3 Reasons Why Your Business Isn't Moving From Good to Great
Every business owner dreams of taking their company from good to great. This concept, popularised by Jim Collins in his book Good to Great, focuses on the transition from being a merely successful company to one that outperforms its competitors and achieves sustained greatness. Yet, many businesses struggle to make this leap. So, what’s holding them back?
At Naked Accounting, we’ve seen countless businesses grapple with this challenge. Here are three common reasons why your business might not be moving from good to great—and how you can overcome them.
1. Clear Strategy and Vision
A clear vision and strategy are the foundation of a great company. They guide decision-making, align the team, and set the direction for growth. However, many businesses operate without a well-defined strategy, relying instead on short-term goals, and reactive decision-making. The focus on the daily minutiae.
Without a clear vision, it’s easy to get caught up in the day-to-day grind, losing sight of long-term objectives. Your business might be doing well, but without a strategic plan, it’s unlikely to achieve greatness.
Take the time to define a compelling vision for your business. You may need a weekend away from the office to get a clear mind to do this. What do you want to achieve in the next 5, 10, or 20 years? Develop a strategic plan that aligns with this vision and ensures that every decision you make moves you closer to your goal.
2. Do Your People Give a Damn?
Jim Collins famously said, “First who, then what.” This is one our favourite parts of the book, Good to Great, because it's pretty surprising. Most people wouldn't consider hiring people purely based on value alignment, and then slotting them into the correct role later. But value alignment in business - as with all relationships - is everything.
This means that before you can figure out where your company is going, you need to make sure you have the right people on board. Many businesses remain 'good' because they have a team of people with skills, but not necessarily a team of people who truly give a damn. Having the right people means more than just hiring talented individuals; it means hiring those who align with your company’s core values and vision. Hire based on attitude.
Evaluate your current team. Do you have the right people in the right roles? In the book, Shoe Dog by Phil Knight, founder of Nike, Phil shares that he moved team members around in different roles based on their passions. But those team members were always aligned to the Nike mission from the beginning.
3. Adapt or Die
Change is inevitable. It's also constant. The ability to adapt is crucial for any business striving for greatness. Companies that fail to embrace change often get left behind, becoming complacent with their current success and missing out on opportunities for growth and innovation.
Whether it’s new technology, shifts in the market, or evolving customer needs, businesses that go from good to great are those that continuously adapt and improve. They are proactive, not reactive, and are always looking for ways to innovate and stay ahead of the competition.
Foster a culture of learning and adaptability. Encourage your team to embrace change and be open to new ideas. Openly and warmly invite their ideas to the table - they may have golden wisdom they're not currently sharing with you. Regularly review your processes, products, and services to identify areas for improvement and innovation. Stay informed about industry trends and be willing to pivot - always!
Moving Your Business from Good to Great
Transitioning from good to great is not an overnight process—it requires commitment, discipline, and a willingness to make tough decisions. By focusing on a clear vision and strategy, building the right team, and embracing change, you can set your business on the path to greatness.
If you haven't read Good to Great, we encourage you to start there!
At Naked Accounting, we’re here to support you every step of the way. Whether it’s strategic planning, team building, or financial management, our cheeky yet professional approach ensures that you have the guidance and expertise you need to achieve your business goals.