I was going through the ‘Harvard Business Review’ and came across a very interesting article, which I would like to share with all of you. ‘The Four Principles of Enduring Success’ by Christian Stadler. Stadler along with Hans Hinterhuber and Franz have conducted the ‘Enduring Success Project’ and have come up with some of the best know principles that ‘performing companies’ would follow.
The goal is to understand why companies managed to perform at a very high level over a very long period of time. What do we learn from their experience?
The research extended not only to the American corporates but to the European companies too. The project yielded four main findings or what would be called as the “Four Principles of Enduring Success”
Let me give you the brief of the principles
a. Exploit before your explore
b. Diversify your business portfolio
c. Remember your mistakes
d. Be conservative about change.
Guess the heading themselves are self explanatory though stadler goes on to explain in detail about the principles in his article.
Giving example of Nokia, Stadler explains how Nokia deviated from principles and suffered due to the same, realized their mistake and turned to performance again!
He has given example of Top companies along with the comparison companies and has researched in detail about the various features followed. Some of the top companies taken for comparison were Siemens, Nokia, Allianz, Legal & General, Munich Re and Royal Dutcshell and the companies in comparison are AEG, Ericsson, Aachener and Munchener, Prudential, Cologne Re.
I must say that a real in depth analysis was made and conclusion which seemingly look so age-old does definetley work.