Named Founder Friendly Investors 2021 & 2022 by Inc.
Angie Henson - August 29, 2023
● Why a successful business can be a core element of your legacy.
● The core elements of an enduring organization.
● Key principles and cultural attributes necessary for turning your business into an enduring organization.
● The importance of remembering your customers on your quest for success.
● Examples of iconic companies that have stood the test of time.
As we age, many of us start to consider the legacy we’re building. For some, that legacy is a family, for others, it’s generational wealth or a successful business. If your business is part of your legacy, are you creating an enduring organization that stands the test of time?
This post will dive into what it means to build an enduring organization and the key principles that help ensure your business can survive any long-term challenges it faces.
Enduring organizations have long been a topic of interest among scholars and experts. From Jim Collins’s “Good to Great” to Simon Sinek’s “Start with Why” and countless others, business leaders ceaselessly try to understand why some organizations create massive value for decades while others flash and fade away.
An enduring organization is defined as an entity that can adapt to changing times and remain relevant (and successful!) over an extended period. These entities often continue on long after the founders have moved on to other ventures.
However, it’s crucial to note the difference between sustainable and enduring when discussing organizations. Sustainable organizations maintain their operations and make a profit without depleting the environmental, economic, and social resources it depends on. On the other hand, enduring organizations have a much broader and far-reaching impact on society and the world.
Enduring organizations don’t stand the test of time by being rigid and unmoving. On the contrary, they are both adaptable and resilient. They possess the ability to reinvent themselves while still staying true to their core values.
Iconic brands endure because they establish a strong and recognizable identity even as markets and consumer preferences change. Strong talent management and an organizational culture fostering creativity, innovative thinking, and resilience are central to this success. Enduring organizations prioritize investing in employees, fostering a sense of community and purpose, and developing leaders who are able to navigate ever-changing business landscapes.
A central trait of enduring organizations involves a clear vision and mission that guides all decisions and actions. Company leadership must be able to identify and establish a culture that shares these pillars and is open to change and disruption, as transformation is key to long-term success.
Developing and empowering leaders who can drive transformation during hard times is crucial as they implement the vision and mission and establish buy-in from the organization. By fostering a culture of continuous improvement and providing opportunities for growth and development, leaders can positively impact the organization’s ability to achieve its goals and remain relevant.
By promoting creative thinking, collaboration, and experimentation, leaders create an environment of trust where people feel comfortable sharing their ideas without fear of judgment.
Encouraging diversity in perspectives is also critical, as it sparks healthy debate and helps unearth undiscovered solutions. Leaders can facilitate these mentalities by promoting cross-functional projects and encouraging teams to work together towards common goals.
Finally, experimenting with new solutions is crucial for cultivating an innovative culture. Leaders must empower their teams to test out new ideas and learn from their successes and failures. Businesses with these strategies in place can foster a culture of creativity and innovative thinking, ultimately propelling them to success.
To stay relevant, a business must remain appealing to customers, and customer satisfaction is a critical component in a business’s long-term success. To remain competitive, companies must constantly improve and adapt to market changes without losing sight of customers’ wants and needs.
This often means embracing new technologies and processes to create better products and services efficiently, because innovation alone isn’t enough.
Companies must also build strong customer relationships and stay in tune with their evolving needs and preferences. The key to long-term success is balancing innovation and customer focus while consistently striving for improvement.
Creating systems and strategies for sustainable growth in the ever-changing business landscape is essential for building a strong brand and reputation, but it’s not easy.
One of the key components is talent management. The best ideas are worthless if you can’t execute them. Attracting and retaining top talent who can deliver makes all the difference in achieving long-term success. By creating a culture that fosters growth and development while managing succession—because sometimes people move on—companies can ensure their success for years to come.
Few companies can match the track record of Toyota, Procter & Gamble, and Johnson & Johnson. These three organizations have stood the test of time and continue to dominate their respective industries through their unwavering commitment to innovation, customer engagement, and social responsibility.
Toyota has remained a leader in the automotive space by prioritizing sustainability and safety while embracing technological advancements. Through the “Toyota Way” they have also pioneered and perfected lean manufacturing concepts through continuous improvement methods like Kaizen.
Procter & Gamble—home of iconic brands like Pampers, Oral-B, and Gillette—has kept up with changing consumer needs and preferences by focusing on product innovation and marketing strategies that resonate with diverse audiences.
As for Johnson & Johnson, its reputation for high-quality healthcare products and philanthropic efforts has made it a trusted brand around the globe. Through the years, they have innovated medical devices and a wide range of consumer goods, making J&J one of the world’s most diverse and robust companies.
These enduring organizations serve as models for building a brand that stands the test of time and drives meaningful change in the world.
Building an enduring organization requires leadership, culture, innovation, and adaptability. To do this, you and your leadership team must have a clear vision and mission for driving transformation while fostering creative thinking, collaboration, and experimentation—always focusing on the customer’s needs. Through powerful long-term strategies such as investing in talent management, businesses can plan for the future while creating systems for sustainable growth to ensure their survival.
A sustainable organization operates in a manner that doesn’t deplete the economic, environmental, and social resources it depends on. An enduring organization stands the test of time—surviving market fluctuations, economic cycles, and changing business environments.
It’s not an overnight process, but one that can take years or even decades.
Setting a clear vision and direction, building a strong culture, sustaining growth, talent management and leadership succession, and risk and change management are all challenges many businesses face when building an enduring organization. Overcoming these challenges requires strategic planning, strong leadership, a clear vision, and a commitment to continuous improvement and adaptability.
Yes. Regardless of industry or size, any type of business can endure over time by focusing on creating value, adapting to changes, and fostering a strong internal culture.
Look at long-term financial performance and achievement of strategic goals. Measure customer satisfaction and employee engagement. Assess innovation, adaptability, and sustainability.