I was recently asked the following question by a client: “What are the top three things you see in successfully run companies?”  Here’s what I told him:

The three key areas where all successful companies strive to excel are Human Resources, Finance, and Administration.

The first is critical.  Great leadership strives to create and build on a culture that is people-oriented, inclusive, and inspiring.  If these elements are missing, the company lacks a leader who leads by example, casts vision to the staff, and brings people together to accomplish team-oriented objectives.  It is the leader’s role to set direction, establish priorities, harness resources (particularly human resources), and cultivate people to achieve great results.

Second, financial success may not be the primary focus of every great business (some are extremely mission-driven), but it is certainly a strong measure of achievement and accountability based on a sound return on investment.  As the old saying goes, “no money, no mission.”  Every successful company, business, even nonprofit, is fiscally sound, has good governance and oversight, and strives to receive a good return on investment.  Companies and organizations in financial trouble struggle in the other two key areas.  Those that are well-funded are free to grow and build success upon success.

Third, solid administration is vital for any company, business, or organization to grow and prosper.  Without good organizational structure and efficiency, leaders can’t “manage” their growth and profitability, and can’t streamline operations to create a smooth-running business.  Perhaps not initially, but eventually, a lack of good organization and administration causes confusion within the company and a degradation in many areas of the business.

So the next time you do an assessment of your own business, department, or project you lead or manage, use these three principles as a guide to evaluating your success.  My bet is that if any of these areas needs improving, your focus and attention on them will lead to greater success.

Tags: Advice, Business, Business Development, Developing Leaders, Direction, Leaders, Leadership Excellence, Leadership Skills, Management, People Leaders, Personal Development, Philosophy, Reality, Sales, Success, Team, The Mind of a Leader