We explain what a successful organization is and its main characteristics. In addition, we discuss its importance, what B Corporations are, and more.
What is a successful organization?
A successful organization is an institution that manages to conduct its activity over time, be profitable and financially sustainable, while generating a positive impact on people and the environment as it achieves its objectives.
An organization is a group of people working collaboratively to fulfill a common goal, and it may or may not be for-profit. In the case of businesses, their main purpose is to generate profits. However, raising capital does not in itself turn an organization into a successful entity. If a company does not contribute to the development and wealth of society and does not preserve the environment, it cannot be considered successful, even if it is a profitable business.
In the case of non-profit organizations, success will be measured by the extent to which it achieves its medium and long-term objectives, and ensures the survival of its activity.
- A company that is only focused on profit, and does not measure the impact of its activity on the environment, cannot be considered successful.
- Organizational success means managing to create a three-fold impact or triple bottom line: developing a profitable business activity, promoting social rights and social welfare, and preserving the environment.
- A successful company keeps its commitment to accountability and transparency over time through its internal and external communication.
- See also: Intelligent organization
Characteristics of a successful organization
The main characteristics of a successful organization include:
- The ability to adapt and modify its performance in the face of an unfavorable external context or internal issues.
- An organizational culture that promotes commitment among company members.
- An internal structure organized into functional areas reporting to a leader.
- The implementation of orderly, clear work processes that are known and learned by employees.
- Continuous learning to improve and progress.
- Human resources management participates in the recruitment and management of staff, based both on their abilities, as well as on their interests and motivations.
- Constant assessment and control of the impact the company's activity has on communities and the environment.
- Transparency in internal and external communication, which must be consistent with its actions.
- Profits, the contribution to the community and the planet as parts of the same goal. If a company fails to develop in these three aspects, it will only be focused on profit.
- Presence in the stock market, which shows valuation of shares and solvency.
Indicators that measure organizational success
Key Performance Indicators (KPIs) are quantifiable measures of process performance. They are variables or units that provide useful data that can be measured and analyzed to obtain key information for decision-making.
Measurement indicators make it possible to analyze various metrics such as customer service quality, number of sales per week, website visits and sections with higher traffic, customers’ age and preferences, and the product's competitive advantage compared to the competition, among other variables.
In order to establish suitable indicators for the business, realistic and quantifiable metrics should be selected, through questions such as:
- What do we want to find out or analyze?
For example: We want to find out the main qualities that customers prioritize when buying our products.
- What is the purpose of knowing this data?
For example: The purpose of knowing this data is to focus our sales strategies on these qualities in order to have a competitive advantage over our competitors.
- What exactly do we want to measure?
For example: We want to measure the values of our products according to customer criteria.
- What tools can be used to perform this type of measurement?
For example: This measurement can be performed through brief post-sale surveys, sending personalized emails, based on the analysis of customer comments and ratings.
Nowadays, organizations aligned with the B Corporation concept are considered successful companies. This is a certification received by companies that are institutionally and legally committed to generating a positive impact on the planet, in addition to generating profits.
B Corporations create a three-fold impact: economic, social and environmental. If a company maintains a balance between its activity and its positive impact on communities and the planet, it is considerd a successful organization.
B Lab is a nonprofit network that certifies companies who wish to register and meet the standards to be considered a B Corporation.
The main characteristics of B Corporations are:
- Having a purpose. The purpose of the company is to meet a social and environmental need through its business activity.
- Being accountable. The implementation of continuous improvement processes contributes to maintaining a B Corporation over time.
- Being transparent. The company's communication and actions are consistent with B Corporation standards.
Importance of successful organizations
A successful company is able to use its business strength to offer real solutions to social and environmental problems. It is therefore important and necessary to ensure the development of life in society.
The global social system requires economic development and a market in which multiple organizations and businesses operate. However, if development does not respect and concerns for the preservation of the planet, it is not feasible in the long term. The goal of companies should not be to be among the best in the world, but to be one of the best for the world.
- Rizo, M. (2021). Tres E de las empresas exitosas. https://www.grantthornton.mx/.
- Dyzenchauz, G. (2015). Los 4 pilares de una cultura organizacional exitosa. https://blog.gointegro.com/.
- Montoya Agudelo, C. A. & Boyero Saavedra, M. R. (2016). El recurso humano como elemento fundamental para la gestión de calidad y competitividad organizacional. Revista científica Visión de Futuro, vol. 20, núm. 2, pp. 1-20. https://www.redalyc.org/.
- Estévez, R. (2014). ¿Sabes qué son las Empresas B?. https://www.ecointeligencia.com/.