Life Lines

Certain qualities separate greatness from mediocrity. The same principle applies to great companies. The road to greatness is not paved. But these companies have somehow found the way to attain remarkable results and succeed in a big way.

What do great businesses do well? Why do other companies fail to attain greatness? The answers to these questions require careful examination of great businesses’ practices. Fortune Top 500 companies have manifested time and again the following traits that set them apart from the crowd:

1. Hire Only the Best. Recruiting only the best people to the organization is the first and most basic characteristic of a great company. This is a top priority activity. The right and best people are self-motivated. They strive for excellence in their jobs even if the company is not dangling various perks or telling them what to do. They pursue excellence for the sake of excellence and for self-fulfillment, not for other reasons. A company with great vision but mediocre employees will still reap mediocre outcome. The people behind the company are the best resource that the company can have. If the company chooses the wrong people, the choice will come back to bite them later. This is the secret behind a company’s greatness: they hire only the best and the right people for the job.

2. Competitive advantage. Great companies provide unparallel products or services that are useful to consumers. Their products or services provide value to their customers. The company must have an edge over its competitors and they should exploit this edge to drive sales.

Take for instance, a grocery store that sells cheap products. The low pricing strategy of the grocery store gives it a competitive edge over other stores. Exploiting this advantage means highlighting the price aspect in marketing activities. Letting customers know through advertisements that they offer the most affordable meat cuts or orange juice is one way of exploiting the competitive edge they possess.

It is not necessary to have competitive edge at all levels. Focusing on one aspect alone is enough. For example, if the company does not offer low priced products but do offer superior products, then they can focus on that aspect. Highlighting leverage is an excellent strategy utilized by great companies.

3. Sustained excellent performance. Sometimes greatness does not happen overnight. Going from good to great requires continued practice of excellence. Great performance sustains the momentum until the time comes that the company attains excellent results. It is an endless cycle consisting of resolute action, brutal honesty and commitment to the vision. Generally, it takes three to four years before a company attains greatness. Some may take longer than this.