Not one of the original 12 members of the Dow when it launched on May 26, 1896, are still on the Dow Jones Industrial Average. General Electric, the last original member, lost their position in 2018.
A recent study by McKinsey found that the average lifespan of companies listed in the Standard & Poor’s 500 in 1958 was 61 years. Today, that lifespan is less than 18 years. McKinsey believes that by 2027, 75% of the companies currently quoted on the S&P 500 will have disappeared.
Seeing so much tumult in two of the most recognized market indices is a reminder of
how challenging long-term business success is. Companies that don’t evolve and adapt, fall aside.
Embarking on a journey through the tumultuous seas of the business world, leaders find themselves at the helm, tasked with the responsibility of guiding their organization towards success. In my role as a seasoned executive, I’ve had the unique opportunity to navigate these turbulent seas and lead companies towards clear waters.
Over the years, I’ve discovered that there are seven vital business practices that can help ensure sustainable progress and results. In the series of articles that follow, I will be delving into each of these seven practices, explaining their significance, and providing practical insights drawn from my experiences.
- Define a Mission and Vision.
- Establish a competitive advantage, or a “Reason to Be”.
- Develop an effective Organizational Plan and Structure.
- Build a Team that is strong, integrated and shares a common culture aligned with the Company’s Mission and Vision.
- Create Strategic and Tactical Plans that combine long term business strategies with near term tactical plans that support achievement of the longer-term objectives.
- Develop financial and operational Performance Objectives that quantifiably measure progress.
- Embrace Change. Operating strategies rarely follow the projected path; create an organizational culture that is nimble and capable of adapting quickly.
While there is nothing that can guarantee success in business, effective execution of the seven business practices outlined above can substantially improve your odds.
