Four key factors to organisational success

What are the key factors to look for when considering the environment an organisation operates in?

This has been a recurring question arising from my recent conversations with CEOs and managers, and one worth exploring further.

In our PURPOSE, PEOPLE & PERFORMANCE model - the very first step is to consider the Environment (the other two are Comparative Core Competence & Value Creation).

Environment Analysis can take various forms - but from a commercial view point there are three key factors that we look for to help with decision making.

It is worth noting that this is a very simplified model and from quite a narrow perspective.

Secondly, a one-dimensional pursuit of profit can be dangerous when determining organisational PURPOSE.

As Peter Drucker so eloquently put it, organisations do not exist to make a profit, rather they make a profit so they can exist.

Noting the above, when considering the organisation and the environment, the simple four factor test we use is: Recurring Revenues; Sust…