Success was based on a study that begun in 2003 and targeted top European companies that were at least 100 years old and survived world wars, the great depression and the recent financial crisis. The top companies were compared to companies that had similar start up conditions.

The strategy expert from Bath School of Management, UK presented the 5 principles as:

  • Exploit before you explore
  • Businesses should be innovative but more importantly, they should exploit their innovations. They should create better and more effective products for the market which increases their competitive advantage. Top companies embrace innovation as it leads to growth.  However the distinction between the good and the great companies is the ability to exploit their innovations.

  • Diversify into related products and markets
  • Businesses that want to maintain competitive advantage, position themselves as related diversified businesses. They grow into related businesses which allows them to leverage on their resources and skills and in turn avoids the risks associated with having a narrow focus.

  • Learn from your mistakes
  • This principle ensures that the prior mistakes made by the company are not repeated. Businesses should embrace their mistakes and learn from them. This will prevent history from repeating itself.

  • Be conservative in finances and beyond
  • Businesses need to build reserves and conserve their finances. Top companies conserve their finances by avoiding the need to grow at break neck speed. This ensures that the company can survive future crisis periods and grow by purchasing related struggling companies.

  • Change in culturally sensitive way
  • Businesses should be intelligently conservative. The world is dynamic therefore it changes. Companies should be adaptive to the dynamics of the world and change in a cultural and sensitive way in that they put into account their own culture and values. Businessses should consider the values inculcated within the organisation before effecting change.

    Click here to view pictures of the day that was.

    To view the presentation, click here.



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