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A key to business success is the strength and dominance of the company core values in all areas of its operations. These principles help shape the company, drive performance and increase employee engagement and retention, ensuring its sustainability well into the future.
A smooth sailing ship will endure volatile times, especially during black swan events such as the recent Covid-19 pandemic, which challenged the very fabric of business landscapes across the globe.
Customer loyalty is perhaps the most important factor in the growth and sustainability of a company, but what creates this kind of commitment to a particular company or brand?
This is an essential 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 US Bureau of Labor Statisticsapproximately 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 been quite consistent since the 1990s.
Related: Do you want a company that lasts forever? This simple business strategy is the secret to longevity
Despite statistics like these, some businesses are old. And interestingly, many of the oldest companies in the world are family businesses. Family businesses tend to be the best survivors during challenging times, as shown by those who managed to survive the 2008 UK recession.
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 Japanese occupation during World War II, economic crises and most recently, the Covid-19 pandemic.
My experience and passion for family businesses has helped me identify implementation of family values for the core values of a company is the secret of success. Below are the five values that make for a healthy family dynamic, according to data provided by WebMD. I believe that these core family values embedded in a company's core values are very important to ensure the survival and sustainability of a business in the future.
1. Empathy is good for business
Empathy it is the ability to understand the feelings of others, and this is a key personality trait that is important for nurturing family relationships as well as long-term business relationships, especially those within the company itself. This skill can be improved through training and conscious practice and should be implemented as a core value.
Being empathetic within the context of a company means listening to the needs of staff and customers, which creates mutual trust that will help the business survive challenging times and thrive. According to the World Economic Forum, it is also a vital tool to secure a sustainability of the organizationas it has the power to create a better work environment. Empathy has also been identified as a key the element of competence for the future from the European Council.
Related: 4 Reasons Why Workplace Empathy Makes Business Sense
2. Honesty is the best policy
In any case, honesty and transparency are highly valued family values that can also be applied to your company's core values. While honesty is often held up as an important value in the business environment, economists can argue that dishonesty can also bring profits, in some cases more often than honesty itself. However, a Harvard Business Review ITEM argues that there is a justification for honesty, even if it does not pay.
Business longevity can be linked to having a trustworthy reputation, and this shows in the Exxon case study example, where the oil giant convinced the Alaskan town of Valdez to accept a tanker terminal by promising that a spill was highly unlikely and that she would be checked in a few hours. When 240,000 barrels of oil were spilled, the promised cleanup did not appear. So far, the costs of this broken promise are estimated to exceed $2 billion, and because of Exxon's actions, the oil and gas industry is limited in Alaska.
3. Respect can help us move in unison
It is often self-explanatory respect is extremely important in business, especially when it comes to internal collaborations in the workplace. Respect reduces the probability of a conflictual workplace and creates cohesion between staff members and managers. This creates a harmonious work environment that is more likely to encourage staff to stay with the company and help the business grow and prosper.
4. Loyalty ensures longevity
Staff loyalty ensures workforce retention, which stabilizes a company and increases its chances of future survival. Most importantly, what really drives a company is the loyalty of its customers, which brings a steady flow of revenue and profits, which is the essence of business longevity. Ways to build customer loyalty include providing high-quality service, creating memorable experiences, engaging presentation loyalty programs and effective communication with customers.
5. Persistence ensures success
Perseverance predicts the success of the venture and longevity, according to research from MyCompanyWorks. While this trait is also an important family value, in business it acts as a powerful mindset that can help you face market competition and economic uncertainty and solve problems by being resilient, adaptable, determined and focused.
Persistence also helps businesses achieve long-term goals, and applying this trait as a core value will help a company build strategies that are fit for the future and prepared for risks. This is one of my favorite features, as I strongly believe learning from mistakes and finding ways to move forward despite obstacles.