Firms of endearment: The secret to running a successful businessMay 11, 2022
Tony Byrne, managing director of Wealth & Tax Management
Tony Byrne, managing director of Wealth & Tax Management, has been inspired by a book on why a group of ‘widely loved’ companies are outperforming their rivals.
SOMEHOW, I knew the title would intrigue you so much you would have to read my article. I will not disappoint you. My article is based on a book I read recently about conscious capitalism.
Firms of Endearment: How World Class Companies Profit from Passion and Purpose draws from an extensive research study looking for companies that focused on endearing themselves to their customers, employees, suppliers, communities, and shareholders.
These FoEs are driven by “aligning the interests of all in such a way that no stakeholder group gains at the expense of other stakeholder groups; rather, they all prosper together.”
The authors and their research team narrowed their initial list of 60 companies to “28 companies we felt best manifested a high standard of humanistic performance” and did a financial analysis on these from an investor viewpoint. They found “these widely loved companies (those that are publicly traded) outperformed the S&P 500 businesses by huge margins, over ten-, five-, and three-year time horizons.”
The book dives deep into understanding what sets FoEs apart from their peers. It’s brimming with insightful stories and examples from many of the firms. Here’s a partial list of their “distinctive set of core values, policies, and operating attributes:
-Subscribe to a purpose for being that is different from and goes beyond making money.
-Actively align the interests of all stakeholder groups, not just balance them.
-Devote considerably more time than their competitors to employee training.
-Their employee turnover is far lower than the industry average.
-Consciously humanise the company experience for customers and employees, as well as create a nurturing work environment.
-Project a genuine passion for customers, and emotionally connect with them at a deep level.
-Consider their corporate culture to be their greatest asset and primary source of competitive advantage.”
If you are interested in advice on how to run a more successful business, why not take advantage of a one-hour Discovery Meeting either at our offices or by a video conference call at our expense worth £270 to each of the first three readers who contact us before May 31? You know it makes sense. We offer a great cup of coffee too but unfortunately not a virtual one. Ring us on 01908 523740 or for free on 0800 980 4516 or email [email protected].
The contents of this article are for information purposes only and do not constitute individual advice. You should always seek professional advice from a specialist. All information is based on our current understanding of taxation, legislation and regulations in the current tax year. Any levels and bases of relief from taxation are subject to change. This article is based on my own observations and opinions.