To be a great company, a business must meet four criteria:
1. Performance – generate enough cash flow to be self sustaining, and possess a solid track record of meeting other objectives.
2. Impact – Play a significant leadership role in shaping its industry. Not necessarily the biggest company; influence can be by innovation rather than size.
3. Reputation – Admired and respected by people that do not work for the company, to the point that it is often cited as a role model.
4. Longevity – Has staying power and remains healthy for decades.
So say James Collins and William C. Lazier, authors of the book “Beyond Entrepreneurship”, which I just finished reading. This is one of the many gems I’ve picked up over the years by visiting mom-and-pop bookstores that trade in old books.
What really struck me as I read this book is how the authors took a different approach from the same old advice that is always being published for entrepreneurs:Â have a business plan, be sure to define your market, have sufficient capital, good vendor relationships, etc. etc.
Don’t get me wrong, this advice isn’t unimportant, it just isn’t anything new. Once you have all these elements in place, exactly how do you grow your company so it isn’t just a small business that provides a nice living, but is instead an entity that will last and have real, substantial value?
Collins and Lazier focus on five key elements that, when properly executed, will enable a company to meet the four criteria listed above:Â an effective leadership style, a clear and compelling vision, a well-defined strategy, an innovative corporate culture, and tactical excellence.
The hardback edition, originally published in 1992, is only 220 pages. A nice bonus is the “Notes to Chapters” section at the end of the book, which lists the incredibly extensive list of sources the authors used when compiling the book. This section alone provides a nice reading list of material that can keep you occupied for many months of reading.
If you would like to read the book, it is available through Amazon. Just click on the link below.
