In the first of this series of articles, we will be unpacking the various factors that make up a successful business.
The roles they each play and how they impact the business. If any of these factors listed below are not a part of your business structure, you should ask yourself why, and re-evaluate your business model.
In subsequent articles we will unpack what each factor means to your business, and how to get the most from your systems.
Related: 7 essential principles for business success
Achieving business success
During a recent study it was found that managerial ability as measured through attributes, leadership and strategic ability are important factors in the achievement of business success.
Of these factors leadership has the biggest effect on business success which is measured through profitability, sustainability, growth and customer satisfaction.
These factors can be categorised into four sectors; the entrepreneur (management), the micro-environment, the macro-environment and the market.
Contributing factors are more effective where managers are able to adjust strategies according to their capabilities, human capital available and the macro-environment.
Integrating business processes
Business management consists of six factors; human resource management, supply chain management, quality management, production, technology and financial management.
Here human resource management is the major contributor. However, and here’s an interesting point: turnover will not necessarily increase with increasing human resources.
Business process management, which permeates every part of the business and is required to secure a standardised output, can be divided into two sections; business process infrastructure and business process management.
Business process infrastructure can be measured through three variables: business location, facility layout and technology utilisation. Business process management is measured through five independent variables; production-, human resource-, supply chain-, financial- and quality control processes.
Production processes and supply chain processes will enhance efficiencies and productivity, but will not directly contribute to business success.
Business process management should be implemented across the entire business and integration between the various silos is incredibly important. Efficient facility layout enhances business success, but effective technology utilisation is of utmost importance.
To improve quality control processes, total quality management should be a focus. To positively affect profitability, financial processes need to be enhanced.
Efficiency of human resource processes includes recruitment, selection processes, administration, on-boarding processes, performance measurement processes, policies and procedures, disciplinary procedures and ergonomics.
Marketing and customer relationship management has a strong positive relationship with business success.
To enhance business success, marketingand customer relationship management should not be neglected.
A ‘success recipe’ can be developed from the research through the development of entrepreneurial abilities (especially leadership abilities), continued research and development to identify threats in the macro-environment, and the development of marketing and customer relationship strategies to address the correct target market and deliver according to customer requirements.
The alignment of product or service with customer expectations, well planned and effective facility layout, correct technology utilisation, effective human resource capacity planning, implemented policies and processes, implemented quality control processes throughout the supply chain to ensure standardised output and the creation of operational excellence through business process management are also all important.
Related: 25 Characteristics of successful entrepreneurs
All factors should be interrelated and integrated while continuous improvement strategies and total quality management should be a focus and a goal at all times.
It’s obvious that the achievement of business success is a complex issue with many interrelated factors impacting thereon.
To achieve business success requires an intensive focus and management of the various factors. Personal development and the continuous development of leadership capabilities and knowledge will enhance business success.
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