Most people would associate sustainability in today’s world with the environment. That is an important context of sustainability, but not the only application of the concept.
Sustainability is defined as relating to or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged.
If we think about this related to a sustainable business, it would be one that can operate in perpetuity without exhausting its resources or being irreparably damaged. What are those resources? Humans, cash, all the things that cash buys, customers, the list goes on. Damaged how? Reputation, profitability, growth ability.
Sustainability in your business provides for the reduction of risk associated with owning and running the business. Sustainability requires a set of standard processes and an organizational structure that the business uses.
A software system(s) that executes standard processes proven for your business is essential for success. Ensuring the processes are in place and compatible with the system(s) before software implementation is the most overlooked part of sustainability and success of the system.
Software by itself solves no problems and is not automatically sustainable. It requires standards of its users, and the executed processes within and outside of the software. Without standards there is little guarantee of consistent execution or results. Software speeds up the execution of tasks and the delivery of outcomes. Standard processes that are compatible with the software ensure that the inputs and outputs of the system are correct and consistent.
Establishing a standard set of roles and responsibilities that outlines who is to do what and where, and how information handoffs or process execution should occur, provides clarity and sustainability. Narrowing the responsibilities of roles in structure allows team members to perfect their fulfillment of the role through consistent practice. It also makes it easier to hire people to fulfill these roles as the business grows or as new team members are needed.
The mastery of all tasks is not sustainable; few people are capable of doing everything well, by knowledge or profile. However, individuals who can or have mastered specific areas of knowledge are more common. For example, separating new contract sales from renewals and enhancement sales, and separating all of these from operations management, will best fit the profile of the best at each. Finding and cultivating new relationships (e.g., contract sales) are one typical profile, while maintaining existing relationships and solving the latest problems for those clients is a second common profile. I call them hunters and farmers. The profile of a person good with planning and resource allocation but not necessarily wired for building or maintaining client relationships is best suited for an operations management role.
Sustainable businesses are the minimum expectation for success today. They can compete for customers, team members, cash and essential resources to grow and be profitable. They can weather any storm and outperform the competition. They can provide a long-term platform capable of giving career opportunities for generations to come.
David Gallagher is principal for Spiritus Business Advisors. He has over 25 years of experience as a senior service-oriented leader on all aspects of property service. Contact him at david@spiritusba.com.