Businesses project and position themselves for growth and long term success, making certain aspects such as finance, management, and sustainability vitally important.
This means keeping the growth or success of the company or business either at a break-even level or higher above. It also involves the qualitative and quantitative improvement in the business operations of a company or business entities.
However, in keeping the growth of a business going without diminishing, there are some core elements that entities should consider in making sure success is maintained. These are some of the top three vital things to consider in the pursuit of sustainability.
1. PRODUCT OR SERVICE
For manufacturing companies who deal in businesses of producing goods, it is incumbent such products are made of high quality materials and resources. Moreover, it is also important that materials be made of recyclable resources or biodegradable materials that return to nature once they have exhausted their usefulness. With that, there would be either reproduction of a particular resource to feed another industry or no waste to degrade the environment. On the other hand, with the service industry, apart from making profit from customers and product users, corporate social responsibility which transforms the lives of people in the environment should not be compromised.
2. RISK MANAGEMENT
Corporate planners have a task of controlling their exposure to risk and making sure it does not have an adverse effect on their day-to-day operations and final product or service. The tendency of managing risk can sustain a business or kick-out a business entity. In the course of such management of a risk, financial planners should identify, and analyse in order to mitigate uncertainty in any investment decision. It involves two processes, determining what risk is there in an investment and handling them in the best way to suit the objectives for investment. When a business invests in a multi-million investment project but fails to manage and control the risk associated with it, sustainability of the business would be hindered.
3. GOVERNANCE AND SUCCESSION PLANNING
According to BusinessDictionary.com, succession planning is identification and development of potential successors for key positions in an organization through a systematic evaluation process and training. Business leadership and governance involves tactical and strategic skills to successfully run any business entity. According to the Harvard Business Review (January-February 2013), strategic leadership skills requires the leader to anticipate, challenge, interpret, decide, align and learn. The research by Schoemaker, Krupp and Samantha postulates that, with the above six skills mentioned above, leaders should identify their strength and weakness in those areas and methodically optimize these abilities. Becoming a strategic leader means you can take your company to a long term level as it continually rakes success. Proper succession planning means fixing the square peg in a square hole; the right human resource performs the right responsibilities and therefore, productivity is achieved over and over again. The company should strategically build the plan to suit its vision and mission to keep the business entity going for a long time.