The views expressed by the business participants are their own.
The key to business success is the strength and spread of the company’s core values in all its operations. These principles help shape the company, drive performance and increase employee engagement and retention, ensuring its future sustainability.
A smooth sailing vessel will endure volatile times, especially during black swan events such as the recent Covid-19 pandemic, which has challenged business environments around the world.
Customer loyalty is probably the most important factor in the growth and stability of a company, but what creates this kind of loyalty to a particular company or a particular product?
This is an important question to answer as the data clearly shows that many, if not most, businesses around the world, especially in the US, struggle to survive within the first five years of establishment. According to the US Bureau of Labor Statistics, about 20% of businesses fail within the first two years, 45% fail within the first five years, and 65% within the first 10 years – a trend that has remained constant since the 1990s. .
Related: Looking for a Company that Lasts Forever? This Simple Business Strategy Is The Secret To Longevity
Despite figures like these, some businesses have been around for a long time. And interestingly, many of the oldest companies in the world are family businesses. Family businesses tend to be better survivors of tough times, as shown by those who managed to survive the UK recession of 2008.
Kowloon Motor Bus Company is also a fourth generation family business. Currently under the umbrella of Transport International Group, it is the largest and oldest transport company in Hong Kong. Since my grandfather William Louey Sui-Tak founded the company in 1921, it has survived the occupation of Japan during World War 2, economic crises and more recently, the Covid-19 pandemic.
My personal experience and love for family businesses has helped me to see the use of family values in the company’s core values as the secret of success. Below are five values that make a healthy family dynamic, according to data provided by WebMD. I believe that these important family values included in the company’s core values are very important in ensuring the future survival of the business.
1. Empathy is good in business
Empathy is the ability to understand the feelings of others, and this is an important personality trait that is important to develop family relationships and old business relationships, especially those within the company itself. This skill can be developed through training and serious practice and should be used as a core value.
Empathy within the context of a company means listening to the needs of employees and customers, which creates trust that will help the business survive challenging times and thrive. According to the World Economic Forum, it is also an important tool to ensure the sustainability of an organization, as it has the potential to create a better work environment. Empathy has also been identified as an important aspect of future competence by the Council of Europe.
Related: 4 Reasons Why Empathy at Work Makes Business Sense
2. Honesty is the best policy
Either way, honesty and transparency are family values that can be applied to your company’s core values. Although honesty is generally considered an important factor in the business environment, economists would argue that dishonesty can also bring benefits, in some cases often more than honesty itself. However, a Harvard Business Review The article argues that there is a reason to be honest, even if it doesn’t pay.
The longevity of a business can be linked to having a reliable reputation, and it shows in the example of the Exxon study, where the oil giant persuaded the city of Valdez in Alaska to accept a tanker terminal by promising that a tanker spill was very unlikely and that it would be controlled in a few hours. When 240,000 barrels of oil were spilled, the promised cleanup never materialized. So far, the cost of this broken promise is estimated at $2 billion, and because of Exxon’s actions, the oil and gas industry has been banned in Alaska.
3. Respect can help us walk in unity
It goes without saying that respect is very important in business, especially when it comes to internal cooperation in the workplace. Respect reduces the likelihood of a conflictual workplace and creates cohesion between employees and management. This creates a harmonious work environment that is likely to encourage employees to stay with the company and help the business grow and prosper.
4. Loyalty ensures longevity
Employee loyalty ensures employee retention, which strengthens the company and increases its chances of survival in the future. More importantly, what really drives a company is the loyalty of its customers, which brings in constant revenue streams and profits, which are the essence of a business’s longevity. Ways to build customer loyalty include providing high-quality services, creating memorable experiences, introducing attractive loyalty programs and communicating effectively with customers.
Related: You Need Loyal Customers for Long-Term Success – And Getting Them Is Easier Than You Think With These Strategies
5. Patience ensures success
Patience predicts business success and longevity, according to a study by MyCompanyWorks. While this trait is also an important family value, in business, it serves as a powerful mindset that can help you face market competition and economic uncertainty and solve problems with resilience, determination and focus.
Patience also helps businesses achieve long-term goals, and using this trait as a core value will help a company build future-proof and risk-ready strategies. This is one of my favorite aspects, as I strongly believe in learning from mistakes and finding ways to move forward despite setbacks.
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