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Insight & Analysis - February 28, 2022

5 Traits that Separate Good Companies from Great Ones

Many businesses have decent ideas, but great companies implement exceptional ideas correctly.

The subtle difference between good companies and great ones is that exceptional companies have undergone a significant cultural shift in which the system of operating and executing tasks has been inclusive and decentralized.

Companies that adopted the cultural shift increased their revenue by 10%, while 16% experienced over 30% increase. The increase was mainly seen in customer engagement and satisfaction, productivity and efficiency, employee engagement and satisfaction, and product/service quality.

According to a report from ThoughtSpot, when employees are given the autonomy to make key choices in specific tasks, 87% of companies will be more effective. Also, 32% of organisations empowering their staff with information experienced a substantial gain in product or service quality, while 28% increased productivity or efficiency.

Here are traits you can use to know if your company belongs to the category of good companies or great ones.

Execution

Greatness is determined by how well you execute your plan. Companies that excel in execution are great. They complete tasks. Many businesses have decent ideas, but great companies implement exceptional ideas correctly.

In executing tasks in great organisations, all the employees are unified and working as a team to make an amazing product, offer a valued service, or build something that everyone considers to be of great value. All employees have a firm conviction in the product and a great love for it. Employees make efforts to accomplish only the best in their jobs because they care about the end outcome.

Have trust culture

Building trust is not a day journey, it takes time to develop, and great companies have ensured to build trust with their employees and customers. Trust extends beyond whether or not you provide a high-quality product or service.

While it is critical to do so, it is insufficient. Your goal and values must make it apparent that you stand for more than simply profit. Through this, great companies have gained long-term customers, who are ready to go through thick and thin with them.

Also, employees at great companies have faith in their employers and know that they will be treated fairly, respectfully, and honestly. Great Companies recognise that trust is an effective retention strategy. Though there will always be a clash of interest and decisions, employees believe that the decisions will be ethical, lawful, and ultimately beneficial to their success.

Great Companies Have the right set of people

In every great organisation, employees are essential. The firms value employees’ feedback and pay attention to it. Through the feedback, companies make smart decisions that propel them to another thatch hood. Great companies give reviews to employees and ensure they get feedback about the employee’s experience.

These companies also know how to take criticism in stride and never make employees fear that providing constructive input would result in dire consequences. Apart from giving back constructive criticisms, employees at great companies take joy in their job. This is because they feel at ease in the company and are aware that their contributions to the product contribute to the company’s objective.

According to the President and CEO of PayPal, Dan Schulman, his employees are his number one priority.

“…while I serve at least five different constituencies: employees, customers, communities, shareholders, and regulators; my number one constituency is my employees. And I’ll say that in front of any shareholder,” Schulman boasts. 

Allow employees to learn and grow professionally

Great companies encourage employees to work outside the scope of the traditional way of working. According to this data, more than two-thirds of executives said they train their employees to utilise digital tools, while 46% said they teach them how to interpret and use the information.

Employees are also motivated to use the information to make data-driven autonomous decisions. Giving them trust and authority was considered crucial to the company’s success. Although there is still an office hierarchy, everyone in the company, from CEOs to middle managers to frontline workers, are involved in different programs that broaden their knowledge.

Great companies are purpose-driven

They all have a well-defined purpose for existing, and everyone recognises and value them. Every employee is privy to this and knows their role in accomplishing the goal.

Great companies foster a work atmosphere that values and promotes achievement, honesty, mutual respect, and fairness among their valued personnel. Because that is also the objective of conducting business, they create a culture where people work hard to achieve something and are rewarded for the effort.

READ ALSO: 10 Most Profitable Companies in Nigeria

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