Five factors that affects organization success

The first key factor, that will ensure the success of an organization, is the ability to manage its collective expertise. Those who can tap and nurture these expertise will further increase their value. As a person, you have the needs to develop, and as an organization, it will get a lot of advantage if it can accommodate this desire to grow.

The next thing to have as an organization is the source of income. Income will be used to sustain the daily operation of an organization, and make enough profit to grow bigger ( and satisfying your stock holders, if you have any ). The clients or customers play important role here. To get the maximum advantage out of them, an organization needs to build a good relationship with them. This relationship must be based on mutual respect and fair play.

Good service or quality needs to be in place in order to retain customers. This is an important aspect because it defines an organization’s sustainability. Customers who are disappointed with its level of service/quality will tell their families or friends. This will be some sort of chain effect that might ( and possibly will ) cripple your income. A good case study around this subject was Dell, who was considered having poor customer service. What’s interesting to see here is the ability of the customers to found each other in the internet ( there were actually a lot that feels the same ) and later on spreading their complains through various blogs and forums.

When you have a sustainable organization, it means that you will be in the market for long period of time. Surely you will need to invent new product/service, or in other term, to innovate. Through innovation, you will embrace new development in your expertise field, and it might even lead you to a totally new market. The impact for an organization not to innovate is not immediate. Rather, it will cost the organization in the long-term run.

Along the way, the organization has picked vast amount of experiences in its expertise field. By using all of these experiences, the organization can assume the role of thought leadership. The term was first coined in 1994 by Joel Kurtzman, which means that your organization is capable to spearhead new initiatives. Such initiatives can broaden the reach of your field, while in the same time creating new chances for others to spur new businesses. Not to be confused with innovation, with thought leadership you will need to cooperate with others. It can be considered as a joint-venture between parties to gain mutual advantages.

And as a closing, organization will not cease to function when it becomes a thought leader. The new initiatives that are proven to be successful will be absorbed as part of daily business process. As new businesses grow, new competitors also come into play, which means that the organization will needs to stay innovative. All of the steps are repeated again in a cycle that keeps the economy revolves.